Published on October 14, 2016 by

Introducing Verium. Powered by our unique scrypt² algo.

Inherent in a mined commodity is an ecosystem that is built around mining or acquiring a scarce resource. These miners and companies that enable them, have investments in the ecosystem and the commodity. They aim to invest time, money and resources into work that results in a profitable sale of the commodity. This is exactly how bitcoin functions as a commodity.

However, classically in markets the currency and the commodity are not one in the same. They are tied to one another in supply ratios or value.

In cryptocurrency we can lock protocol rules to optimize these cost/value relationships and ensure they persist. In particular, if the supply ratio between the two is constant and the consensus is shared, this can be a well leveraged and flexible decentralized ecosystem. Costs can be minimal for money transmission yet required for resource procurement, enabling a market-based organic value cycle as the costly work of reserve procurement also enhances the performance, scalability and security of the currency via auxiliary mining.

Verium will be a reserve commodity enforced by the protocol and VeriCoin would continue to be the currency. This would treat PoW differently in that it would be exclusively a tradable scarce resource.

The commodity/currency roles are incentivized via higher minimum send fees of Verium and slower blocktimes, which enables stable, secure mining and dis-incentivizes trading. Transaction speed, VeriBit, merchant acceptance, access, usability, costlessness of VeriCoin are all maintained.

This way there are value added costs that are required to enhance the entire system, yet not necessary for a seamless, near costless, fully decentralized currency.
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