Reports indicate that the co-founder and chairman of Uber, Garrett Camp, is working on a cryptocurrency that will not have the shortcomings of the ones that currently exist. This is with a view of resuscitating the original promise of virtual currencies which was to offer a means of payment that is borderless, instant and affordable. The idea came to Camp after an attempt to invest in the field turned out to be a let-down.
?The more research I did, the more I was not really wanting to buy a large amount of any one of them. I realized it might be better to release a new project from a different philosophical standpoint with cooperation from a lot of universities, scientists, and research institutes?like the Internet,? Camp said in an interview with Fortune.
The name of Camp?s virtual currency project is ECO and was chosen since it can be easily pronounced in multiple languages as well as the fact that it could be related to a bunch of concepts such as ?ecommerce,? ?economics,? and ?ecosystem.?
In a white paper for the ECO coin, the goal of the new virtual currency is indicated as being to come up with the most usable cryptocurrency platform that acts as an alternative to the likes of Bitcoin (BTC) and the fiat currencies. The white paper also advocates for decentralized payment systems which should offer great experiences for users on mobile devices.
Unlike other virtual currencies such as Bitcoin, the blockchain of ECO does not run on an anonymous network provided by volunteers. Instead the blockchain makes use of verified nodes and this gives it efficiency as well as coordinated governance. Initially Camp intends to form a partnership with leading research institutes and universities across the globe which will be tasked with running the early nodes.
The incentive structure of ECO will also be different from that of other virtual currencies. Rather than have mining operations competing with each other the proposed system of ECO will see the cryptocurrency reward shared to all users and nodes across the network every time a block of transactions are confirmed. This way everyone makes money and those running the nodes or the token generators will only be required to do the bare minimum. Camp expects the energy consumed to fall as miners won?t have to overspend on computing resources.
Additionally Eco tokens will not be hoarded by a small group. Rather they will be distributed to as many people as possible. About 1 trillion tokens are expected to be generated in a couple of years and the first one billion users will get 50% of the supply.
Initial coin offerings
Camp is not the only famous entrepreneur to have invested in a virtual currency project of their own. Recently the chief executive officer and founder of Telegram, Pavel Durav, launched an initial coin offering of the popular chat app. Businesses such as chat app Kik, Kodak and Overstock have already held or are about to hold an initial coin offering. The chief executive officer and co-founder of Facebook, Mark Zuckerberg, has also indicated that he will dedicate this year to fixing the shortcomings of Facebook and this is a goal which might involve the exploration of virtual currencies and encryption.
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