Holochain is a new blockless decentralised currency and application framework. The approach used in Holo does not waste computing power on those proofs, nor on any type of global ledger consensus at all. Holochain ensures data integrity for distributed applications through careful provenance of data published from each agent’s local, immutable chain. Public entries to local chains are then shared to a content-addressable, distributed hash table (DHT). Unpredictably selected peers validate cryptographic signatures, enforce data schemas, and application logic.
Holo offers a whole new breed of cryptocurrency. Unlike its predecessors, it is not a crypto-token or cryptocoin, but a mutual credit accounting system where every transaction is countersigned on the local chains of both counterparties. This allows us to design the crypto-credits to forge new patterns of social and market behaviors that have not previously been possible.
Holo credits are priced in computing units: processing time, bandwidth, and storage. They are available for purchase from Holo as well as the whole community of hosts. They are also redeemable across that whole community for computing power. Even though credits can also be used for general financial transactions, as the number of hosts grows, that mass of their computing power stabilizes valuation. Hosts set their own prices for their computing power which will tend toward stability when averaged across a large ecosystem of servers distributed across the planet.
Another feedback loop stabilizing the price is the fact that Holo hosting is feasible on commodity hardware. 34 If the price of Holo credits rises significantly, people are incentivized to connect more computing power to the network. And since trades on exchanges are not likely to deviate wildly from the prices for which computing power is sold, this incentivization structure places a decentralized throttle on massive price pumps. This provides a substantial centre of gravity for the price of Holo, tying it to the delivery of a real world asset with practical value.