Nollar: The green, instant & feeless stablecoin you’ve never heard of
The search for the holy grail of stablecoins…
The world of cryptocurrencies is highly dynamic. In the ten years since Satoshi Nakamoto released his Bitcoin white paper, there has been rapid, and at times extraordinary, development. The number of cryptocurrencies is increasing every day and words like Bitcoin or Blockchain are now recognised around the world. A new community and economic ecosystem has emerged, one which claims to be at least as revolutionary as the internet.
However, early cryptocurrencies like Bitcoin and Ethereum have fundamental flaws that prevent their widespread adoption. In particular, volatility has proven to be the nemesis of those early cryptocurrencies. Studies have shown that Bitcoin’s volatility index is currently five to ten times higher than that of major fiat currencies and still more than four times higher than gold’s.
As a result, the world is still dominated by money issued by governments or central banks and actual adoption of cryptocurrencies by ordinary consumers is still lacking.
According to most economists, money is defined by three functions: it must act as a medium of exchange, a store of value and a unit of account.
A cryptocurrency whose value can drop drastically overnight does not have the characteristics to fulfil the definition of money and is not a good store of value.
The real failure however, is not that cryptocurrencies like Bitcoin or Ethereum cannot meet an economic definition of money; it is that most people see no merit in using them.
The challenge for subsequent cryptocurrency projects was therefore twofold: Firstly, could they produce something that met the definition of money? And secondly, could they make it compelling enough to the general population to use it in their daily lives? The cryptocurrency that met both challenges would be the ‘holy grail’ of payment cryptos.
Stablecoins, for many, offered a potential solution to the volatility problem. As their name suggests, stablecoins always maintain a stable price by being pegged to a stable asset like the US Dollar. By eliminating the constant risk of price swings, they would be able to offer real services to people around the world. Today, companies like Tether, TrueUSD and DAI have all claimed to produce such stablecoins.
Yet, volatility was only one of the many flaws of early cryptocurrencies like Bitcoin and Ethereum. Slow speed of transfers, high transaction fees and wasteful mining were all problems that still had to be fixed. And since all the above-named stablecoins are based on the same technology as those early cryptocurrencies, they inherited all their other flaws. So even though they had solved the volatility problem, their underlying technology rendered them unusable as a real currency.
We believe that NOS and its first stablecoin, the Nollar, offer the solutions to the problems of today’s cryptocurrencies.
Nollar is feeless, instant and stable and does not require resource-intense mining. It is a fully-collateralized stablecoin that is pegged to the US Dollar and transparently backed by fiat money on a 1:1 basis and it is the first stablecoin to combine free and instant transactions with a regulated market. With these features, it solves all major problems that affect other cryptocurrencies and has the foundation to take cryptocurrencies fully into the mainstream.
The US Dollar has the best reputation and market brand of any currency. Thus, backing Nollar by publicly verifiable reserves of US Dollars fosters consumer confidence and creates mass-market potential.
Meanwhile, Nollar can provide free and instant transactions because of the technology underpinning it. Unlike most other cryptocurrencies, it does not use traditional blockchain technology, but instead uses a technology called the blocklattice, which was introduced by the cryptocurrency Nano in 2017. By eradicating the need for wasteful block mining and instead using simple game-theoretical incentives to support the network, it allows for lower latencies, free transactions and a greater energy efficiency.
Yet, despite such advancements, the general population will not automatically adopt the Nollar. To gain traction, we at NOS will target the cryptocurrency industry first.
For instance, Nollar can revolutionize the market of Initial Coin Offerings, a market that has grown to more than $6.5bn in 2017 but has been struck by the recent drop in cryptocurrency prices. Cryptocurrency developers can use Nollar to eliminate the price uncertainty that is currently involved in the ICO process. Another target group in the cryptocurrency industry are traders, who can use Nollar to stabilize their portfolios in anticipated bear markets.
However, it is in the real world where Nollar can be best utilized. For instance, international transfers like remittances or international B2B payments are currently cumbersome and costly. Free transfers via Nollar can put an end to this.
Equally, Nollar can be used by people living in countries that are struck by mismanaged economies or corrupt governments. They can use Nollar to store their wealth in a stable currency and thus protect it from instability and hyperinflation. Furthermore, Nollar can do all of this without the need for vast amounts of electricity that’s associated with Bitcoin mining.
The idea of a stablecoin that is so perfect that mass adoption will happen almost instantaneously, is of course a myth. Adoption will be a step-by-step approach, and fiat dominance will take years to dismantle. Essentially, cryptocurrencies must be useful to ordinary people and offer better services than fiat money in order to be successful.
We believe that Nollar offers real and immediate benefits to consumers and businesses around the world and is thus perfectly positioned to lead in the revolution of the payments industry.
In case you want to learn more, head over to our website at nollar.org and follow us on twitter.
