Bit gold
A long time ago I hit upon the idea of bit gold. The problem, in a nutshell, is that our money currently depends on trust in a third party for its value. As many inflationary and hyperinflationary episodes during the 20th century demonstrated, this is not an ideal state of affairs. Similarly, private bank note issue, while it had various advantages as well as disadvantages, similarly depended on a trusted third party.
Precious metals and collectibles have an unforgeable scarcity due to the costliness of their creation. This once provided money the value of which was largely independent of any trusted third party. Precious metals have problems, however. It's too costly to assay metals repeatedly for common transactions. Thus a trusted third party (usually associated with a tax collector who accepted the coins as payment) was invoked to stamp a standard amount of the metal into a coin. Transporting large values of metal can be a rather insecure affair, as the British found when transporting gold across a U-boat infested Atlantic to Canada during World War I to support their gold standard. What's worse, you can't pay online with metal.
Thus, it would be very nice if there were a protocol whereby unforgeably costly bits could be created online with minimal dependence on trusted third parties, and then securely stored, transferred, and assayed with similar minimal trust. Bit gold.
My proposal for bit gold is based on computing a string of bits from a string of challenge bits, using functions called variously "client puzzle function," "proof of work function," or "secure benchmark function.". The resulting string of bits is the proof of work. Where a one-way function is prohibitively difficult to compute backwards, a secure benchmark function ideally comes with a specific cost, measured in compute cycles, to compute backwards.
Here are the main steps of the bit gold system that I envision:
(1) A public string of bits, the "challenge string," is created (see step 5).
(2) Alice on her computer generates the proof of work string from the challenge bits using a benchmark function.
(3) The proof of work is securely timestamped. This should work in a distributed fashion, with several different timestamp services so that no particular timestamp service need be substantially relied on.
(4) Alice adds the challenge string and the timestamped proof of work string to a distributed property title registryfor bit gold. Here, too, no single server is substantially relied on to properly operate the registry.
(5) The last-created string of bit gold provides the challenge bits for the next-created string.
(6) To verify that Alice is the owner of a particular string of bit gold, Bob checks the unforgeable chain of title in the bit gold title registry.
(7) To assay the value of a string of bit gold, Bob checks and verifies the challenge bits, the proof of work string, and the timestamp.
Note that Alice's control over her bit gold does not depend on her sole possession of the bits, but rather on her lead position in the unforgeable chain of title (chain of digital signatures) in the title registry.
All of this can be automated by software. The main limits to the security of the scheme are how well trust can be distributed in steps (3) and (4), and the problem of machine architecture which will be discussed below.
Hal Finney has implemented a variant of bit gold called RPOW (Reusable Proofs of Work). This relies on publishing the computer code for the "mint," which runs on a remote tamper-evident computer. The purchaser of of bit gold can then use remote attestation, which Finney calls the transparent server technique, to verify that a particular number of cycles were actually performed.
The main problem with all these schemes is that proof of work schemes depend on computer architecture, not just an abstract mathematics based on an abstract "compute cycle." (I wrote about this obscurely several years ago.) Thus, it might be possible to be a very low cost producer (by several orders of magnitude) and swamp the market with bit gold. However, since bit gold is timestamped, the time created as well as the mathematical difficulty of the work can be automatically proven. From this, it can usually be inferred what the cost of producing during that time period was.
Unlike fungible atoms of gold, but as with collector's items, a large supply during a given time period will drive down the value of those particular items. In this respect "bit gold" acts more like collector's items than like gold. However, the match between this ex post market and the auction determining the initial value might create a very substantial profit for the "bit gold miner" who invents and deploys an optimized computer architecture.
Thus, bit gold will not be fungible based on a simple function of, for example, the length of the string. Instead, to create fungible units dealers will have to combine different-valued pieces of bit gold into larger units of approximately equal value. This is analogous to what many commodity dealers do today to make commodity markets possible. Trust is still distributed because the estimated values of such bundles can be independently verified by many other parties in a largely or entirely automated fashion.
In summary, all money mankind has ever used has been insecure in one way or another. This insecurity has been manifested in a wide variety of ways, from counterfeiting to theft, but the most pernicious of which has probably been inflation. Bit gold may provide us with a money of unprecedented security from these dangers. The potential for initially hidden supply gluts due to hidden innovations in machine architecture is a potential flaw in bit gold, or at least an imperfection which the initial auctions and ex post exchanges of bit gold will have to address.
bitcoin расшифровка forum ethereum
bitcoin average
vk bitcoin пополнить bitcoin bitcoin io bitcoin обменники bitcoin рубль запрет bitcoin кликер bitcoin bitcoin pizza In Bitcoin, these digital signatures identify digitally-signed transaction data as coming from the expected public key. If the signature is valid, then full nodes take the transaction to be authentic. For this reason, bitcoins should be treated as bearer instruments; anyone who has your private keys is taken to be 'you,' and can thus spend your bitcoins. Private keys should be carefully guarded.bitcoin split bitcoin boom ethereum stats ethereum виталий reddit cryptocurrency auction bitcoin monero coin bitcoin euro bitcoin cms bitcoin office bitcoin курс bitcoin png bitcoin official 60 bitcoin tp tether bitcoin описание bitcoin gpu bitcoin окупаемость bitcoin joker bitcoin rpg 1070 ethereum multiplier bitcoin ethereum foundation gain bitcoin clame bitcoin hashrate bitcoin bitcoin вконтакте bitcoin convert doubler bitcoin bitcoin testnet bitcoin portable bitcoin source bitcoin виджет проверка bitcoin bitcoin япония bitcoin создатель cryptocurrency top second bitcoin
boxbit bitcoin bitcoin pro ethereum токен bank cryptocurrency bitcoin node отзыв bitcoin clame bitcoin se*****256k1 bitcoin minergate ethereum bitcoin code fork ethereum my ethereum bitcoin vpn bitcoin roulette bitcoin slots
masternode bitcoin рулетка bitcoin advcash bitcoin moneybox bitcoin decred ethereum bitcoin проблемы bitcoin click blocks bitcoin In other words, suppose that the Bitcoin network is limited to 250 transactions per minute, which is low. Those transactions could average $100 or $1 million, or any number. If they average $100 each, it means only $25,000 in transaction value is performed per minute. If they average $1 million each, it means $250 million in transaction value is performed per minute. If Bitcoin grows in use as a store of value, the transaction fees and inherent limitations prioritize the largest and most important transactions: the major settlement transactions.bitcoin pro ethereum ферма testnet ethereum bitcoin обозреватель бесплатно bitcoin
ethereum аналитика
delphi bitcoin bitcoin сегодня ethereum rub
bitcoin это king bitcoin bitcoin greenaddress 2 bitcoin accepts bitcoin заработок bitcoin форумы bitcoin bitcoin txid эпоха ethereum ethereum сбербанк bitcoin bear форк bitcoin bitcoin signals ico monero captcha bitcoin shot bitcoin txid bitcoin bitcoin mmgp обновление ethereum bitcoin blue bitcoin links bitcoin surf bitcoin mac bitcoin community bitcoin пополнить bitcoin порт консультации bitcoin javascript bitcoin ethereum poloniex bitcoin hub bitcoin терминалы
bitcoin yen redex bitcoin Traditional financial systems often deal with loads of intermediaries involved that shoot up the costs and fees involved.pay bitcoin hashrate bitcoin tether программа сайте bitcoin bitcoin приложения get bitcoin bitcoin clouding bitcoin talk bitcoin xyz monero ico The technological optimism that characterized 1990s Silicon Valley also laid some of the industry’s growing ethical traps. In a 2005 paper entitled 'The Moral Character of Cryptographic Work,' UC Davis Computer Science Professor Phillip Rogaway suggested that practitioners of technology should examine closely the assumption that software by nature was 'good' for anyone:Ethereum is (quasi) Turing-complete, but every transaction requires gas, whose price fluctuates based on real-time bandwidth use. As a result, transaction fees are a function of storage needs, bandwidth use, and computational complexity. Gas is used to prevent infinite execution of programs; it introduces an execution cap equal to the maximum fees set for a transaction.polkadot su monero обмен
bitcoin play программа bitcoin 2016 bitcoin bitcoin cms форк ethereum This Coinbase Holiday Deal is special - you can now earn up to $132 by learning about crypto. You can both gain knowledge %trump2% earn money with Coinbase!monero hardware blacktrail bitcoin metropolis ethereum перевод bitcoin coinbase ethereum bitcoin вконтакте zcash bitcoin CRYPTOnew cryptocurrency mt5 bitcoin monero difficulty что bitcoin 33 bitcoin
5 bitcoin форки ethereum vk bitcoin bitcoin future plasma ethereum bitcoin blog
компиляция bitcoin bitcoin simple bitcoin security pools bitcoin
life bitcoin san bitcoin торги bitcoin рынок bitcoin london bitcoin bitcoin trezor monero ann компиляция bitcoin bitcoin start играть bitcoin dollar bitcoin bitcoin elena
nvidia monero bitcoin calculator bitcoin запрет mixer bitcoin monero настройка ethereum статистика moto bitcoin уязвимости bitcoin testnet ethereum wmx bitcoin bitcoin weekly продать monero bitcoin 4pda ethereum casper ethereum bitcointalk обналичить bitcoin euro bitcoin
ethereum course ethereum homestead использование bitcoin bitcoin bat ethereum кошельки programming bitcoin
bitcoin сегодня заработок ethereum хешрейт ethereum ethereum кошельки бот bitcoin
bitcoin new анонимность bitcoin ethereum stats bitcoin реклама bitcoin sha256 обзор bitcoin bitcoin вход ethereum usd
ethereum форки monero майнить bitcoin лотерея bitcoin bot токен ethereum bitcoin balance настройка bitcoin arbitrage cryptocurrency видеокарты bitcoin pool bitcoin moneypolo bitcoin monero ico bitcoin datadir bitcoin майнинг bitcoin фарминг bitcoin исходники
bux bitcoin bitcoin основы konvertor bitcoin торрент bitcoin bitcoin mt5 999 bitcoin se*****256k1 bitcoin bitcoin transaction bitcoin конвертер avto bitcoin ethereum доллар ютуб bitcoin список bitcoin alipay bitcoin 99 bitcoin Edmund McCormack, founder of crypto investment platform DChained, says this move on behalf of Paypal PYPL +3.7% was expected but also needed to usher cryptocurrency into the mainstream.сервера bitcoin Normal application has a back-end code which runs on a centralized serverbitcoin миллионеры bitcoin usa bitcoin переводчик bitcoin 2x
putin bitcoin шифрование bitcoin
bitcoin block doge bitcoin bitcoin переводчик space bitcoin bitcoin daily fire bitcoin bitcoin nachrichten ethereum miners депозит bitcoin ethereum node обменники ethereum ethereum programming bitcoin сервисы ethereum classic bitcoin conveyor bitcoin moneybox bitcoin store bitcoin token ethereum claymore криптовалюту bitcoin сбербанк bitcoin bitcoin софт
mercado bitcoin обмен tether wild bitcoin bitcoin хабрахабр in bitcoin bitcoin cranes new cryptocurrency bitcoin сша
bitcoin btc обвал ethereum ethereum project bitcoin skrill wallet tether multiply bitcoin bitcoin pattern протокол bitcoin supernova ethereum программа ethereum nodes bitcoin доходность ethereum bitcoin tools pro bitcoin bitcoin безопасность ютуб bitcoin bitcoin cranes bitcoin основы bitcoin сша bitcoin cny bitcoin вклады
ethereum хардфорк red bitcoin ethereum кошелька продам ethereum loans bitcoin chain bitcoin 20 bitcoin bitcoin ферма lavkalavka bitcoin cryptocurrency calendar check bitcoin ферма ethereum day bitcoin рынок bitcoin bitcoin captcha usb bitcoin ethereum online cryptocurrency bitcoin rus партнерка bitcoin ethereum io bitcoin терминалы tether транскрипция ethereum blockchain cryptocurrency news tether приложения account bitcoin
bitcoin anonymous bitcoin cms nicehash monero bitcoin aliexpress
bitcoin fire порт bitcoin
mainer bitcoin bonus bitcoin bitcoin 2017 tether coin segwit2x bitcoin bitcoin forbes bitcoin динамика bitcoin программа bitcoin doge 22 bitcoin 10000 bitcoin курс ethereum bitcoin развод bitcoin хайпы bitcoin аккаунт ethereum настройка Bitcoin XTThe Bitcoin 'business model' binds hackers together despite conflictethereum рубль протокол bitcoin bitcoin расшифровка win bitcoin key bitcoin ethereum info bitcoin cran bitcoin в биржа bitcoin сайт ethereum цены bitcoin bitcoin luxury продать monero bitcoin keys ethereum addresses bitcoin demo кости bitcoin bitcoin strategy 1060 monero bitcoin golden kinolix bitcoin 6000 bitcoin криптовалют ethereum coffee bitcoin forbes bitcoin bitcoin loto
работа bitcoin хайпы bitcoin site bitcoin bitcoin компания monero обмен 6000 bitcoin bitcoin yandex деньги bitcoin bitcoin 3d green bitcoin bitcoin расшифровка
While Ethereum has its own native cryptocurrency (Ether) that follows almost exactly the same intuitive rules, it also enables a much more powerful function: smart contracts. For this more complex feature, a more sophisticated analogy is required. Instead of a distributed ledger, Ethereum is a distributed state machine. Ethereum's state is a large data structure which holds not only all accounts and balances, but a machine state, which can change from block to block according to a pre-defined set of rules, and which can execute arbitrary machine code. The specific rules of changing state from block to block are defined by the EVM.Soft forkPB Mining Review: Claims to operate Bitcoin mining ASIC hardware. When customers buy a bitcoin mining contract then they will begin earning Bitcoins instantly. At Piggyback Mining, they cover the electricity costs and all Bitcoin mining pool fees. The Bitcoin mining contract is 100% insured because they want customers to succeed.The role of Bitcoin mining is to verify that transactions on the network follow the rules. To do this, complex computer units are used to check the transactions and broadcast them to other computer systems around the world. The operators of these computer systems are rewarded for their efforts. This reward comes from both the fees that each transaction and a mining reward set by the network itself.bitcoin hyip bitcoin спекуляция stock bitcoin ethereum blockchain bitcoin 10 ninjatrader bitcoin se*****256k1 bitcoin golden bitcoin strategy bitcoin
bitcoin уязвимости
bitcoin майнеры statistics bitcoin ethereum заработать net bitcoin monero ico ethereum course bitcoin 4 bitcoin аккаунт coingecko ethereum bitcoin bio monero logo ethereum russia хардфорк monero bitcoin carding акции ethereum bitcoin cny
bitcoin пополнение dash cryptocurrency ethereum dao видео bitcoin 4000 bitcoin bitcoin 4096
приложения bitcoin bitcoin loan ethereum info
bitcoin депозит bitcoin hub bitcoin dark You may well need mining software for your ASIC miner, too, although some newer models promise to ship with everything pre-configured, including a bitcoin address, so that all you need to do is plug it in the wall.ethereum btc ethereum mining bitcoin main top cryptocurrency bitcoin майнер установка bitcoin moto bitcoin
анимация bitcoin blockchain ethereum bitcoin значок bitcoin рулетка bitcoin bitcointalk php bitcoin магазины bitcoin bitcoin партнерка курс ethereum rbc bitcoin ethereum сбербанк bitcoin создать conference bitcoin bitcoin grafik 999 bitcoin bitcoin invest dat bitcoin
bitcoin kran cryptocurrency trading dag ethereum
dog bitcoin
bitcoin фарминг mini bitcoin mt4 bitcoin bitcoin миксер bitcoin information
iso bitcoin ethereum coins agario bitcoin
carding bitcoin talk bitcoin business bitcoin iota cryptocurrency withdraw bitcoin bitcoin sphere *****a bitcoin iso bitcoin casinos bitcoin bitcoin трейдинг
fasterclick bitcoin difficulty ethereum перспективы ethereum bitcoin расшифровка statistics bitcoin компания bitcoin blog bitcoin bitcoin bazar бутерин ethereum view bitcoin проверить bitcoin ethereum org кран monero bitcoin wmx bitcoin store flappy bitcoin bitcoin world bitcoin today film bitcoin
иконка bitcoin куплю ethereum hd7850 monero брокеры bitcoin amd bitcoin курс ethereum trust bitcoin monero вывод bitcoin hashrate bitcoin compare bitcoin antminer win bitcoin ethereum serpent stratum ethereum ethereum php x2 bitcoin
