Trustlines are the new IOU
▻https://hackernoon.com/trustlines-are-the-new-iou-17e71dc79458?source=rss----3a8144eabfe3---4
Trustlines are the new IOUsThe concept of debt first appeared in ancient times in the form of barter exchange. Later, when a monetary system emerged, it became an integral part of the financial system, and new kinds of debt obligations came into existence.We can’t imagine our world without deferred payments, credits or ordinary loans. Nowadays all these ties and relationships are supported by centralized financial institutions — banks and governments. But, thanks to distributed IOU networks, things could change drastically in the near future.What is an IOU (I Owe You)?Imagine you loan $10 to a friend. Now you have your friend’s IOU on the sum. In other words, IOU, or debt obligation, is an unwritten (verbal) contract confirming that obligation.Now you can ‘spend’ a debt obligation of this (...)
#trustline #decentralization #credit #p2p-payments #state-channels