How does ebarts work? 

 

Users will open an ebarts account.  Each account is opened with the promise that ‘I will give back what I take’.  Individuals, businesses and community groups can open accounts.

 

Accounts start on zero, and a trading limit is set.  This is like an overdraft limit, but it also restricts the amount of credit in an account. This is in order to keep the ebarts circulating. 

 

Exchanges in ebarts are made by debiting the buyer’s account and crediting the seller’s account by the same amount.  Every debt is balanced by a credit, making the sum total of all ebarts accounts zero.

 

Traders set the value of the goods to be exchanged.  Account-holders do not have to earn ebarts before they spend them, they can go into ‘debt’.  When they spend they are creating an IOU: a promise to repay their debt to the system.  This is the way currency is created.

 

A healthy mutual ebarts account will have a high throughput and fluctuate regularly either side of zero.  ebarts is simply a ‘means of exchange’.  There is no point hoarding or saving ebarts.  This graphic device helps account-holders to see the value created by activity rather than accumulation. 

 

Account-holders will also have a ‘credit rating’ generated by their trading history.  The ebarts system employs machine learning to assess the frequency, value, customer feedback and interconnectivity (how many trading partners) of each account-holder to update their credit rating.  This in turn will be used to alter the account-holder’s trading limit – increasing it in accordance with their previous use of ebarts.

 

ebarts  is based on trust, and the system is transparent and self-regulating.  The user’s graphic ‘heart-beat’ and credit rating will be visible to all other accountholders.  Furthermore, all transactions must be confirmed by both buyer and seller, or the donor and recipient.  There is no obligation to trade with someone; transactions can be turned down if there is doubt.

 

Every account-holder will have a profile on ebarts.com where they can advertise what they have to offer and what they want. Account holders can also trade on participating websites through an ebarts plug-in. 

 

ebarts will also be tradable in shops, markets and face to face between traders via mobiles and hand-held devices.  Many transactions will be dual currency, as ebarts is used by local retailers and businesses as part-payment for goods and services.  Businesses and individuals can donate to Community Groups, who in turn can use ebarts to pay ‘volunteers’.