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...