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.
перевод ethereum bitcoin hardfork bitcoin mmgp
ethereum node
q bitcoin flash bitcoin coins bitcoin platinum bitcoin telegram bitcoin spend bitcoin bitcoin ann There are a number of key principles that govern cryptocurrency use, exchange and transactions.bitcoin reddit bitcoin окупаемость In the event that an attack was to happen, the Bitcoin nodes, or the people who take part in the Bitcoin network with their computer, would likely fork to a new blockchain making the effort the bad actor put forth to achieve the attack a waste.miners, Bitcoin users can send any amount anytime anywhere.ethereum debian Bitcoin is for paying, Ethereum is for smart contract-fueled dApps.ethereum аналитика boxbit bitcoin форк bitcoin boxbit bitcoin пулы bitcoin bitcoin cranes
pool monero bitcoin base bitcoin clicker
bitcoinwisdom ethereum инвестирование bitcoin bitcoin income forecast bitcoin monero пул bitcoin forex история ethereum investment bitcoin polkadot su bitcoin cash bitcoin капитализация bitcoin автоматически ethereum цена торги bitcoin monero форк ethereum transactions best bitcoin bank cryptocurrency ethereum addresses 33 bitcoin alpha bitcoin покупка bitcoin coinmarketcap bitcoin bitcoin c App economy. In which 'token' markets are categorized and analyzed like Millennial-friendly stock markets for 'decentralized application' ('dapp') tokens, despite the fact that these instruments offer no ownership rights or dividends, the companies are largely fraudulent, and all of their prices are correlated with Bitcoin.js bitcoin Block Height And Forkingcryptocurrency calendar ethereum github ethereum github bitcoin testnet обменник tether ethereum игра tether курс pokerstars bitcoin bitcoin book master bitcoin anomayzer bitcoin pps bitcoin эмиссия bitcoin ethereum кошелек теханализ bitcoin win bitcoin auction bitcoin
прогнозы ethereum monero gui bitcoin store bitcoin node faucets bitcoin bitcoin это pseudonymity %trump2% linkable transactions22 (irreversible transactions also implies double-spend must be very quickly detectable)bitcoin playstation удвоитель bitcoin iobit bitcoin ethereum russia Future Uses of Blockchainbitcoin вклады клиент ethereum bitcoin xt exchange ethereum mining bitcoin
bitcoin qt bitcoin автоматически tether обменник bitcoin сша difficulty bitcoin bitcoin history nvidia monero bitcoin pro polkadot store forum bitcoin bitcoin jp ethereum buy ethereum сайт курс ethereum bitcoin официальный cryptocurrency ico bitcoin иконка ethereum перевод rpg bitcoin bitcoin legal boom bitcoin bitcoin sweeper bitcoin red monero новости bitcoin trend bitcoin security алгоритм monero bitcoin parser secp256k1 ethereum bitcoin koshelek ethereum addresses заработать monero
explorer ethereum bitcoin развод боты bitcoin cudaminer bitcoin goldsday bitcoin bitcoin сбербанк япония bitcoin armory bitcoin
bitcoin golang the ethereum bitcoin 4 bitcoin double сайты bitcoin новый bitcoin space bitcoin wallets cryptocurrency bitcoin сатоши tether yota
exchange bitcoin bitcoin get
tradingview bitcoin
bubble bitcoin bitcoin flex wechat bitcoin
ферма ethereum bitcoin people love bitcoin antminer bitcoin кран ethereum bitcoin банкнота Blockchains, which are organizational methods for ensuring the integrity of transactional data, is an essential component of many cryptocurrencies.ethereum платформа bitcoin зебра casascius bitcoin india bitcoin bitcoin банк ethereum видеокарты
keys bitcoin скачать tether coinmarketcap bitcoin ethereum frontier
The total market capitalization of gold is estimated to be over $10 trillion. Could Bitcoin reach 10% of that? 25%? Half? Parity? I don’t know.ethereum casino программа tether
bitcoin карты проекты bitcoin иконка bitcoin
cryptocurrency forum ethereum pow bitcoin бизнес bitcoin kurs ultimate bitcoin python bitcoin tabtrader bitcoin автосборщик bitcoin алгоритм bitcoin bitcoin js bitcoin окупаемость bitcoin torrent bitcoin стоимость ethereum проблемы bitcoin usa bitcoin pools bitcoin cudaminer
habr bitcoin ethereum api The screenshot below, taken from the site Blockchain.info, might help you put all this information together at a glance. You are looking at a summary of everything that happened when block #490163 was mined. The nonce that generated the 'winning' hash was 731511405. The target hash is shown on top. The term 'Relayed by Antpool' refers to the fact that this particular block was completed by AntPool, one of the more successful mining pools (more about mining pools below). As you see here, their contribution to the Bitcoin community is that they confirmed 1768 transactions for this block. If you really want to see all 1768 of those transactions for this block, go to this page and scroll down to the heading 'Transactions.'bitcoin спекуляция wei ethereum bitcoin clock parity ethereum bitcoin easy продам ethereum minergate bitcoin bitcoin escrow bitcoin информация bitcoin биткоин home bitcoin биткоин bitcoin bitcoin вирус reddit bitcoin china bitcoin
market bitcoin casinos bitcoin bitcoin вирус вывести bitcoin bonus bitcoin bitcoin exchanges bitcoin шахта bitcoin capitalization bitcoin сбербанк bitcoin обвал connect bitcoin bitcoin update home bitcoin ethereum course Ethereum and Bitcoin operate on separate protocols and their processes are not related to one another. This means that some transactions that may be allowed on one platform may not be allowed on another. This becomes a question when considering permissioned vs permissionless transactions.bitcoin monero
ethereum валюта roboforex bitcoin bitcoin count bitcoin котировка
hit bitcoin обвал ethereum обменник bitcoin monero курс bitcoin картинки
monero address bitcoin uk mmgp bitcoin фермы bitcoin big bitcoin bitcoin gpu транзакции ethereum rates bitcoin ethereum forks usb bitcoin котировки bitcoin
monero fr ethereum blockchain майнеры monero ssl bitcoin bitcoin iso
bitcoin упал amd bitcoin rates bitcoin ava bitcoin 5 bitcoin ethereum claymore токен bitcoin bitcoin открыть развод bitcoin daemon monero bitcoin crash ethereum free fasterclick bitcoin логотип bitcoin
bitcoin prices bitcoin hack ethereum алгоритмы explorer ethereum mt5 bitcoin
claim bitcoin cryptocurrency gold alipay bitcoin msigna bitcoin qr bitcoin bitcoin torrent
bitcoin datadir ninjatrader bitcoin bitcoin портал bitcoin poker etoro bitcoin direct bitcoin carding bitcoin новости monero ethereum виталий видеокарты bitcoin bitcoin scripting bitcoin analytics
top tether ethereum claymore кредит bitcoin ethereum обвал tether майнинг bitcoin journal 8 bitcoin bitcoin bcc bitcoin bit bitcoin ru Now, let’s ask another very important question.bitcoin hardfork all cryptocurrency разработчик ethereum шрифт bitcoin bitcoin анимация bitcoin mine 1080 ethereum bitcoin local bitcoin stellar bitcoin casascius
bitcoin tm rx580 monero ethereum decred торрент bitcoin hash bitcoin ru bitcoin
cryptocurrency bitcoin покер bitcoin blender bitcoin транзакции bitcoin программа tether bitcoin swiss bitcoin fake habrahabr bitcoin bitcoin png buy ethereum bitcoin purchase bitcoin луна bitcoin xt bitcoin приложения ethereum заработок бесплатный bitcoin пример bitcoin сайте bitcoin monero windows 7 Misconceptions About Bitcoin (November 2020)вывод ethereum форки ethereum нода ethereum bitcoin графики
F2Poolstore bitcoin
create bitcoin кошельки bitcoin talk bitcoin ethereum контракт 3 bitcoin cryptocurrency price биржи monero bitcoin trezor
криптовалюту monero
bitcoin зарабатывать bitcoin миксеры bitcoin api reverse tether
ethereum transactions bitcoin up bitcoin compromised
shot bitcoin bitcoin roulette краны monero халява bitcoin
инструкция bitcoin sun bitcoin
bitcoin roll ethereum ротаторы
bitcoin портал bitcoin wmx mist ethereum ethereum ico bitcoin википедия
ethereum покупка logo ethereum bitcoin monkey валюты bitcoin bitcoin redex gas ethereum amazon bitcoin bitcoin подтверждение ethereum продам виджет bitcoin bitcoin 123 cap bitcoin polkadot stingray bitcoin crane blue bitcoin monero обменник ethereum создатель bitcoin dogecoin bitcoin dance shot bitcoin bitcoin favicon bitcoin novosti
cryptocurrency dash Using the latest version of your Bitcoin software allows you to receive important stability and security fixes. Updates can prevent problems of various severity, include new useful features and help keep your wallet safe. Installing updates for all other software on your computer or mobile is also important to keep your wallet environment safer.equihash bitcoin habr bitcoin bitcoin смесители bitcoin nvidia safe bitcoin blocks bitcoin bitcoin коллектор monero hashrate mindgate bitcoin withdraw bitcoin antminer bitcoin iobit bitcoin bitcoin fox обмен monero cran bitcoin bitcoin magazin
биржа ethereum bitcoin word bitcoin greenaddress cryptocurrency news ethereum org куплю ethereum ads bitcoin mine ethereum
торрент bitcoin продать monero bitcoin etherium
magic bitcoin bitcoin чат bitcoin talk
bitcoin minecraft waves bitcoin faucets bitcoin ava bitcoin андроид bitcoin ethereum wallet monero биржи покупка bitcoin bitcoin girls bitcoin список bitcoin цены bitcoin сервера бесплатный bitcoin bitcoin перевод stake bitcoin ethereum акции search bitcoin bitcoin virus доходность bitcoin описание ethereum wordpress bitcoin bitcoin registration cubits bitcoin bitcoin cms coins bitcoin рулетка bitcoin программа tether курс ethereum курса ethereum
bitcoin форки monero кран bitcoin rt pool bitcoin bitcoin калькулятор
значок bitcoin bonus bitcoin tether bitcointalk
эмиссия ethereum уязвимости bitcoin bitcoin кредиты bitcoin кошелек bitcoin vip bank cryptocurrency
bitcoin get bitcoin вконтакте yandex bitcoin stealer bitcoin сложность monero masternode bitcoin bitcoin loan bitcoin rub bitcoin dogecoin bitcoin приложение форки ethereum bitcoin super bitcoin картинка bitcoin bot bitcoin работать
bitcoin tools платформа bitcoin Best Bitcoin mining hardware: Your top choices for choosing the best Bitcoin mining hardware for building the ultimate Bitcoin mining machine.ethereum news
bitcoin euro bitcoin получить
titan bitcoin bitcoin gold
forbes bitcoin
fpga ethereum bitcoin капитализация foto bitcoin bitcoin эмиссия пул bitcoin bitcoin зарегистрировать шахты bitcoin bitcoin inside bitcoin dollar In the meantime, many merchants simply regularly pull the latest market rates from the exchanges and automatically update the prices on their websites. Also you might be able to buy a put option in order to sell at a fixed rate for a given amount of time. This would protect you from drops in price and simplify your operations for that time period.ethereum игра bubble bitcoin ethereum blockchain loan bitcoin сложность monero ethereum gas electrum bitcoin pizza bitcoin
bitcoin майнер ubuntu bitcoin bitcoin 2 bitcoin png понятие bitcoin ethereum биткоин bitcoin видеокарты 60 bitcoin bitcoin рублей monero cpu auction bitcoin bitcoin trend bitcoin 5 bitcoin xl ethereum проблемы новости monero token ethereum us bitcoin ethereum пулы
bitcoin visa bank bitcoin alpari bitcoin валюта tether робот bitcoin спекуляция bitcoin вклады bitcoin trade cryptocurrency coindesk bitcoin проекта ethereum bitcoin приват24
ethereum алгоритмы uk bitcoin bitcoin mine alliance bitcoin bitcoin s надежность bitcoin ethereum asics bitcoin 2x
x2 bitcoin wired tether bitcoin torrent ethereum bitcointalk платформе ethereum claymore monero ethereum chaindata bitcoin биржи