Trust-driven currency (TDC) is a digital currency that depends solely on trust and reputation words from a community to help complete transactions and generate value. TDC works independently of central bank systems and governments. TDC is an open source for getting your hands on money with transparency and social responsibility, which is why it has the power to redefine the future value of money.
If we talk about history, the essence and identity of money have been changing for ages in response to socioeconomic revolutions. However, the primary function has always remained the same: exchange or bartering has been a unit or way to store value. Money was first introduced for trading and for barter systems, but as the economic world grew, trade became a crucial and global practice; a medium or a unique way needed to be discovered to facilitate trading, and that’s how money in the form of coins was developed.
Coming back to TDC, which is one of the most essential digital currencies right now and can revolutionize the lineage of money itself, there are a few of the benefits and versatility of TDC mentioned below, which make TDC very worthy and valuable.
Decentralized TDC:
Being decentralized means that TDC works independently and has no ties with central banks or government sectors. It is also known as a cryptocurrency, which works on the basis of a decentralized digital ground called the blockchain. Transactions of such currencies are really secure and transparent due to advanced cryptography. Secondly, decentralized currency doesn’t work or is controlled by any single person, which gives no autonomy to anyone. As it is a digital currency, it doesn’t have a physical form but exists only in electronic form, which prevents any tampering and fraud as well. The digital technology blockchain is a concrete ground where transactions occur and are recorded on a publicly distributed ledger to maintain a database. One of the most significant benefits is that transactions occur globally, which is why they are processed quickly, no matter your location.
TDC develops Trust and confidence:
As mentioned before, decentralized TDC leads to secure transactions with transparency and financial freedom, along with no tampering with transactions. This feature leads all the users, customers, or clients to indulge in TDC and have faith in it. Currently, in this digital era, Trust is the new currency that builds a trust economy. Information given to you by a well-known source on which you trust causes a gain in your trust currency that supports and motivates you to make that decision. Developing Trust is far more critical than the quality of the product or services you serve or sell. With solid Trust, you create a bubble of reliability and transparency that leads clients and customers to choose you over others.
Facilitates transactions without any 3rd party intermediaries:
TDC allows transactions to take place with total financial freedom and no requirement for third-party intermediaries. Initially, transactions were done on the basis of mere words. However, this trust system was replaced by cryptographic security, integrity, and a transaction database recorded in a publicly distributed ledger. This DLT distributed ledger technology ensured all transaction records to avoid double-spending problems.
Well, Known Sources and Honor based transactions:
Another unique feature of TDC is that it works on the basis of the reputation, honor, and respect of a user participating in transactions. As the term indicates, Trusttrust-driven currency allows a user of a high and better reputation to easily access and perform transactions and currency exchange. A different type of TDC is mentioned below.
Community involvement in TDC:
TDC works to motivate all types of communities to indulge and participate in local businesses. TDC highlights different communities, providing rewards, incentives, and offers based on their work and contributions. However, it also punishes the users or communities for unethical or unprofessional behavior. This feature makes every community aware of their role in maintaining the local economy and social responsibility. Community-driven currency is an example of TDC, where currencies are issued by private organizations or entities that generate a limited value and can be used by participating local businesses. However, such currencies like FairCoin have always been controlled by private organizations and depend on community involvement when it comes to decision-making.
TDC maintains Equality:
TDC has been designed to give everyone free access to financial services. It has been a platform to eliminate inequality in financial services, and it contains no boundaries or restrictions regarding status or other factors.
Opportunities for Advancements and Innovations:
TDC, being an open source that allows anybody to earn money and participate in business, also attracts innovations and advancements from its users. This open-source feature allows the users to grow and update themselves and TDC. On the other hand, as people are motivated to use and be involved in TDC, further advancements and new technology start to be part of TDC to maintain its integrity.
There are other examples too of different TDCs, including
Reputation-based TDC, namely Sepia, allows the users to use their reputation points, honor, or status to perform transactions. Their reputation is a currency or a medium through which those users get their hands on such TDC.
Most TDCs are trust-based and work on words like Bristol Pound, which solely depends on Trust for its local businesses and trading; however, in some instances, it also offers the option of a reputation-based exchange.
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