In any credit network, debt chains form. Alice borrows from Bob. Bob borrowed from Charlie. Charlie borrowed from Diana. The chain extends, creating a web of obligations that can span many intermediaries. These chains are not inherently problematic, but they create complexity. Each link in the chain represents a potential point of failure. Each intermediary bears risk. The longer the chain, the more fragile the structure. The warrant mechanism addresses this by automatically shortening debt c...

In any credit network, debt chains form. Alice borrows from Bob. Bob borrowed from Charlie. Charlie borrowed from Diana. The chain extends, creating a web of obligations that can span many intermediaries. These chains are not inherently problematic, but they create complexity. Each link in the chain represents a potential point of failure. Each intermediary bears risk. The longer the chain, the more fragile the structure. The warrant mechanism addresses this by automatically shortening debt c...

Consider: Alice owes Bob 100 units. Bob owes Charlie 100 units. Charlie owes Alice 100 units. In a traditional financial system, these would be three separate obligations, requiring three separate settlements. Money would circulate: Alice pays Bob, Bob pays Charlie, Charlie pays Alice. The same 100 units would move three times, accomplishing nothing except confirming what was already true—that the debts cancel out. This is inefficient. More importantly, it's unnecessary. Circular debt netting...

Consider: Alice owes Bob 100 units. Bob owes Charlie 100 units. Charlie owes Alice 100 units. In a traditional financial system, these would be three separate obligations, requiring three separate settlements. Money would circulate: Alice pays Bob, Bob pays Charlie, Charlie pays Alice. The same 100 units would move three times, accomplishing nothing except confirming what was already true—that the debts cancel out. This is inefficient. More importantly, it's unnecessary. Circular debt netting...

# Decentralized Promissory Notes: The Foundation of Trust-Based Economics For five millennia, the power to create money has been the ultimate form of control. Kings minted coins, governments printed currency, and central banks conjured liquidity from thin air. This monopoly on money creation has been the invisible chain binding humanity to cycles of inflation, inequality, and financial exclusion. But what if money creation could be democratized? What if every individual could issue credit bas...

# Decentralized Promissory Notes: The Foundation of Trust-Based Economics For five millennia, the power to create money has been the ultimate form of control. Kings minted coins, governments printed currency, and central banks conjured liquidity from thin air. This monopoly on money creation has been the invisible chain binding humanity to cycles of inflation, inequality, and financial exclusion. But what if money creation could be democratized? What if every individual could issue credit bas...

The history of civilization is, in many ways, the history of who controls money creation. This power has always been concentrated in the hands of the few: monarchs, governments, central banks. And with this concentration has come predictable consequences: inflation, inequality, financial exclusion, and the weaponization of currency for political ends. The question is not whether this system is broken. The question is whether it was ever designed to work for everyone.The Monopoly on MoneyFor m...

The history of civilization is, in many ways, the history of who controls money creation. This power has always been concentrated in the hands of the few: monarchs, governments, central banks. And with this concentration has come predictable consequences: inflation, inequality, financial exclusion, and the weaponization of currency for political ends. The question is not whether this system is broken. The question is whether it was ever designed to work for everyone.The Monopoly on MoneyFor m...

# BitCredit: A Peer-to-Peer Electronic Credit System **Abstract.** A purely peer-to-peer electronic credit system would allow individuals to extend credit directly to one another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending and over-leveraging. We propose a solution to these problems using a distributed network where credit capacity is determi...

# BitCredit: A Peer-to-Peer Electronic Credit System **Abstract.** A purely peer-to-peer electronic credit system would allow individuals to extend credit directly to one another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending and over-leveraging. We propose a solution to these problems using a distributed network where credit capacity is determi...