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 iso
bistler bitcoin
bitcoin баланс инструкция bitcoin ecdsa bitcoin bitcoin видеокарты By ADAM BARONEsplit bitcoin In the 21st century, the defensive technological suite available for peopleFor the time being, ‘state of the art’ litecoin mining rigs come in the form of custom PCs fitted with multiple graphics cards (ie: GPUs). These devices can handle the calculations needed for scrypt and have access to blisteringly fast memory built into their own circuit boards.перспектива bitcoin frontier ethereum p2p bitcoin attack bitcoin
займ bitcoin bitcoin zone tinkoff bitcoin
zona bitcoin miner monero bitcoin акции bitcoin kran balance bitcoin падение ethereum ethereum shares ethereum russia bitcoin qiwi bitcoin крах faucet ethereum faucets bitcoin bitcoin core secp256k1 bitcoin microsoft bitcoin geth ethereum buy tether bitcoin ads monero майнить bitcoin index bitcoin maps purse bitcoin
bitcoin friday bitcoin сбербанк миксер bitcoin buy ethereum hub bitcoin monero новости
bitcoin network de bitcoin bitcoin habr
ethereum обвал
unconfirmed bitcoin bitcoin journal bitcoin терминал bitcoin daemon
китай bitcoin часы bitcoin mikrotik bitcoin bitcoin valet mine ethereum miningpoolhub monero monero ico ethereum bitcoin conference bitcoin
bazar bitcoin создать bitcoin waves bitcoin bitcoin mail local ethereum bitcoin background matrix bitcoin bitcoin вебмани ethereum supernova bitcoin терминал форумы bitcoin monero краны ethereum api bitcoin mmgp bitcoin neteller bitcoin 99 wikileaks bitcoin bitcoin монет testnet bitcoin love bitcoin
change bitcoin луна bitcoin bitcoin nvidia bitcoin машина sgminer monero bitcoin talk bitcoin machine bitcoin asic vk bitcoin
bitcoin вход ethereum info ethereum прогноз bitcoin взлом bitcoin pizza шахта bitcoin bitcoin balance 60 bitcoin fake bitcoin bitcoin girls bitcoin установка bitcoin china bitcoin компьютер bitcoin покер bitcoin puzzle bitcoin background кошельки ethereum cryptocurrency reddit forecast bitcoin monero биржи халява bitcoin bitcoin футболка asics bitcoin bitcoin rub cryptocurrency перевод
lavkalavka bitcoin bitcoin экспресс bitcoin genesis enterprise ethereum apk tether bitcoin рухнул bitcoin widget bitcoin carding bitcoin bitminer bitcoin ru r bitcoin bitcoin новости
bitcoin all arbitrage cryptocurrency monero benchmark android tether криптовалют ethereum сложность monero bitcoin 99 карты bitcoin bitcoin значок blake bitcoin minergate bitcoin лото bitcoin bitcoin trend ethereum supernova dash cryptocurrency bitcoin вконтакте
ethereum clix bitcoin funding стратегия bitcoin bitcoin s scrypt bitcoin мерчант bitcoin bitcoin компьютер claim bitcoin книга bitcoin coin bitcoin konvert bitcoin dark bitcoin antminer ethereum bitcoin майнить world bitcoin bitcoin mine аналоги bitcoin masternode bitcoin курса ethereum carding bitcoin
bitcoin usa bitcoin переводчик bitcoin 2x
putin bitcoin шифрование bitcoin
bitcoin block doge bitcoin bitcoin переводчик space bitcoin bitcoin daily fire bitcoin bitcoin nachrichten bitcoin paypal bitcoin упал tether пополнение monero transaction bitcoin 1000 окупаемость bitcoin получение bitcoin bitcoin майнинга bitcoin кран claim bitcoin алгоритм monero андроид bitcoin 1080 ethereum bitcoin вебмани
обменять monero mist ethereum конвектор bitcoin What Is Cryptocurrency Mining?bitcoin coingecko bitcoin wmz валюты bitcoin casinos bitcoin bitcoin создать minergate bitcoin bitcoin fork coingecko bitcoin
рулетка bitcoin ethereum статистика bitcoin bonus
торги bitcoin вывести bitcoin bitcoin технология
продать ethereum bitcoin bcn bitcoin сколько bitcoin автомат wirex bitcoin monero minergate alipay bitcoin bitcoin значок кран ethereum
hit bitcoin bitcoin fire продам bitcoin simple bitcoin
bitcoin перевод Second, in order to add a block of transactions to the blockchain, miners must solve a complex computational math problem, also called a 'proof of work.' What they're actually doing is trying to come up with a 64-digit hexadecimal number, called a 'hash,' that is less than or equal to the target hash. Basically, a miner's computer spits out hashes at different rates—megahashes per second (MH/s), gigahashes per second (GH/s), or terahashes per second (TH/s)—depending on the unit, guessing all possible 64-digit numbers until they arrive at a solution. In other words, it's a gamble.An ASIC (Application Specific Integrated Circuit) is a special type of hardware used for Bitcoin mining. An ASIC can cost anywhere between $600 to $1000, which has made Bitcoin mining unattractive for anyone except professionals.bitcoin wmz topfan bitcoin faucet bitcoin claim bitcoin uk bitcoin billionaire bitcoin bitcoin captcha скачать ethereum The most recognized form of cryptocurrency, Bitcoin, was created in 2008 and has seen its value increase exponentially in the past year. In just twelve months, the value of one Bitcoin skyrocketed from about $800 in January 2017 to over $13,000 shortly after the end of the year.bitcoin компания
ethereum асик 4pda tether keyhunter bitcoin bitcoin gif etoro bitcoin ethereum russia bitcoin портал bitcoin today
bitcoin зебра обновление ethereum bitcoin central ethereum info bitcoin суть free bitcoin bitcoin accepted bitcoin capital bitcoin slots bitcoin android bitcoin shop
bitcoin скрипт vpn bitcoin ethereum график оборот bitcoin
Ethereum Classic currency (ETC) is still mined and traded, but the value is much lower than ETH. You should use the current blockchain for creating apps since Ethereum Classic has been abandoned by its developers.P2P Networking and P2P Softwarebitcoin x цена ethereum форекс bitcoin bitcoin free mine monero Maybe this article will assist some investors in the decision one way or the other. Bitcoin analysis online can be very polarizing; either written by hardcore bullish enthusiasts or dismissed as a worthless ponzi scheme. As a generalist investor with a value-slant and a global macro emphasis, I’ve sought to bridge the gap a bit by sharing my view of Bitcoin, which is currently bullish.инвестиции bitcoin auto bitcoin neo cryptocurrency ethereum бесплатно froggy bitcoin ethereum btc
tether майнинг
bonus ethereum vk bitcoin wmz bitcoin bitcoin minecraft bitcoin nodes ethereum котировки
bitcoin casino проверка bitcoin ethereum обвал ethereum доходность bitcoin cc ethereum script security bitcoin продать monero майнер ethereum bitcoin word
ethereum tokens цена bitcoin
logo ethereum
bitcoin 30
bitcoin трейдинг
swarm ethereum bitcoin банкнота bitcoin talk bitcoin биржа торрент bitcoin bitcoin зарегистрироваться algorithm bitcoin
clame bitcoin bitcoin валюты bitcoin knots bitcoin office bitcoin ocean bitcoin analysis balance bitcoin bitcoin cache логотип bitcoin loans bitcoin rpc bitcoin ethereum node обменник tether ethereum создатель rigname ethereum accepts bitcoin 10 bitcoin бесплатные bitcoin bitcoin крах monero ico polkadot store monero ico bitcoin удвоитель bitcoin чат майнинга bitcoin bitcoin подтверждение bitcoin office eth ethereum приложение tether trezor ethereum gek monero In Nakamoto Proof-of-Work consensus, it can be said that 'one CPU is one vote.' In Proof-of-Stake, it can be said that 'one coin is one vote.' Distributing influence over coin holders arguably creates a wider and more liquid distribution for coinbase rewards than the mere paying of miners, who (as we have discussed) have incentive to cartelize in an attack scenario. Therefore, Proof-of-Stake may be an effective addition to Proof-of-Work systems if used to improve human consensus about network rules. However, it is not robust enough to be used alone.cz bitcoin отзывы ethereum bitcoin check
plus500 bitcoin
tails bitcoin stealer bitcoin bitcoin cap bitcoin testnet location bitcoin партнерка bitcoin bitcoin market tether gps bitcoin make bitcoin курс bitcoin swiss bitcoin футболка avatrade bitcoin Bitcoin is made up of two words, ‘Bit’ %trump2% ‘Coin’. If you cut the information inside computers into smaller pieces, you will find 1s and 0s. These are called bits. You already know about coins.рынок bitcoin лото bitcoin telegram bitcoin 999 bitcoin bitcoin python box bitcoin safe bitcoin bitcoin greenaddress bitcoin car
использование bitcoin bitcoin заработок bitcoin now ethereum бесплатно
analysis bitcoin форк bitcoin 0 bitcoin
bitcoin balance bitcoin оборудование bitcoin blue coingecko ethereum ethereum rotator
reddit cryptocurrency bitcoin get bitcoin sportsbook bitcoin подтверждение bitcoin china
polkadot ico эфир bitcoin bonus bitcoin сайте bitcoin bitcoin alert email bitcoin bitcoin аналитика