Full privacy (non-traceable transactions)
Each Tag is a one-time virtual money bill, which has a spend key (that is held by the owner of the bill) and a serial number (that is stored on the network to validate its integrity). For each transaction, the spend key is given to the receiver and the network is informed that the bill is spent and no longer valid. The receiver then creates a new bill with the same value and a new serial number, which is updated to the network.
Intrinsic economic stability
The economic model of Tagion tries to stabilize the intrinsic value of the system, rather than being tied to the value of all other currencies. So, a sandwich that costs one Tag today could cost the same in ten years, as Tags should neither gain nor lose value.
The idea is that money reflects underlying asset value. The output is the control of the reward rate, which controls the burn or adding of money to the system. By this mechanism, the amount of money proportional to the underlying assetsâ value should stay the same.
The mechanism requires a certain volume to work, so the price will be volatile and probably surge in the first few years â before achieving stability.
Self-governed as a common
Tagion rejects the idea that resources must be either private or state owned. Instead it uses the common model, a polycentric self-governance model, which means the resource is governed by all parties engaged in using, maintaining and controlling access to it through a common system and common set of rules.
Hashgraph consensus mechanism
The hashgraph mechanism performs transactions fast and is scalable, unlike current PoW systems. Thatâs because Hashgraph is not built on the data structure of a blockchain, but of a directed acyclic graph.
Through this mechanism, Tagion transactions take less than three seconds to perform a transaction (compared to up to ten minutes for other cryptocurrencies). More than 100,000 transactions per second is possible, with very low power consumption and asynchronous byzantine fault tolerance. This makes the consensus mechanism secure, as long as 2/3 of the network nodes do not misbehave.
Decentralized exchange protocol for full market liquidity
The network has a protocol for submitting ask and bids to the network to ensure market liquidity across exchanges, rather than being limited to single exchanges. Bid and asks involving fiats need to be settled by the two exchanges they originate from, whilst pure crypto-settlement can be done automatically by the network.