Virtual currencies, particularly cryptocurrencies, have witnessed a booming growth pattern during the past few years as they have proven to offer a fast, highly secure, low fee payment method that is exceptionally convenient for small (micro) as well as large transactions.
A group of researchers from the University of Girona, Spain and the Universidad Autonoma de Bucaramanga, Columbia have published a paper that proposed a new cruptocurrency, Eurakos Next, which is based on a pre-existing virtual currency, known as Eurakos that is currently operating via utilization of the digital contract technology. The researchers represent an evolution of the existing Eurakos by signing commercial agreements by two peers, across the blockchain, within a social network that operates in a mobile context using Ethereum’s blockchain smart contract technology.
Eurakos : A Complementary Virtual Currency:
Eurakos is a complementary virtual currency that offers a form of a negotiation context between sellers and consumers via the digital contracts’ technology. The virtual currency’s platform was coded to be solely used on mobile devices with 2 different user interfaces; one for the sellers and the other for the consumers. As a complementary currency, Eurakos promotes local commerce and employment. Due to the fact that it’s value is hedged to the Euro, Eurakos can catalyze commerce across local communities when used in daily payment of consumer products.
Let me give you an example of how Eurakos works; if a consumer spends 10 Euros weekly on dairy products’ purchases from a local supermarket, he/she can create a purchase basket of 20 Euros, via Eurakos, which would include his/her purchases of dairy products for 2 weeks from a given supermarket. In such way, the consumer can receive monetary rewards from the local supermarket for planning his/her future purchases from the same place.
Eurakos Next: A New Cryptocurrency:
As described earlier, Eurakos Next can be considered the new evolved form of Eurakos which utilizes the blockchain in the validation of commercial negotiations between consumers and sellers. Ethereum’s blockchain will be utilized as the currency’s virtual machine which will enable the use of the smart contract technology. Being an open source network, the Ethereum framework will allow coders to script and publish innovative applications, especially that it includes a Turing programming language that simplifies the creation and use of smart contracts for various purposes.
The creators of Eurakos Next stated that they will implement a concept that is quite similar to Ethereum’s with the exception that events and/or actions across the platform will be pre-defined. Implementation of additional events or actions can take place according to the interaction between sellers and consumers. The Ethereum blockchain will be utilized to function as a public ledger that stores and confirms transactions and commercial agreements (smart contracts) between different parties, while also benefiting from the security provided by the blockchain encryption algorithms.
The researchers also proposed an algorithm for rewarding miners, or validators as stated in the paper, for validating or confirming transactions. The validators’ rewards will be deducted from the taxes that apply to validation of transactions and validation of commercial agreements. They proposed that the validators’ rewards will be 0.00075% of the value of the transaction to be validated. Validators will check the beginning and the end of a transaction or a contract, the sum of money paid by the consumer to the seller and the balance of the payer account. Every transaction will be hashed and the hash id along with the amount of money paid will be validated and stored on the blockchain. The smart contract is then broadcast across the nodes of the blockchain to allow miners/validators to confirm/validate the transaction/contract and finally, the transaction is assembled to a block and stored on the blockchain.
A research paper was presented lately proposing a new cryptocurrency, Eurakos Next, that utilizes the smart contract technology offered by Ethereum’s platform. Eurakos Next is an evolution of Eurakos, a complementary virtual currency based on digital contracts. Eurakos Next provides a solution that can increase the use of complementary virtual currencies to boost commerce across local markets. Using Ethereum’s platform, Eurakos Next will not only benefit from the security provided by the blockchain, but will also utilize Ethereum’s smart contracts to validate and secure trading negotiations between various untrusted parties.