Welcome to the introduction to Collaborative Finance!

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<aside> <img src="/icons/grid_blue.svg" alt="/icons/grid_blue.svg" width="40px" /> Table of Contents

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INTRODUCTION

Collaborative Finance (CoFi) is an innovative financial approach that leverages trust networks, network sciences and credit systems to facilitate more efficient and human-centric financial relations. CoFi focuses on optimizing the flow of value by altering credit and debit amounts between participants based on trust and mutual agreements.

CoFi ****started with the observation that despite some meaningful advancement, nearly 15 years of blockchain have failed to address the core problems of our current economic system. Why?

The wrong focus: most projects have focused on the token, the investor, the speculator, the technology not on those who create real value (i.e. producers)
Most blockchain advocates are technicians who assume that all problems can be fixed with technology, and do not appreciate the political dimension.
Businesses need a stable unit of account, not a speculative asset.
Payments networks should be built by engaging with existing networks, not by signing up one account at a time.
Businesses need access to credit, which doesn't come easily from a “trustless” technology.

CoFi attempts to improve upon waves of blockchain innovation such as DeFi (Decentralised Finance) which has not found a way to finance real-world businesses, and ReFi (Regenerative Finance) which faces similar struggles.

It is not explicitly a blockchain movement; though blockchains provide robust and programmable ledgers, the movement regards technical solutions as only the last part of the necessary economical transformation.

WHAT DOES COFI DO?

The escalating climate crisis, the transformation of the economic system, and the inaction of most governments are contributing to challenges for individuals and businesses that are essential to our society. These issues are impeding the distribution of wealth within our communities, affecting the people and enterprises that create valuable contributions to our civilization.

To counter this trend we must turn away from the competitive mindset towards collaboration.

To this end, we need :

<aside> <img src="/icons/currency-coin_blue.svg" alt="/icons/currency-coin_blue.svg" width="40px" /> Clearing Systems

Mechanisms that match and offset mutual obligations among multiple parties, reducing the need for actual cash transactions and thus conserving liquidity.

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<aside> <img src="/icons/ticket_blue.svg" alt="/icons/ticket_blue.svg" width="40px" /> Voucher Systems

Businesses financing themselves by issuing vouchers and selling or spending them into circulation.

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<aside> <img src="/icons/science_blue.svg" alt="/icons/science_blue.svg" width="40px" /> Mutual Investment

A system where participants invest resources into a shared venture or network, benefiting collectively from the generated returns and fostering mutual economic support and growth.

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<aside> <img src="/icons/network_blue.svg" alt="/icons/network_blue.svg" width="40px" /> Network Credit

A system where credit is extended within a network of interconnected parties based on mutual trust and obligations, facilitating transactions and liquidity.

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<aside> <img src="/icons/condense_blue.svg" alt="/icons/condense_blue.svg" width="40px" /> Share Economy

Sharing spare liquidity, services or resources between trusted businesses and individuals, reducing the need for ownership.

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<aside> <img src="/icons/meeting_blue.svg" alt="/icons/meeting_blue.svg" width="40px" /> Coordinated Action

The various strategies that groups can use to organize collective actions, such as bulk buying or selling, leverage their combined purchasing power to negotiate better prices and optimize resource utilization.

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