This is my idea for a decentralized cryptocurrency that does not use blockchain technology.
Alice and Bob are two individuals on the network with a wallet and some coins in it.
So let’s say Alice wants to send Bob coins. This process is divided into two parts:
Alice creates a transaction, containing the amount of coins she wants to send Bob, Bob’s address (public-key), and maybe some more info (time and so on…) as well as the fees for the people that participate in the transaction (as described below).
Alice then signs the transaction using public-key cryptography, and sends it to a few people on the network, those people are her circle, they are a group of people on the network just like Alice and Bob (they don’t play any special role like Bitcoin miners).
The people on Alice’s circle then sign the transaction themselves and send it to their circle and so on, until it reaches someone in Bob’s circle and finally Bob.
in which point Bob signs the transaction himself and then the transaction is traced back to Alice for the second part.
Alice knows all the people connecting her to Bob (one from her circle and then one from their circle and so on untill one from Bob’s circle) those people are the transaction chain. Those lucky individuals will get paid more fees.
The fees are being divided equally across all the people in the chain which will then be divided between them and the people in their circles.
After the fees are decided they pass through the chain one more time, where every individual signs them.
Then the last person in the chain (the one closest to Bob) instructs his circle and Bob’s one to move the amount of coins that Alice wants to send Bob from his wallet to Bob’s, the circles sign the transaction and take their agreed-upon fees and send it back to the last person in the chain, who then uses it to make his circle and the one that belongs to the person before them on the chain transfer the coins from the second to last person to him in addition to his fees.
The circles sign the transaction, take their fees and send it to the second to last person, who then continues the trend and make sure he gets his money back in addition to his fees. this continues until Alice has paid her coins to the first person in the chain in addition to all the fees.
At last Alice’s history of transactions (going in and out) is being signed by her circle as well as Bob’s history (by his circle) and everybody in the chain by their corresponding circle.
Why is this better then bitcoin?
Bitcoin transactions can take a few minutes or hours to be complete, this system completes transactions in seconds and should scale better across a bigger network.
The Bitcoin network is basically divided into miners and regular users, the miners control the network and are sometimes big companies that have a very big stake of the market, this system can be operated by regular users with no supercomputers or mining farms, which brings me to the next reason for it being better than bitcoin…
Energy consumption and operating cost:
My system does not need a lot of computational power, and can be run on a network of regular smartphone and home computers. bringing the cost of running the network down and saving energy.
How can you help?
If you found any holes in my idea or just want to add something of your own, any kind of feedback is welcome.
I’m also looking for skilled programmers to join me on the journey and help me make this dream a reality.
Lastly, spread the word, share this with your friends or anyone you think will find this interesting. Tnx!