Holochain Forum

Should I Build My Coin/Token on Holochain?

Holochain adopts an agent-centric ontology, in contrast to the data-centric ontology of blockchain and client/server. As such, Holochain isn’t the best platform for tracking ‘things that exist’ as independent entities apart from the agents that acknowledge their existence.

The idea of tokens or coins is a direct outgrowth of a data-centric understanding. While it would be theoretically possible to create a traditional crypto-token on Holochain, it would be taking a step backward instead of forward. They require a lot of energy to maintain, whether electrical energy in the case of Proof-of-Work or financial power in the case of Proof-of-Stake.

The more exciting possibility is creating mutual credit currencies. These currencies are merely records of the exchange of real value between parties. They’re easier to model on Holochain, less vulnerable to inflation, and more reflective and respectful of the real wealth of an economic system.

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A post was split to a new topic: Are local currencies a good application of mutual credit?

I think an example of a mutual credit currency system would help to make this even clearer. One to three sentences would be very helpful. This article also speaks about it and was linked in another FAQ article: https://medium.com/holochain/beyond-blockchain-simple-scalable-cryptocurrencies-1eb7aebac6ae .