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 spinner fee bitcoin bitcoin faucet сайты bitcoin
bitcoin casino
cryptocurrency mining
bitcoin chains bitcoin софт сайт ethereum математика bitcoin gadget bitcoin ethereum вывод bitcoin instaforex reklama bitcoin talk bitcoin qr bitcoin bitcoin allstars bitcoin работать фонд ethereum rbc bitcoin decred ethereum bitcoin страна
форк bitcoin bitcoin valet bitcoin скачать
flappy bitcoin ava bitcoin зарабатываем bitcoin bitcoin bitcointalk bitcoin neteller kupit bitcoin store bitcoin получение bitcoin cpa bitcoin фильм bitcoin 50 bitcoin bitcoin лохотрон bitcoin habr bitcoin compare
bitcoin allstars яндекс bitcoin
bitcoin bazar bitcoin новости bitcoin grafik платформы ethereum обвал ethereum bitcoin programming time bitcoin bitcoin футболка видео bitcoin
nonce bitcoin ethereum википедия decred ethereum bitcoin bcc 9000 bitcoin bitcoin бесплатно bitcoin farm bitcoin бот bitcoin компьютер bitcoin bcc bitcoin login bitcoin сбербанк биржа bitcoin clame bitcoin rpc bitcoin алгоритм bitcoin bitcoin coinmarketcap bitcoin life wild bitcoin bitcoin rpg будущее bitcoin
accepts bitcoin ethereum online create bitcoin bitcoin лохотрон эпоха ethereum чат bitcoin connect bitcoin bitcoin java скрипты bitcoin
bit bitcoin вики bitcoin etoro bitcoin github ethereum bank bitcoin monero алгоритм bitcoin direct love bitcoin space bitcoin token ethereum casper ethereum facebook bitcoin bitcoin россия autobot bitcoin андроид bitcoin exchange ethereum etoro bitcoin login bitcoin tether ico get bitcoin cryptocurrency price monero cpuminer 1070 ethereum
accepts bitcoin avto bitcoin bitfenix bitcoin xbt bitcoin bitcoin майнер
fork bitcoin decred cryptocurrency
стратегия bitcoin
bitcoin стратегия bitcoin миксер bitcoin iq bitcoin оплата алгоритм ethereum что bitcoin bitcoin knots
bitcoin 123 clockworkmod tether forum bitcoin сети ethereum платформы ethereum калькулятор bitcoin bitcoin casino tether gps Another privacy-focused cryptocurrency is not even based on bitcoin. The CryptoNote whitepaper was released in 2014 by Nicolas van Saberhagen, and the concept has been implemented in several cryptocurrencies such as Monero. The primary innovations are cryptographic ring signatures and unique one-time keys.Emailcryptonight monero Conclusioncard bitcoin е bitcoin There are all types of cloud mining options for other forms of blockchain technology.cryptocurrency bitcoin карты скрипт bitcoin tether yota bitcoin pools
платформы ethereum 1080 ethereum bitcoin valet secp256k1 ethereum bitcoin шахты компиляция bitcoin bitcoin инструкция ethereum calc monero hardware bitcoin зарабатывать box bitcoin bitcoin faucet bitcoin количество bitcoin rub
bitcoin investing flypool ethereum check bitcoin
ethereum cryptocurrency краны monero алгоритм bitcoin вики bitcoin
bitcoin stock In April 2018, the parliament’s members voted by a large majority to support a December 2017 agreement with the European Council for measures aimed, in part, to prevent the use of cryptocurrencies in money laundering and terrorism financing. In early 2020, the EU’s 5th Anti-Money Laundering Directive (5AMLD) was signed into law, which inevitably put crypto service providers under more scrutiny. In 2014, the National Australia Bank closed accounts of businesses with ties to bitcoin, and HSBC refused to serve a hedge fund with links to bitcoin. Australian banks in general have been reported as closing down bank accounts of operators of businesses involving the currency.multiplier bitcoin space bitcoin bitcoin moneypolo bitcoin будущее ethereum windows jax bitcoin лото bitcoin
бесплатные bitcoin bitcoin life ethereum пулы monero биржи
fx bitcoin доходность bitcoin пожертвование bitcoin ccminer monero
bitcoin js clicks bitcoin dorks bitcoin bitcoin капитализация ethereum logo express bitcoin
demo bitcoin bitcoin ваучер партнерка bitcoin bitcoin rig bitcoin покупка truffle ethereum bitcoin conveyor ethereum script форекс bitcoin monero fork bitcoin greenaddress direct bitcoin ethereum rub ethereum com bitcoin котировки
ethereum course
ethereum blockchain bitcoin иконка ethereum краны cpuminer monero bitcoin бонусы bitcoin word bitcoin org кран ethereum doubler bitcoin bitcoin official ethereum ann bitcoin сделки обменники bitcoin collector bitcoin миллионер bitcoin ethereum developer bitcoin crane ethereum видеокарты Cryptocurrencies such as Bitcoin and Ethereum offer a number of benefits, and one of the most fundamental is not requiring trust in an intermediary institution to send payments, which opens up their use to anyone around the globe. But one key drawback is that cryptocurrencies’ prices are unpredictable and have a tendency to fluctuate, sometimes wildly. Coinbase customers can securely store, send, receive, and convert crypto by signing into their account on a computer, tablet, or phone.bitcoin scripting Coinify, a Danish firm that acquired BIPS and Coinzone, offers POS solutions for both brick-and-mortar and online stores. Merchants can get paid in bitcoin or fiat currency – or a mixture of the two – and its mobile app, Coinify POS, works with both Android and iOS devices.ethereum rig bestchange bitcoin As stated in our guide 'What is a Distributed Ledger?', blockchains are an innovation in information registration and distribution. They are good for recording both static data (a registry) or dynamic data (transactions), making it an evolution in systems of record.pump bitcoin genesis bitcoin bonus bitcoin стоимость monero bitcoin is
работа bitcoin box bitcoin bitcoin maker bitcoin мастернода
bitcoin инвестиции bitcoin poloniex happy bitcoin bitcoin комментарии happy bitcoin check bitcoin bitcoin прогноз metropolis ethereum seed bitcoin bitcoin habr accepts bitcoin bitcoin sec reindex bitcoin bitcoin mail bitcoin 999 hardware bitcoin alipay bitcoin
bitcoin favicon tether provisioning locals bitcoin For centuries, the Catholic Church exercised a highly regarded gatekeeperplus bitcoin bitcointalk monero bitcoin обменник описание bitcoin credit bitcoin bitcoin registration значок bitcoin 16 bitcoin
удвоить bitcoin bitcoin зарегистрировать talk bitcoin reward bitcoin криптовалют ethereum
your bitcoin bitcoin block символ bitcoin bitcoin перспективы equihash bitcoin bitcoin cloud bitcoin майнить cubits bitcoin сборщик bitcoin xbt bitcoin bitcoin машины fast bitcoin ads bitcoin bitcoin проект
bitcoin играть bitcoin redex email bitcoin bitcoin london bitcoin кэш github ethereum
bitcoin это bitcoin block bitcoin signals bitcoin coingecko ethereum обмен ethereum stratum antminer bitcoin bitcoin ukraine bitcoin maps bitcoin новости bitcoin multisig bitcoin win ninjatrader bitcoin bitcoin скрипты bitcoin прогнозы bitcoin donate ethereum org proxy bitcoin bitcoin multisig ethereum получить bitcoin seed обвал bitcoin ethereum перспективы ферма bitcoin ethereum ротаторы ethereum телеграмм
okpay bitcoin ethereum вики bitcoin sec майн bitcoin сайте bitcoin bitcoin google автомат bitcoin bitcoin etherium accepts bitcoin bitcoin facebook bitcoin google monero hardware bitcoin neteller bitcoin alien roboforex bitcoin карты bitcoin london bitcoin seed bitcoin википедия ethereum ethereum testnet cryptocurrency arbitrage bitcoin ledger продам ethereum
bitcoin украина hash bitcoin flex bitcoin контракты ethereum перспектива bitcoin bitcoin сигналы eth ethereum ethereum курсы кредиты bitcoin nonce bitcoin claymore monero
bestchange bitcoin bank cryptocurrency ethereum прогноз decred cryptocurrency
iota cryptocurrency bitcoin анонимность iota cryptocurrency keys bitcoin bitcoin etherium bitcoin hype bitcoin заработок
bitcoin роботы bitcoin халява ethereum график bitcoin цены bitcoin poloniex ethereum wikipedia api bitcoin bitcoin community кости bitcoin ethereum продам сайте bitcoin monero сложность майнинг bitcoin казино bitcoin apk tether bitcoin grant bitcoin rt prune bitcoin forum cryptocurrency биржи monero coinder bitcoin bitcoin hardfork
кошель bitcoin rate bitcoin bitcoin status top cryptocurrency bitcoin рухнул кошелек monero index bitcoin
bitcoin talk bitcoin script скачать bitcoin
locals bitcoin Fungibility'Phase 0' was launched on 1 December 2020 and created the Beacon Chain, a proof of stake (PoS) blockchain that will act as the central coordination and consensus hub of Ethereum 2.0.bitcoin футболка