Building a currency that is stable, global and incorruptible requires a strong plan.
At the heart of the system is Faircoop, which is a democratically run group/organization that maintains the blockchain as well as helps fund core businesses that align with its values (equality, social justice, honest products and services).
The community of businesses that help provide value to the entire ecosystem. They use FairCoin as their currency.
All of us that use FairCoin and are all shareholders.
The businesses on top of FairCoin (run by members) help increase its overall functional value. This in-turn, increases the price value of each FairCoin. Increase in price means that all of the members profit. Therefore, the members have an incentive to help support the businesses that use FairCoin.
Faircoop invests the profits from the price increase, back into funding companies that help the ecosystem. From sustainable farming initiatives to businesses that help strengthen the faircoin infrastructure (ATM machine, remittance services etc.)
Since the businesses are run by FairCoin shareholders (members), they are incentivized to help other businesses within this ecosystem succeed. This should eventually translate to a much greater value for the member who holds a currency that steadily appreciates in value. It is basically a fully functioning cycle that feeds into itself, creating a self-fulfilling prophecy where everyone part of the ecosystem wins.
Ever use an ATM machine with zero fees?
Or visited another country and not have to pay foreign transaction fees or get ripped off on currency conversion?
How about being able to send money to a family member that's halfway across the world with virtually no fees?
Our mission is to make all of the above possible, because quite simply, by having these things, the value of FairCoin goes up. We are incentivized to do this. Plus, we also want these things.
Most of this is not new information, this is how a functioning economy is supposed to work, through cooperation, not greed :)
See how it compares. But in a nutshell, FairCoin is a simply better Bitcoin with a strong focus on cooperation and fair products and services. Without a strong plan in place, you get Bitcoin, which is an experiment that has gone awry, with no proper way to get back on course. Faircoin is a digital currency, whereas Bitcoin is a speculative digital asset. In order to be a digital currency, you need to have stability in price, safety in ownership, ease of use, acquisition etc. All of this requires a proper plan. FairCoin has had the opportunity to learn a great deal from Bitcoin.
FairCoin is - like any other cryptocurrency - is controlled by the blockchain. This is a "common distributed database" and is available to every wallet for adding transactions. Algorithms control, how transactions are confirmed. In the case of FairCoin, the mechanism is changed in 2017 to Proof-of-Cooperation. Instead of thousands of computers competing to solve difficult validation puzzles, validation nodes do that job with cooperation.
If you are active in the fair.coop network you are kindly invited to run a CVN. Candidates fill out the application form. Your wallet should be online 24/7 and you should have read the FairCoin white paper. More information about technical and socio-political preconditions to run a CVN can be found here. If you would like to run a CVN you can also send a mail to email@example.com
Rogue CVN operators will be banned for committing fraud. By not being anonymous, we eliminate the requirement of excessive computational competition (looking at you Bitcoin). Anonymity for simply being an accountant is unnecessary.
CVN operators get 0,1 FAIR per 1000 kB transaction size to cover expenses for electricity and connectivity. This also prevents from spamming the blockchain with many small transactions, which would take up a lot of disc space on every node of the FairCoin network.
According to a decision of the European Court in Luxembourg, exchanging fiat money to cryptocurrencies or vice versa is not subject for value added taxes. However, any tax reporting is your own reponsibility and as such, you run the risk for failure to report profits.
Similar to Bitcoin, it is to some degree. The blockchain is a public ledger, where all transactions can be seen by everybody. As soon as you reveal an address, you can be tracked, e.g. when buying or exchanging it for fiat money.
FairCoin administrators activate validation nodes and adjust technical parameters within the FairCoin blockchain, which may be necessary in the lifecycle of a cryptocurrency. The FairCoin assembly prepares the decisions and the chain administrators are the operators that are executing the decisions. At least 5 out of 11 chain admins need to agree when performing one of the following tasks:
In Bitcoin, more than 51% are needed to do a software update, in case the algorithm needs to be adapted. In FairCoin, important parameters can be set by storing them in the blockchain, if at least five administrors sign within three minutes. A maximum of eleven chain admins can be assigned. At the assembly on 15th of September 2016 eight people have fulfilled the criteria. Therefore 5 of the 8 need to sign each modification.
A chain admin must fulfil the following criteria:
If you think you would like to join as a node operator or a chain admin, do not hesitate to contact us at firstname.lastname@example.org
Theoretically, five chain admins could decide to modify the CVN network by changing some rules. The most harmful thing they could do is try to earn more FairCoins by increasing the transaction fee for CVNs they control. However, this would result in a public outcry and a new wallet will be issued. This would follow with dismissals of the rogue administrators by way of a democratic process within the Faircoop general assembly.
We are working also on an emergency mechanism. If a certain number of CVNs or wallet users observe any irregularity, they can cease the chain admins' execution power, until the situation is cleared in an assembly.
FairCoin is the first blockchain with limited human control. As some may consider this a contradiction to the paradigm of trustlessness in blockchain technology, we think it is an advantage, as we do not need to force users to upgrade the software, if technical parameters need to be adjusted. Using a database like Cyclos instead was not an option, as it has a single point of failure, whereas FairCoin uses a distributed verification mechanism.
The peer-to-peer mechanism of blockchain frameworks is very failure proof. Each node (in FairCoin2 any wallet or CVN is a node) checks the behaviour of other connected nodes and ranks them. If bad behaviour of a node exceeds a certain level, then it is disconnected for 24 hours. This is also helps to prevent from DDoS attacks.
It's almost impossible. Forking means that the chain splits up at a certain point. This happens to Bitcoin once in a while when miners create a new block at almost the same time. But in Faircoin2, the consensus algorithm determines exactly one CVN which has to create the next block. Any block occurring on the network that does not comply to those rules are not accepted by any other node.
There is no hierarchy in this movement. We are all equal and all founding members. By working together, we would have helped create an incorruptible currency that is strengthened by human cooperation.