ECO Cryptocurrency: Uber’s Garrett Camp Creates New Altcoin?
Eco aims to offer a digital currency for everyone. Find out how they plan to do that today in our review.
What Is ECO Cryptocurrency?
Eco, found online at Eco.com, is a new type of money “you can use anywhere in the world,” according to the official website.
Eco is a global currency that, like many digital currencies, is not controlled by a single organization, individual, or nation. The goal of Eco is “to distribute the majority of the economic value generated by the Eco platform to our community to create a more equitable distribution of resources.”
Eco’s design proposal first appeared online on March 1, 2018. You can view their design proposal on their website.
The long-term goal of Eco is to create the world’s most usable digital currency that offers users an alternative to bitcoin, gold and fiat currencies.
How Does ECO Cryptocurrency Work?
Eco is designing a global currency protocol built on an open source platform. That protocol is not controlled by any single individual, organization, or nation. Instead, it will be run by a verified network of global universities and reputable organizations. These groups will help design, build, and operate an evenly distributed and cooperative financial infrastructure.
Eco emphasizes open source development and decentralization. However, there will be a body called the Eco Foundation that will oversee design and implementation of the protocol. This foundation will create a new distributed payment platform with collective incentives for optimal energy efficiency, for example.
Eco’s global currency protocol aims to offer a transfer mechanism that’s easier, safer, and faster to use than paper money. In addition, Eco will ensure that the majority of the economic value generated by the platform is fairly distributed to all accounts created at Eco.com, creating a balanced distribution of resources.
What Problems Does Eco Seek To Solve?
Obviously, there are already a number of digital currencies built with open source standards and easy global transfers in mind. What makes Eco different?
Eco aims to solve the following three problems with today’s cryptocurrencies and fiat currencies:
- Verification of network nodes
- Usability of applications
- Efficiency of transactions
Eco’s whitepaper is just 6 pages long because the project is still in the early stages of development. However, the whitepaper mentions has great detail about the features being planned for the platform, including some of the features that distinguish Eco from other blockchain-based currencies:
Eco has a network of distributed nodes that are run by verified organizations who have a collective incentive to maintain the network. Other digital currencies – including bitcoin – are run by a network of unverified nodes. Those unverified nodes could be malicious actors or groups with no incentive to maintain the network. Eco takes a different approach. Eco will initially accept a few hundred nodes.
Partnerships With Academic Institutions:
Eco believes many of its verified nodes will be academic institutions. Just like the internet was first maintained by universities, Eco wants its network to be distributed across reputable universities worldwide. Eco’s initial group of a few hundred verified nodes will be spread across universities in 50+ nations worldwide.
Eco will avoid mining by unknown parties. Verified nodes will distribute block rewards to other nodes and users. Instead of having a node keep all of the block reward, the majority of the reward will be immediately distributed to all other verified nodes and qualified users. This will remove any incentive to game the system.
The Eco network will operate based on “collective incentive” instead of individual rewards. When a block is successfully mined, the tokens are evenly distributed to all other nodes immediately. The financial motivation to increase hashing power is removed because rewards are distributed to all other nodes. The node operator has an incentive to provide just enough hash power to verify that the transactions are valid. The end result is that the platform becomes collectively motivated to achieve optimal energy efficiency.
Each node will have visibility into all other nodes using a block explorer and system stats that will be viewable at Eco.com/node/name. Lazy nodes that do not meet the agreed-upon service requirements can be removed from the pool of nodes eligible for mining rewards.
Eco wants to set a new standard in terms of usability. They aim to replicate the simplicity and ubiquity of systems like Kenya’s mPesa, but with global availability. Some examples of usability mentioned in the whitepaper include texting, voice command, and an easy online UI.
Eco will start with larger blocksizes and shorter block times than bitcoin in order to help the platform scale. Within a few years, Eco aims to reach a capacity of 100,000+ transactions per second. They plan to use transaction sharding to achieve this goal.
Eco Token Distribution
Eco will distribute 50% of the token supply to the first 1 billion unique, verified human users on its platform. 20% of tokens will be allocated to verified nodes (the partner universities) and their network of developers and researchers.
10% will be held by the Eco Foundation to fund operations and community grants. 10% will go to active contributors and advisors. And the remaining 10% will be given to strategic partners worldwide.
Uber's Garrett Camp Is Behind Eco?
Eco is an open source protocol. The development of the project is led by the Eco Foundation, an independent, non-profit organization.
The goal of the Eco Foundation is to create a global currency protocol that is evenly distributed and extremely robust. The foundation created Eco, according to the whitepaper, “with the belief that effective digital currencies have the potential to give greater financial control and independence to billions of people.”
The Eco Foundation plans to continue guiding development of the protocol over time. They will act with transparent governance.
ECO Cryptocurrency Conclusion
Eco is a digital currency in the early stages of development. The open source currency’s development is led by a group called the Eco Foundation, which is actively seeking partnerships with researchers and developers worldwide.
To learn more about Eco and its ongoing goals, visit online today at Eco.com.