home of the IOU economy
Sikoba is a decentralised platform based on peer-to-peer IOUs and built on blockchain technology.
Participants who know and trust each other in real life grant each other credit lines in the Sikoba system. They can then pay each other using IOUs which can be cleared; tallied and offset on a rapid and ongoing basis.
These peer-to-peer credit relationships are governed by contracts with specific conditions, fee structures and repayment rules.
Sikoba then allows credit conversion, a system in which payments between participants who do not know or trust each other become possible, by automatically finding trusted intermediaries.
Maria and Abi are business owners in the same community. By granting each other credit lines and using IOUs, they can reduce the amount of cash they need to transact with each other.
Lee is a well known and member of the community. Tara has just started her business. Although they do not trust each other equally, they can both use Sikoba IOUs to reduce their dependency on money.
Credit Conversion allows Sikoba users who do not know or trust each other transact using IOUs through trusted intermediaries. Sikoba’s basic and most important rule is that a user will only ever have credit exposure to those they have expressly chosen to trust.
Clearing — the same tallying and offsetting of debts and credits that was historically done at village fairs and trade fairs — but on a more rapid and ongoing basis. The result is that money is only needed to repay residual balances rather than the full financial value of all trade.
MVP Development in Progress...