Safecoins (What it is)
Safecoin is the currency of the SAFE Network. It is a token-based scheme that is only used inside the SAFE Network. The distribution of safecoins is handled entirely by the network on a per use basis. There is a total of approximately 4.3 billion safecoins that can exist on the network, though the total in existence at any time will vary based upon network usage. Safecoins are created and awarded in exchange for resources contributed to the network by participants, and are destroyed (buried) when used to purchase services directly from the network itself. Those safecoins which are destroyed (buried) are then available to be awarded in exchange for further resource contributions by participants, making a virtuous cycle which balances value contributed to and received from the network.
While viewing data on the network is free of charge, many services will require safecoins, such as buying additional storage space, or accessing some network applications.
All safecoins are saved in a User's wallet.
Safecoins can be obtained through (1) farming, (2) assisting with the maintenance of the underlying code, (3) creating applications, or (4) purchasing them.
- Farming is a process whereby participants provide resources (storage space, CPU power and bandwidth) to the network and receive safecoins in exchange, as those resources prove useful to the network. When a Farmer installs a Vault and creates credentials for it, the Farmer will enter a safecoin address cryptographically linked to an End User account (usually an account belonging himself/herself). The safecoin address is created as part of establishing an End User account by way of the SAFE Network Client (as covered in the previous section).
- It is also possible for Core Developers to earn safecoin by fixing bugs and developing new features for the underlying network codebase.
- People or companies building applications on the SAFE Network will also be able to earn safecoins. As these App Builders create and release new applications, they will code their safecoin wallet address into their applications. Based on how much an application is used, the network will pay safecoins to that address which the Builder has entered. This provides a built-in revenue stream for App Builders, one that is directly proportional to how successful their application is.
- It will also be possible to buy safecoins. It is anticipated that these purchases will be made from decentralised peer-to-peer exchanges that will be built by third-party developers. These exchanges will serve as platforms, enabling a buyer and seller to trade directly.
Transfers of safecoins between Users is managed automatically by Transaction Managers. The Transaction Managers are Vault personas whose priority is to ensure that safecoins are digitally signed and are never deleted or corrupted.
As there can be multiple Transaction Managers coordinating different safecoin transactions at the same time, an unrestricted number of transactions can take place at network speed.
A safecoin is a piece of digital information. The only historical data held with a safecoin are the current and previous owners' cryptographic details. These details are used for the purpose of verification and transfer of cryptographic control of each safecoin. This means that safecoins can be thought of as digital cash, leaving no auditable trail.