Initial thoughts on The People's Reserve

I've just read The Peoples Reserve whitepaper:

Much thought has clearly gone into the implementation.

The best thing about it as opposed to many other 'blockchain' currencies (ie: Bitcoin) is that the 'consensus algorithm'  is not based on 'proof of work'. Think of the consensus algorithms as a computational way of confirming that everyone is seeing the same tamper-proof copy of a digital ledger which stores who has paid whom. Whenever you see a 'proof of work' implementation, look away. Bitcoin is a proof of work implementation and while it has made some people rich it is another ecological disaster: the bitcoin network, due to the 'proof of work' consensus mechanism, consumes more electrical energy than entire nations!

From the TPR Whitepaper.. I think Iota's Tangle is the our current best bet for energy efficient decentralised algorithmic trust.

My reservations about TPR are:

  • As they explain in their whitepaper, the value of the TPR coin is not pegged to the value of gold, nor are TPR coins redeemable for gold. However, TPR intend with their design to suggest that users of the TPR coin associate its value with the current value of gold. This seems unnecessary and confusing to me: what does the average everyday man, women and child know or care about the price of gold?
  • What is this proprietary stabilising feature that they refer to, and why should it remain hidden?

In addition to the above points, TPR just doesn't seem quite right to me. I feel that a combination of  small community currencies (see Simbi or CES or Matslats) for trading within our local municipalities combined with an efficient electronic decentralised ledger for our global economy can move us in the right direction. I feel it's logical for the global currency to be linked to the value of societies predominant energy medium: only those of us that live like the Amish can claim to not really be dependent on oil to meet all of our daily needs. Even if we don't use a motor vehicle ourselves and grow some of our own food, everything else still comes to us courtesy of large quantities of diesel and petrol derived from oil. Ask yourself, what would be more disruptive to your life tomorrow: 1.) A cessation of use and availability of all diesel and petrol? 2.) A lack of availability of gold? In your answer lies the argument to why a digital currency which aims for global or even national importance should not tie itself (even as an indicative value) to the value of gold.

Further, I don't think The Peoples Reserve markets itself well. They provide heaps of detail on their homepage which many potential adoptees will simply be bamboozled by. I feel that for global adoption all the digital currency concepts and underlying technical details need to be available for those that want to know about them, but kept away from the forefront. People simply need to know that:

1. There is a new means of trade and store of value.

2. This is how it works.

3. Here's how you get started.

Loyalty programs have done it for years. We used to do it when we went to the video arcade (Time Zone or perhaps Galactic Circus at Melbourne's Crown Casino for those of us who crew up in Aus) and exchanged our Aussie dollars for tokens to spend on gaming machines. We're close to doing it when we earn with PayPal: sure we can redeem our PayPal dollars for actual national currency by withdrawing them to our bank account, and then into cash at an ATM. We don't concern ourselves though with how PayPal implement their network however. Similarly, I think a mainstream global digital currency will have to orientate itself knowing that the majority of its users will not concern themselves with its technical implementation.

On that note, and also with respect to energy efficiency, MobileCoin impresses me. MobileCoin also has one up on the aformentioned Iota in that Iota aims and markets itself as the decentralised 'be all and end all' of the ' IoT (internet of things), MobileCoin is straight to the point: it's an energy efficient and secure digital currency. Watch this space...

Damien

Damien

Oceania