The objective of Cycles is to “clear the most debt for the most people with the least money,” Informal Systems’ CEO Ethan Buchman said.
Informal Systems, a blockchain infrastructure firm headed by one of the Cosmos founders, has floated a peer-to-peer clearing system that would allow people to clear their debts without relying on intermediaries like clearinghouses or banks.
According to a white paper shared with Cointelegraph, Cycles aims to be crypto’s solution for clearing, a process essential in traditional banking for secure payment transfers and liability settlements.
It argues that decentralized clearing is the other side of the equation to Satoshi Nakamoto’s famous white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
