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MyCHIPs Digital Money

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In addition to auditing, we can also imagine another way of improving one’s credit rating: insurance. Just as anyone can act as an auditor, so can anyone become an insurer.

Let’s say you have an existing MyCHIPs presence with a good reputation and an existing demand for your CHIPs. You have excess credit available and would like to earn some extra income.

At the same time, you are aware of a new startup company who is struggling to establish their MyCHIPs presence and reputation. Because you are familiar with the company and its principles, you may have a higher degree of confidence in them than others. So you agree to insure up to 1000 of their CHIPs, and you negotiate a 15% annual rate of return for your trouble.

The new business may have the potential to make a lot of money if it can just generate enough liquidity to fund its operations. But others don’t yet respect their CHIPs enough to allow them to profitably trade in the network. With your endorsement, others in your trading circle will have confidence in the new company’s credit. And their chances of success will be greatly enhanced.

The MyCHIPs protocol could even be developed further to facilitate relationships between those who have or need credit capacity. This would enhance the ability to diversify your risk by insuring smaller amounts for more partners. That way, if some of them fail, you will not incurr so great a loss.
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