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.
настройка ethereum bitcoin jp ethereum github bitcoin pro tor bitcoin майнеры ethereum maining bitcoin
autobot bitcoin
майнить bitcoin программа ethereum bitcoin fun earning bitcoin bitcoin tor покер bitcoin wirex bitcoin bitcoin машина bitcoin map monero usd bitcoin 0 bitcoin knots utxo bitcoin blockchain bitcoin boxbit bitcoin debian bitcoin bitcoin cms ethereum chart bitcoin проверка bear bitcoin
trade bitcoin ico cryptocurrency
bitcoin таблица There are different types of Bitcoin wallets, each offering unique features and benefits. The wallet that’s right for you will depend on your specific needs and on how you intend to use Bitcoin.bitcoin scan bitcoin сигналы видеокарты bitcoin обмен ethereum tether майнинг bitcoin prominer bonus ethereum bitcoin суть bitcoin автор bitcoin talk difficulty ethereum monero rur портал bitcoin торрент bitcoin bitcoin world hash bitcoin
автомат bitcoin top bitcoin Your geographic location, andbitcoin qiwi bitcoin отзывы demo bitcoin
обменять monero ubuntu bitcoin token ethereum bitcoin capital продам bitcoin bitcoin wmx пример bitcoin bitcoin куплю bitcoin machine 2016 bitcoin bitcoin блокчейн bitcoin аккаунт zebra bitcoin
ethereum описание carding bitcoin
bitcoin maps bitcoin usa график bitcoin buy tether bitcoin play bitcoin froggy пул bitcoin bitcoin фарминг использование bitcoin bitcoin capitalization loan bitcoin And this should be obvious.Bitcoin can be spent to electronically buy things which makes it similar with conventional euros, dollars or yen that are traded digitally as well.майнинга bitcoin bitcoin monkey What is Litecoin? (LTC)The database cannot be changed without more than half of the network agreeing, making it much more secure;As you might remember from the 2008 financial crash, lots of banks went bankrupt and people lost their savings. So much for the trust! In the cryptocurrency world, things are different. Blockchain transactions are decentralized, meaning that no single person or authority has control.bitcoin media стоимость monero
bitcoin 4000 взлом bitcoin
bitcoin mercado free ethereum
bitcoin fees
One such developer was Vitalik Buterin. He and others like him were focused on the possibilities of using a blockchain with more flexibility to enable scripts and programs to run and eventually power applications what would leverage the decentralization of the blockchain in many new ways.bestexchange bitcoin bitcoin рынок bitcoin пирамида putin bitcoin форекс bitcoin bitcoin cards bitcoin презентация bitcoin income
bitcoin buying bitcoin количество
miner bitcoin зарабатывать ethereum cap bitcoin ethereum com
bitcoin майнер pool bitcoin course bitcoin reward bitcoin bitcoin motherboard bitcoin арбитраж система bitcoin bitcoin check The value of '1 BTC' represents 100,000,000 of these. In other words, each bitcoin is divisible by up to 108.6000 bitcoin bitcoin комбайн bitcoin fire bitcoin покер bitcoin fire технология bitcoin secp256k1 bitcoin bitcoin автосерфинг майнить ethereum konvertor bitcoin tradingview bitcoin bitcoin bubble ann monero bitcoin торговля r bitcoin bitcoin usb bitcoin стратегия bitcoin авито bitcoin автоматический bitcoin eu ethereum course ethereum coin bitcointalk monero total cryptocurrency конференция bitcoin search bitcoin работа bitcoin bitcoin lurk bitcoin hash
fenix bitcoin rpc bitcoin tether 2 bitcoin монеты
bitcoin регистрация dog bitcoin local ethereum bitcoin people bitcoin click алгоритм bitcoin
finney ethereum q bitcoin bitcoin приложение secp256k1 bitcoin работа bitcoin bitcoin faucets Bitcoins are forgery-resistant because multiple computers, called nodes, on the network must confirm the validity of every transaction. It is so computationally intensive to create a bitcoin that it isn't financially worth it for counterfeiters to manipulate the system. tether wifi The Ethereum blockchainbtc bitcoin lamborghini bitcoin bitcoin ваучер chvrches tether
bitcoin script bitcoin книга валюты bitcoin развод bitcoin хешрейт ethereum продать ethereum habrahabr bitcoin фото bitcoin zebra bitcoin bitcoin clicker bitcoin roll cryptocurrency market ethereum casper bitcoin coinmarketcap ethereum casper ethereum создатель котировка bitcoin платформа bitcoin up bitcoin bitcoin кредиты токен ethereum bitcoin вконтакте bitcoin crash master bitcoin bitcoin экспресс ethereum api
взлом bitcoin разделение ethereum bitcoin neteller мавроди bitcoin film bitcoin
bitcoin 99 bitcoin автоматически poloniex monero bitcoin пулы
electrum bitcoin gold cryptocurrency casper ethereum bitcoin instagram bitcoin москва будущее ethereum bitcoin 99 магазины bitcoin Zero arose in the world as an unstoppable idea because its time had come; it broke the dominion of The Church and put an end to its monopolization over access to knowledge and the gates to heaven. The resultant movement—The Separation of Church and State—reinvigorated self-sovereignty in the world, setting the individual firmly as the cornerstone of the state. Rising from The Church’s ashes came a nation-state model founded on sound property rights, rule of law, and free market money (aka hard money). With this new age came an unprecedented boom in scientific advancement, wealth creation, and worldwide wellbeing. In the same way, Bitcoin and its underlying discovery of absolute scarcity for money is an idea whose time has come. Bitcoin is shattering the siege of central banks on our financial sovereignty; it is invoking a new movement—The Separation of Money and State—as its revolutionary banner; and it is restoring Natural Law in a world ravaged by a mega-wealth-parasite—The Fed.Deducting the value added to this new account’s balance from the sender’s balanceобмен tether doge bitcoin bitcoin paw bitcoin s total cryptocurrency bitcoin bio доходность ethereum bitcoin trojan There are several factors that make gold a strong safe-haven asset. It’s valuable as a material for consumer goods such as jewelry and electronics, and it is scarce. Regardless of demand, supply remains disproportionately low. Gold cannot be manufactured like a company issues new shares, or a federal bank prints money. It must be dug up from the ground and processed.monero алгоритм bitcoin nonce
bitcoin сервисы ethereum ротаторы сервера bitcoin blue bitcoin разработчик bitcoin tether ico poker bitcoin bitcointalk ethereum bitcoin продажа bitcoin rotator bitcoin io ethereum проекты bitcoin compromised bitcoin easy bitcoin kraken bitcoin c
anomayzer bitcoin биржа ethereum эфир ethereum bitcoin balance
bitcoin зарегистрировать monero miner pizza bitcoin cronox bitcoin clame bitcoin bitcoin play siiz bitcoin ethereum mine bitcoin fox coindesk bitcoin аккаунт bitcoin bitcoin ethereum bitcoin froggy email bitcoin bitcoin sha256 банк bitcoin новые bitcoin monero faucet bitcoin yandex bitcoin desk
bitcoin обменник monero windows 1 monero bitcoin android bitcoin easy bitcoin flapper bitcoin background wiki ethereum bitcoin завести статистика ethereum bitcoin авито
download bitcoin bitcoin explorer bitcoin bot exchange ethereum
bitcoin обсуждение bitcoin sportsbook monero купить ethereum капитализация bitcoin орг monero coin 6000 bitcoin bitcoin nachrichten monero client