The ambitious project aims to fundamentally change the way in which digital goods are valued and sees itself as an alternative to Bitcoin.
A small, unknown crypto project has more than doubled its value in the past few days after a cooperation partner received funding from the European Union (EU)
The price of the crypto currency Streamr (DATA), which is located on the Ethereum network, gained almost 116% on February 12th. The trigger for this was a message that the blockchain project will be integrated as part of a new pilot project.
The pilot project in question was again launched by the ATARCA Consortium, which has set itself nothing less than a revolutionary concept for the valuation of digital goods. In many cases, the artificial shortage of these leads to “economic inefficiencies” that need to be resolved. To promote this purpose, the European Commission has awarded ATARCA EUR 2.75 million.
This makes the pilot project, and the cryptocurrency proposed in it, a blatant alternative to Bitcoin ( BTC ), because the crypto market leader draws its value from this artificial shortage, through which supply is decreasing in relation to demand. In contrast, ATARCA wants to create a crypto currency whose value is created through sharing and multiplication.
However, the comparison with Bitcoin is only partially effective because the project relates to a special type of good , the so-called “anti-rival goods”, which become more valuable the more they are used.
ATARCA is introducing a completely new economic concept under the direction of Finnish professor Pekka Nikander. In this regard, he explains:
“Our current economic system does not fit into the 21st century, in which we humans have to trade goods that are in abundance with scarce means of exchange. The term ‚anti-rival goods‘ describes a new category of goods that are in abundance and, in contrast to rival and non-rival goods, become more valuable the more they are shared. “
In order to map the value of these „anti-rival goods“, „anti-rival crypto tokens“ are to be used, which are now being tested as part of the two-part pilot project. The blockchain project Streamr will be integrated into part of the project. The associated DATA crypto currency should act as a means of payment. In this regard, the message says:
“In contrast to cryptocurrencies like Bitcoin, the value of anti-rival crypto tokens is not based on artificial scarcity, but on human interaction. Their value should reflect the relationships that arise over time through repeated interactions, which by definition benefit all parties. “
The so-called “ network effect “ should play a major role in this form of added value. Similar to social networks or online games, the added value of which increases proportionally to the number of participating users, the “anti-rival” cryptocurrencies should also increase in value in this way. Example: Instead of only making education accessible (i.e. artificially scarce) for a handful of people, the exchange of the relevant information is rewarded because its value increases with its dissemination.
The second part of the pilot project is carried out in cooperation with the city of Barcelona and its “ social currency ” Real Economy Currency.
The market value of the blockchain project Streamr (DATA) climbed to a three-year high after the participation in the pilot project became known. The associated DATA token made it from $ 0.08 to $ 0.18 in less than 24 hours, as data from CoinMarketCap shows.