MAZA Whitepaper

Abstract

Crypto Currency offers a developer a unique insight into the
nature of money. The LydiaCoin Project began as just such an
exploration. Lydia is an ancient nation (located roughly where
modern Turkey is today) where it is believed the first ever coins
were minted from precious metals as we know coinage in the
west. This innovation took place in approximately 650 BCE. I
began tinkering with a fork of ZetaCoin primarily to gain an
understanding of the nature of monetary systems, and the
wonderful ways in which this can be expressed in an alternative
crypto coin. What I discovered is not what I expected.

When you look at a picture of that very first coin, what leaps to
mind is this big solid looking hunk of pure gold. We in the modern
age are wowed by the incredible sense of intrinsic value this coin
would possess today. Such images reinforce our commonly held
mis-perception that money is not “real” if it doesn’t have some
serious intrinsic value incorporated into it. But let’s examine this
idea more closely. Did the ancient Lydians choose gold because
of it’s great rarity? I think not. First of all the earths population
was dramatically less than it is today. Secondly, there were no
where near the amount of industrial uses for gold as there is
today. And lastly, gold could still be found on the very surface of
the ground in many locations worldwide. Simply put, gold just
wasn’t nearly as rare as it is today in ancient times.

So why did the Lydians choose gold (and silver)? Durability.
Gold does not tarnish. It is malleable yet holds it’s shape and
form. It is simply a durable and easy to use container.
A container of value. Social value, economic value – even political
value. That is a coin’s job, to be a long lasting and deployable
medium of exchanging value. Crypto Currency appears to be
eminently suitable to the task of acting as such a container of
value, being both durable and easy to use. Additional if marginal
intrinsic value is added by the energy and labor costs associated
with mining Crypto Currency into existence. We thus begin to see
the fallacy of commodity based monetary systems such as gold
or silver backed currency. Such extreme intrinsic value is not only
unnecessary, but prevents the currency from gaining economic
and social value aside from the backing commodity. And while it
is useful to have a Crypto Currency with rarity settings that mimic
a naturally occurring commodity, it is important to understand that
fielding a global and general purpose Alt Coin requires one to
place serious anti-deflational measures into the coin’s source
code.

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