Volatility is the stock and trade of speculators who either time their buy / sell orders in phase with the volatility cycle, or they are able to discern how some external event will influence an unstable asset. Many Cryptocurrencies are touted for their potential to exhibit wild fluctuations on the blockchain that offers the most liquidity. Unfortunately, such assets are of little use to a merchant and their customers who require both high security and price stability over time.
[Note: QUANT is the cryptocurrency of the Integrated Engineering Blockchain Consortium (IEBC) with first issue and copyright on December 15, 2015 on the Bitshares blockchain and should not be confused with tokens of a similar name. QUANT is novel among digital tokens for representing value intrinsic to the ingenuity of people.]
Appreciation by Network Effects
By contrast, QUANT is defined by its stability and its predictable appreciation. The value of the network will be proportional to the number of nodes participating in the network. The quality of the nodes and branches will be optimized by self-reinforcing social incentives and consensus. QUANT stores value in engineering infrastructure, a derivative of those engineers that create it. Therefore, the market for QUANT would reflect activities surrounding the creation, maintenance, and renovation of critical infrastructure upon which society depends.
You Can’t Make Bet Without Odds
The purchase of tokens from the network allows the player to perform any corresponding number of queries to the network. Whereas an entrepreneur cannot make a bet without odds, a Percentile Search Engine (PSE) analyzing individual and collective transaction records (social hash), would provide those odds. Entrepreneurs may test scenarios, availability, or overlay their own transaction record to an existing project.
The entrepreneur may be looking for a team or they could be looking for a community where their team would excel. The PSE would tell them the price corresponding to their risk tolerance or the likelihood of meeting revenue projections. Insurance companies may develop new risk pools based on PSE output or apply improved data to existing actuarial models. Once a transaction is identified, the counter parties are informed. Only if they accept the transaction will their identities be revealed.
Decentralized Oracles and Adjudicators
Many construction or build environments are far too complex to be scripted on a Blockchain. In practice, an “oracle” such as a superintendent, project manager, or chief engineer would adjudicate upon the chain of events “on-block” in order to resolve any critical path variances or to exercise contingencies. Unlike a computer, the oracle has the ability to determine cause and effect and execute alternate paths required to meet critical milestones.
The most critical milestones will be where project risk is transferred from one party to another. For example, a project milestone would transfer risk from the contractor to an insurance company, or from a bank to an owner, or from the contractor to the public. Construction contracts, Insurance policies, maintenance agreements, real estate transactions would likely fall into these categories. QUANT will secure the collateral upon which innumerable financial securities are derived.
The points of risk transfer are relatively easy to identify. The QUANT would be the critical application by which the Oracles and Engineering Adjudicators would be decentralized, thereby reducing the likelihood that a critical judgment may be encumbered by incompetence, negligence, moral hazard, or corruption.
The Efficiency of QUANT:
The efficiency of QUANT would exceed the efficiency of existing transaction methods due to the reduction of many layers of vetting, management, regulation, and blanket legislation while delivering the same or superior security. Banks and Insurance companies have a deep interest in securing points of risk transfer, for example: Securities depend on the integrity of the underlying collateral. Insurance companies may increase the specificity of risk pools thereby offering more, better, and cheaper insurance products with increased ability to identify, predict, diversify, and assess exposures. Commercial industry would have a better roadmap as to what products and innovations are viable and where. The public would be assured that the value of their tax dollars is represented by the corresponding value of the infrastructure upon which they depend.
QUANT is Value
Unlike many cryptocurrency projects which are simply derivatives of the market for a primary token. QUANT is integral to the market. QUANT is the thing that all markets need in order to transport goods and services. QUANT does not make value, QUANT is value.