In this episode of Paradigm Shock, host Anjon Roy engages with Tomaž Fleischman from the Cycles Protocol to explore the profound potential of blockchain technologies in revolutionizing financial systems with multilateral clearing and netting systems. Through an engaging narrative, they delve into netting and obligation clearing, illustrating how these processes can significantly impact both local economies and the global financial landscape. Fleischman, an expert in this field, shares his journey from computer systems engineering to pioneering blockchain projects like the Cycles Protocol. The discussion highlights blockchain’s capacity to enable decentralized peer-to-peer multilateral clearing systems, offering a transformative approach to liquidity savings and systemic risk reduction.

Cycles Protocol Website: https://cycles.money/

Cycles White Paper: https://cycles.money/whitepaper.pdf

2020 LSM Paper: https://doi.org/10.3390/jrfm13120295

Crypto's early interest from Ethan Buchman: https://ebuchman.github.io/posts/local-money-liquidity-saving/

Other Research from Tomaž:

https://www.researchgate.net/publication/387951277_Neutral_Settlement_Layer_for_Interoperability_between_Different_Forms_of_Local_Financial_Expression

ttps://doi.org/10.3390/jrfm14090452

https://www.researchgate.net/publication/349917124_Pub_-_Liquidity-saving_through_Obligation-Clearing_and_Mutual_Creditpdf