1,500 cryptocurrencies have been launched in the last nine years. Each of these products has been created in an effort to strengthen crypto, open up its uses, and make up for the glaring omissions in the traditional financial systems. None have solved the major dilemmas the market faces in one product, though a few have tackled one issue at a time. This week, Garrett Camp of Uber has announced that his new initiative, Eco, will make cryptocurrency usable by everyday people for commonplace transactions. Eco will encompass the core concepts of “economics, ecosystem, and e-commerce,” according to Camp.
Camp plans for Eco to rival all other cryptos, and to offer a realistic alternative to traditional fiat currencies. Eco’s goal is to provide a safe, easy and fast alternative to paper money. The decentralized nature of cryptocurrencies is particularly attractive, meaning that global users will have access to Eco. Unlike competitors, Eco seeks to distribute the value generated to members of its community with fairness in mind. Eco will operate on an open-source platform, with a network of trusted nodes.
Another feature that sets Eco apart from rivals is that Camp plans to skip the ICO phase. ICO fundraising has come under increased legal and regulatory scrutiny from the SEC. Avoiding the model will ensure that Eco will deal with less red tape. Camp and a few other partners will be seeding the $10M startup money, and plan to distribute the trillions of tokens freely. Tokens will be distributed to proven humans after they sign up at Eco’s website. Tokens that are not distributed to users will go to advisers, university nodes, partners, and the Eco Foundation. The Eco Foundation will maintain the servers and networks necessary for coin generation.
This distribution method will help Eco to overcome a major hurdle of cryptocurrencies: availability. Once the coins are obtainable, anyone should be able to use them. Eco will be the first virtual coin to be so readily accessible. It also seeks to be the first cryptocurrency to function as more than a speculative investment. Their whitepaper states that they wish to address the three major issues it sees with Bitcoin.
As Eco sees it, the major issues with bitcoin stem from the facts that coins are held by relatively few people, securing the blockchain is resource intense, and vulnerabilities and complexities in the system open investors up for too much risk. Eco seeks to implement three solutions to these problems. Tokens will be offered in larger quantities than competitive coins, with a greater spread of the distribution. The blockchain system will be energy-efficient and will reduce overall power consumption. Universities will makeup verified and trusted networks of nodes to increase security, and Eco will have a user-friendly wallet interface.
Camp is not new to user-friendly platforms. Uber has seen massive success and has become a household name. Camp has high hopes for Eco, saying that, if successful, the new virtual coin could have an immense impact. He hopes to reach even more users than he did with Uber.