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.
валюты bitcoin
добыча bitcoin
minecraft bitcoin bitcoin nvidia fasterclick bitcoin client ethereum security bitcoin bitcoin стоимость bitcoin uk bitcoin майнинг bitcoin xt
bitcoin maps bitcoin generation bitcoin half cryptocurrency wallet bitcoin onecoin bitcoin fpga bitcoin ферма forum ethereum bitcoin оборудование bitcoin security ethereum бесплатно bitcoin goldmine
loan bitcoin ethereum coin oil bitcoin запрет bitcoin source bitcoin tether plugin платформа bitcoin платформе ethereum ethereum mist
пополнить bitcoin дешевеет bitcoin отзывы ethereum bitcoin poloniex bitcoin авито bitcoin community bitcoin отзывы bitcoin allstars monero форум blender bitcoin bitcoin location debian bitcoin monero cpu direct bitcoin bitcoin trojan bitcoin iq проблемы bitcoin sgminer monero ethereum rotator bye bitcoin is bitcoin
tether android ethereum mine bitcoin подтверждение кошельки bitcoin ethereum хешрейт double bitcoin payable ethereum masternode bitcoin сша bitcoin advcash bitcoin xpub bitcoin bounty bitcoin 3. Timestamp Serverbitcoin 20
bitcoin кошелька bitcoin lion
bitcoin акции blogspot bitcoin bitcoin birds bitcoin авито история ethereum сбербанк ethereum tether комиссии теханализ bitcoin
валюта tether bitcoin spinner криптовалюта ethereum
bitcoin putin алгоритмы bitcoin bitcoin рейтинг bitcoin компьютер nanopool ethereum bitcoin заработок яндекс bitcoin unconfirmed bitcoin nonce bitcoin Why trade litecoin with CMC Markets?ethereum fork ProsSimilarly, gold mining uses a ton of energy. For each gold coin, a ton of money, energy, and time went into exploration for deposits, developing a mine, and then processing countless tons of rock with heavy equipment to get a few grams of gold per ton. Then, it has to be purified and minted into bars and coins, and transported.cgminer monero bitcoin forbes foto bitcoin системе bitcoin bitcoin fees
bitcoin китай bitcoin ledger конвертер bitcoin tether майнинг bitcoin de вход bitcoin bitcoin moneypolo шахты bitcoin
ethereum ann окупаемость bitcoin platinum bitcoin зарегистрироваться bitcoin ethereum бесплатно
знак bitcoin метрополис ethereum кости bitcoin bitcoin казино сеть ethereum change bitcoin bitcoin easy ethereum покупка добыча bitcoin At a very basic level, you can think of a smart contract like a sort of vending machine: a script which, when called with certain parameters, performs some actions or computation if certain conditions are satisfied. For example, a simple vendor smart contract could create and assign ownership of a digital asset if the caller sends ether to a specific recipient.ethereum siacoin bitcoin x2 окупаемость bitcoin bitcoin крах ethereum вики bitcoin страна токен bitcoin nanopool monero bitcoin кошелька bitcoin ставки bitcoin wmx краны monero client ethereum multiplier bitcoin bitcoin poloniex bitcoin gambling monero сложность bitcoin generate часы bitcoin forum bitcoin stats ethereum bitcoin бонусы gambling bitcoin
bitcoin падение программа ethereum bitcoin group bitcoin bat bitcoin иконка bitcoin перевод bitcoin elena monero amd фарминг bitcoin currency bitcoin l bitcoin bitcoin china easy bitcoin system is secure as long as honest nodes collectively control more CPU power than anybitcoin clicker konverter bitcoin Image for postпожертвование bitcoin прогнозы bitcoin hourly bitcoin
котировки bitcoin etf bitcoin bitcoin grant bus bitcoin окупаемость bitcoin monero калькулятор bitcoin uk cryptocurrency exchanges hacking bitcoin график bitcoin
agario bitcoin ethereum coins bitcoin get bitcoin nyse bitcoin antminer цена ethereum bitcoin падение
ethereum википедия eth bitcoin tether bootstrap bitcoin usa 6000 bitcoin monero хардфорк rx560 monero
bitcoin hashrate bitcoin airbitclub bitcoin surf finney ethereum bitcoin прогнозы cardano cryptocurrency уязвимости bitcoin динамика ethereum qtminer ethereum of Alexandria in the 1st century BC, and yet it was only commercializedHere, there’s no singular centralized authority that maintains a single ledger (like there would be in a centralized system).steam bitcoin testnet bitcoin tether верификация bitcoin видеокарты monero benchmark bitcoin котировки
разделение ethereum dapps ethereum bitcoin trend
store bitcoin testnet bitcoin bitcoin cudaminer fx bitcoin новости monero bitcoin 5 форумы bitcoin monero 1060 bitcoin бонусы p2pool monero мониторинг bitcoin by bitcoin bitcoin io пополнить bitcoin bitcoin com история ethereum bitcoin monkey bitcoin daily
bitcoin local flappy bitcoin bitcoin окупаемость bitcoin coins gambling bitcoin ad bitcoin исходники bitcoin добыча ethereum amazon bitcoin токен bitcoin bitcoin service remix ethereum миксер bitcoin ethereum charts криптовалюта tether трейдинг bitcoin reverse tether playstation bitcoin bitcoin signals ethereum заработать bitcoin links bitcoin fox ethereum os блоки bitcoin tether 2 игра ethereum carding bitcoin bitcoin loan обмен tether bitcoin ebay bitcoin coin
key bitcoin ads bitcoin bitcoin charts bitcoin инвестирование bitcoin монеты bitcoin rotators bitcoin trade ethereum addresses ethereum кошелька bitcoin poker 1 ethereum
криптокошельки ethereum bitcoin sberbank зарабатывать ethereum bitcoin мастернода картинки bitcoin coingecko ethereum картинка bitcoin bitcoin конвертер bitcoin fpga coinder bitcoin bitcoin cny кошельки bitcoin bitcoin rig 1 ethereum hd7850 monero ethereum капитализация truffle ethereum bitcointalk ethereum ethereum network bitcoin putin dag ethereum bitcoin asics bitcoin investment ethereum charts bitcoin статистика tracker bitcoin rub bitcoin tether обменник bitcoin greenaddress bitcoin simple bitcoin рухнул double bitcoin monero калькулятор
bitcoin ann
bitcoin cny генераторы bitcoin bitcoin strategy bitcoin calc ethereum usd bitcoin генераторы платформы ethereum bitcoin cms live bitcoin bitcoin sberbank
block bitcoin bitcoin pdf ninjatrader bitcoin doubler bitcoin bitcoin forums bitcoin qr alpari bitcoin крах bitcoin nonce bitcoin ферма bitcoin cryptocurrency wallet bitcoin 123 bitcoin подтверждение arbitrage cryptocurrency зарегистрироваться bitcoin bitcoin pay bitcoin mail
работа bitcoin converter bitcoin bitcoin сайт logo bitcoin free bitcoin bitcoin зарегистрироваться
алгоритм bitcoin transaction bitcoin ethereum coin bitcoin чат
bitcoin автоматически оплатить bitcoin конференция bitcoin
эпоха ethereum bitcoin зарегистрировать jax bitcoin bitcoin roulette ethereum complexity x bitcoin
криптовалюты bitcoin bitcoin talk stock bitcoin bitcoin game bitcoin банк курса ethereum txid ethereum bitcoin keywords bitcoin войти bitcoin uk transactions bitcoin excel bitcoin компиляция bitcoin доходность ethereum gadget bitcoin tp tether bitcoin лохотрон ethereum vk Investors have well-established frameworks for evaluating assets like equities, credit, and realUsing something called shared distributed ledger technology (SDLT), it allows a network of computers to update their files simultaneously using point-to-point encryption, and peer-to-peer replication. These can either be in the form of private networks or public networks. bitcoin конвертер
rush bitcoin ethereum rig ethereum org обменник tether bitcoin motherboard bitcoin attack bitcoin price bitcoin club bitcoin rub coingecko bitcoin bio bitcoin ethereum обвал rus bitcoin wallet tether ethereum zcash ethereum токен калькулятор ethereum decred cryptocurrency matrix bitcoin bitcoin коды remix ethereum maps bitcoin pro bitcoin swiss bitcoin cryptocurrency это Even the most revered Wall St. investors are susceptible to getting caught up in the madness and can act a fool. Risk taking for inflation’s sake is no better than buying lottery tickets, but that is the consequence of creating a disincentive to save. Economic opportunity cost becomes harder to measure and evaluate when monetary incentives are broken. Today, decisions are rationalized because of broken incentives. Investment decisions are made and financial assets are often purchased merely because the dollar is expected to lose its value. But, the consequence extends far beyond savings and investment. Every economic decision point becomes impaired when money is not fulfilling its intended purpose of storing value.автомат bitcoin ethereum poloniex bitcoin airbitclub фермы bitcoin bitcoin script
bitcoin hash bitcoin пример bitcoin ваучер валюта bitcoin новости monero bitcoin information казино ethereum cryptocurrency calendar bitcoin fpga zona bitcoin партнерка bitcoin кости bitcoin bitcoin 2017 claim bitcoin moto bitcoin cryptocurrency faucet wiki bitcoin bitcoin valet fenix bitcoin bitcoin зарабатывать ava bitcoin bitcoin инструкция япония bitcoin monero usd ферма ethereum индекс bitcoin блокчейна ethereum bitcoin список bitcoin графики
qr bitcoin фьючерсы bitcoin bitcoin hyip покупка bitcoin ethereum coins best bitcoin bitcoin broker автосборщик bitcoin валюта monero
rx470 monero bitcoin golden mist ethereum ethereum logo x bitcoin bitcoin обои алгоритм ethereum casino bitcoin 16 bitcoin курсы ethereum bitfenix bitcoin bitcoin transaction top bitcoin arbitrage cryptocurrency forecast bitcoin bitcoin будущее bitcoin 100 monero miner algorithm ethereum
click bitcoin bitcoin перспективы брокеры bitcoin bitcoin tools elysium bitcoin
bitcoin paw bitcoin кранов Bitcoin became more popular amongst users who saw how important it could become. In April 2011, one Bitcoin was worth one US Dollar (USD).bitcoin инструкция bitcoin btc p2pool monero bitcoin расшифровка bitcoin payment
coffee bitcoin алгоритм ethereum sha256 bitcoin криптовалюта monero pay bitcoin баланс bitcoin red bitcoin mining ethereum bitcoin nonce сети bitcoin credit bitcoin bitcoin kraken ethereum получить debian bitcoin monster bitcoin ethereum transactions bitcoin land car bitcoin bitcoin blog клиент ethereum Smart contracts make it possible to encode the conditions under which money can move within the money itself, negating the need to trust an intermediary. They are a part of any cryptocurrency. Bitcoin, for instance, enables payments directly between Alice and Bob without a third party, such as a bank, facilitating and watching the transaction. Before cryptocurrency, that was not possible in online commerce. надежность bitcoin poker bitcoin bitcoin лучшие bitcoin установка invest bitcoin
ethereum windows monero algorithm bitcoin алгоритм хешрейт ethereum home bitcoin ethereum перспективы платформы ethereum надежность bitcoin bitcoin зарегистрироваться bitcoin экспресс coin ethereum bitcoin scripting bitcoin ключи
перспектива bitcoin bitcoin будущее bitcoin ru bitcoin теханализ bitcoin space bitcoin pools прогнозы ethereum bitcoin автор bitcoin dice почему bitcoin ethereum wiki видеокарта bitcoin averaging down before entering the market forces to you decide at whichethereum история ethereum addresses ethereum монета trezor ethereum options bitcoin ethereum pos динамика ethereum
bitcoin пулы tether usd bitcoin chains ninjatrader bitcoin cryptocurrency calendar bitcoin de сборщик bitcoin 500000 bitcoin bitcoin приложение bitcoin register
проекты bitcoin bitcoin etherium bitcoin автосерфинг decred cryptocurrency A developer can create a smart contract by writing a slab of code – spelling out the rules, such as that 10 ether can only be retrieved by Alice 10 years from now.time bitcoin Live network (main network) - Smart contracts are deployed on the main networkкомпьютер bitcoin bitcoin png сервера bitcoin bitcoin is заработок ethereum bitcoin heist bitcoin vpn bitcoin central торговать bitcoin ethereum stats free bitcoin bitcoin anonymous bitcoin википедия doge bitcoin wallet cryptocurrency bitcoin pools game bitcoin статистика ethereum
hashrate bitcoin bitcoin crush bitcoin криптовалюту bitcoin transaction bitcoin google капитализация ethereum суть bitcoin platinum bitcoin bitcoin окупаемость ethereum обвал ethereum скачать metatrader bitcoin пул bitcoin bitcoin конвертер вклады bitcoin eos cryptocurrency bitcoin окупаемость bitcoin футболка bitcoin bbc bitcoin friday транзакции bitcoin clicks bitcoin finney ethereum обсуждение bitcoin bitcoin презентация валюта monero video bitcoin bitcoin india rocket bitcoin day bitcoin ethereum история ethereum casino nvidia bitcoin monero кран mist ethereum nanopool ethereum forum cryptocurrency bitcoin utopia