Liberstad is a Norwegian city that is renowned for having an anarcho-capitalist state. However, they have now decided to make a huge decision in their stance regarding crypto. They have opted to offer crypto as an official means of exchange. The report came via an official press release on February 12. It states that the city will be releasing a new native crypto on its smart city platform, which is already Blockchain supported.
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Founded back in 2015, Liberstad was formed after the Libertania project was completed (which is currently operated by the Liberstad Drift Association). This not for profit organization helps to maintain the autonomy of the city without the government interference. The city’s freehold plots were sold in 2017 for Bitcoin (BTC) or the Norwegian krone. As per the report, approximately 100 prospective residents decided to buy April of 2018.
Liberstad’s Drift AS head, John Toralf Holmesland, has aided efforts to facilitate the implementation of the libertarian ideology as well as non-aggression principles in the society.
For this unique decision, Holmesland wrote:
“We want a society that allows people to decide for themselves and live together without any government authorities. A society with no government coercion, surveillance, blackmail, or unnecessary violence.”
National Fiat Will be Prohibited Henceforth
The new city will have a crypto known as “City Coin” (CITY). National fiat currencies are prohibited. The only way to make payment within the city will be with CITY. CITY operates seamlessly based on a Blockchain-powered smart city forum. Locals will be able to use CITY “on an internal, private, and voluntary way,” though it has replaced public provisions that normally would be provided by the government. According to the press release Blockchain’s reputation, a trustless and decentralized model is the “key ingredient for the facilitation, and prosperity of a sustainable free city-society.”
All of the new residents welcomed into Liberstad will be able to interact with any platform for the City Chain via a municipal application. The dashboard allows the community performance in many different needs, including managing identity documents, registration of property and voting on various initiatives for the city along with a host of other services.
City Coin Depends on A PoS Consensus Algorithm
With the new City Coin, the Blockchain protocol uses a PoS (proof-of-stake) consensus algorithm which is designed to allow block validators to earn tokens for their work. Note that their selection is typically based on the most recent number of tokens held in their wallet. This full incorporation of the Blockchain technology is what makes Liberstad a unique proposition considering that there are only very few locations around the world to have done what Liberstad did.
Notwithstanding, there are still a few countries around the world who have been working to establish themselves as of the users of the Blockchain initiative. The UAE (United Arab Emirates), for example, has been working on creating a Blockchain-backed smart megapolis from Dubai by the end of 2020. In China, JD.com has recently opened the Smart City Research Institute. The institute focuses on improving and facilitating the development of smart cities. The type of technology that this initiative focuses on includes artificial intelligence, Blockchain and big data.