The Future of Digital Currency

In the past weeks we have seen the rise and rise of bitcoin, and all the major cryptocurrency (bitcoin litecoin, ethereum) are in their highest or near their highest trading value. However with such a very high value it seems cryptocurrencies has lost their utility as a currency, especially when you can’t use it as a real-world money.  There are a few basic problems in cryptocurrencies such as bitcoin being used as cash, for example: 

1. Transaction speed.

Bitcoin can only process 7 transactions per second, globally. just imagine if people starts using bitcoin to pay for real- world products and services have to to wait for hours, if not days for their transaction to complete.

2. Value risk.

Other than bitcoin being a very volatile currency, albeit a very highly valued one, for the transaction to be processed in front of the backlog it will need to have some kind of miners or transaction fee. This means that after the transaction is completed, the amount of bitcoin you will have is either lower or higher in value depending on when it was processed.

3. Cost of bitcoin creation.

There was a time when the cost to create 1 bitcoin is higher than the bitcoin value – this is no longer true. However it remains true that every bitcoin produce everyday requires the same amount of energy that powers the whole of Denmark.

Our Own Digital Currency

We have a digital currency in PeN, the PeNNeY. Although we value the security around PeNNeY, we never treated it as a crypto-currency since it is not based on blockchain or bitcoin or ethereum technologies. The basic premise of PeNNeY is that it should be as useful as any paper money where you can use as easy as you would use cash or card, at the same time it have identifiable security to ensure it is real, same way you treat a real-world money.

Where it differs with a real-word currency is in its creation. PeNNeY is created when a new user sign-up to PeN, when a user purchase PeNNeY credits in app, and when users mine PeNNeY using various ways of earning PeNNeY.

Each created PeNNeY is unique and once used out of circulation, you can say PeNNeY is a single use digital currency. Using PeNNeY means spending it outside the app, for example making phone calls to any phone number that is not a PeN user, or using PeNNeY to shop such as exchanging it with a shopping gift card with your favourite shopping portal. However you can transact or exchange PeNNeY within the app eco-system without spending it, for example when you transfer PeNNeY to another user.

In the world of digital currencies, which of these technologies will actually be as simple as cash?

Will it be blockchain?

Or will it be single use currency such as PeNNeY?

Or will it be something else?

Having founded PeN and created the ideas behind PeNNeY, I am a bit bias to say that PeNNeY is the way to go in the future and here’s why I think PeNNeY can possibly be in the future of digital currencies:

1. You earn PeNNeY, much like the way you earn real-world money. Its value is based on tangible things you consume in PeN
2. PeNNeY is currently peg to a real world currency value the USD, it might change in the future like any real-world currency once it starts to be publicly traded.
3. You can use PeNNeY for real-world purchase of products and services.
4. You can exchange PeNNeY with any PeN user, much like you exchange cash
5. Transacting PeNNeY is fast, very fast much like you transact in cash.

The future of course, is uncertain but let me look at my crystal ball once more and see that lies ahead, perhaps a gift of foresight is what I see.

Posted by Ian Vernon

Ian Vernon is the CEO of Dark Matter AB that operates PeN. He consider himself as a student of life with passion for innovation and would like to make the world a better place even in.