The Freedom Credit
A Truly Decentralised P2P Currency
- What is The Freedom Credit?
- The Freedom Credit Vs Fiat Vs Crypto
- Comparing Monetary Characteristics
- App
- Transactions
- Fees
- Value
- How Do I Get Freedom Credits?
- How Many Freedom Credits Are There?
- Where Can I Use It?
- Sending Technicalities
- What Is The Ledger?
The Freedom Credit is a concept digital currency.
The idea is for it to be a truly decentralised currency, unlike fiat and crypto currencies which are centralised, either by central banks or by their blockchain protocols.
The Freedom Credit aspires to be a real P2P (peer to peer) currency without having to require any kind of 3rd party verification to process transactions.
The Freedom Credit will be self custodial, meaning you and you alone control your funds.
Points are awarded for valuable qualities
Centralisation
Fiat - Yes, via people and organisations | 0 points
Crypto - Yes, via blockchain and mining protocols | 0 points
FC - No, decentralised, not owned or controled by anyone | 1 point
Inflationary
Fiat - Yes, which devalues the currency | 0 points
Crypto - No, which increases value | 1 point
FC - No, which increases value | 1 point
3rd Party Authorisation To Transact
Fiat - Yes, require banks authorisation to use your account | 0 points
Crypto - Yes, requires consensus of 3rd party miners to transact | 0 points
FC - No, only your authority is required to transact | 1 point
Value & Volatility
Fiat - Fluctuates value | 0 points
Crypto - Fluctuates value | 0 points
FC - Stable value | 1 point
Fees
Fiat - Fees for spending, storing, withdrawing and sending | 0 points
Crypto - Fees for spending and sending | 0 points
FC - No fees for spending, storing or sending | 1 point
Custody
Fiat - Don't have self custody of your account | 0 points
Crypto - Self custody and custodial accounts available | 1 point
FC - Only self custody available | 1 point
Format
Fiat - Digital and physical currency | 2 points
Crypto - Only digital | 1 point
FC - Only digital | 1 point
Ability To Be Manipulated
Fiat - Can be controlled by banks, governments and rich investors | 0 points
Crypto - Can be controlled by banks, governments and rich investors | 0 points
FC - Cannot be controlled | 1 point
Ease Of Use
Fiat - Easy to use | 1 point
Crypto - Difficult to use | 0 points
FC - Very easy to use | 1 point
Exchangeability
Fiat - Can be exchanged for other currencies | 1 point
Crypto - Can be exchanged for other currencies | 1 point
FC - Can be exchanged for other currencies | 1 point
Unit Of Account (Easy To Use Numbers)
Fiat - Sometimes | 1 point
Crypto - Rarely | 0 points
FC - Yes | 1 point
Example: Loaf of bread may cost 10,000 Vietnamese Dong, 0.00004 Bitcoin or 2 Freedom Credits.
Total Supply
Fiat - No limit | 0 points
Crypto - Varies, BTC 21 Million | 1 point
FC - 100 Billion | 1 point
KYC (Know Your Customer)
Fiat - Yes, require ID to open bank accounts | 0 points
Crypto - Yes, require kyc to purchase, sell and transfer most of the time | 0 points
FC - No ID is required to create a wallet or to buy or sell FC | 1 point
Transfer Speed
Fiat - Instant with cash or digital normally, in some cases can be a few days | 1 point
Crypto - Rare cases instant, most cases 5-30 minutes | 0 points
FC - Instant transfer | 1 point
Points As a Good Money
Fiat - 6 points
Crypto - 5 points
FC - 14 points
Yes = 1 point
Low = 1 point
Medium = 2 points
High = 3 points
No & extremly low = 0 points
Scarcity (Too much of a money causes inflation & devaluation, it needs to be limited)
Gold & Silver - Yes, have to mine more
Fiat - No, can simply print more on paper or in a computer
Crypto - Yes, most cryptos have a cap
FC - Yes, has a cap
Tomatoes - No, anyone can grow more
House - Yes, it takes a lot of effort and time to make new homes
Liquidity (Ease of conversion into or as a highly acceptable and usable form of value)
Gold & Silver - Medium, normally only specialised dealers will trade your metals for fiat
Fiat - High, most liquid form of money as it's divisible, highly accepted and can be exchanged for other stores of value the easiest and fastest
Crypto - Medium, have to use a kyc centralised exchange to trade into fiat or higher risk and fees via a decentralised exchange
FC - To be determined, aspiring to be even higher than traditional fiat
Tomatoes - Low, not everyone wants tomatoes or more than a couple, so difficult to exchange into other stores of value
House - Low, can take a long time to sell and exchange for a more liquid store of value
Acceptability (Do people accept the money as a means of exchange?)
Gold & Silver - Low, most business's don't accept specie (metals) as a form of value, some individuals will though
Fiat - High, provided you have the local currency, it will be accepted as valid money either as cash or digital
Crypto - Low to medium, only a small amount of businesses and individuals accept crypto
FC - To be determined, aspiring to be as high or higher than the USD
Tomatoes - Low, not everyone wants tomatoes or more than a couple
House - Low, because a house is not divisible, has such a high value and is only a single unit, it could only be traded for something of equal value, like another house
Durability (How strong is the currency physically, will it deteriorate and break?)
Gold & Silver - High, can be melted down and reformed, very durable
Fiat - Low, most paper currencies can be torn, burnt or easily destroyed. Some cash, like the AUD, is plastic, so is much more durable. Digital fiat is very durable as it's non-physical
Crypto - High, is non-physical
FC - High, is non-physical
Tomatoes - Low, tomatoes after a short amount of time rot, they can also be squashed and broken very easily
House - Medium, it takes a lot to damage a house, but time can erode the materials and natural disasters can destroy them
Portability/Exchangability (How easy is it to carry around and use locally and non-locally. Is it difficult to exchange due to being hard to physically move?)
Gold & Silver - Medium for small amounts, Low for large amounts as it can get heavy. Only good for local transactions.
Fiat - High, cash is lightweight and easy to carry, cards make it easy to withdraw cash from atms anywhere in the world, cash is good locally and digital fiat is good worldwide
Crypto - High, due to its digital nature, you can access your funds anywhere in the world with internet. It can be used locally and wordwide where ever anyone accepts it
FC - High, same as digital fiat and crypto, Credits are digital in nature
Tomatoes - Low, carrying enough tomatoes you'd need to trade for everyday living would be a hassle and practically a nightmare
House - Extremely low, some houses can be trasported, but at great cost! Only useful if someone wants it to remain where it is
Non-counterfeitability (Can it be fraudulently copied or produced)
Gold & Silver - Medium, metal that looks the same can be fabricated fraudulently
Fiat - Low, cash can be fraudulently counterfeited with the right equipment. Digital fiat is constantly fraudulently being produced by banks and governments via fractional reserve lending
Crypto - High, very difficult to impossible to counterfeit most cryptos
FC - High, very similar to crypto, aspiring to be impossible to counterfeit
Tomatoes - No, tomatoes are not fungible so anyone can make more via growing them
House - High, how would you counterfeit a house!?
Fungibility (Each unit of measurement is the same value)
Gold & Silver - Yes, each measurement by weight (gram, ounce, kilo) of the same standard (20karat, 24karat) is worth the same amount as all the rest
Fiat - Yes, all fiat whether cash or digital is worth the same as all the rest. A $100 AUD note is worth the same as all the other $100 notes.
Crypto - Yes, all units of a particular cryptocurrency, eg. bitcoin, are worth the same
FC - Yes, all Credits have the same value as each other
Tomatoes - No, tomatoes vary in size, quality and appearance
House - No, some houses are far more expensive than others
Divisibility (Can it be broken into smaller units?)
Gold & Silver - Low, a gram of gold currently has a high value, but because of this, it lacks divisibility and thus usability. Metal ingots cannot be easily divided into small pieces. Coins can be minted, but only with the right equipment
Fiat - High, cash varies from small denominations into higher ones. From cents to dollars. The same is true with digital.
Crypto - High, bitcoin is extremly divisible, with 8 decimal points after every 1 bitcoin. eg. 1.48568419
FC - High, similar to fiat and crypto, but with 3 decimal points.
Tomatoes - Low, you can slice a tomatoe in half, but then it loses value and you can only slice it so much
House - No, a house is only a single unit and cannot be divided
Store Of Value (Does it hold value over time?)
Gold & Silver - High, the value of gold and silver has continued to increase over time
Fiat - Medium, your $50 note will buy you the same amount tomorrow as it will today, but over time, it does generally depreciate
Crypto - Medium, crypto is highly volatile as its value is based on whatever the market is willing to pay, it's a risky and fluctuating store of value
FC - High, Credits have a fixed value to silver as explained below
Tomatoes - Low, because tomatoes are perishable, they only have value for a short time before they rot
House - High, typically the prices of houses rise over time as everyone needs somewhere to live and there's normally a population growth in most countries
Points As a Good Money
Gold & Silver - 16 points
Fiat - 17 points
Crypto - 19 points
*FC - 25 points
Tomatoes - 6 points
House - 11 points
*Assuming FC where as to be determined is high
The app works very similar to your standard banking app.
You can see your balance and transaction history and it's all colour coded. Green+ for incoming, red- for outgoing, black for your balance.
On the business page, you can search for businesses in your local area and around the world that accept Freedom Credits in exchange for goods and services.
If you have a business, you can create a page to advertise and gain new customers.
The app can automatically convert the value of Freedom Credits to your local currency's value.
To transfer credits face to face, present your QR code to receive, or scan theirs to send.
If you need to send credits non-locally, just use your custom username.
The whole process should only take a few seconds.
The Freedom Credit has no holding, sending, receiving, purchasing, selling or any fees to use.
The value of The Freedom Credit is linked to the value of 1 Canadian Dollar on the 30th of January, 2024.
1 Canadian dollar on this day could purchase 1g of silver.
On the 30th of January 2024, it took 1.13 AUD to buy 1g of silver.
If you wanted to buy 100 FC, you would need 100 CAD or 113 AUD or 528 Yuan.
Depending on how much it costs in your local currency to buy 1g of silver today, is the price you pay per 1 FC.
30th January 2024
31st March 2024
*Source - goldbroker.com
If you want 1 FC on the 30th of Jan, you'll pay 61.75 Indian Rupees.
On the 31st of March, you'd pay 66.91 Rupees for 1 FC.
Whatever it costs you to buy 1g of silver in your currency on the day you want to purchase FC, is how much it will cost you to buy 1 FC.
The fiat and crypto market fluctuates, but The Freedom Credit Value always stays the same.
When you want to buy Freedom Credits, you go to the apps website, enter the amount you want to purchase, then pay the amount.
The fiat you use to buy the FC will be held in a secure, independent, smart contract.
The FC will instantly go into your wallet account from the smart contract it was being safely held in.
If you want to exchange your FC for fiat, then you can select whatever fiat you want and provided there is enough being held in smart contracts from other peoples purchases, you can exchange your FC for the fiat of your choice.
If you bought 4,800 FC's for 4,800 CAD's on 30th January and wanted to instantly sell/transfer them back, you would simply do it with the smart contract which was created when you made your purchase.
There is a cap of 100 billion Freedom Credits and each credit goes to a 3rd decimal point. eg. 1.000/4.745.
The smaller units are called "Dits".
If there were 10 billion people on earth, that would mean everyone could have 10 FC's each.
Although in the real world, there is natural inequality so some would have more and some less.
The reason there is a limit to the amount of available FC is to prevent inflation, devaluation and fractional reserve lending.
There is only ever that amount of FC to be bought, owned and circulated.
Over time, this would lead to deflation and a fall in the prices of everything as we wouldn't be able to print new money on demand, which causes inflation and the ever rising price crisis.
Having a cap ensures stability, deflation and an increase of value over time.
Instead of your dollars losing their purchasing power over time, your Freedom Credits increase in purchasing power over time.
It also means that no one can start a fraudulent banking business and use fractional reserve lending (as per current banks), as no one has the power to make new Credits.
This will ensure a fairness and currency stability the world has never seen.
You will be your own bank.
The Freedom Credit is available to use in any country in the world.
Wherever someone accepts Freedom Credits, you can use them.
The app itself will instantly verify if you have the funds to send or not.
If you do, it will send the funds to the receivers account.
You can only send funds if you are logged into your account, which means you need to have access to the device which holds your funds, the password and the secret key.
The receivers wallet has a secret key which is connected to their QR code and username, as do you.
When your wallet signs your transaction as authentic and the receivers secret key matches who you intended to send to, it's done.
No other verification is required from any other 3rd parties.
This is true peer to peer, no middlemen or middle centralizing protocols.
When you send FC to someone else, a signal is sent to update your ledger/balance.
The ledger is stored securely on every users device, including yours.
The reason your account balance is not only stored locally on your device but on all users devices is for security.
If you only had your balance on your mobile, but then lost your mobile, you would lose all your money.
This way, if you lost your mobile, you would get a new one, login to the app with your credentials and your balance will be collected from the closest user.
This also means you can use as many devices as you want to log into your account/s.
It also circumnavigates the requirement of centralized hosting and servers.
By compressing the file and only having basic text such as username, password, account balance and transaction history, this info can be stored on all users devices.
If any attackers wanted to take down the network, they would have to attack every single users device/s.
Unlike bitcoin for example, miners only need 51% of the network to take control.
With the Freedom Credit, attackers require 100% control.
This eliminates huge vulnerabilities others currencies have via centralization.
It's similar to the blockchain which publicly records transactions, but The FC ledger is private, decentralized, more secure, faster, free and can't be blocked by anyone.
You can't access this file and see other users balances as it's encrypted and can only be unlocked with the correct username and password per user.
As long as you keep your credentials safe, your money is safe, even if someone elses account and password is compromised, even if you lose your phone, your laptop is stolen or all your devices are fried in an EMP blast.
Provided there is another user somewhere in the world with the app and ledger, you'll be able to recover your funds, as only the correct username and password can ever access your balance and money.
The Freedom Credit is a concept of what a currency could be.
At this point, it's just the above idea.
If you have the techincal skills to build it, reach out to James The Traveller.