Tagcoin - the official blockchain of Tagcash

I've been involved with cryptocurrency since 2012, when I met a Korean guy who wanted to sell me some Bitcoin for Pesos. He was buying clothing and goods from Korea using Bitcoin to pay for them, selling them for Pesos here and then buying more Bitcoin to send back to Korea, but for some reason he had an excess of Bitcoin and wanted to offload them. So I quickly researched for a few hours and he came to our office and we did a cash to bitcoin transaction. Over the next few months I bought a lot more.

Then I started to learn about alternative crypto currencies and finally decided to create one. As of that time (mid 2013), no one had created a crypto currency coin for an already existing company so what we did was fairly novel. My idea was to create something to experiment with and perhaps use with the Tagcash Payments & Rewards Platform. We named it "The world's first Rewards Cryptocurrency". It had no premine, and it was launched exactly at the time we told everybody it would - in fact all of that is on the thread at https://bitcointalk.org/index.php?topic=317408.0

After the launch, Tagcoin was traded on a now defunct site called Cryptsy in USA, and also on http://www.btc38.com/trade_en.html in China, where it is still traded. China loves to speculate and play with crypto.

Over the last 3 years, it has proven fairly stable - we modified the code to give 5% yearly interest for coins held in a wallet, as it is both a proof of work PoW) and proof of stake (PoS) coin. Every 4 minutes it generates a block of transactions which are added to the blockchain, and gives a reward of about 26 coins now...it started with 30 coins when launched, but every 3 months it reduces by 1%.

As of today Tagcoin trades at about 6 US cents (it has doubled in value over the last couple of weeks on btc38.com)

Whilst we originally created it as a rewards coin, I realised that giving it away was just like giving real money away, not something that merchants want to do - they prefer to control a currency and how it is used. There are also some legal difficulties, depending on the country and regulations.

So late 2016, I decided to just make it the official crypto currency used by Tagcash as the blockchain of choice to back up anything we do within the platform. For example, anytime someone transfers money within the Peso wallet with the app, from user to user or to merchant, then a corresponding equal value in Tagcoin is also transferred on the blockchain and shows up within a few minutes.

This solves regulation issues in Philippines, as well as providing security within the platform. As other merchants use our closed loop currency options inside the wallet for their own purposes, those currencies will also be backed by the blockchain. The more the platform is used, the more Tagcoin is bought by us or by merchants to handle the volumes...and that may increase the price.

Tagcash is also looking at a couple of other options to use the TAG Blockchain. One is for Know your Customer) KYC Identification - within Tagcash we perform KYC to make sure someone is who they say they are. Once we have that, we can give them a public key issued by our TAG private key and that person can then prove who they are with anyone else that wants to do KYC. Basically, a person just has to do KYC once and never again. We can also add authenticating partners who would do exactly the same thing, using multi sig features in Tagcoin to make sure that authentication is valid.

The other option we are looking at is within Tagbond, our asset management app that rewards users for updating info on real world items. Where valuable products do not have a central registry to manage titles, Tagbond could handle that, with the blockchain used to prove ownership and handle provenance and transfers.

I have been asked "why not use Bitcoin", to do the same thing, or even Ethereum, but the cost of transfers of Bitcoin is quite high now (sometimes up to a $1) and makes no sense, we would be losing money. To do a transfer in Tagcoin costs about 0.001 of a Tagcoin...so a fraction of a cent for each transaction. It will be along time before the value of Tagcoin is so high that we have to worry about it...

So what turned out as an experiment is proving quite useful. I am sure we will be using Tagcoin for other purposes as we progress with Tagcash products and services.

Tagcoin Website

mark vernon

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