valueflows

commit 9c44f4854ecae865bf6cefb090c4d23d58e42a08
parent c96a05a91dc7552afac7b16f9f19216fc08de3de
Author: Bob Haugen <bob.haugen@gmail.com>
Date:   Thu, 12 May 2016 13:57:37 -0500

first draft
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use-cases/digital_currency.md
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diff --git a/use-cases/digital_currency.md b/use-cases/digital_currency.md
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+# This is the first draft of a digital currency example
+
+## Currency: [FairCoins](https://fair-coin.org/), a BitCoin variant.
+
+* Bob sends 2 FairCoins from his address to Lynn's address.
+* His software creates a FairCoin Transaction, which it attempts to broadcast to a FairCoin network.
+    * The attempt to broadcast may fail; the network may not accept the transaction.
+* The network immediately takes a 0.001 FC fee, leaving 1.999 FCs to go to Lynn (maybe).
+* FairCoin, like BitCoin, requires sending the whole quantity of one or more inputs as an output. 
+    * Bob's transaction inputs total 5 Faircoins, so the outputs include 1.999 FCs to Lynn and 3 FCs in change that go back to Bob.
+* FairCoin transactions, like BitCoin's, require [confirmation](https://en.bitcoin.it/wiki/Confirmation). 
+    * Bob's transaction may take several minutes to be confirmed, so Lynn cannot consider the transaction amount to be usable until that happens. And it also may fail to be confirmed.
+* Both Bob's address and Lynn's address are Economic Resources. 
+    * Bob has rights to the amount of FCs in his address, and Lynn has already had rights to those in hers.
+    * If and then the transaction is confirmed, Bob's balance will be decremented by 2 FCs and Lynn's balance will be incremented by 1.999 FCs.
+    * The amount of FCs on the transaction to Lynn (1.999) is not an Economic Resource. Nobody can use it. It is just a record of the amount by which Lynn's balance will increase if the transaction succeeds.
+    
+I think this is analogous to how wire transfers of legal currencies work.