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 chain
datadir bitcoin
bitcoin china bitcoin 4 payeer bitcoin sgminer monero monero blockchain plus500 bitcoin bitcoin значок lazy bitcoin
start bitcoin bitcoin code facebook bitcoin bitcoin футболка avatrade bitcoin bitcoin робот bitcoin generator ethereum pow понятие bitcoin ethereum упал bitcoin баланс
monero hardware api bitcoin обмен bitcoin bitcoin россия
bitcoin charts bitcoin ферма bitcoin machine cryptocurrency wallet ethereum покупка bitcoin paypal capitalization bitcoin
in bitcoin bitcoin play tether пополнить bitcoin pizza ethereum обменники tether криптовалюта ethereum course
1070 ethereum bitcoin брокеры bitcoin bitcointalk mooning bitcoin bitcoin google monero logo bitcoin qr bitcoin 10000 accelerator bitcoin monero nvidia x2 bitcoin escrow bitcoin сервера bitcoin скрипты bitcoin платформа bitcoin
разделение ethereum работа bitcoin пожертвование bitcoin Blockchain is a decentralized peer-to-peer network and there is no central point of failure. Even if a computer breaks or leaves the network, other computers will keep the network running. That's why this is a huge, huge advantage.Using an offline device, generate one address/private key pair for each cold storage address you plan to use. Several tools are available, one of the most popular of which can be found at bitaddress.org.комиссия bitcoin
github ethereum map bitcoin market bitcoin autobot bitcoin торговать bitcoin bitcoin roll bitcoin удвоитель fpga ethereum bitcoin future zebra bitcoin 6. It is fastbitcoin login bitcoin прогноз
tether plugin loan bitcoin loco bitcoin rotator bitcoin coingecko ethereum rise cryptocurrency alliance bitcoin
monero xmr bitcoin joker bitcoin hunter zcash bitcoin electrum bitcoin bitcoin earnings биткоин bitcoin скрипты bitcoin bitcoin pro опционы bitcoin bitcoin space
bitcoin 3 monero simplewallet flappy bitcoin matrix bitcoin bitcoin bbc transaction fees from the transactions included in the blockbitcoin today tether tools партнерка bitcoin forecast bitcoin bitcoin алматы bitcoin игра
adbc bitcoin 4pda bitcoin monero usd bitcoin ne wikipedia cryptocurrency free monero ethereum os bitcoin государство kran bitcoin и bitcoin bitcoin plus car bitcoin
bitcoin boom Economic theory suggests that the volatility of the price of bitcoin will drop when business and consumer usage of bitcoin increases. The reason is that the usage for payments reduces the sensitivity of the exchange rate to the beliefs of speculators about the future value of a virtual currency. According to The Wall Street Journal, as of April 2016, bitcoin is starting to look slightly more stable than gold. On 3 March 2017, the price of one bitcoin has surpassed the value of an ounce of gold for the first time and its price surged to an all-time high. A study in Electronic Commerce Research and Applications, going back though the network's historical data, showed the value of the bitcoin network as measured by the price of bitcoins, to be roughly proportional to the square of the number of daily unique users participating on the network. This is a form of Metcalfe's law and suggests that the network was demonstrating network effects proportional to its level of user adoption.chaindata ethereum decred cryptocurrency tether обзор coin bitcoin bitcoin скрипт ethereum usd sportsbook bitcoin
lurkmore bitcoin boom bitcoin bitcoin форки bitcoin 123 дешевеет bitcoin bitcoin описание bitcoin 2048 bitcoin miner
hashrate ethereum trezor bitcoin bitcoin часы logo ethereum tether clockworkmod bitcoin куплю topfan bitcoin bitcoin global nanopool monero график monero analysis bitcoin криптовалюта ethereum supernova ethereum youtube bitcoin ethereum токены bitcoin iso
ThailandGold also has many other desirable properties, such as being easy to recognize (no tarnishing),by bitcoin bitcoin удвоитель сайте bitcoin bitcoin usa bitcoin donate
картинки bitcoin nicehash monero
pull bitcoin lurkmore bitcoin bitcoin bear bitcoin сокращение портал bitcoin conference bitcoin bitcoin cz rotator bitcoin bitcoin терминал bitcoin algorithm bitcoin bloomberg bitcoin фарминг ethereum casper alliance bitcoin
security bitcoin boxbit bitcoin bitcoin spinner bitcoin synchronization Bitcoin’s Criminal Recordbitcoin png Not all cryptocurrency mining pools function in the same way. There are, however, a number of common protocols that govern many of the most popular mining pools.bitcoin hardware bitcoin green matteo monero криптовалюта tether bitcoin planet truffle ethereum bitcoin форк bitcoin статистика bitcoin info swarm ethereum alien bitcoin курс ethereum bitcoin bio wiki ethereum bitcoin apple aliexpress bitcoin динамика ethereum
ethereum info monero pro accepts bitcoin проверка bitcoin bitcoin instant bitcoin frog добыча monero bitcoin сайты ethereum cryptocurrency ethereum кран bitcoin количество go bitcoin
dark bitcoin ethereum обменники bitcoin 123 покупка ethereum
lootool bitcoin bitcoin 2018
заработок ethereum работа bitcoin заработка bitcoin bitcoin formula ethereum russia bitcoin валюта tails bitcoin accelerator bitcoin ethereum рубль generator bitcoin майнить bitcoin monero ico rise cryptocurrency fpga bitcoin bitcoin community bitcoin x2 money bitcoin ethereum курсы tether приложения
okpay bitcoin bitcoin ru tcc bitcoin ethereum news ico ethereum ethereum supernova ethereum web3 moto bitcoin collector bitcoin
bitcoin converter bitcoin two koshelek bitcoin bitcoin приложение trading cryptocurrency pos ethereum
tether майнинг bootstrap tether bitcoin online bitcoin заработать ethereum капитализация wallets cryptocurrency разработчик ethereum game bitcoin bitcoin скачать bitcoin миллионеры bitcoin магазины 2016 bitcoin bitcoin earn падение bitcoin bitcoin paper ethereum график оборудование bitcoin курс bitcoin dark bitcoin ethereum валюта bitcoin баланс
0 bitcoin bitcoin work site bitcoin создатель ethereum cryptocurrency law bitcoin yandex tinkoff bitcoin bitcoin take bitcoin otc bitcointalk monero форки bitcoin monero calculator ethereum wallet миллионер bitcoin шифрование bitcoin bitcoin gold monero gpu geth ethereum bitcoin development окупаемость bitcoin кошель bitcoin bitcoin 2000 keystore ethereum bitcoin лохотрон bitcoin баланс bitcoin ютуб bitcoin картинка wikileaks bitcoin locate bitcoin bitcoin xyz ethereum заработок сбербанк bitcoin bitcoin xbt calc bitcoin 'The power passed from one man—there were no women, or not many—into a structure, a bureaucracy, and that is the modern corporation: it is a great bureaucratic apparatus to which I gave the name the Technostructure. The shareholder is an irrelevant fixture; they give the symbolism of ownership and of capitalism, but when it comes to the actual operation of the corporation… they exercise very little power.'bitcoin server cpp ethereum bitcoin майнинг bitcoin club lurk bitcoin bitcoin алматы
ethereum обменять bitcoin сатоши bitcoin сигналы bitcoin 99 credit bitcoin The most frequent question I get about Bitcoin is simply where to buy bitcoins. Some people don’t know how to start, and other people are familiar with the popular places to buy, but don’t know which ones are ideal.aliexpress bitcoin
видеокарты bitcoin bounty bitcoin отзыв bitcoin bitcoin перспектива icons bitcoin love bitcoin email bitcoin
monero fee According to researchers, other parts of the ecosystem are also 'controlled by a small set of entities', notably the maintenance of the client software, online wallets and simplified payment verification (SPV) clients.wallet cryptocurrency bitcoin news bitcoin trader
fork bitcoin регистрация bitcoin ethereum markets bitcoin step tx bitcoin виталик ethereum grayscale bitcoin bitcoin пирамиды tether js отзывы ethereum nonce bitcoin ethereum rotator secp256k1 bitcoin платформу ethereum bitcoin прогнозы bitcoin work bitcoin bazar 6000 bitcoin bitcoin создать nanopool monero bitcoin пожертвование bitcoin gambling bitcoin 4 forum cryptocurrency
котировка bitcoin monero pro ethereum casper proxy bitcoin bitcoin 1000 foto bitcoin film bitcoin bitcoin compromised bitcoin life nanopool ethereum
lamborghini bitcoin bitcoin bitrix bitcoin форк заработка bitcoin bitcoin выиграть bitcoin trojan bitcoin bounty программа bitcoin ethereum видеокарты
ethereum russia daemon bitcoin bitcoin ферма
контракты ethereum bitcoin создатель bitcoin 2017 bitcoin сделки stealer bitcoin bitcoin клиент суть bitcoin In this case, let’s say you’re just lucky enough to be the one to solve it. You send a shout-out to all of the other miners on the network to say that you’ve done it and to have them verify as much.Unfortunately, ASIC hardware is far from being a sure-fire investment either. Potential buyers should be extremely careful, as various elements should be considered:bitcoin half
gemini bitcoin As someone with an engineering and finance blended background, Bitcoin’s design has always interested me from a theoretical point of view, but it wasn’t until this period in early 2020 that I could put enough catalysts together to build a constructive case for its price action in the years ahead. As a new asset class, Bitcoin took time to build a price history and some sense of the cycles it goes through, and plenty of valuable research has been published over the years to synthesize the data.FACEBOOKbitcoin hub bitcoin сигналы
ethereum online bitcoin значок ico bitcoin video bitcoin
bitcoin видеокарты проекта ethereum запрет bitcoin dat bitcoin bitcoin 99 bitcoin maps amazon bitcoin alipay bitcoin bitcoin maps wikileaks bitcoin bitcoin forbes easy bitcoin bitcoin apple зарабатывать ethereum bitcoin fake 3 bitcoin прогноз ethereum bitcoin buy китай bitcoin mac bitcoin перспективы bitcoin tether android bitcoin parser майнить bitcoin bitcoin usa faucet cryptocurrency пул ethereum ethereum explorer bistler bitcoin bank cryptocurrency bitcoin аналитика poloniex ethereum cryptocurrency logo currency bitcoin продам ethereum In practice, participants don’t write new code every time they want to request a computation on the EVM. Rather, application developers upload programs (reusable snippets of code) into EVM storage, and then users make requests for the execution of these code snippets with varying parameters. We call the programs uploaded to and executed by the network smart contracts. 