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Pacio & Tender: Time for a new economy
March 18, 2019

Pacio & Tender: Time for a new economy

Pacio is developing an application platform for the blockchain era. It will support any application involving transactions such as payments, micropayments, IoT (Internet of Things), business applications or TEA (triple entry accounting) by fixing current DLT limitations, mainly lack of scalability and high costs.

Pacio is developing an application platform for the distributed ledger technology (DLT) or blockchain era. It will support any application involving transactions such as payments, micropayments, IoT (Internet of Things), business applications or TEA (triple entry accounting) with immutable counterparty transactions as well as traditional double-entry accounting, exchanges, social media, etc. by fixing current DLT limitations, mainly lack of scalability and high costs.

The Pacio platform will enable running hundreds of thousands of such applications at world scale by providing:

  • unlimited bandwidth for billions of transactions per second
  • zero-cost micro transfers and cheap transactions of other types as defined by apps
  • a set of non-volatile cryptocurrencies anchored to real-world currencies
  • support for apps of any size from tiny (like sending cents as microdonations) to complex (fully integrated supply chain/business processes to financial statements)

Technological overview

Pacio’s work aims to solve the scalability issues of first- and second-generation blockchains by means of DHT (distributed hash table) technology, as used by BitTorrent and Holochain, combined with so-called local-agent-centric (edge-of-network) private chains. Pacio will also support multiple optional private DHTs[1] to enable entities to keep their data separate and private, if so desired.

With this approach, each additional node adds capacity, rather than reducing it as with first- and second-generation blockchains. Thus, transactional capacity can expand to any required value, even up to billions of transactions per second, to cover all currently envisaged world needs for business, IoT, IoB (Internet of the Body), data storage, and data exchange purposes. Crypto transfers will be free (no fees), making microtransactions possible. This will open up many new business opportunities.

Pacio will extend the platform for business data applications such as triple entry accounting (TEA).

TEA alone can save trillions of dollars per year by reducing opportunities for fraud. The other aspects of Pacio, effectively unlimited scalability, free transfers, and application hosting ability with an accounting and management focus, will change accounting and management in the 21st century to deliver more effective reporting and guidance where it matters, in real time as a business operates. The changes will be the most significant since Pacioli.

The diagram on the left shows the overlaps. There is the Tendereconomy which hosts apps (in green) for any entity or person in any field. Certain Pacio apps will work in this economy as well, such as TEA.

Besides that, Pacio will create an API for accounting and other business-related applications that might or might not function inside the Tendereconomy.


Economic overview

The world economy has entered the age of networks, as exemplified by Amazon, Facebook, and Google. They have gained reach and power beyond that of most nation states. Such networks, as well as aspiring crypto networks like Bitcoin, Ethereum or EOS, want to produce so-called network effects where the value of the network increases with every new member, independent of its role, whether it’s buyer, seller, app developer or user. However, there is an obvious flaw in existing platforms:

Power is centralised and concentrated with one single participant or interest group.In Amazon it’s the company itself, in Bitcoin it’s the miners, in EOS it’s the block producers. Their incentives might sometimes be in sync with those of the other participants, but in most cases, the positive network effects are predominantly distributed towards the power holders.

Pacio believes that an efficient, open and fair economic platform shouldn’t be owned by or favour anybody. The platform should be like a protocol. Much like TCP/IP, which is free to use, favours no party and where no party receives gains from controlling it, but only from using it. Pacio wants to implement its business data and accounting environment in such an economy. Since it doesn’t exist yet, Pacio needs to create an economy:

  • that benefits those who use it;
  • that has a creator but not an owner;
  • that distributes network effects to all participants;
  • that uses digital currencies for zero/low[2]cost transfers (resp. payments) but has no speculative features.

The plans of Pacio include creating a funding system for applications as part of building the ecosystem. The objective is to grow to hundreds of thousands of applications. Part of this process will involve NPOs and charities and will provide continuous funding for future development.

The following chapters describe the ecosystem, including its underlying currency, how it will be built and how it will differ from current ones. A look at the technical limits and design flaws of current crypto economies leads to a proposal for how to create a more balanced digital economy.





[1] Prediction of outlier ventures: Enterprise adoption needs enterprise chains –

[2] The differentiation is that currency transactions are zero fees, but other data transfers in participating applications might have fees. Plus, while users don’t pay for money transactions, they still have to pay with energy and bandwidth used by their mobile phone or desktop computer.

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