Section three: The components that make Open Money

This section takes a deeper dive into the parts that enable Open Money

In this section we'll take a closer look at some of the components that make Open Money work. When put together these components don't just create a new kinds of financial systems — they also create new ways to conceptualize and interact with money.

That's no small thing. After all in the previous section we covered how money systems have largely been unchanged for the past few thousand years. But because of a few new technologies money is changing, and more features and functionality are now possible.

Each of these elements addresses a critical shortcoming of traditional systems while unlocking new possibilities for financial sovereignty, inclusivity, and resilience.

Let’s take a closer look at these core components:

Immutable

At the heart of Open Money is immutability — the assurance that once a transaction is recorded, it cannot be altered or erased. This permanence fosters trust and removes the need for centralized authorities to verify or enforce financial records.

Immutability ensures transparency and protects against fraud, making financial history an unchangeable ledger of truth.

Programmable

Money should be more than a static medium of exchange. In an Open Money framework, money is programmable, meaning it can be embedded with logic—smart contracts that automate transactions, enforce agreements, and enable dynamic financial interactions without intermediaries.

This transforms money from a passive asset into an active participant in economic activity.

Composable

Financial tools should not exist in silos. Open Money is composable, meaning it integrates seamlessly with other financial protocols, allowing for modular and interoperable systems.

Just as developers can stack code libraries to create powerful software, Open Money enables individuals and organizations to build financial solutions that are flexible, efficient, and tailored to their needs.

Interoperable

In the age of the internet, money should not be bound by artificial barriers, including geo-political borders. Open Money is interoperable, meaning it works across different platforms, networks, and jurisdictions.

This ensures that financial value can flow freely, reducing friction and enhancing liquidity across global markets. An interoperable money system reduces reliance on gatekeepers and fosters a more connected financial ecosystem.

Accessible

A truly open financial system must be accessible to everyone, regardless of geography, socioeconomic status, or technological constraints. Open Money removes traditional entry barriers — such as banking requirements and high fees — ensuring that anyone with an internet connection can participate in the global economy.

User-controlled

Unlike conventional systems where financial institutions act as custodians, Open Money is user-controlled. Individuals have full ownership over their funds, keys, and transactions.

This shift eliminates counterparty risk and empowers individuals with financial self-sovereignty.

Censorship-resistant

In an age where financial access can be weaponized, Open Money provides censorship resistance. No central entity can unilaterally block transactions, freeze accounts, or exclude individuals from participating.

This ensures financial freedom, even in restrictive or unstable environments.

Data ownership

Financial transactions generate data — data that, in traditional systems, is owned and exploited by corporations and institutions.

Open Money reverses this dynamic, giving individuals control over their financial data. Users decide how, when, and with whom their information is shared, fostering greater control and security.

Privacy

While transparency is crucial, so is privacy. Open Money incorporates privacy-enhancing technologies that allow individuals to transact without exposing unnecessary personal information.

This prevents surveillance, protects financial autonomy, and reduces the risk of data exploitation.

Permissionless

Financial participation should not require approval. Open Money is permissionless, meaning anyone can engage with the system without needing authorization from a central authority.

This removes the barriers imposed by traditional finance and democratizes economic opportunity.

Encrypted

Security is foundational to financial trust. Open Money leverages encryption to protect transactions, accounts, and identities from malicious actors.

Strong cryptographic techniques ensure that financial interactions remain secure, tamper-proof, and resilient against evolving threats.

Design

The effectiveness of Open Money isn’t just in its principles — it’s in its design.

Thoughtful user experience, intuitive interfaces, and robust infrastructure are necessary for widespread adoption. A well-designed Open Money system ensures that even the most advanced financial tools remain accessible and functional for everyday users.

The future of open money

As we transition from a rigid, centralized financial paradigm to a fluid, decentralized model, these components form the backbone of Open Money. They are not just features, they create new possibilities for a world where financial freedom, inclusion, individual control, and resilience will define new kinds of human organization and coordination.

This post is part of the Open Money project, an ongoing series that forms the basis of a longer work. Subscribe to get a weekly update as it unfolds.