Monetran project has been to develop a stable token which can be used in everyday commerce, including for micropayments of $1 or less. The token has been designed not only to maintain its value, but to steadily increase in value over time. It is backed by short-term U.S. Government financial instruments and will be redeemable for a portion of the account that reflects the number of tokens in circulation.
Token Basic Information
Problems with Existing Cryptocurrencies
Popular cryptocurrencies which rely on blockchain technology, most notably Bitcoin, have proven unsuitable for use in everyday commerce for number of reasons. Primarily, Bitcoin’s transaction costs and lack of scalability precludes micropayments, which range in value from $5 USD to $1 USD or less. In addition, increased use of Bitcoin has caused its system to become slow and inefficient due to the ever-increasing amount of data which must be confirmed for each transaction.
The confirmation of such data is also a wasteful and expensive proposition due to the great amounts of energy needed to verify, or mine, these transactions. Finally, stability is a major concern for almost all cryptocurrencies, including Bitcoin, whose market price can swing by 10% or more in a single day.
Because of slow, expensive, unscalable, unstable nature of currencies which are the natural result of blockchain technology, none of those cryptocurrencies can serve as an everyday medium of exchange on the internet.
- It must be stable. No currency that has significant swings in value can possibly be used for ordinary commerce on the Internet.
- it must be scalable. Any currency that cannot be used to settle micropayments will ever be universally accepted as a viable medium of exchange.
- it must be economical. Tokens that cannot perform without charging significant fees will neither be desirable for use by customers nor accepted by merchants.
- The design of the currency and the platform that enables it must provide a method of swift, secure transfer.
- it must have tangible value.
- it must maintain, and preferably increase, its value over time.
- it should be redeemable for something of value. Any entity that issues currency should honor it by making it redeemable for an alternate item of value.
- it should serve as a store of value.
Key features of Monetran
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