Safecoin is a digital token. It can be thought of as the oil in the engine of the SAFE Network, a built in way of ensuring that all users of the network are compensated for the value they provide. Let’s ﬁnd out how it works...
Safecoins are distributed entirely by the algorithms within the SAFE Network. Human beings are not involved in the process. Only 4.3 billion coins will ever be in circulation at one time and each will have its own unique identity. Safecoins will be recycled when users exchange them for network services, ensuring there is always a supply for users to earn.
Safecoins are given as an incentive to users for providing their resource to the network. This resource is their: storage space, CPU, bandwidth and online time that enable the encrypted chunks of network data to be stored and retrieved from their computer. The process of providing resource and receiving safecoin in return is called ‘Farming’. Each piece of encrypted network data is stored in a Farmer's ‘Vault’, a data storage and management location on the Farmer's computer which they cannot read, or access. The SAFE network is designed to self-manage these resources.
As network data is retrieved from a computer, the network pays safecoin to the user. This payment doesn’t take place every time data is retrieved, instead it is more like a lottery, where the Farmer is rewarded at random. The safecoin is automatically paid by the network into the user’s safecoin wallet address that is tied (cryptographically) to their vault. The amount of safecoin a user can earn is directly linked to how much resource they provide to the network and how often their computer is available to the network (turned on).
The resource provided by each Farmer is continually checked by the network to make sure that it is still available. It does this by attempting to store a random piece of data. Should the network ﬁnd that the resource committed to the network is no longer available, it reduces the rank of the vault thereby reducing the earning potential of that speciﬁc Vault.
Safecoins can be used to access and use network applications, with part of the ‘payment’ going directly to the application developer. Safecoins can also be bought by users unwilling, or unable to provide resource to the network. This creates a market of buyers and sellers so that farmers can sell the coins they earn for another currency. These transactions will take place on an exchange, another SAFE Network application, or directly between individuals.