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 1000 взлом bitcoin The energy it will consume
bitcoin moneybox
india bitcoin bitcoin gold new cryptocurrency пожертвование bitcoin ethereum перспективы bitcoin лотерея okpay bitcoin биржи bitcoin bitcoin direct bitcoin script
и bitcoin криптовалюта tether bitcoin сделки bitcoin рухнул bitcoin registration gui monero You can pickup an Antminer S9 here.ethereum бесплатно bitcoin добыть bitcoin planet bitcoin роботы скрипт bitcoin 1 ethereum make bitcoin cryptocurrency gold фермы bitcoin tether пополнение bitcoin рухнул
bitcoin anonymous In 2020, one of the most interesting trends in Litecoin development is the work on MimbleWimble.. In blockchain, the MimbleWimble protocol works to ensure the privacy of the transactions by preventing any sharing of the information about sender and receiver’s addresses, or the amount sent. Even as some doubts remain about MimbleWimble’s robustness, its implementation with Litecoin could prove significant for the cryptocurrency’s long-term usefulness. The MimbleWimble testnet was launched on Litecoin at the end of September 2020 and was later relaunched due to low community engagement in the first deployment.bitcoin investing monero сложность ethereum акции
bitcoin перевод bitcoin markets buy ethereum bitcoin half monero калькулятор bitcoin service dorks bitcoin bitcoin приложения playstation bitcoin start bitcoin kran bitcoin ethereum markets daily bitcoin Spurious Dragon - November 2016Satoshi Nakamoto triggered an avalanche of progress with a working system that people could use, extend and fork.мавроди bitcoin
bitcoin счет зарабатывать bitcoin 4pda bitcoin bitcoin компьютер 1080 ethereum график ethereum simple bitcoin продам bitcoin bitcoin qiwi rpg bitcoin
keepkey bitcoin
bitcoin игры транзакции monero рынок bitcoin акции bitcoin андроид bitcoin bitcoin заработок ethereum перевод 2018 bitcoin ethereum gas вход bitcoin кран ethereum bitcoin казино fire bitcoin bitcoin doubler
ethereum график bubble bitcoin bitcoin maining ethereum бесплатно bitcoin oil cryptonight monero tether apk blogspot bitcoin rus bitcoin clame bitcoin куплю ethereum bitcoin блок bitcoin исходники bitcoin x2 bitcoin транзакции bitcoin flapper bitcoin girls programming bitcoin bitcoin pizza bitcoin usd серфинг bitcoin swiss bitcoin puzzle bitcoin mine ethereum майнить bitcoin bitcoin автомат
bitcoin проблемы проверка bitcoin mail bitcoin bitcoin green перспектива bitcoin bitcoin google collector bitcoin bitcoin проект майнер bitcoin monero майнеры bitcoin блок monero poloniex roll bitcoin bitcoin capital bitcoin сервера
keepkey bitcoin bitcoin options ethereum raiden bitcoin qt nanopool ethereum json bitcoin bitcoin фарминг bitcoin stellar cryptocurrency law monero logo erc20 ethereum bitcoin symbol bitcoin nachrichten There are four main types of Bitcoin mining hardware – the list below will introduce you to the changes which shaped the Bitcoin industry in the past few years:*****UWhen it all started, everyone (the few people who knew about it) was using *****Us to mine. Not only was it the only known way but it was enough to use your personal computer’s *****U to get results.While this has obvious advantages, it also means that, because novel smart contracts are less tested, there is a higher chance of vulnerabilities. Ethereum has already seen millions of dollars of losses from exploited vulnerabilities in smart contracts.bitcoin aliexpress развод bitcoin direct bitcoin bitcoin dance monero coin Investing in Bitcoinsтехнология bitcoin instaforex bitcoin invest bitcoin монета ethereum mercado bitcoin зарабатывать ethereum
bitcoin onecoin bitcoin доходность magic bitcoin addnode bitcoin bcc bitcoin bitcoin nedir
cryptocurrency market bitcoin крах equihash bitcoin транзакция bitcoin ethereum биткоин ethereum rig wallets cryptocurrency xbt bitcoin hashrate bitcoin forum ethereum bcc bitcoin rush bitcoin bitcoin javascript
ethereum эфириум bitcoin x How Do I Find Recent Ethereum Price Changes Myself?сколько bitcoin electrum bitcoin анализ bitcoin торги bitcoin bitcoin pool bitcoin forbes bitcoin форум ad bitcoin ethereum project store bitcoin bitcoin экспресс боты bitcoin bitcoin metatrader monero сложность bitcoin login unconfirmed bitcoin лохотрон bitcoin ethereum mist minergate bitcoin
best cryptocurrency bitcoin antminer
red bitcoin bitcoin tube location bitcoin bitcoin reserve bitcoin arbitrage cryptocurrency wikipedia
matrix bitcoin golden bitcoin bitcoin добыть bitcoin local monero pro майнер bitcoin Designing the user interfacexpub bitcoin bitcoin экспресс bitcoin golden dwarfpool monero bitcoin stock chvrches tether робот bitcoin ethereum биткоин config bitcoin bitcoin торги linux bitcoin stealer bitcoin 777 bitcoin ebay bitcoin bitcoin деньги купить bitcoin зарегистрировать bitcoin хешрейт ethereum bitcoin валюта фото bitcoin bitcoin книга yandex bitcoin doubler bitcoin добыча bitcoin bitcoin start bitcoin switzerland bitcoin обмен new cryptocurrency
bitcoin alpari minecraft bitcoin прогноз ethereum bitcoin cache ethereum перспективы
ssl bitcoin earn bitcoin bitcoin 5 bitcoin продажа bitcoin investment
torrent bitcoin bitcoin чат bitcoin change bitcoin count ethereum pools ethereum кошельки bitcoin forums tether bitcointalk byzantium ethereum котировки bitcoin cryptocurrency trading nicehash bitcoin кости bitcoin rx560 monero bitcoin paypal bitcoin окупаемость Blockchain explained: a man purchasing something online.minergate ethereum programming bitcoin
avto bitcoin ethereum supernova
bitcoin bloomberg avatrade bitcoin
bitcoin акции all cryptocurrency ethereum фото bitcoin москва
sgminer monero clame bitcoin
ethereum free golden bitcoin claim bitcoin Compare Crypto Exchanges Side by Side With Others'waterline': a string of fortified villages, close enough to allow for optictether download вход bitcoin For an overview of cryptocurrency, start with Money is no object from 2015. We explore the early days of bitcoin and provide survey data on consumer familiarity, usage, and more. We also look at how market participants, such as investors, technology providers, and financial institutions, will be affected as the market matures.roboforex bitcoin There are a couple of different Litecoin mining calculators. In general, most calculators return a similar result, but you still may want to check several of them just to make sure. Here is the CryptoCompare mining calculator, as well as the Litecoin Pool calculator.In March, the bitcoin transaction log, called the blockchain, temporarily split into two independent chains with differing rules on how transactions were accepted. For six hours two bitcoin networks operated at the same time, each with its own version of the transaction history. The core developers called for a temporary halt to transactions, sparking a sharp sell-off. Normal operation was restored when the majority of the network downgraded to version 0.7 of the bitcoin software. The Mt. Gox exchange briefly halted bitcoin deposits and the exchange rate briefly dipped by 23% to $37 as the event occurred before recovering to previous level of approximately $48 in the following hours. In the US, the Financial Crimes Enforcement Network (FinCEN) established regulatory guidelines for 'decentralized virtual currencies' such as bitcoin, classifying American bitcoin miners who sell their generated bitcoins as Money Service Businesses (or MSBs), that may be subject to registration and other legal obligations.keystore ethereum 33 bitcoin bitcoin xapo доходность bitcoin bitcoin converter plasma ethereum ethereum miners bitcoin token simple bitcoin bitcoin mmgp free ethereum bitcoin tails сборщик bitcoin split bitcoin вики bitcoin bitcoin лопнет ethereum supernova hosting bitcoin bitcoin forbes forbot bitcoin bitcoin metatrader ethereum wallet cold bitcoin cold bitcoin bitcoin hacking работа bitcoin рубли bitcoin bitcoin dance bitcoin motherboard bitcoin kazanma описание bitcoin bitcoin fork bitcoin цена bitcoin партнерка bitcoin символ loans bitcoin bitcoin atm bitcoin nodes ethereum кран monero coin bitcoin masters
abi ethereum joker bitcoin bitcoin сервисы gemini bitcoin ethereum rig As discussed in our guide 'How Does Blockchain Technology Work?', the identity component of blockchain technology is fulfilled through the use of cryptographic keys. Combining a public and private key creates a strong digital identity reference based on possession.bitcoin sign total cryptocurrency котировки ethereum bitcoin автосерфинг
ethereum капитализация 1 monero bitcoin скрипт ethereum online краны ethereum хешрейт ethereum коды bitcoin продаю bitcoin blog bitcoin конвертер ethereum ethereum токен монеты bitcoin bitcoin сатоши pay bitcoin bitcoin grant bitcoin рухнул фермы bitcoin
суть bitcoin
cryptocurrency trading wallet tether bitmakler ethereum bitcoin investment supernova ethereum casinos bitcoin
finex bitcoin bitcoin карты ethereum stratum
bitcoin гарант iso bitcoin bitcoin автоматически bitcoin de bitcoin database Supply limit84,000,000 LTCethereum логотип circle bitcoin лотереи bitcoin uk bitcoin ethereum github
monero настройка разделение ethereum cryptonight monero bitcoin сеть
bitcoin synchronization график bitcoin bitcoin бонусы local bitcoin ютуб bitcoin short bitcoin bitcoin доллар bitcoin страна github ethereum токен ethereum bitcoin seed car bitcoin flex bitcoin ethereum news bitcoin matrix Over the past several years, public interest in cryptocurrencies has fluctuated dramatically. While digital currencies do not currently inspire the same fervent enthusiasm that they did in late 2017, more recently investor interest in cryptos has resurged. The main focus of this interest has been Bitcoin, which has long been the dominant name in cryptocurrency. Since the founding of Bitcoin in 2009, however, hundreds of other cryptocurrencies have entered the scene.1 Although it has proven increasingly difficult for digital coins to stand out given the level of crowding in the field, Litecoin (LTC) is one non-Bitcoin crypto which has managed to stand up to the competition. LTC currently trails behind Bitcoin as the 7th-largest digital currency by market cap, as of May 2020.2Because your cryptocurrency holdings aren’t tied to a financial institution or government, they are available to you no matter where you are in the world or what happens to any of the global finance system’s major intermediaries.Pool Miningcoinder bitcoin neo cryptocurrency bitcoin ukraine 6000 bitcoin депозит bitcoin
bitcoin футболка статистика ethereum bitcoin trend
серфинг bitcoin ethereum виталий bitcoin ann alpha bitcoin bitcoin wallet добыча bitcoin bitcoin gadget ico bitcoin знак bitcoin puzzle bitcoin bitcoin расшифровка bitcoin download poker bitcoin bitcoin обналичить
ethereum отзывы bitcoin book linux ethereum обмен bitcoin
bitcoin casascius reddit cryptocurrency bitcoin information bitcoin valet world bitcoin Cryptocurrencies were the first platform developed using blockchain technology. Now, people have moved from the idea of a platform to exchange cryptocurrencies to a platform for smart contracts.отдам bitcoin monero пул the ethereum
казино bitcoin bitcoin click balance bitcoin bitcoin бонус подтверждение bitcoin bitcoin motherboard bitcoin rub bitcoin galaxy bitcoin миксер ethereum 1070 bitcoin favicon bitcoin demo
card bitcoin bitcoin xpub 500000 bitcoin ropsten ethereum swarm ethereum tether курс hack bitcoin bitcoin 2000 casper ethereum bitcoin bitminer ethereum windows валюта tether bitcoin продать future bitcoin polkadot stingray
bitcoin q мастернода bitcoin bitcoin оборот bitcoin com ethereum регистрация
bitcoin exe bitcoin xt bistler bitcoin ethereum контракты bitcoin tm bitcoin golden bitcoin community bitcoin сервисы биржи bitcoin
up bitcoin polkadot stingray bitcoin flapper bitcoin exchanges solo bitcoin ad bitcoin bitcoin сатоши se*****256k1 bitcoin card bitcoin ethereum токены monero пул cryptocurrency wikipedia keystore ethereum bitcoin future bitcoin market siiz bitcoin moto bitcoin bitcoin 4000 home bitcoin vk bitcoin bitcoin софт auction bitcoin mikrotik bitcoin locate bitcoin total cryptocurrency ethereum pow сети bitcoin bitcoin аккаунт addnode bitcoin ethereum 1070 1 bitcoin bitcoin кранов ethereum programming Bitcoin Unlimited advocated for miner flexibility to increase the block size limit and is supported by mining pools ViaBTC, AntPool and investor Roger Ver.The U.S. federal government is set to run a deficit somewhere in the ballpark of 20% of GDP this year, depending on the size of their next fiscal injection, which is by far the largest deficit since World War II. And most of this deficit is being monetized by the Federal Reserve, by creating money to buy Treasuries from primary dealers and elsewhere on the secondary market, to ensure that this explosive supply of Treasuries does not overwhelm actual demand.plus bitcoin bitcoin office
эфириум ethereum hashrate bitcoin pow bitcoin bitcoin neteller tether обменник bitcoin click ethereum это carding bitcoin bitcoin котировки bitcoin zona разработчик bitcoin протокол bitcoin bitcoin 20 кошельки bitcoin avatrade bitcoin
tor bitcoin bitcoin minergate
ethereum contracts bitcoin greenaddress bitcoin история 5 bitcoin bitcoin stellar bitcoin сбор ethereum erc20
bitcoin обозреватель 6. Are cryptocurrencies legal?bitcoin store криптовалют ethereum rx560 monero auto bitcoin ethereum виталий ann bitcoin
ethereum charts claim bitcoin difficulty ethereum сделки bitcoin ethereum testnet icon bitcoin bitcoin чат bitcoin flapper добыча monero bitcoin видео конференция bitcoin bitcoin wsj decred ethereum decred ethereum ethereum dark bitcoin funding keyhunter bitcoin ico monero bitcoin конвертер bitcoin transaction hashrate ethereum bitcoin traffic bitcoin apk ethereum erc20 кошель bitcoin
bitcoin математика
