Why use TrueINR ?

Why use TrueINR ?

A digital token backed by fiat currency provides individuals and organizations with a robust and decentralized method of exchanging value while using a familiar accounting unit. The innovation of blockchains is an auditable and cryptographically secured global ledger. Asset Backed token issuers and other market participants can take advantage of blockchain technology, along with embedded consensus systems, to transact in familiar, less volatile currencies and assets. In order to maintain accountability and to ensure stability in exchange price, we propose a method to maintain a one-¬to-¬one reserve ratio between a cryptocurrency token, called TINR, and its associated real¬world asset, fiat currency. This method uses the Ethereum blockchain, Proof of Reserves, and other audit methods to prove that issued tokens are fully backed and reserved at all times.

There exists a vast array of assets in the world which people freely choose as a store of value, a transactional medium, or an investment. We believe the blockchain is a better technology for transacting, storing, and accounting for these assets.

Cryptocurrencies are created as  “ an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”

Some of the primary advantages of cryptocurrencies are:

low transaction costs, international borderless transferability and convertibility, trustless ownership and exchange, pseudo-¬anonymity, real¬-time transparency, and immunity from legacy banking system problems. Common explanations for the current limited mainstream use of cryptocurrencies include: volatile price swings, inadequate mass¬-market understanding of the technology, and insufficient ease-¬of-¬use for non-¬technical users.

The idea for asset pegged cryptocurrencies was initially popularized in the Bitcoin community by the Mastercoin white paper authored by J.R. Willett in January 2012. Today, we’re starting to see these ideas built with the likes of BitAssets, Ripple, Omni, Nxt, NuShares/Bits, and others. One should note that all Bitcoin exchanges and wallets (like Coinbase, Bitfinex, and Coinapult) which allow you to hold value as a fiat currency already provide a similar service in that users can avoid the volatility (or other traits) of a particular cryptocurrency by selling them for fiat currency, gold, or another asset. Further, almost all types of existing financial institutions, payment providers, etc, which allow you to hold fiat value (or other assets) subsequently provide a similar service.

While the goal of any successful cryptocurrency is to completely eliminate the requirement of trust, each of the aforementioned implementations either rely on a trusted third party or have other technical, market¬based, or process-¬based drawbacks and limitations.

In our solution, fiat¬-pegged cryptocurrencies are called “TINR”. All TINR’s will be issued as per ERC 20 token. Each TINR unit issued into circulation is backed in a one-¬to-¬one ratio (i.e. one TINR is one INR) by the corresponding fiat currency unit held in deposit by Finarch Inc. TINR may be redeemable/exchangeable for the underlying fiat currency pursuant to Finarch Inc’s terms of service or, if the holder prefers, the equivalent spot value in Ethereum. Once a TINR has been issued, it can be transferred, stored, spent, etc just like bitcoins or any other cryptocurrency. The fiat currency on reserve has gained the properties of a cryptocurrency and its price is permanently tethered to the price of the fiat currency.

Features of TINR :-

1. TINR is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the INR. TINR is held in cryptocurrency wallets or within platforms, and is supported on Ethereum blockchains.

2. TINR is easy to generate, access, and use. TINR is generated, backed and kept stable through collateral assets i.e. digital assets (Ethereum based) that are deposited into our platform. Users deposit collateral assets through unique smart contracts from their hot/cold wallets into our platform against the right to use digital asset. This is how TINR is entered into circulation and how users gain access to liquidity. Others obtain TINR by buying it from brokers or exchanges,or simply by receiving it as a means of payment.

3. Once generated, bought, or received, TrueINR can be used in the same manner as any other cryptocurrency: it can be sent to others, used as payments for goods and services, and even held as savings.

4. Every TINR in circulation is directly backed by excess collateral, meaning that the value of the collateral is higher than the value of the TINR in circulation and all TINR transactions are publicly viewable on the Ethereum blockchain.

5. Generally money has three functions:-

● A store of value

● A medium of exchange

● A unit of account

TINR has properties and use cases designed to serve these purposes.

TINR as a Store of Value:

A store of value is an asset that keeps its value without significant depreciation over time. Because Dai is a stablecoin, it is designed to function as a store of value even in a volatile market.

TINR as a medium of Exchange:

A medium of exchange is anything that represents a standard of value and is used to facilitate the sale, purchase, or exchange (trade) of goods or services. The TINR stablecoin is used around the world for all types of transactional purposes.

TINR as a unit of Account:

A unit of account is a standardized measurement of value used to price goods and services (e.g., INR, USD, EUR, YEN). Currently, TINR has a target price of 1INR (1 TINR = 1 INR). While TINR is not used as a standard measurement of value in the off-chain world, it functions as a unit of account within the blockchain dapps, whereby accounting or pricing of dapp services is in TINR rather than a fiat currency like INR.

Our implementation has the following advantages over other fiat-¬pegged cryptocurrencies:

● TINR exists on the Ethereum blockchain and issued as ERC 20 tokens rather than a less developed/tested “altcoin” blockchain nor within closed¬ source software running on centralized, private databases.

● TINR can be used just like other cyrptocurrencies, i.e. in a p2p, pseudo¬-anonymous, decentralized, cryptographically secure environment.

● TINR can be integrated with merchants, exchanges, and wallets just as easily as Bitcoin or any other cryptocurrencies can be integrated.

● TINR inherit the properties of the ERC20 tokens which include: a decentralized exchange; browser-based, open¬source, wallet encryption; Bitcoin¬based transparency, accountability, multi¬party security and reporting functions.

● TINR issuance or redemption will not face any pricing or liquidity constraints. Users can buy or sell as many TINR as they want, quickly, and with very low fees.

● TINR will not face any market risks such as Black Swan events, liquidity crunches, etcas reserves are maintained in a one-¬to-¬one ratio rather than relying on market forces.

● TINR’s one-¬to-¬one backing implementation is easier for non-¬technical users to understand as opposed to collateralization techniques or derivative strategies. At any given time the balance of fiat currency held in our reserves will be equal to (or greater than) the number of TINR in circulation. This simple configuration most easily supports a reliable Proof of Reserves process; a process which is fundamental to maintaining the price¬parity between TINR’s in circulation and the underlying fiat currency held in reserves.