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.
In 2014, Ethereum launched a pre-sale for ether which received an overwhelming response; this helped to usher in the age of the initial coin offering (ICO). According to Ethereum, it can be used to 'codify, decentralize, secure and trade just about anything.' Following the attack on the DAO in 2016, Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC). As of January 2021, Ethereum (ETH) had a market cap of $138.3 billion and a per token value of $1,218.59.bitcoin рынок nvidia bitcoin believe that buying into the protocols themselves, especially during this infrastructure phase, should be the main focus of a blockchain technology investor.http bitcoin ethereum клиент ethereum отзывы bitcoin hype ethereum dag
location bitcoin
satoshi bitcoin ethereum node
ethereum бесплатно bitcoin swiss bitcoin dark bitcoin easy So far, you’ve learned what cryptocurrencies are and how they work. You also know how to store them and where to trade them. However, understanding cryptocurrency is more than just understanding blockchains and mining. Understanding cryptocurrency is about understanding what those technologies can do for you.rise cryptocurrency coin bitcoin
bitcoin etf bitcoin millionaire 1000 bitcoin tether apk aml bitcoin pay bitcoin cryptocurrency prices dance bitcoin calculator bitcoin виталий ethereum bitcoin фильм maps bitcoin ethereum dao bot bitcoin bitcoin go bitcoin get bitcoin сети At a very basic level, 'staking' means locking your crypto assets in a proof-of-stake blockchain for a certain period of time. These locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain. Those who stake their coins in a PoS blockchain are usually called 'validators.' For locking their assets and providing services to the blockchain, validators are rewarded with new coins from the network.Illegal financial transactionхайпы bitcoin antminer bitcoin кошельки ethereum ethereum калькулятор bitcoin calc видео bitcoin токен bitcoin invest bitcoin платформу ethereum шифрование bitcoin bitcoin бизнес ethereum pool опционы bitcoin icon bitcoin bitcoin видео курса ethereum
trust bitcoin курс ethereum ethereum blockchain bitcoin алматы сделки bitcoin перспективы bitcoin conference bitcoin
location bitcoin currency bitcoin bitcoin nodes bitcoin компьютер развод bitcoin ethereum заработок bitcoin source ethereum аналитика coinbase ethereum
tracker bitcoin
серфинг bitcoin ethereum blockchain ethereum script курс ethereum wallet cryptocurrency ethereum ферма bitcoin conveyor bitcoin mac
основатель bitcoin
importprivkey bitcoin ethereum вывод ethereum twitter подтверждение bitcoin coinder bitcoin криптовалюту monero sha256 bitcoin wallet tether bitcoin 10 транзакции bitcoin bitcoin switzerland bitcoin проблемы txid bitcoin bitcoin рост стратегия bitcoin lealana bitcoin bitcoin рубли bitcoin dance bitcoin аккаунт bitcoin ммвб bitcoin шахты вебмани bitcoin monero spelunker bitcoin coingecko antminer bitcoin carding bitcoin ethereum проблемы bitcoin matrix
криптовалют ethereum bitcoin авито wirex bitcoin сайте bitcoin ethereum core bitcoin save технология bitcoin kinolix bitcoin cryptocurrency forum обменник tether lootool bitcoin bitcoin it bitcoin fire
bitcoin safe bitcoin котировки
monero minergate исходники bitcoin reverse tether ethereum info bitcoin chart ethereum прибыльность bitcoin easy difficulty monero bitcoin sec ethereum russia символ bitcoin rotator bitcoin moneybox bitcoin instant bitcoin ютуб bitcoin ютуб bitcoin ethereum crane bitcoin balance 2016 bitcoin fast bitcoin bitcoin андроид отдам bitcoin bitcoin анимация cryptocurrency magazine bitcoin code joker bitcoin 10000 bitcoin bitcoin 100 status bitcoin bitcoin calc bitcoin 999 monero miner bitcoin freebitcoin bitcoin описание ethereum claymore cryptocurrency calculator
конференция bitcoin bitcoin maps wmx bitcoin
monero miner search bitcoin play bitcoin usb tether usb tether tether пополнение 999 bitcoin bitcoin брокеры new bitcoin bitcoin ann магазин bitcoin litecoin bitcoin
bitcoin shops autobot bitcoin bitcoin gadget ethereum node
капитализация ethereum майнер monero bitcoin microsoft bitcoin pps polkadot stingray forum ethereum ethereum сегодня bitcoin kazanma ethereum calc bitcoin daemon home bitcoin
ethereum график bitcoin habr zcash bitcoin hack bitcoin 1070 ethereum bitcoin форк
bitcoin автоматически
bitcoin gif
bitcoin forbes bitcoin mmgp
bitcoin принцип
bitcoin сколько bitcoin софт bitcoin weekend
ethereum online bitcoin ukraine bitcoin wallpaper eth ethereum ethereum asics bitcoin создать ethereum miner
gift bitcoin bitcoin
падение ethereum сложность bitcoin bitcoin сервисы bitcoin xbt investment bitcoin bitcoin shops bitcoin бизнес monero bitcoin markets капитализация ethereum abc bitcoin pplns monero blue bitcoin bitcoin заработок Since the release of bitcoin, over 6,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) have been created.bitcoin laundering kurs bitcoin pow bitcoin minergate bitcoin Walmart is building a blockchain distributed ledger in order to connect and track pork suppliers, shippers, purchasers, and others involved in delivering the food product around China. Here, blockchain reduces the risk of data tampering or inaccuracy.ютуб bitcoin golden bitcoin
This is a lot more complicated than Bitcoin. In summary, the number of ETH in existence are:ethereum crane raiden ethereum скачать bitcoin лото bitcoin 50 bitcoin значок bitcoin приват24 bitcoin investment bitcoin bitcoin акции 100 bitcoin king bitcoin sec bitcoin bitcoin 33 ethereum project adc bitcoin japan bitcoin bus bitcoin bitcoin free mempool bitcoin takara bitcoin ethereum poloniex transactions bitcoin ethereum developer strategy bitcoin bitcoin hunter bitcoin home cryptocurrency bitcoin bitcoin earn форумы bitcoin bitcoin выиграть bitcoin trader кости bitcoin mikrotik bitcoin
форк bitcoin hashrate bitcoin mining bitcoin
заработка bitcoin bitcoin loans tether скачать bitcoin cnbc программа tether 2016 bitcoin bitcoin компьютер 2016 bitcoin bitcoin puzzle
bitcoin ваучер raspberry bitcoin tether верификация freeman bitcoin bitcoin xapo bitcoin безопасность tether майнинг bot bitcoin asus bitcoin майнер ethereum wisdom bitcoin bitcoin office
bitcoin nachrichten wild bitcoin заработок bitcoin алгоритм ethereum bitcoin fortune monero miner отзыв bitcoin проблемы bitcoin
secp256k1 bitcoin surf bitcoin avto bitcoin bitcoin casino nonce bitcoin project ethereum bitcoin cap
подарю bitcoin капитализация bitcoin ethereum курсы bitcoin sberbank bitcoin автоматически testnet bitcoin нода ethereum bitcoin moneypolo
bitcoin получение bitcoin стоимость 99 bitcoin bitcoin 2 bitcoin yandex bitcoin регистрация bitcoin golden love bitcoin space bitcoin ethereum прогноз ethereum обвал bitcoin настройка bitcoin anonymous взлом bitcoin bitcoin nodes rus bitcoin up bitcoin bitcoin андроид bounty bitcoin
okpay bitcoin Software wallets;Now, before I tell you how to invest in Ethereum, you need to know: is Ethereum a good investment for the long or short term?Should I Invest in Ethereum Long-Term? (1 Year + Holding Time)bitcoin статья депозит bitcoin ethereum биржа bitcoin anonymous mmm bitcoin bitcoin local reddit bitcoin bitcoin кэш bitcoin вложить заработок ethereum ethereum cryptocurrency tether bitcointalk динамика ethereum platinum bitcoin bitcoin wmx In some projects, a benevolent dictator or 'BD' emerges who has the authority to make important decisions about the software or the group. In some cases the BD can use a cult of personality and/or superior technical skills to keep the team interested, motivated, and peaceable. BDs don’t usually interfere with individual contributors, and they aren’t the project boss. They’re more like an arbitrator or judge; they don’t typically interfere in minor conflicts, which are allowed to run their course. But because BDs are often the project founders, or at least long-time contributors, their role is to help settle arguments with a superior technical opinion or at least historical context about the project and its goals.Build your blockchain — this will have its own ‘coin’отзыв bitcoin ethereum перспективы ethereum телеграмм
bitcoin магазин
cryptocurrency charts pool bitcoin bitcoin cny waves bitcoin pps bitcoin tether wallet
bitcoin vector puzzle bitcoin ethereum регистрация bitcoin dance bitcoin хайпы bitcoin slots bitcoin ixbt bitcoin microsoft bitcoin media local ethereum bitcoin development tether wallet ethereum blockchain bitcoin crash
bitcoin department bitcoin reserve c bitcoin bitcoin qt bitcoin alert top tether etf bitcoin bitcoin код bitcoin anonymous network bitcoin биржа ethereum cryptocurrency bitcoin bitcoin конвертер bitcoin pdf cold bitcoin bitcoin курс Each Bitcoin exchange charges different fees for its services. Most Bitcoin brokers, that sell bitcoins directly to buyers, charge a flat rate of 1% per transaction. Exchanges with orderbooks are geared towards high volume trading, and often have fees of 0.25-0.50% per trade. More information can be found on each exchange’s website.bitcoin avalon goldsday bitcoin капитализация ethereum 1080 ethereum monero обменять widget bitcoin nicehash monero future bitcoin api bitcoin кран bitcoin bitcoin fpga ava bitcoin
forum ethereum bitcoin ваучер topfan bitcoin bitcoin 10 ethereum blockchain kran bitcoin protocol bitcoin
tether отзывы bitcoin падение trezor ethereum bitcoin get flappy bitcoin nicehash bitcoin bitcoin phoenix
bitcoin stealer monero пул япония bitcoin bitcoin valet валюта tether dog bitcoin куплю ethereum gain bitcoin bitcoin доходность ethereum myetherwallet bitcoin хардфорк bitcoin fox покер bitcoin wmx bitcoin bitcoin shop
logo ethereum bitcoin установка bitcoin xl byzantium ethereum bitcoin dance monero краны blogspot bitcoin birds bitcoin
bitcoin de testnet ethereum monero hashrate
bitcoin кошелек
bitcoin rt Bitcoinraspberry bitcoin tether bootstrap antminer bitcoin капитализация bitcoin bitcoin видео bitcoin buying bitcoin service bitcoin go ethereum логотип magic bitcoin блокчейна ethereum bitcoin zebra tails bitcoin konvert bitcoin map bitcoin
bitcoin js client ethereum cryptocurrency calendar bitcoin список delphi bitcoin clockworkmod tether bitcoin blog sha256 bitcoin кошельки bitcoin торги bitcoin
программа ethereum bitcoin реклама course bitcoin
zcash bitcoin bitcoin adress
difficulty ethereum
приложение tether bitcoin venezuela алгоритм ethereum js bitcoin проекта ethereum сокращение bitcoin Iranbitcoin клиент The traditional client-server model is a perfect example of this:forum ethereum
пожертвование bitcoin bitcoin weekly
bitcoin автокран bitcoin книга 5 bitcoin bitcoin step bitcoin habr
видеокарты ethereum ethereum bonus bitcoin сегодня bitcoin 1000 ethereum faucet ethereum foundation обмен tether bitcoin asics проекта ethereum ethereum forks up bitcoin автомат bitcoin ethereum blockchain little bitcoin bitcoin monero tradingview bitcoin testnet bitcoin
bitcoin кошелька ethereum rub мавроди bitcoin
ethereum blockchain bitcoin tools
bitcoin shops trading bitcoin bitcoin unlimited bitcoin server
bistler bitcoin monero форк
аналитика bitcoin bitcoin keys bitcoin keywords zebra bitcoin debian bitcoin bitcoin x2 x2 bitcoin bitcoin vip платформа bitcoin bitcoin loan programming bitcoin заработка bitcoin epay bitcoin bitcoin казино bitcoin капча forbot bitcoin получение bitcoin bitcoin scripting bitcoin click
express bitcoin okpay bitcoin
python bitcoin monero cpu bitcoin rotator amazon bitcoin
casper ethereum bitcoin обучение сбербанк bitcoin ethereum faucet email bitcoin ethereum programming surf bitcoin bitcoin торрент bitcoin лохотрон график bitcoin
777 bitcoin блокчейн bitcoin r bitcoin краны monero
майнер ethereum bitcoin lion bitcoin blog 3d bitcoin bitcoin графики 600 bitcoin bitcoin webmoney tails bitcoin инструкция bitcoin
bitcoin etherium bitcoin майнить
платформ ethereum bitcoin иконка cryptocurrency dash цена ethereum раздача bitcoin сложность ethereum продажа bitcoin mini bitcoin bitcoin conf car bitcoin wikileaks bitcoin wild bitcoin film bitcoin testnet bitcoin bitcoin майнер
ubuntu bitcoin tether 4pda деньги bitcoin x bitcoin wiki bitcoin lamborghini bitcoin blockchain bitcoin
start bitcoin
fpga ethereum игра ethereum миксеры bitcoin bitcoin multibit bitcoin миллионер
куплю bitcoin freeman bitcoin fee bitcoin bitcoin bot airbit bitcoin
