Although Ethereum 2.0 was launched today, more and more projects decide to use xDai, one of the alternative ethereum architecture chain which is gaining more and more users as projects keep choosing it.
Today I want to talk to you about Circles, which launched its project a few days ago. As anyone can expect from a UBI project, circles give away its cryptocurrency to anyone having an account, but its approach is quite different from others as Gooddollar or Mannabase.
Circles is a money system that is made up of individual currencies. These currencies work together to form a unified “monetary fabric” that behaves like a Universal Basic Income.
When a new blockchain account joins Circles, the system creates and assigns them a unique currency via a smart contract. This is called a Personal Currency, and all personal currencies operate according to a shared set of rules.
You can send Circles to someone who trusts you. This means that sending Circles to someone is the reverse direction of trusting someone eg. “I trust you, therefore I accept your Circles” or “You trust me, therefore I can send my Circles to you.”
If you want to transact with someone who does not trust you, the system searches for a path of trusted users between you and the other account. This transitive property makes circles economy quite unique.
The idea is to create economies in circles where people interexchange goods for the circle currency, as the network of validated accounts grow, a user will be able to transact with more and more users far away from his/her initial trusted circle. This is the reason why you can not have an account until three validated accounts trust you. There is no way you can spend your circles if you do not have others trusting you.
I encourage you to read their FAQs as well as their whitepaper to get a complete understanding of their economy. I got my account validated a few hours ago after three of my friends trusted me and I am willing to start transacting and see how the circle economy evolves.
