This is not yet another altcoin but something different. The purpose of this idea is to solve current lack of using Bitcoin as payment method. We all know that lion's share of Bitcon used in speculation rather than as market payment mean. Average merchant in the "white" market expects that his payment mean stay more or less stable. That what national banks used to provide for the national economies.
You probably heard that Bitcoin was called Money 2.0. I'm disagree and would rather call it Gold 2.0 and it explains why using Bitcoin in day-to-day market life adopted so slow. Exactly same would happen if we suddenly decide to use gold as a mean of payment within domination fiat currency. If you remember deceased e-Gold they initially implemented electronic gold gram but pretty quickly introduced fiat equivalents for the sake of convenience.
Proposed Bitfiat is a kind Money 1.5, electronic money with fiat pattern but backed by Bitcoin with the following features:
- Separate block chain formed for all world currencies in one network (multicurrency)
- Bitfiat address is prefixed with currency code and transactions possible only between same prefix addresses
- No mining, Bitfiat emitted by reserving Bitcoin
- Anyone can emit Bitfiat by transmitting certain amount of bitcoins to a reserve address
- Reserve address may be "private" or "public" (only originator can get reserve back or any other public member)
- As an option allow only "private" reserve to suppress Bitfiat speculation market
- Bitfiat emission confirmed by more than 50% Bitfiat network nodes, each node free to use any exchange rate. Therefore in order to get confirmed issuer must provide solid amount of Bitcoin as a reserve
- Withhold of Bitcoin reserve takes by destroying Bitfiat in the same amount previously emitted
Bitfiat can be used as a workable decentralized substitution for PayPal, Dwola, Webmoney, Perfectmoney and alike. A practical merchant solution halfway between existing fiat realm and future Bitcoin world.
