Introduction & Features
Credit Protocol Usage Examples
Cost & Economics
Friend in Debt - Our First Demonstration of the Credit Protocol
Friend in Debt - Market Opportunity
Use of Funds & Roadmap
CP and FiD Roadmap
While transactions on the blockchain are currently public, the Ethereum Foundation and the team behind ZCash, an anonymous cryptocurrency, have partnered to develop Project Alchemy, an undertaking aimed to providing anonymous blockchain transactions. Eventually, transactions will only be visible to specific users, to whom the sender allows visibility. With this protocol enabled, all problems of public and visible transactions disappear. In the current version of Ethereum, Homestead, all transactions will be visible, and users should only post what they are comfortable sharing.
When reserved for sending only Ethereum currency, transaction costs on the Ethereum network are extremely low, especially when compared to other options such as Bitcoin, bank transfers, or credit cards. On the other hand, storing data about debts, lenders and borrowers, and currency information is significantly more expensive.
One of our immediate goals is to lower this cost. In our ideal version of CP, users need not ever consider transaction costs. Even better if users don’t need to know the intricacies of Ethereum and gas pricing. The system will be as low cost as possible in order to allow for easy adoption by non-technical users.
We will employ either a Raiden Network like or our own in-house off-chain solution to significantly lower transaction costs. Such off-chain solutions can reduce costs per transaction over one hundred times.
One of the Ethereum Foundation’s major goals is to is to massively increase network speed and scalability. In the future, it is not unlikely that Ethereum will easily handle tens of thousands, or even millions, of transactions per second directly on-chain or off through networks like Raiden. In the meantime, Ethereum’s future POS system has been reported to be mining blocks at a rate of one per three seconds. Raiden, and other forthcoming off-chain solutions, promise much faster speeds. Between network scaling, Plasma, and the development of off-chain transaction options, the Ethereum Network will likely see a dramatic increase in transaction speed, a critical step for any DApp with a large user base.
Unfortunately, hacking is a reality of the current underdeveloped Ethereum ecosystem. We are fully conscious of the threats facing Ethereum users, and have spent a great deal of time considering the security of Foundation users. To that end:
CP and FiD will never hold any amount of Ethereum. Therefore, hacking a CP or FiD user account offers no Ethereum reward. Ethereum is stored in a user’s wallet or address as normal.
Debts await confirmation from both sender and receiver before a transaction is finalized. A hacked account cannot simply send off debts and hope for a payout.
Settlement of debts is a manual process, which starts from a single address. This address and it’s Ethereum are secure and separate from any Foundation account. It is a normal Ethereum address.
The Foundation protocol smart contracts separate data from logic. As we audit the security, we can update Foundation without losing a user’s underlying data. Foundation is a necessary component of the CP, and we look forward to community auditing of the open source code to continue improving its security.
Remaining tokens not sold during the first token offering will be held by Blockmason and sold at a future token offering. Blockmason intends to hold 20% of the CP Token supply and use an additioanl 10% for staking FiD and other demos developed by BlockMason using the CP.
Friend in Debt doesn’t offer protection for consensual financial transactions. For untrustworthy friends, we can only recommend you either immediately settle debts or don’t extend them credit lines.
We won’t arbitrate your friendships—we only have so many tough guys with baseball bats, and they can’t be everywhere at once.