An Indian entrepreneur, Kunal Dixit, has launched the Android application of a currency ecosystem based on a new decentralised cryptocurrency called ‘trest’. Trest will be traded over a decentralised peer-to-peer network called Trestor network (T-Net).
On the date of launch, the price of 1 trest would be equivalent to 1 US cent; so, one can buy about 160 trests with a 100 rupee note. The price would then change depending on relative demand and supply Dixit, founder of Trestor Foundation, said, adding users won’t need a licence to trade trest, but will have to be part of the T-net.
Hence, to get trests, a user has to sign up in the T-Net website and download the app to manage the currency.
Dixit said Trestor’s mission is to create an efficient money, payment and market system. He expects trest to become a common digital token with stored value like bitcoin, which has a capital value of $3.5 billion.
“Right now, we are 0.015% of the gold price, but want to be 1% in five years. That means a $1 investment today would be $76 based gold price then,” he said. The core team of Dixit, who at 30 runs a bioinformatics company QualCount in Ottawa, at Trestor Foundation has 12 Indians and one Iranian.
Trestor’s India office will target local businesses in metro, Tier-I and Tier-II cities. “Our aim is to bring on board shops that sell daily-use goods and, by doing that, we will spread the network faster,” Dixit said. “We chose India as people here would give us a try. Plus, this product is for the post-google era generation (youngsters), we want to give them an experience wherein they don’t have to go to banks,” he added.
In the absence of any specific laws that ban crypto currencies, Dixit said trests will be far less volatile than bitcoins. “In a future scenario, wherein any big buyer or seller come to the fore, Trestor, by participation in market making activity would help prevent a sharp decline or increase in the price of trest. Price stability is very healthy for the ecosystem,” Dixit said.
While the advantages of trest may seem manifold, the foundation does not guarantee a return of donation. “If we guarantee a return, then we would essentially become a deposit-taking institution; we do not have the permission or banking licence to accept deposits. It is perfectly rational (and legal) for you to find another donor and exchange trest for money with that donor,” Dixit said.
Like bitcoin, T-Net is an open source, peer-to-peer network and T-Net transactions are irreversible, sent over the Internet, and counterfeit proof. It uses an advanced form of the same underlying cryptography as bitcoin and T-Net nodes can be run by anyone but T-Net transactions are fully confirmed in seconds whereas bitcoin takes 10 minutes.
“T-Net allows usernames for accounts while bitcoin has long alphanumeric addresses which are impossible to memorise,” he said. Also, T-Net solves the double spending problem with voting consensus instead of proof-of-work which is used by bitcoin. Consensus is the process by which the entire network agrees on the same ledger. Since Trestor is non-profit organisation, the donations will meet operating expenses. Currently, no angel investor or venture capital has invested in the firm, he said.