In any economic system, some relationships are transactional—one-time exchanges between strangers. Others are sustained—repeated interactions between trusted parties. The latter are more valuable to the network, yet traditional systems treat them identically. A decentralized credit network can do better. It can recognize and reward sustained trust relationships through value loop detection and rewards.The Concept of Value LoopsA value loop occurs when a series of transfers creates a closed cy...

In any economic system, some relationships are transactional—one-time exchanges between strangers. Others are sustained—repeated interactions between trusted parties. The latter are more valuable to the network, yet traditional systems treat them identically. A decentralized credit network can do better. It can recognize and reward sustained trust relationships through value loop detection and rewards.The Concept of Value LoopsA value loop occurs when a series of transfers creates a closed cy...