For the same reason the banks organized around a central power to begin with. An economy requires a strong authority to thrive properly. For banking, this is the unquestionable status quo. For blockchains, this idea is still in its budding stages. But in all reality, the reason why people prefer certain monetary systems over another is that they trust them. It all hinges on this premise no matter the medium of trade. For as long as humans have existed, we have trusted gold as an acceptable form of payment. We trust the US dollar because we are told by central banking figures that we have to use it. We trust Bitcoin, Ethereum, and the thousands of other cryptocurrencies on the market because enough people trust it, therefore, the demand creates something of value. Although the mechanisms between fiat and cryptocurrency are diametrically opposed to one another, the idea they derive value from is the same throughout; trust.
Decentralization, democratic consensus; this is essentially mob rule, and most cryptocurrencies are built on decentralized consensus protocols. Users find trust in these systems mainly as a means of stepping outside the realms of conventional control, and rightfully so. In looking at the numerous flaws found in the fractional banking model of today’s establishments, one can understand why a large enough portion of humanity would consider an alternative path. While this medium continues to see expansion, with over 30 million cryptocurrency wallet users and counting, that’s still only a measurable value of 0.4% of the world who currently place their faith and trust in cryptocurrencies. So, is there room for improvement? Absolutely, especially given the fact that blockchain technology has massively positive implications on society. So when it comes to finding the perfect global currency, it simply boils down to refining our approach and seeking out the best model under any given circumstance.
When it comes down to the basic facts which drive market economies, the majority of the world still finds trust in the human element. This means that people largely make decisions to buy goods or services based on who is sitting across from them at the table. What Regius Mark aims to do is preserve what people have always put their trust in: people and gold. We’re simply combining the best of both worlds; the speed and efficiency advantages of digital payment systems placed in the hands of experienced professionals with years of gold mining experience.
We, as a company, are the consensus protocol which determines when coins get minted. This will ensure that we never mint tokens without a backing asset, and we can find a resolution to network and system issues faster and more effectively. A centralized protocol has inherent properties as open network consensus is no longer required, thereby saving enormous resources and allowing for other optimizations available to a standard server to client model.