In Part 2 of this document we will introduce the main tenets of Virtual Currency Schemes and, drawing on lessons learned from the complementary currency case studies in Part 1, we will outline the D-CENT Digital Social Currency experiments: developing and piloting a Bitcoin for the common good. This will be followed by a description of the process (section 5), outlining the Lean-inception sessions, held in Iceland, Spain and Finland in the first three months of 2014, through which lead-user groups have been identified and main problems and hypotheses developed around their contexts and use-cases.

Introducing each pilot stakeholders and user requirements (section 6) we then present the initial findings drawn from these sessions and the subsequent analyses. Three additional use-cases have been added after keen interest was shown by potential stakeholders in Italy and the UK and additional pilots were deemed feasible and beneficial to the project overall. Although the nature of the project is iterative, research on the democratization of digital payment technologies will highlight the concrete situations and difficulties of adaptation of the conventional money system to the novel business models emerging on the social market place of the D-CENT platform. Participatory monetary policy by users of the alternative and complementary currency systems piloted in D-CENT will be a critical feature of the Social Blockchain. It will be tested in Reykjavik and Helsinki Town Halls or Eurocat/Intercanvis, respectively within their specific social-economic ecosystems.

Through user interviews a set of hypotheses are outlined for the identified lead-users in the pilot contexts. From these hypotheses, common trends of needs and problems emerged, forming the basis for three lean-canvases, outlining in more detail the case for developing these three trends for the design phase in T4.4. The main trends have been clustered under these three headings: municipal currencies; socially controlled commercial credit circuits; reward systems. These will be developed further through an iterative process with the lead-users from each pilot. As the research presented in Part 2 shows, design choices need to be informed at the grass-root level, rather than prescribing a design prospectively. Indeed, a municipal currency can be designed with an architecture that resembles clearing mechanisms and circulated as a reward for civic engagements, but will not create an environment for bottom-up innovation without ongoing users' engagement. Pilot and use cases communities will prototype tools that will place an emphasis on structural cooperation and positive social impact through co-design of currency and payment systems.

The final Section presents the Ecology of Money that will be developed in the D-CENT Digital Social Currency pilots, outlining the argument for diversity and federation of currencies as a safeguard to economic volatility. Drawing some preliminary conclusions from Part 1 and Part 2 the final section outlines how these lessons and cases will inform the technical design of the D-CENT money ecology. Design efforts will begin from the scientific evidences of the parallel behaviour that both natural ecosystems and artificial complex-flow system share when confronted with the problem of sustainability. In natural systems, there is an optimal level of efficiency (i.e. streamlining), and resilience (i.e. diversity and interconnectivity) for sustainability and systemic endurance. The notion of Blockchain 1 implies the rethinking of the landscape of currencies and payments, at a structural level. The re-compilation of the Bitcoin client in more meaningful coding languages, (i.e. http://libbitcoin.dyne.org/), the specialisation of modules to add to the Blockchain, and new crypto-currency protocols are the first research and development efforts to advance this technology that is grounded on distributed cooperation. As a result, when several thousands of people decide to engage with the issue of credit control and distribution management, money becomes not only a medium of exchange, but also the most versatile instrument for engaging in economic life, thus linking participation and the design of new monetary circuits