FairCoin is a digital currency, or virtual money based on a peer-to-peer, decentralized exchange network protected by cryptography.
This means primarily that it isn’t a material currency. Instead, everything works virtually through our computers and the Internet. Secondly, it is protected by encryption, and is hence also called a “cryptocurrency”. Encryption is a way to secure the system and the transactions through mathematical algorithms, which convert information into encrypted blocks, which are only readable with a correct key. FairCoin uses a level of encryption that makes it impossible to decipher with today’s known technology.
Coins are actually not units as one might think, but pieces of information. To put it simply, what actually happens when you give someone else a coin is that you sign a transaction with your private key to transfer the value (“coins”). These transactions make up chains that are verified and confirmed by the entire community of people, whose computers verify that the transactions are correct and not falsified.
As complex as the system may seem, it is actually very simple. Nowadays payments with a cryptocurrency is already as easy as paying with your code-protected credit card.
The main innovation and difference of cryptocurrencies compared to central money is, in the first place, that cryptocurrencies are neither saved nor controlled by any central bank or State. In this system, you own all your money yourself, and the system is secure thanks to peer2peer technology. Secondly, counterfeiting is currently unfeasible.
Thus, cryptocurrencies give us immunity to interference and manipulation by central banks and restore our freedom of economic management.
FairCoin is the cryptocurrency FairCoop has chosen to monetarily support the process of building a new economic system. In addition to the advantages discussed in other sections, FairCoin is a cryptocurrency with features that make it suitable for saving money at a very low ecological cost, because the energy expenditure needed for mining (such as with BitCoin) is not necessary. Faircoin was initially created with a circulation of 50 million, and since then, a small percentage have grown through savings to around 52 million today.
The evolution of the foreign exchange markets has always had an impact on the purchasing power of citizens of the world, with serious consequences such as impoverishment, cheap labour and the exploitation of natural resources.
The reason for this was not only the imbalance of trade but also speculative movements that tend to benefit the rich. Knowing this, our goal is to restore the greatest level of global economic justice we can by using something that has usually played against the global south: market forces (supply – demand). In short, as we say at FairCoop, the point is to hack the foreign exchange market by inserting the virus of cooperation as a tool for global economic justice. To this end, in this first phase, we are promoting the market’s demand for Faircoin through cooperative actions.
We are promoting Faircoin as an option for ethical savings, facilitated by multiple services, which make it a useful tool. It benefits initiatives working toward the economic empowerment of active subjects of social change.
In order to understand our plan, an essential concept to learn about is the properties of currencies. Currencies have different functions and among the best known are their use as:
- A medium of exchange of goods and services.
- Value storage
- Reference value (price system)
Through these functions, a currency contributes to meet important needs in an economy. For instance, the “value storing” function is the key function for the use of money as capital. Economists have usually designed economic systems, which attempt to get one single currency to fulfil all functions at the same time. In the case of fiat money, the formal banking system is offered as the only mechanism to act as a store of value, through interest, since the value of these currencies devalues over time due to inflation. And banks are increasingly forcing people to use their networks in order to access the “exchange of goods and services” role of money. In the case of social and complementary currencies, project which have been put into practice so far have generally met with varying degrees of success in the function of a “medium of exchange”. But as their value is referenced to a fiat currency, they have fallen victim to the same issues of inflation as the currencies to which they refer (except, at least directly, cases such as time banks).
With FairCoop we’re aiming to build a series of currencies and resources, which play complementary roles instead of trying to get a single currency to fit all needs at once.