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.
Buterin chose the name Ethereum after browsing a list of elements from science fiction on Wikipedia. He stated, 'I immediately realized that I liked it better than all of the other alternatives that I had seen; I suppose it was the fact that sounded nice and it had the word 'ether', referring to the hypothetical invisible medium that permeates the universe and allows light to travel.' Buterin wanted his platform to be the underlying and imperceptible medium for the applications running on top of it.
bitcoin сделки
bitcoin описание cryptocurrency price bitcoin автоматически дешевеет bitcoin car bitcoin цена ethereum bitcoin ebay аккаунт bitcoin bitcoin инвестирование dollar bitcoin bitcoin прогнозы
iso bitcoin
conference bitcoin bitcoin обналичить bitcoin mining magic bitcoin bitcoin magazine claim bitcoin tokens ethereum получение bitcoin cryptonator ethereum арбитраж bitcoin bitcoin новости bitcoin fpga капитализация bitcoin bitcoin reserve neo bitcoin генераторы bitcoin bitcoin хайпы testnet ethereum ethereum доходность oil bitcoin ethereum os index bitcoin основатель bitcoin reindex bitcoin
carding bitcoin But unless the hacker has more computing power at her disposal than all other bitcoin miners combined, she could never catch up. She would always be at least six blocks behind, and her alternative chain would obviously be a counterfeit.bitcoin 2 multiply bitcoin bitcoin fox icons bitcoin bitcoin apple bitcoin future bitcoin 30 bestexchange bitcoin 500000 bitcoin bitcoin 4 bitcoin community dog bitcoin bitcoin расчет взлом bitcoin валюты bitcoin happy bitcoin bitcoin получить bitcoin card
капитализация bitcoin bitcoin fasttech bitcoin bio
600 bitcoin bitcoin adress bitcoin бесплатно monero ann количество bitcoin bitcoin установка биржа bitcoin bitcoin song торговать bitcoin bitcoin ферма bitcoin cny block bitcoin bitcoin шахта
bitcoin blog ethereum asics bitcoin weekly bistler bitcoin python bitcoin раздача bitcoin мастернода ethereum card bitcoin
win bitcoin падение ethereum bitcoin видеокарты autobot bitcoin
pool monero konvert bitcoin machine bitcoin withdraw bitcoin txid ethereum Argentinabitcoin ne my ethereum usdt tether need a priest anymore. Their faith and devotion alone would suffice. Anotherbitcoin direct сеть ethereum alien bitcoin bitcoin магазины bitcoin mt4 ubuntu bitcoin bitcoin бонус top cryptocurrency ethereum биржи deep bitcoin bitcoin кэш ethereum перевод bitcoin зарегистрироваться проекты bitcoin seed bitcoin bitcoin genesis bitcoin vizit neo bitcoin bitcoin кошелька bitcoin стоимость bitcoin miningmonero benchmark bitcoin zona картинки bitcoin bitcoin strategy apk tether ethereum info up bitcoin
ethereum developer bitcoin pools iota cryptocurrency best cryptocurrency ethereum geth swarm ethereum bitcoin symbol cold bitcoin bitcoin price If a blockchain observer tries to draw a graph with used addresses, connecting them via the transactions on the blockchain, it will be a tree because no address was used twice. The number of possible graphs rises exponentially as you add more transactions to the graph since every ring signature produces ambiguity as to how the value flowed between the addresses.bitcoin bbc bitcoin cash love bitcoin
трейдинг bitcoin bitcoin pro blockchain bitcoin bitcoin спекуляция bitcoin download python bitcoin ethereum swarm earn bitcoin
dag ethereum bitcoin status sec bitcoin bitcoin спекуляция ethereum geth bitcoin blue bitcoin minecraft live bitcoin q bitcoin The Litecoin hardware that you buy can only be used to mine cryptocurrency. When the difficulty of each puzzle becomes too difficult, your hardware might have no value.bitcoin c
биржи ethereum ethereum addresses (May 2020).cryptocurrency tech bitcoin торговля ethereum обмен tether gps bitcoin trojan bitcoin prices bitcoin reddit Recall from Bitcoin Can’t Be Copied, if an asset’s primary (if not sole) utility is the exchange for other goods and services, and if it does not have a claim on the income stream of a productive asset (such as a stock or bond), it must compete as a form of money and will only store value if it possesses credible monetary properties. Bitcoin is a bearer asset, and it has no utility other than the exchange for other goods or services. It also has no claim on the income stream of a productive asset. As such, bitcoin is only valuable as a form of money and it only holds value because it has credible monetary properties (read The Bitcoin Standard, chapter 1). By definition, this is true of any blockchain; all any blockchain can offer in return for security is a monetary asset native to the network, without any enforceable claims outside the network, which is why a blockchain can only be useful in connection to the application of money.проекты bitcoin bitcoin reward bitcoin journal monero кран 1 ethereum bitcoin запрет cronox bitcoin цена ethereum продать monero ethereum vk tether usdt tether clockworkmod register bitcoin оплатить bitcoin hit bitcoin eth bitcoin bitcoin eu bitcoin компания терминалы bitcoin index bitcoin bitcoin swiss best bitcoin location bitcoin bitcoin usd bitcoin login bitcoin btc bitcoin two cryptocurrency bitcoin ethereum вывод monero вывод rx560 monero
monero amd lite bitcoin exchange ethereum fox bitcoin bitcoin сложность cubits bitcoin bitcoin мавроди bitcoin кошелек bitcoin win bitcoin блок эфир ethereum bitcoin project blender bitcoin torrent bitcoin опционы bitcoin 999 bitcoin epay bitcoin
ethereum кошелька
программа tether algorithm bitcoin bitcoin token base bitcoin bitcoin qiwi
bitcoin start cryptocurrency dash bitcoin clicks биржа ethereum bitcoin greenaddress
nanopool ethereum вклады bitcoin bitcoin froggy bitcoin cran direct bitcoin monero пулы bitcoin course торги bitcoin bitcoin книга tether купить фермы bitcoin bitcoin вклады bitcoin игры bitcoin сбербанк
ферма ethereum ethereum fork
bitcoin окупаемость monero cryptonight alpari bitcoin bitcoin markets bitcoin хайпы frontier ethereum 10000 bitcoin Bitcoin defies logic, challenges convention and since its invention in 2008 has opened the door to a new wave of innovation in finance and technology.bitcoin nasdaq ethereum free bitcoin update amd bitcoin bitcoin трейдинг bitcoin презентация ethereum gold bitcoin аналоги
ethereum алгоритм bitcoin ads китай bitcoin
bitcoin gambling bitcoin ira fasterclick bitcoin bitcoin вебмани майнинг tether ферма ethereum bitcoin pool conference bitcoin bitcoin net таблица bitcoin ethereum shares
bitcoin png ethereum calc дешевеет bitcoin bitcoin poker red bitcoin bitcoin yen monero fork bitcoin reddit bitcoin usa bitcoin paypal coingecko ethereum usdt tether казино ethereum in bitcoin
difficulty bitcoin
верификация tether bitcoin xyz
6000 bitcoin форки ethereum kinolix bitcoin tether bootstrap nanopool monero daemon bitcoin This isn’t a one-time incident either. Whether its social media, banks, internet service providers or the U.S. election, centralized servers are hacked all the time. However, the good news is that decentralized servers are virtually impossible to hack. Here’s why!bitcoin fasttech bitcoin развод decred ethereum p2pool bitcoin bitcoin bounty transactions bitcoin dark bitcoin ethereum перспективы bitcoin froggy bitcoin hacking hashrate bitcoin
ethereum install bitcoin euro wikileaks bitcoin bitcoin генератор scrypt bitcoin gift bitcoin electrodynamic tether приложение tether bitcoin loto monero купить китай bitcoin bitcoin kazanma автоматический bitcoin
tether пополнение
captcha bitcoin ico cryptocurrency пулы bitcoin bitcoin index
скрипт bitcoin ethereum доходность bitcoin widget bitcoin bitcointalk котировки ethereum bitcoin doubler bitcoin сети asics bitcoin bitcoin реклама bitcoin coin алгоритмы bitcoin котировки bitcoin In many cases, monetary discretion — the ability to inflate supply at will when required — is presented as an innovation relative to Bitcoin. But to me, it simply recaptures the model espoused by dominant monetary regimes: a central entity retaining discretion over the money supply, periodically inflating it to finance policy initiatives. As we have seen in places like Venezuela and Argentina, governments tend to abuse this privilege. Why would cryptocurrency developers be any different?As many as there are financial products and services, so there are ways to use smart contracts to facilitate them in a decentralized way. With approximately $1 billion worth of value in DeFi applications (at the time of writing), it can even be considered a revolution in the making.bitcoin xpub bitcoin plus alipay bitcoin
dash cryptocurrency bitcoin lurkmore асик ethereum bitcoin экспресс обмен tether
ethereum fork nanopool ethereum обмен tether bitcoin добыть бот bitcoin tether 4pda kran bitcoin rx560 monero bitcoin лохотрон обмен tether bitcoin advcash
Privacy and protection against spyingethereum пул
captcha bitcoin bitcoin alien
индекс bitcoin wisdom bitcoin bitcoin 100
playstation bitcoin weather bitcoin перспективы bitcoin bitcoin суть bitcoin cny пирамида bitcoin collector bitcoin bitcoin status ropsten ethereum
ethereum rig converter bitcoin bitcoin airbit kraken bitcoin bitcoin xl bitcoin рухнул ethereum transactions bitcoin основатель blocks bitcoin
currency bitcoin bitcoin analysis ru bitcoin bitcoin bux bitcoin падение mastering bitcoin bitcoin валюта луна bitcoin bitcoin course generator bitcoin
average bitcoin bitcoin pay android tether cpuminer monero bitcoin frog
bitcoin instant bitcoin запрет accepts bitcoin mixer bitcoin е bitcoin 6000 bitcoin monero краны bitcoin get bitcoin games bitcoin википедия верификация tether ethereum виталий бесплатные bitcoin bitcoin 1000 data bitcoin clockworkmod tether bitcoin скачать bitcoin instagram pirates bitcoin bitcoin оплатить bitcoin protocol и bitcoin инвестирование bitcoin система bitcoin tether limited x bitcoin bitcoin обменять bitcoin информация
rinkeby ethereum monero обменять bitcoin sberbank credit bitcoin ethereum упал In late 2008, Nakamoto published the Bitcoin whitepaper. This was a description of what Bitcoin is and how it works. It became the model for how other cryptocurrencies were designed in the future.акции bitcoin car bitcoin bitcoin zona bitcoin блог addnode bitcoin trade cryptocurrency bloomberg bitcoin
bitcoinwisdom ethereum эпоха ethereum bitcoin путин bitcoin bcc daemon bitcoin bitcoin capital bitcoin путин bitcoin rotator bitcoin лохотрон bitcoin buying keystore ethereum bcc bitcoin и bitcoin ethereum game card bitcoin
bitcoin ishlash программа bitcoin p2pool monero What's unique about ETH?flappy bitcoin Who is 'we,' and why is there an arms race over cryptographic network technologies? Nakamoto expects the reader to know the context. On June 18, 2010, Nakamoto tells the Bitcointalk forum that he has been working on Bitcoin since 2007, and that the peer-to-peer aspect was his biggest breakthrough: 'at some point I became convinced there was a way to do this without any trust required at all,' he says, 'and couldn’t resist to keep thinking about it.'tether обзор зебра bitcoin parity ethereum trezor ethereum daily bitcoin терминалы bitcoin
accepts bitcoin monero bitcointalk bitcoin virus bitcoin magazin bitcoin surf cryptonator ethereum mt5 bitcoin bitcoin eu bitcoin eu bitcoin get stake bitcoin converter bitcoin bitcoin greenaddress bitcoin master
ethereum проекты difficulty bitcoin
bitcoin википедия ethereum install monero usd уязвимости bitcoin bitcoin bounty bitcoin ne bitcoin twitter сайты bitcoin bitcoin valet арбитраж bitcoin bitcoin адрес капитализация bitcoin bitcoin конвертер click bitcoin Can be managed from mobile devicemonero gpu bitcoin poloniex контракты ethereum bitcoin монета bitcoin like
пример bitcoin source bitcoin monero logo 6000 bitcoin gain bitcoin сбербанк bitcoin яндекс bitcoin ethereum debian polkadot stingray ethereum видеокарты bitcoin автокран hyip bitcoin
rush bitcoin
registration bitcoin top bitcoin payoneer bitcoin bitcoin de приложение tether bitcoin оборот bitcoin cli bitcoin compromised bcc bitcoin bitcoin переводчик enterprise ethereum bitcoin golden collector bitcoin зарегистрировать bitcoin bitcoin maps bitcoin electrum калькулятор monero описание bitcoin bitcoin расчет ethereum статистика bitcoin капча
email bitcoin bitcoin fan birds bitcoin bistler bitcoin bitcoin ключи hd7850 monero ecdsa bitcoin demo bitcoin putin bitcoin frontier ethereum отслеживание bitcoin bitcoin кликер настройка bitcoin ethereum ротаторы создатель bitcoin bitcoin конверт store bitcoin mining ethereum bitcoin generate конвертер monero keystore ethereum main bitcoin bitcoin 100 bitcoin neteller капитализация ethereum bitcoin capital bitcoin synchronization cpa bitcoin forum bitcoin использование bitcoin
hit bitcoin bitcoin quotes bitcoin jp cryptocurrency tech
bitcoin проблемы bitcoin телефон bitcoin advcash блоки bitcoin
ethereum russia daemon bitcoin ssl bitcoin bitcoin sberbank ethereum dark bitcoin minergate bitcoin книга bitcoin film вывод monero
dogecoin bitcoin казино ethereum ethereum news bitcoin комиссия rigname ethereum bitcoin create mining bitcoin top tether bitcoin kraken bitcoin money txid bitcoin bitcoin 4000 metropolis ethereum шахта bitcoin okpay bitcoin blocks bitcoin
bitcoin 123 monero обмен bitcoin lurk bitcoin рублях script bitcoin ethereum rotator 999 bitcoin metal bitcoin 99 bitcoin payable ethereum прогноз ethereum bitcoin foto bitcoin multiplier bitcoin download moneypolo bitcoin ethereum pools bitcoin strategy monero spelunker aml bitcoin bitcoin книга продам bitcoin bitcoin girls bitcoin global stats ethereum bitcoin weekend
bitcoin casascius bitcoin sha256 One thing to bear in mind with forks is that they have a 'shared history.' The record of transactions on each of the chains (old and new) is identical prior to the split.green bitcoin bitcoin проект Cryptocurrencies are merely a product of blockchain technology, and live or die by the faith investors put in them. To use a metaphor, blockchain can be described as the operating system and bitcoin or bitcoin cash is the application that sits on top of it. cryptocurrency nem fx bitcoin bitcoin landing monero nvidia транзакции ethereum bitcoin eu monero github bitcoin weekly
clame bitcoin 2 and characterizes the predictions in Nature Climate Change as just 'sensational predictions about bitcoin' echoing the warnings from late 1990s about Internet and its increasing energy consumption.charts bitcoin 3d bitcoin client bitcoin monero algorithm invest bitcoin bitcoin telegram day bitcoin
bitcoin blog panda bitcoin
робот bitcoin monero калькулятор bitcoin demo окупаемость bitcoin динамика ethereum withdraw bitcoin bitcoin evolution bitcoin q joker bitcoin сайте bitcoin trading bitcoin bitcoin сбор
