Qbit Quick Summary

The Qbit is:

  • A digital currency based on blockchain technology similar to bitcoin but with significant differences.
  • A digital currency that can regulate its own money supply automatically without human intervention so that the Qbit experiences no significant inflation or deflation.
  • A foundational system for building economic infrastructure that provides legal contracts with built-in programming logic. Contracts can execute themselves by collecting payments, making deposits, sending emails, and so forth.
  • A decentralized, distributed asset exchange system that enables customers to buy and sell digital currencies with no third parties involved.
  • An economic infrastructure that anyone can use to build new types of currency that are directly exchangeable for Qbits.


Mining

The Qbit system uses proof of work (mining) for producing the first 100 million Qbits. The Qbit Federation is pre-mining the first 50 million Qbits and depositing them in an escrow account that is controlled by the Qbit system itself. The Qbit Federation will have no access to the funds in escrow.

This pre-mine is absolutely necessary for the Qbit system to function properly. And it still leaves 50 million Qbits for miners to mine for themselves.


Handling Inflation

The Qbit system can monitor its own economy and detect inflation or deflation. When the Qbit system discovers that there are too many Qbits in circulation, it sells a special token called a Qgerand (pronounced QUE-gr-rand). 

Qgerands are not money. They are more like a stock or a bond. Customers buy them as an investment.

The Qbit system puts the Qbits it receives when it sells Qgerands into escrow. The Qbits stay there until deflation occurs. No one-not even the Qbit Federation-has access to the Qbits in escrow.


Handling Deflation

When the Qbit system determines that there are not enough Qbits in circulation, it releases some of the Qbits it keeps in escrow. Everyone who has a Qgerand gets Qbits. The Qbits just appear in the wallets of the Qgerand holders.

For example, the Qbit system may determine that it should disburse 10 Qbits per Qgerand. So a person that owns 5 Qgerands would receive 50 Qbits, 10 for each Qgerand.


Democratizing the Economy

In the Qbit system, new money is released to all stakeholders. Because anyone can buy Qgerands when they go on sale, anyone can become a stakeholder and receive new money. 

In government fiat-based central banking systems, new money is always released through debt to banks. Banks lend them money and want to be paid with interest. This gives banks a position of power that they use to concentrate wealth to themselves at the expense of the rest of us.

No one in the Qbit system has the kind of privileged place that banks occupy in government fiat money systems.


Staking

After the first 100 million Qbits are mined, the Qbit system uses a proof-of-stake algorithm for validating transactions. Anyone who owns Qgerands can “stake” them and receive a modest income of Qbits in return. 

Staking your Qgerands is done by simply clicking a check box in your wallet’s Settings menu. The wallet takes care of the rest.

When the Qbit system pays you for staking your Qgerands, it just sends the money directly to your wallet. No third parties are involved.


Reporting

Another way to earn Qgerands is to be come a reporter. Reporters voluntarily monitor and and anonymously report the prices in their local markets of the commodities that they buy. When the system creates a new block and confirms the current one, it examines all of the reported prices for each commodity. Next, it throws out the highest 25% and lowest 25% of the reported prices. It then averages the rest of the prices and puts that average into the new block in the blockchain as a validated information stream.

Anyone who wants to be a reporter just enables reporting in their wallet. Each time they perform a transaction, the wallet will select one item from the transaction. It then reports the item type and price to the Qbit system.

Won’t this create privacy problems?

The answer is no. Only the item type and price are reported. The system doesn’t know who reported them, where the items were purchased, or anything else about the purchaser. The only information that the system gets is the item type and the price. It enters this into a validated stream inside the blockchain.

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