Why ChronoBank will use multiple blockchain?
ChronoBank will use several different blockchains to issue and trade LH tokens, likely including Bitcoin, Waves, Ethereum and NEM. The reasons are financial, cultural and ideological.
Many new crypto projects launch their own blockchain and have a single, dedicated token to represent value on their network. ChronoBank is taking the approach of issuing both its native asset, TIME, and Labour Hour (LH) tokens on multiple blockchains. As time goes on and popular new protocols arise, we will issue tokens on those as well. There are several reasons for this, both practical and ideological.
1. Sustainability. Our priority is to create a long-term blockchain-based solution for the labour-hire industry. Cryptocurrency is still in its infancy and we currently don’t know which protocols will survive.
Technical problems may become evident in due course, rendering one or more blockchains non-viable. Others may be impacted in ways we cannot foresee. In the past, for example, different cryptocurrencies have fallen from favour due to a large number of factors: the loss of one or more core developers; poor distribution, which led to large quantities of coins being sold and loss of wider confidence; unpopular changes or forks; inadequate funding for promotion and development.
All of these and more have hamstrung otherwise healthy blockchain projects. Therefore we are decentralising our issuance across many blockchains; should popular new platforms arise in the future, we will use these too. That way, ChronoBank will never be rendered obsolete in the way that some other projects that launched on blockchains the market eventually deemed wanting have been.
2. Synergy. We want to engage many different communities to achieve our aims. This means not only seeking investment from several of the major blockchain ecosystems in order to give us the funding to launch ChronoBank, but working with them for their expertise and to build business relationships.
As a cross-blockchain project, we think that ChronoBank has the ability to bring together the best elements of these protocols and communities under one roof. That will inevitably bring benefits for our own project, but to each of the others, too.
3. Success. The priority is crypto adoption, the creation of fair money and a more just economy. Using many blockchains is simply the best way to do this. The crypto world is fragmented, with tribal loyalties to specific blockchains often taking precedence over broader ideals like disintermediation and the redistribution of financial power. We know that restricting ourselves to a single blockchain will very likely hamper our overall chances of making the impression we need to in the crypto world and bringing about meaningful change in the recruitment sector. The more communities we work with, the more liquid and better traded our tokens will be; the higher profile our project will have; the more people will have a reason to help us succeed. We’re pleased to be blockchain-agnostic in order to prioritise the success of ChronoBank.
The use cases of LH in the crypto world
Labour Hour tokens (LH) are the lifeblood of the ChronoBank ecosystem. But they will also offer attractive properties for traders and other parties in the crypto world, adding to their liquidity and value. Labour Hour tokens (LH) are the native currency of ChronoBank. These are time-based cryptocurrency tokens that can be traded freely on ChronoBank’s decentralised exchange, LaborX.
Every time a professional or freelancer does an hour of work within the ChronoBank system, they will be rewarded with one LH for their given country. For example, there will be LHGB, LHUS, LHEU, and so on. Each national LH token is linked to the average hourly wage in that country. A decentralised reputation system will allow workers to be rewarded in line with their training, experience and talent, rather than with a one-size- fits-all solution (as is the case with traditional time-banking). LH are issued by networks of businesses, so can be considered a form of distributed or decentralised private currency. LH tokens are an innovative form of currency because they represent an excellent store of value.
Labour-hire costs tend to rise smoothly and sustainably, ahead of inflation. Unlike fiat money, then, holding LH tokens increases their value, rather than allowing it to be eroded by the passing of time as new money is created. This makes LH an attractive asset for those outside of the immediate
ChronoBank ecosystem, particularly in the crypto world.
1. Traders. Cryptocurrency traders tread a difficult line. They must keep funds on exchanges if they are to react quickly to market movements. However, as we have seen time and again in examples including MtGox in 2014, BTER in 2015 and Bitfinex earlier this year, exchanges are not always as secure as they might be. In all of these cases, millions of dollars worth of cryptocurrency was stolen, with no chance of recovery. LH tokens allow traders to sell crypto and store it in an inflation-proof crypto asset that is actually better than USD — removing both the problems of centralisation and volatility.
2. Savers. An increasing number of people are keeping funds in cryptocurrencies, either as an investment or as savings. This is partly driven by a desire to find returns in an era of historically low interest rates, and partly by growing scepticism about the integrity of the banking sector. Many, many more people would keep money in blockchain-based currencies if it were not for the problem of volatility. LH tokens represent just the solution for this problem. We anticipate that people will find them an appealing way to hold funds outside of financial institutions, maintaining control of their own money without the downsides of keeping it entirely in BTC.
3. Payments. The crypto economy is also growing. Payments are overwhelmingly made in BTC, which acts as the reserve currency of the crypto world. Bitcoin is favoured due to its network effect, which brings recognition and liquidity. Many transactions are made in other cryptocurrencies, but these are less suited for ordinary payments due to the increased friction when converting to bitcoin and fiat currencies, the lower liquidity and higher costs. As a stable, inflation-proof cryptocoin, LH offer an excellent means of payment that is both fully decentralised and protected from the volatility that characterises most other crypto.