Whitepaper

Draft (version 0.1)

Solving the Blockchain Trilemma to Enable a Stablecoin Economy

Abstract

Blockchain technology, together with the cryptocurrencies and DeFi protocols that leverage its capabilities, have shown us that it is possible to build an alternative financial system that is more inclusive, efficient, transparent, and equitable. Unfortunately the mass adoption of this vision is being hampered by the lack of scalability and extreme volatility of crypto which together outweighs the aforementioned benefits. Recent developments in both blockchain and stablecoin protocols try to address these challenges but most sacrifice decentralization, the primary innovation of blockchains, in their attempts for solutions. We propose a novel protocol designed to circumvent the Blockchain Trilemma to provide a secure and scalable platform to host the next generation of decentralized stablecoins and become the foundation of a new global financial system.

Preface

This Whitepaper is intended for general informational purposes only and do not constitute a prospectus, an offer document, an offer of securities, a solicitation for investment, or any offer to sell any product, item or asset (whether digital or otherwise). This is intended to be a technical “vision” summary of one possible direction that may be taken in further developing the blockchain paradigm together with some rationale as to why this direction was chosen. It lays out in as much detail as is possible at this stage of development a system which may give a concrete improvement on a number of aspects of blockchain technology.

The information set out in this Whitepaper is for community discussion only and is not legally binding. It is not intended to be a specification, formal or otherwise. It is not intended to be comprehensive nor to be a final design. It is not intended to cover non-core aspects of the framework such as APIs, bindings, languages and usage. This is notably experimental; where parameters are specified, they are likely to change. Mechanisms will be added, refined and removed in response to community ideas and critiques.

This document includes a core description of the protocol together with ideas for directions that may be taken to improve various aspects. It is envisioned that the core description will be used as the starting point for an initial series of proofs-of-concept.