2022-06-18, 14:00–14:55, Room 2
The capacity of a social system is intertwined with the limitations of its monetary system. By allowing banks to have absolute control of credit, we have inevitably limited the level of autonomy and self-organization that people can have. To break this power asymmetry, we need new tools and systems that can democratize credit. The Hypersyn protocol intends to achieve this by enabling people to become both the creditors and debtors of their own "money" through mutual credit.
The Hypersyn protocol is a new type of permissionless and peer-to-peer payment network that is based on the concept of mutual credit and mutual arbitrage. Unlike blockchain-based systems, Hypersyn does not rely on any consensus algorithm. It does not require a distributed ledger to store the history of events nor a set of validators. Hypersyn does not have a system-imposed hard-cap on the number of transactions per second that it can perform, and can therefore easily scale up or down depending on network usage. Unlike in other payment systems, money in Hypersyn does not get transferred from person $A$ to person $B$ in the conventional sense. Instead of transferring a token between each other, peers in Hypersyn change their exchange value of their credit (i.e. their purchasing power) within the network. Just as in centrally-issued fiat systems, money in Hypersyn is treated as freely tradable debt, which inherently requires trust. But unlike centrally-issued fiat systems, money issuance in Hypersyn is not controlled by an authority, but is instead created on the spot as mutual credit. In blockchain-based systems and even in centrally-issued fiat systems, money is treated as a scarce commodity. In the Hypersyn protocol on the other hand, money supply within the system is elastic in nature. Because of these fundamental differences in assumptions, the Hypersyn protocol does not aim to compete with, or substitute blockchain-based systems. Instead, Hypersyn should be viewed as a tool that aims to offer a qualitative change in the way we exchange. It has the potential to increase the autonomy and self-organization that people can have, by enabling people to become both the creditors and debtors of their own "money" through mutual credit.