Bitcredit flow

From issuing an e-bill,
to minting into bitcredit, and
final redemption in bitcoin.

Bitcredit flow (dark mode)

How does it work?

Imagine, it is Juli. Apricot harvest time. 

There are three ways in which they could now continue: either (I) Alice or (II) Bob issues a two-party bill or (III) Alice drafts a bill for a third party to sign as payer.

E-Bill (Wholesale money)

I. For two parties - Alice issues e-bill

Endorsement ↕


II. For two parties - Bob issues e-bill  ↕

Alternatively, Bob can issue the bill and send it along with the apricot delivery.

III. For three parties - Alice drafts e-bill on Dave  ↕

(Here Bob could go to a mint. Let's assume he does not. )


(Continued from Endorsement.)

Wildcat is a Bitcredit mint on the internet. It runs the open "Wildcat" credimint software, holds verifiable guarantee capital and maintains credit lines for vetted customers. It advertises its minting fee of e.g. 2.0 %. 

Bitcredit creation

Bitcredit redemption

Failure to Pay (Guarantee Chain)

Wallet (Retail money)

End users do not need to know anything about the earlier stages. For them, payments with Bitcredit are instant, private, and practically trustless: Bitcredit-compatible wallets monitor the issuing mints' assets, liabilites, guarantee capital and payers' honour. In the rare case of a problem with an e-bill, traffic lights signal this to end users.  

After step 6 in "Minting", Charlie GmbH has possession of a payment channel.