Why Cryptocurrency Is Important
Throughout history, the people in charge of the money have regularly abused their power. Whether stealing value from the people via inflation, invading people's privacy, forcing high fees and taxes, or borrowing far more than they could ever repay in someone else's name... never has there been a currency designed to put the people who use it first.
The number one goal of cryptocurrency is to create a currency that is designed to put the power over the financial system directly into the hands of the people who use it. This allows cryptocurrencies to fix numerous issues associated with the current financial system by aligning the design of the currency with the best interests of the users. This is achieved by ensuring that it is hard for any small group of people to control the system by splitting control of the currency amongst the users of the currency. Over 50% of the people have to vote in order to make any major change to the way the currency works. This is known as decentralization.
The users who choose to participate in processing transactions, supporting the currency, and making these decisions are known as miners.
What issues are fixed by cryptocurrency?
Global government debt is an enormous $75 trillion and rapidly growing every year. This will hurt the economy and collapse government currencies in the long run.
Big banks take an average of over $1000 per customer per year.
Transaction fees cost the average business roughly 33% of its profits per year.
Government currencies are designed to lose roughly 2% of their value every year.
People do not have the ability to have a direct vote over how much they are paying in taxes or how they are spent.
Every transaction you make is tracked by governments, banks, and other individuals.
Every one of these issues ultimately stems from individuals who have too much power over your money. The solution to fix this is to create a new international currency that is forced to put the people first. Control of this currency must be shared equally by the very same customers who are the most affected by it... YOU!!
Cryptocurrencies Are Decentralized
Cryptocurrencies are designed to put the power over the financial system into the hands of people just like you who are most affected by the rules that govern the currency. Cryptocurrencies require more than 50% of the network to agree on any decisions on how your money will work, guaranteeing nobody can print more money for themselves or otherwise cheat the system or prevent anyone from using it.
Frink is Better: Truly and Verifiably Decentralized
Most cryptocurrencies decide who earns the most money based on how much money they've invested in machines that pick and test the most random numbers per second or how much of the currency they own. Both of these schemes create a small class of wealthy individuals who control the currency and no one knows how many people actually control the currency... exactly what cryptocurrencies are trying to escape.
Frink is Better: You have an Equal Say
Frink uses properties of social networks to determine which individuals are real and which are trying to cheat the system. Frink then gives everyone equal power, maximizing the number of people who would have to work together to control the currency. Additionally, updates to the currency must be approved, either directly or indirectly by the majority of users.
Frink is Better: You earn Equal Pay
Everyone starts with ₣1000.
Download and run the Frink desktop or mobile app, and you are participating in processing transactions for the currency, known as mining. Every person who mines is paid roughly an equal share of any revenue.
Cryptocurrencies Have Low Transaction Fees
Transaction fees eat away at the profits of businesses. In fact, the average business pays 33% of the amount they make in profit to credit card companies. Many cryptocurrencies have lower transaction fees, encouraging businesses to accept them.
Frink is Better: Free Transactions
Frink is the only cryptocurrency that has truly free transactions. That's right, neither a fee or burning energy is required to send money. Most cryptocurrencies require transaction fees to prevent hackers from overloading the network. Frink has safeguarded its system from hackers using the same decentralized ID that grants everyone equal rights and thus doesn't need transaction fees. In the future, some optional Frink add-ons may involve small transaction fees, all of which will be shared with miners.
Frink is Better: Small Inflation Instead of Transaction Fees
Some research suggests that a small amount of inflation can be healthy for the economy. Our own research suggests that if it exists, it is a very minor influence and neither helps nor hurts the economy. However, transaction fees, which act like sales taxes, have been shown to have a small negative effect on the economy. Not only that, but nobody really feels like they are paying inflation the way they feel like they pay transaction fees. Therefore, Frink chooses to use small inflation over transaction fees. Ultimately the users will vote on what they believe to be the fair amount of payment to miners per block of transactions processed. This will be capped at 3% inflation per year, but likely much, much smaller.
Cryptocurrencies Provide Financial Freedom
No one wants to be told how to spend their money or have their money taken by anyone, including by corrupt governments by force. With cryptocurrency, your money is entirely yours with no restrictions. No government or bank or credit card company or website can block you from spending your money or take it from you without your permission.
Frink is Better: Stronger Guarantees of Freedom
As previously stated, other cryptocurrencies have not proven to be decentralized enough. By allowing anyone to have equal say, Frink allows anyone to participate in the transaction verification process and gives you your equal share of the mining power, keeping the network honest and fighting the possibility of tyranny.
Cryptocurrencies Are Convenient to Use
Visiting another country? Don’t worry about exchanging currencies, as cryptocurrencies are international currencies. Also, you can view your account balance while paying for a purchase, ensuring you never overdraft your account or have to worry about regularly logging in to check your bank account for unauthorized purchases.
Frink is Better: Convenient to Earn Frinks too!
Any cryptocurrency needs to pay the people who process transactions ensuring the system stays decentralized and impossible to overtake, typically known as mining. Other cryptocurrencies require you to invest money into mining, Frink requires you only to run a free app on your phone once you have an ID. Note, you are required to maintain an account balance of at least 100 Frinks and remain sufficiently linked to enough people to improve security, but everyone can earn more than this much just during the initial process of linking to friends to verify their uniqueness.
Cryptocurrencies Are Energy Efficient
Even the most energy-intensive cryptocurrencies use 3 times less energy than the modern banking system since everything can be done online.
Frink is Better: 110 Million Times Less Energy than Proof-of-Work
The original blockchain algorithm used for decentralization, Proof-of-Work, requires people to expend large amounts of energy to buy themselves ‘mining power’. Frink’s Proof-of-Person algorithm requires 110 Million Times less energy than this.
Frink is Better: Just as Energy Efficient as Proof-of-Stake
Frink is just as efficient as Proof-of-Stake. But, Frink is more decentralized, forcing many people instead of the few richest folks to agree on the rules governing the currency, making it much harder to cheat or collude to change the rules in the favor of the few. Additionally, this allows everyday user to earn their share of the Frinks.
Cryptocurrencies are Secure
Do you know what’s crazy? Every time you use your credit card, you give multiple people the ability to pull money out of your account. You might as well give them a house key while you are at it. Cryptocurrency relies on people sending money instead of pulling it out of other people’s accounts.
Frink is Better: Better Theft Protection
Frink allows users to freeze their account if hacked and adds extra layers of protection by allowing multi-factor authentication.
Frink is Better: Decentralized Password Recovery
Cryptocurrencies rely on users storing and not losing their passwords (aka private keys). However, roughly 4 Million out of 21 Million Bitcoin have been lost due to lost passwords.
Frink will allow users to opt-in to recover their passwords in a fully decentralized manner by automatically and securely splitting encrypted versions of them amongst friends.
Cryptocurrencies Do Not Require Chargebacks
Traditional payment methods require that merchants allow users to reverse a purchase after the purchase has already been made. This is detrimental to some businesses. Most cryptocurrencies are like cash, once you’ve handed over your money, the transaction is complete.
Frink is Better: Allow Chargebacks but Only When it Makes Sense
Frink allows merchants to offer their customers extra protection by giving them the option to chargeback their purchase and get a refund. Merchants may refuse to provide this to customers who are known to abuse chargebacks or under special circumstances. Customers may choose to only buy from merchants who offer them chargeback protection.
Cryptocurrencies Provide Privacy
Cryptocurrencies allow you to send money without anyone tracking your purchases. Some cryptocurrencies use Zero-Knowledge Proofs to make it impossible to track these transactions, Frink too plans to eventually implement Zero-Knowledge Proofs.
Frink is Better: Privacy-Friendly Reputation System
Frink’s IDs are designed to allow you to build reputation linked to a public key that is provably unique and otherwise private. By building a reputation you can earn the trust of others while avoiding untrustworthy individuals.
Cryptocurrencies Are Not Linked to Governments
One government after another has proven that they cannot be trusted not to spend significantly more money than they have. By using international currencies that are run by the people, not the governments, you can be sure that the value of your currency isn’t going to collapse due to the national debt or other political reasons.
Frink is Better: Owned by the People
Most cryptocurrencies are still controlled by a small group of people.
Meanwhile, Frink gives you an equal say over which rules the cryptocurrency follows and earn an equal share of the generated revenue.
What are the Problems with Current Cryptocurrencies?
As wonderful as this all is, there are a few big reasons that cryptocurrencies have failed to gain traction and overtake the current system as quickly as they should have otherwise been able to.
Cryptocurrencies Have Unstable Prices
Most cryptocurrencies start with a fixed supply but a changing number of users. This means that cryptocurrency buyers are constantly guessing how many people are currently and will be using the currency in the future in order to determine the correct price.
Frink’s Solution: Money Supply Grows alongside Users
As users join the network, new users can claim their share of the currency growing the money supply alongside the number of users in a carefully calibrated manner. This allows buyers to value the currency per user, which has proven to be a much more steady way to value users across government currencies once a low minimum number of users is reached. Frink's price is likely to increase/decrease alongside the usage of the currency... which we hope traditional early cryptocurrency buyers/sellers who want a little initial price instability will appreciate.
Frink’s Solution: Value Unlinked From Government Currencies
Cryptocurrencies that do try to fix this problem try to link the value to government currencies, such as USD. But we're trying to move away from government currencies, which means this solution is unacceptable because such currency will never succeed without hurting the government currency it's linked to, and therefore itself. These currencies present other lose-lose solutions that prevent the value from increase but don't stop it from crashing.
Long Time to Download Blockchain & High Bandwidth
The blockchain is the structure that keeps cryptocurrency account balances in sync across users in a fully decentralized manner. Most currencies require you to download the entire blockchain plus transactions before mining. For Bitcoin, it’ll likely take you roughly a month to download the entire chain. Most smaller blockchains will take you at least 48 hours. And that’s while only running at a few transactions per second for a few years.
Frink’s Solution: Extreme Blockchain Compression
Users only need to download the tiny blockchain headers to use and mine the currency, and even then, not all of the blockchain headers are needed and large parts of the blockchain can be entirely skipped by adding enough information to every block header that tracks the current state of the network. Any given miner will need to download transactions roughly 1% of the time for increased security.
Cryptocurrencies are at risk from Quantum Computers
Quantum computers can be used to crack all the most popular private-public key encryption. Most cryptocurrencies are vulnerable to attack and could be destroyed in an instant by attack by a quantum computer. Considering governments likely have secret quantum computers and publicly progress is being made quickly, this is a huge risk.
Frink’s Solution: Use Quantum Secure Cryptography
Most cryptocurrencies intentionally have not adopted quantum secure encryption because the size of the public keys is significantly larger. Based upon the results of the NIST "Post Quantum Cryptography" challenge, we choose the Falcon Signature Scheme these have relatively small public keys and high performance. The keys are still rather large, but not a problem when combined with our "extreme blockchain compression" algorithm and a few other tricks.
Cryptocurrencies Do Not Reward Marketers
Most cryptocurrencies cannot reward users for encouraging other users to sign up. Due to the inability to track money and users, it’s impossible to have a referral program without it being easy to abuse.
Frink’s Solution: Add a Referral Program
Frink is capable of paying referral rewards for new referrals due to every user having a unique yet privacy-friendly Frink ID. Refer friends and you’ll earn 50% of what the person you referred earns from linking to friends and referring others!
Cryptocurrencies are Scammer Friendly
Cryptocurrencies are notorious for being loved by scammers. Once you send scammers cryptocurrency, the combination of a lack of chargebacks and the privacy features make it impossible to get it back.
Frink’s Solution: Reputation System and Optional Chargebacks
If you do not know the person you are trading with, you can check their reputation before sending money and require them to give you the ability to chargeback your money if they do not perform the required job. All while maintaining privacy. If desired, you can additionally agree on a third party or third parties to approve or deny transactions.