Anyone can pay Xt NESTs at time t and then receive Xt+1 NESTs at time t + s in the decentralized martingale value network NEST, with NEST as the value unit and the NEST con- tract as the universal transaction party, as long as there is a martingale information flow Xt t >= 0. The NEST system is built on public chains like Ethereum, and it is a completely decentralized protocol based on smart contracts. The following is the procedure for implementing it:
In the flowchart above, any given martingalized information flow can be used for martingale trades. Each participant completes his or her own trade regardless of the overall system’s security or stability. Initially, all NEST tokens are generated by oracle mining. Their distribution will gradually become decentralized as they circulate in the market. In the case of a large amount of martingale information flows, a more natural idea is to linearly combine different martingale information flows, i.e. martingale transactions, in order to derive more applications. This design, which is similar to the Ethereum virtual machine, will greatly expand the scope of NEST’s application, transforming it into a chain infrastruc- ture that will allow anyone to create more NEST-based applications. We refer to it as the martingale function library or NESTcraft.
When NEST obtains more liquidity, we can use the NEST/USD oracle to convert the transaction’s underlying assets from X NESTs to X USD of NESTs, which will meet the needs of many attempts to establish hedging positions based on the fiat currency standard. A more impactful idea is to introduce, in addition to NEST as the origi nal value unit of the martingale network, PUSD, PETH, PBTC, and other equivalent assets of USD/ETH/BTC as the value unit of martingale exchange, making the entire network application more extensive. However, the value stability of the aforementioned equivalent assets must be consid- ered, and some liquidity position arrangements must be made in advance. Overall, NEST will provide a more decentralized and defensible stablecoin or comparable asset (equivalent to some off-chain assets).