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Transferring the value of a national currency onto the bitcoin blockchain

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WillH

I recently used NOKcoin as the payout token for project Block Label. It's merely a payout to holders of FANTOKEN as a proof of concept.

Some of you might be wondering what you just got in your wallet.

But first, I'm wondering if there's anybody who has a token based project that could implement NOKcoin as something specific in their project? I'm fond of the idea that tokens can be multi-purpose. It makes things interesting and would turn it into something more than just a currency in the traditional sense if it's for example an item in a game also.


What is NOKcoin?

NOKcoin was created on Counterparty last year and is similar to what they've recently done in Barbados with the blockchain-based version of the Barbadian dollar.

However, NOKcoin is unlike other currency pegs. It is just as much a thought experiment of transferring the value of a national currency onto the bitcoin blockchain.

The national currency in question here is NOK (Norwegian krone). Transferring from the Norwegian krone to NOKcoin is always set at a 1:1 ratio. What's interesting is that the amount of kroners spent on NOKcoin is used to purchase bitcoin. This is then sent to a paperwallet that acts as NOKcoin's gold-standard in the form of bitcoin. Which means NOKcoin can potentially be worth more than the original.

NOKcoin was also created in a unique way. To prove that it wasn't created out of thin air, the first 50 NOKcoin was created after a “Proof of Shredder”. The shredding of a 50 kroner note was filmed under UV-light.

The next 50 was created when NOKcoin was purchased with the Norwegian kroner. At the time this equated to 0.01373093 BTC (after subtracting miner fees involved with issuance and sending) which was then sent to the paperwallet/bitcoin-reserve.

Right now there's only 100 NOKcoin in circulation, and it will only increase when somebody purchases NOKcoin with the Norwegian krone.

All in all it's a currency backed by bitcoin in more ways than one.


Links:

Blockchain-based Barbadian dollar

Proof of Shredder (Caution: Do not try this at home if you are based in the US. You have laws against it: 18 U.S.C. § 333 )

Purchase NOKcoin (only available to those with a bank account in Norway)

NOKcoin's bitcoin-reserve address

The announcement of NOKcoin on Reddit (this is in Norwegian)

Bonus:

The 50 kroner's recent appearance in House of Cards

2 likes
  • TheMalicious1

    I noticed I had one of these in my wallet and was wondering where it came from . Thanks for the information :)

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  • dandere11o

    Interesting idea...

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  • Yefet

    @dandere11o Interesting idea...

    I'd rather say crazy, no... totally mad :-D

    OpenLedger

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