WebWallet - Design Constraints

  1. Zero-sum Arithmetic
  2. Source Traceability
  3. Supply Transparency

Zero-sum Arithmetic

WebWallet's transactional model uses an asymmetric version of double-entry bookkeping in which all balance additions cause an equivalent balance subtraction from one or more addresses. Given that this constraint must be satisfied from the first issuance transaction, the sum of all address balances denominated in the same unit of account must always be zero.

Source Traceability

Due to the asymmetric and zero-sum constraints, it is always possible to determine the source of funds for a given transaction. Although this is necessary for public auditability purposes, it certainly imposes limitations on privacy that currently can only be overcome by designing mixing services and IOU swap schemes that lead the trace of funds back to the issuance address.

Supply Transparency

Once the zero-sum and source traceability constraints are satisfied, it is always possible to determine the total number of units issued in any given countspace. Although this feature could also be considered a limitation on privacy, it is instrumental for mitigating the credit risk inherent in having the ability to make potentially unlimited promises to pay in arbitrary units of account.

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