Zero Transaction Fees CryptoCurrencies
Why do we have fees ? ... The main reason is to cover operational cost. It takes some energy to secure and exchange cryptographic data around the globe.
What is the cost of operating the cryptocurrency network ? Beside the initial development cost there the cost of maintaining the machine that run the network and the cost of making sure its security is above financial standards .
If we want a "Zero transaction fees" protocols we have to find way to subsidize the operating cost.
Cost of Operation
Reducing the primary cost is a first step toward eliminating the fees.
conventional blockchains network maintain it security paying a high price on centralized hardware at mining facilities. we the blockRing™ technology we only need to secure the genesis block of each chain, with out the need of doing computationally complex proof of work.
The second way to reduce the cost of operation is using a cooperative model for transaction validation, because of the light weight computation in validating transaction on the blockRing™ Network every one can have an active participation in running the network, which because truly distributed.
If for obvious reason, one can not do its share of operational work (cellphone or other low power/computation requirements) to cost sharing model can be proposed :
- pay per use : 0.1% transaction fee
- monthly flat subscription
The advantage of having such model is that instead of proposing no fee for everyone one has the incentive to participate in running the network, without the recourse of having an inflationary currency to pay for itself like bitcoin.
Price of an Attack
on the bitcoin network transaction fees represent 15-75 BTC per day, (0.35 BTC per block) which is about $10M per year.
The Security of our network is determined by the size of the network, and the inherent security provided by the cryptographically signed transactions
As opposed to conventional blockchain where transactions order is key to secure the "books" and avoid double spending, we secure the books by identification of sovereign account (delegated voting), therefore instead of a Byzantine General problem, we have to deal with a robustness to Sybil Attack.
Our security is provided by "proof-of-sovereign" witnesses. which has a prohibitive cost to attack as it requires the obtention of a 2/3 forged identity.
Therefore the cost of securing our network is the cost of binding real identity to virtual pseudonyms. this lead to a distributed cost of registration, and the maintenance of the ID database, which is a ledger with a much lower volume of transaction hence we can have a low latency safe protocol to ensure a low cost security with a "difficult" registration process.
The security of this database paid by a registration/renewal fees instead of transaction fees, $10 per ID generation.
Non inflationary currency
Because of the minimal cost of securing BlockRings^(™) compared to the cost of an attack to the network. We can operate a network without transaction fees.
Main drawback of inflationary system it that is reward the early adoptors who can mine with an exponential advantage compare to later players, This is the case of bitcoin where almost of all the Bitcoin millionaires are the early ones, (hmm sounds like Ponzi scheme in disguise isn't it ).
Monetary distribution can be done via mining however with low reward mining incentive is poor too. Leading to a natural system where coins are minted rather than mined. or if they are mined, the difficulties stay constant and "affordable" of anyone...
In BlockRing mining currency coins gives very little reward, as in fact coins are "deactivated" and have only speculative values, a coin to be activated it has to be "used" by a real customer... this is how we guarantee the distribution is non inflationary and strictly follow the needs. an "activated" coin is emitted solely when a member backed it up with his/her energy.
Therefore miners are central points for people to get coins, they can later activate by sending resources to projects they'd like to funds. Miners can pass the low mining cost as a "network entry" fee.
Read more about BlockRing Minting