Incentive-Compatibility in a distributed autonomous currency system

Kenji Saito, Eiichi Morino, Jun Murai

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)


Peer-to-peer complementary currencies can be powerful tools for promoting exchanges and building sustainable relationships among selfish peers on the Internet. i-WAT[1] is a proposed such currency based on the WAT System, a polycentric complementary currency using WAT tickets as its media of exchange. Participants spontaneously issue and circulate the tickets as needed, whose values are backed up by chains of trust. i-WAT implements the tickets electronically by exchanging messages signed in OpenPGP. This paper claims that the design of i-WAT is incentive-compatible as to protection against moral hazards, or threats caused by selfish peers because they may take advantage of the rules; such hazards are defused in i-WAT if the participants react against misbehaviors of others by pursuing their own benefits. A reference implementation of i-WAT has been developed in the form of an XMPP instant messaging client. We have been putting the currency system into practical use since June 2004.

Original languageEnglish
Title of host publicationAgents and Peer-to-Peer Computing - 4th International Workshop, AP2PC 2005, Revised Papers
Number of pages14
Publication statusPublished - 2006
Externally publishedYes
Event4th International Workshop on Agents and Peer-to-Peer Computing, AP2PC 2005 - Utrecht, Netherlands
Duration: 2005 Jul 252005 Jul 25

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume4118 LNAI
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349


Conference4th International Workshop on Agents and Peer-to-Peer Computing, AP2PC 2005

ASJC Scopus subject areas

  • Theoretical Computer Science
  • Computer Science(all)


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