Pacio takes the trustful part of the real world and transfers it to the system. The economy uses two layers of trust:
- Governance is executed by the parties that have the greatest interest in a functioning network.
- The system allows direct money transfers between parties that trust each other. Example: a fan donates to her favourite YouTuber.
With this system, we can support trustful relations.
With Bitcoin and other blockchains, protection from attacks is created through the fact that attacks are very expensive and that those who could perform attacks most easily have a financial incentive not to do so. However, this makes the whole system expensive, whereas the Pacio objective is low cost with superior performance. Thus, Pacio takes the “expensive” variable out of the game and replaces it with indirect incentives for users to take care of the system, combined with penalties up to exclusion for anyone who acts maliciously.