Last month, we started letting people register in advance for KRNC, and since then they've signed up to verify more than $100 million in bank deposits. That's a huge number, but it's not a typo. It represents how excited people are about Proof-of-Balance and forked fiat currency.
In fact, the raw number from all registered users is a lot higher. The $100-million figure represents U.S. Dollars from reputable individuals that our team has vetted. Many are high-powered executives and entrepreneurs. Some are coders and scientists. They are activists and artists, writers and journalists, famous lawyers and not-so-famous teachers.
What they all have in common is that they're real people who want to unlock the forked version of their fiat money on the KRNC blockchain. And the beauty of KRNC is that their self-interest – their desire to receive a version of their fiat money with the algorithmic scarcity of Bitcoin – is what will make the blockchain secure.
Today, with the ICO craze a thing of the past, it would be very hard to acquire a $100-million security budget for a new Proof-of-Stake protocol. It's a classic coordination problem: a protocol isn't valuable unless it's secure, but until it's secure nobody wants to risk their money by investing. Getting people to pledge $100-million worth of capital for an ICO is a tall order – and, even then, the cost of a 51% stake still won't exceed the resources of a wealthy attacker.
Proof-of-Balance solves the coordination problem by making consensus free to join. People have already incurred trillions of dollars in costs to acquire fiat money, so there's no need for a blockchain to impose new costs by forcing them to invest. Issuing stakes in proportion to everyone's existing fiat balances delivers thousands of times the security, while dropping the cost of participation to zero.
That's why people have already been willing to register more than $100 million for KRNC – and it's why the protocol could eventually attract billions (or even trillions) of dollars.
Of course, the ultimate measure of security will be the cost of acquiring forked dollars from their owners. For the KRNC protocol to function as designed, forked fiat currency must actually be accepted as money. That's where network effects come in.
Money is valuable because we expect others to accept it as money, and we expect others to act in their own self-interest when they choose what to accept as money. The world is unlikely to adopt Bitcoin as a global monetary standard, because that would be a form of charity: the owners of Bitcoin would receive one of the largest transfers of wealth in human history, at the expense of the present owners of fiat money.
KRNC has a charity-free path to mass adoption. Owners of fiat currency will automatically become owners of forked fiat currency, and forked fiat currency will protect their wealth more reliably because there's no centralized authority with the power to print an unlimited amount in the future. Forked fiat money has all the advantages of Bitcoin or Ethereum, but none of the baggage that comes with trying to launch a new unit of account from scratch.
If you're interested, why not take 30 seconds to sign up?