An open source public blockchain has been launched that is operated without a cryptocurrency – a move its creators say is a world first.
Yosemite X has launched the cryptocurrency-free blockchain, Yosemite Public Blockchain, to avoid the price volatility traditionally associated with cryptocurrencies.
Companies will be able to run projects on the new blockchain, getting the same speed, transparency and security benefits as with other blockchains, but will pay for it using standard fiat currencies.
The idea behind the launch is that it will attract businesses looking to use blockchain technology for projects unrelated to cryptocurrency, and who seek stable prices to ensure they can accurately project how much their operating costs will be.
While new blockchains are generally funded through initial coin offerings (ICOs), where a native cryptocurrency is offered to users to purchase, this approach instead supports any token generated on any account. This means users can use any cryptocurrency, including those backed by fiat currencies, known as stablecoins.
The benefits of a cryptocurrency-free blockchain for financial projects
Yosemite X is postioning the Yosemite Public Blockchain as ideal for projects using the technology to handle financial transactions.
“Blockchain technology has great potential to innovate the financial network system currently built on old technologies,” said YT Kim, founder, Yosemite X.
“However, the existing public blockchains are impractical for business entities to implement their blockchain-based services, due to the high price volatility and unfair distribution of cryptocurrencies, and blockchain scalability issue.
“Yosemite X has implemented a new way of designing a scalable public blockchain for enterprises, without needing a native cryptocurrency.”
The company has already attracted a selection of businesses across a host of industries to develop solutions on the Yosemite Blockchain. These include energy trading, digital contracts and education.
The company is also launching a financial product on this blockchain. A 0% transaction fee credit card named the Yosemite Card, it will launch in March of this year.