Setting up your own central bank is just the start with EthereumEthereum lead designer Alex Van de Sande has heralded the beta launch of the Ethereum Wallet with some lapel-grabbing blogposts.
Inviting users to "build your own cryptocurrency" or "build a better democracy", the posts explain step by step how to create a value token, place that within a contract and allow parties to the contract to make decisions based around the inherent value. The result is a democratic value-based system that exists autonomously and transparently on the blockchain.
Van de Sande explained that tokens and coins become interesting with Ethereum because of what you can do with them. Once you have a group of people controlling a currency and voting on it, you have created the simulation of a central bank, and a completely transparent one – a novel proposition in itself.
He said: "You create a token that is controlled by a democracy. So it means that that democracy can vote if they want to release more tokens, or if they want to freeze somebody's account, or unfreeze it for that matter.
"It's interesting because it works a little bit like central government or central bank: they can seize assets and generate money. But it's completely transparent and it lives on the blockchain. If you were building a central bank in your house, let's just say, then probably the government would go inside your house and say: 'What are you doing? You are not supposed to do that.'
"But it's a central bank that lives on the blockchain and every decision it takes is only done transparently and after a vote. And everyone who holds a token is essentially saying that they trust the vote, they trust the system, they trust the contracts that are there and they trust the people who own the shares that can vote. So in a sense it's a great way to build – not only like a democracy – but it's a great way to build a company."
http://www.ibtimes.co.uk/setting-your-own-central-bank-just-start-ethereum-1532146
