The Xeden (pronounced “zē den”) cloud utilizes a unique internal credit system for all payments of services, exchanges between users requiring a fee be paid (such as subscriptions to access media, sale of digital media, additional cloud storage space, leasing of a livestream channel, or purchase of media); the medium of exchange is called a “Cloud Credit.” Cloud Credits come in two forms, Micro-Cloud Credits (MCC), and Standard Cloud Credits (SCC). Either type of credit can be purchased using a credit card that is kept securely on file in your account, or credits may be earned by the user. There are multiple benefits to this system:
- 1. A user may purchase 100 Standard Cloud Credits for example and only incur the cost of merchant processing one time, those 100 SCCs may be used for multiple purchases of media or services without incurring multiple merchant processing charges.
- 2. The fact that credits may be earned means even people without a credit card, bank account or other means of entering the digital economy can now participate by earning in to the system.
- 3. The credits, both Micro and Standard, are usable to anyone, anywhere in the world. People in developing nations can use their Xeden Core Digital Rights Exchange (DRE) account to securely and legally publish for sale or licensing any type of digital media including music, photos, literature, and video. A proposed auction site for physical goods is also planned for future release.
- 4. Using an advertising model, and *affiliate model, even those with no product or service of their own can begin earning Cloud Credits.
- 5. Xeden Cloud Credits offer a way for account holders to purchase additional services from the cloud without continually needing to use a credit card which comes with inherent up-costs due to financial services fees imposed by gateway providers and processors.
Cloud Credits are maintained with a direct value to various public currencies and can be exchanged for public currencies through partners Xeden is working with in the financial industry; at some point Cloud Credits will also be exchangeable for other digital currencies using a third-party exchange.
It is important to note that Cloud Credits are not fiated (made up out of thin air) to enter the system, a Cloud Credit only comes in to existence when public currencies are used to purchase Cloud Credits via a credit card. Once in the system the Cloud Credits are circulated between users, and are deleted from the system upon a user either turning in the credits to buy Xeden services or exchanging their credits for public currency through one of our authorized financial partners. We believe this is a good example of a non-debt based, honest, global exchange system with equal opportunity for more people than current options allow for.
As stated above, accounts can be credited with SCC/MCC through normal credit/ debit cards however the Cloud Credit system includes a concept called the “remuneration object (RO)”. ROs can be used to credit accounts, this is how people earn in to the system as opposed to purchasing in to the system, opening the economy to people in developing worlds who have no credit card but do have access to the Internet via mobile devices or computers. The most common RO is one of several advertisement models. A few good and easy examples that ensures everyone earns is acknowledging advertisements (pay for click model), placing advertisements on the users public Portal pages, or selling ad space to other accounts who have something to sell.
To summarize, accounts can be credited with Cloud Credits by directly purchasing them, receiving them as a part of a transaction across the Exchange, and by participating in any number of ROs. The Cloud Credit system continues to evolve and gain features as new clouds are deployed.
*Affiliate Marketing is when a seller of a product, in this case a user with a digital product to sell or license, refers someone to the seller and a sale is generated. The seller will generally compensate the referring party between 10% and 50% for the sale of a digital product. In the Xeden model if I have written an e-book and sell it for 10 Cloud Credits, I may choose to reward another user who referred a sale to me 5 of those Cloud Credits; in this way users can earn by promoting other users digital media products.