Exchange Unit

An abstract unit of exchange: a common denominator in which to express exchanges, enabling the matching algorithm to gradually fill an order. In the economic space protocol exchange offers are expressed through an abstract unit of exchange, where the rates of exchange between any two commodities are translated to these units. Through netting, exchanges can occur without the need to hold and then use a mediating financial instrument (i.e., money). This is of importance since money in a capitalist economy is effectively the ‘right to express exchange value.’ The economic space protocol’s money equivalent is reciprocally issued credit, denominated in units of exchange/units of credit.