TEUN VAN SAMBEEK
	15 MARCH 2025

When we create a new financial system (like the one we named 1CoinH) where every participant receives 1 coin ever hour and all coins in circulation are devalued constantly, how do we keep track of all the coin creation, devaluation and transactions around the world?

Unlike cryptocurrencies like Bitcoin or other existing fiat currency systems, the 1CoinH solution can start at various locations around the world independent from each other and even using different systems that are also completely separated from each other. How is this possible?

First let’s look a bit closer to what we do:

Every participant receives 1 coin per hour and has a fixed demurrage of 0.99995 per hour reducing all the coins in his possession, every hour. Every participant also uses the rule that the sequence of receiving coins start at 1.1.2022 01:00 AM, or later when the participant is born after that date.

Because everyone gets full insight in everyone’s transactions, you get a new feature which means that - when you set these specific variables everywhere in a similar way - the participants can start using the coins in isolated pockets in the world. Years later, when they meet someone from another pocket that has used the same variables, the 2 databases can merge without any exchange rate issues.

Let's list all 4 variables:

1. Start Date: 1.1.2022 01:00 AM (or later when the person is born after this date),

2. Time Unit: 1 hour

3. Coins per Time Unit: 1 coin

4. Demurrage Factor Per Time Unit: 0.99995 per hour (over all coins in circulation)

Because the coins are not real money, but only a unit of account, you just need to make sure that all pockets that use this system of account, use the same variables. If that is done that way, then there won't ever be a need for exchange rates.

Now the beauty of the system is that everyone is allowed to see the transactions of everyone. Because of that feature, all kinds of pockets where the system is used can be set up independent from each other. This can be done centralized on a website on the internet, or on a local intranet or even on one computer in a spreadsheet if necessary.

When 2 people from 2 different islands transact for the first time, the parts that are relevant from both their databases can be exchanged. This means the 2 different databases don’t need to merge. But when the interactions of two islands become quite intense, like that 25% of the people from both islands did transactions with each other, then it could make sense to take action as much of both databases already merged with each other.

There are 2 solutions when large groups of people from 2 islands start to interact frequently with each other. You can either merge the 2 databases to 1, or you can start splitting the individuals that do many transactions with both islands from both databases and make them autonomous. This last option would be the preferred action in the further future.

a Raspberry Pi Device

The problem with splitting people from the centralized databases and make them fully decentralized is that you need devices (like smartphones or tablets) that can be properly programmed for this. Currently, the restrictions on the operation systems of these devices and their dependencies to the various app-stores cause too many issues to achieve this.

It is clear that in our current world, one worldwide database would be too risky, as it would be attacked by the people that control the current financial systems. A full decentralized system currently seems more sensible. What is however unclear, is that -(when we start using a type of money that is not a store of value, but merely is an accounting system that is also visible for everyone) one worldwide and complete transparent database, might not be such a bad idea after all.

We should praise ourselves lucky that - whatever way the system will be used in the future - we can always start using these payment systems on separate islands. There is no risk starting the system in that form. That fact buys us time to promote these systems now, in the way they are set up.

15 March 2025

Teun van Sambeek MSc, MRE

Creator of: 1CoinH & Copiania