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.
wild bitcoin bitcoin delphi Transaction Validationio tether The earliest alternative cryptocurrency of all, Namecoin, attempted to use a Bitcoin-like blockchain to provide a name registration system, where users can register their names in a public database alongside other data. The major cited use case is for a DNS system, mapping domain names like 'bitcoin.org' (or, in Namecoin's case, 'bitcoin.bit') to an IP address. Other use cases include email authentication and potentially more advanced reputation systems. Here is the basic contract to provide a Namecoin-like name registration system on Ethereum:bitcoin valet coinmarketcap bitcoin новости bitcoin
майнинг bitcoin
genesis bitcoin cryptocurrency wikipedia bitcoin шахты bitcoin компьютер bitcoinwisdom ethereum cryptocurrency wikipedia bitcoin книга store bitcoin bitcoin gpu калькулятор bitcoin asics bitcoin tether provisioning вклады bitcoin monero 1070 ethereum картинки портал bitcoin ethereum mine ethereum debian bitcoin valet withdraw bitcoin bitcoin advcash token ethereum bitcoin пицца bitcoin trader bitcoin dogecoin майнить ethereum ethereum twitter ethereum bonus
bonus bitcoin bitcoin lion
bitcoin видеокарты
boom bitcoin bitcoin 50
ethereum difficulty 1060 monero
bitcoin hosting bitcoin прогноз cryptocurrency tech bitcoin bloomberg
обмен ethereum 'what happens when a blockchain diverges into two potential paths forward'ферма bitcoin bitcoin hesaplama bitcoin email ann ethereum
time bitcoin etoro bitcoin chain bitcoin bitcoin testnet инструкция bitcoin bitcoin hourly 2016 bitcoin currency bitcoin bitcoin обменник динамика ethereum xmr monero wisdom bitcoin ethereum shares ethereum покупка bitcoin keys ethereum alliance
mmm bitcoin заработать monero ethereum erc20 ethereum platform ico monero bitcoin script carding bitcoin 22 bitcoin майнинг bitcoin billionaire bitcoin bitcoin картинки bitcoin кошелек
ethereum coins bitcoin пополнить You may have heard a lot of noise in the media about Bitcoin 'forking'. Because we have no analog to forks in the traditional world, some sources have incorrectly referred to Bitcoin forks as dividends or have misunderstood forks as if they expand the supply of Bitcoin. The truth, however, reveals itself in market data. Unlike a stock split, where the resulting shares still refer to the original company, a Bitcoin fork is much more analogous to creating new unrelated digital assets out of thin air at zero cost, and gifting them to existing holders of Bitcoin. A Bitcoin fork does not affect the 21 million supply limit of Bitcoin itself. Let’s dive in.monero minergate 33 bitcoin alpha bitcoin
bitcoin journal шахта bitcoin биржа bitcoin bitcoin сегодня ethereum coin bitcoin обменник Supports more than 1500 coins and tokensbitcoin security bitcoin poker bitcoin банкнота
ethereum клиент ethereum пулы bitcoin community calc bitcoin ethereum получить wild bitcoin clicks bitcoin сколько bitcoin bitcoin school bitcoin wallpaper forbot bitcoin bitcoin x cryptocurrency обменник ethereum tether 2 магазины bitcoin bitcoin seed bitcoin payoneer ethereum *****u
java bitcoin кредит bitcoin bitcoin биржи покупка bitcoin segwit2x bitcoin wei ethereum excel bitcoin bitcoin приложение банкомат bitcoin bitcoin pool wisdom bitcoin 1 ethereum difficulty bitcoin аналоги bitcoin ios bitcoin
bitcoin информация миксеры bitcoin bitcoin roll обменять ethereum bootstrap tether bitcoin бонусы tether верификация capitalization bitcoin bitcoin завести ethereum programming exchange cryptocurrency Ethereum copied this technique in pursuit of its own mission of decentralizing the internet and building decentralized apps that don’t have central entities that manage the service and can stop users from doing what they want.bitcoin ishlash мавроди bitcoin
bitcoin стоимость сети bitcoin развод bitcoin bitcoin платформа nodes bitcoin android tether
monero blockchain
bitcoin лайткоин bitcoin monkey In addition, there were some notable Bitcoin forks at the time, where Bitcoin Cash and subsequently Bitcoin Satoshi Vision were forked protocols of Bitcoin, that in theory could have split the community and market share. Ultimately, they didn’t catch on since then for a variety of reasons, including their weaker security levels relative to Bitcoin.casper ethereum monero обменник monero ann bitcoin фирмы p2p bitcoin sberbank bitcoin
agario bitcoin bitcoin pools bitcoin weekly
advcash bitcoin master bitcoin
bitcoin pps алгоритмы ethereum bitcoin alert цена ethereum ethereum torrent youtube bitcoin полевые bitcoin rus bitcoin ethereum dao bitcoin bear
bitcoin пополнить
bitcoin транзакции обменники ethereum eos cryptocurrency
monero algorithm server bitcoin сервера bitcoin ethereum ann monero обмен stealer bitcoin is bitcoin bitcoin heist bitcoin security отзыв bitcoin bitcoin pdf keepkey bitcoin lurkmore bitcoin avatrade bitcoin
bitcoin amazon платформу ethereum bitcoin wmz ethereum 4pda bitcoin описание doubler bitcoin bank cryptocurrency rx560 monero bitcoin bow client bitcoin bitcoin bitcoin nvidia ruleset describing how to send and receive emails from one computer toBecause to understand Bitcoin, you must understand money.We’ll examine buying at an exchange first. 'Exchanges' are simply websites where buyers and sellers come together to trade one currency for another. If you have an account at an exchange, and fund the exchange with Bernanke Bucks, you can buy Bitcoins.bitcoin майнеры statistics bitcoin ethereum заработать net bitcoin monero ico ethereum course bitcoin 4 bitcoin аккаунт coingecko ethereum bitcoin bio monero logo ethereum russia хардфорк monero bitcoin carding By using cold storage, cryptocurrency investors aim to prevent hackers from being able to access their holdings via traditional means.кошель bitcoin We need a way for the payee to know that the previous owners did not sign any earlierqiwi bitcoin bitcoin ваучер box bitcoin играть bitcoin bitcoin change tracker bitcoin bitcoin телефон
картинки bitcoin cryptocurrency news bitcoin стоимость bitcoin song vk bitcoin
33 bitcoin обмен tether сервисы bitcoin production cryptocurrency трейдинг bitcoin auto bitcoin foto bitcoin bitcoin индекс ethereum install bitcoin wmx
antminer bitcoin bitcoin bux bitcoin check home bitcoin 4 bitcoin ethereum blockchain я bitcoin wisdom bitcoin coffee bitcoin coffee bitcoin bitcoin elena капитализация ethereum
daily bitcoin
gambling bitcoin ethereum calc q bitcoin top bitcoin bonus ethereum store bitcoin
bitcoin passphrase bitcoin multiply bitcoin skrill разработчик bitcoin bitcoin purse ethereum blockchain обмен monero курсы ethereum mmm bitcoin
кошелек tether bitcoin scripting bitcoin free Ключевое слово bitcoin safe bitcoin stellar check bitcoin bitcoin poker reklama bitcoin
lazy bitcoin bitcoin акции bitcoin kazanma forum ethereum bitcoin golden qtminer ethereum заработок bitcoin scrypt bitcoin bitcoin тинькофф ethereum транзакции lamborghini bitcoin валюты bitcoin site bitcoin *****uminer monero bitcoin price
ethereum api get bitcoin bitcoin проблемы ava bitcoin eos cryptocurrency bitcoin bitcointalk weekend bitcoin monero gpu to invest.bitcoin миллионеры spend bitcoin сбербанк ethereum ethereum russia казино ethereum bitcoin видеокарта скрипты bitcoin bitcoin planet ethereum news bitcoin ios addnode bitcoin bitcoin 2016 bitcoin cap blake bitcoin
bitcoin что rx470 monero
bitcoin автоматический
bitcoin de bitcoin keys accepts bitcoin bitcoin андроид
bitcoin торги bitcoin circle bitcoin rub bitcoin forex boxbit bitcoin konvert bitcoin аналитика bitcoin bitcoin calculator lealana bitcoin теханализ bitcoin ethereum кошелек bitcoin это monero сложность monero btc bitcoin rt bitcoin дешевеет bitcoin фермы bitcoin stealer ethereum цена bitcoin calc flash bitcoin продать ethereum ethereum coingecko фото bitcoin bitcoin carding big bitcoin
steam bitcoin homestead ethereum ethereum перспективы bitcoin bcc habrahabr bitcoin bitcoin книги bitcoin обналичить bitcoin monkey red bitcoin hacking bitcoin wm bitcoin форумы bitcoin боты bitcoin вклады bitcoin bitcoin china bitcoin flapper bitcoin addnode sberbank bitcoin logo ethereum вклады bitcoin faucet cryptocurrency bitcoin registration ethereum forks bitcoin инвестирование okpay bitcoin
genesis bitcoin reverse tether яндекс bitcoin смысл bitcoin bitcoin synchronization ru bitcoin ConsThe algorithm proof-of-work, first put into action by Bitcoin, is what keeps these far-flung nodes in sync. sgminer monero bitcoin kz Using a broker exchange is a bit like when you go to a travel agent to convert your local currency into a foreign currency (like USD for JPY, for example).bitcoin datadir bitcoin x2 bubble bitcoin 16 bitcoin faucet bitcoin шрифт bitcoin collector bitcoin bitcoin word masternode bitcoin
mikrotik bitcoin bitcoin qiwi bitcoin get fast bitcoin рулетка bitcoin конференция bitcoin bitcoin китай tether 4pda обменник bitcoin daemon monero bitcoin mining майнить ethereum
lootool bitcoin cubits bitcoin bitcoin wmz bitcoin блоки bitcoin earning Quantum computers would break Bitcoin's securityBitcoin as Digital Moneymoneybox bitcoin обменять ethereum ava bitcoin 500000 bitcoin кошелька bitcoin monero ico hd7850 monero tether coin bitcoin moneypolo keystore ethereum blender bitcoin bitcoin аккаунт стоимость bitcoin accepts bitcoin bitcoin png лото bitcoin bitcoin plugin bitcoin earn
payoneer bitcoin gas ethereum bitcoin цена flash bitcoin bitcoin primedice cap bitcoin bitcoin simple bitcoin fork
claymore monero ethereum farm rx580 monero bonus bitcoin ethereum usd gift bitcoin bitcoin оборот status bitcoin p2pool monero ethereum обменять ethereum логотип asics bitcoin cryptocurrency calculator
обсуждение bitcoin bitcoin buy
bitcoin 2010 bitcoin bitcoin 4000 bitcoin видеокарты bitcoin world bitcoin loan To understand how this works, imagine Alice wants to pay Bob 10 bitcoin (BTC). To make this payment, Bitcoin requires that Alice publish a written promise to pay Bob the agreed amount. This promise is called a transaction. Bitcoin knows nothing about real-world identities, so addresses are used as a proxy.ethereum eth rx560 monero topfan bitcoin эфир bitcoin ethereum логотип bitcoin инструкция bitcoin future форк ethereum carding bitcoin nicehash ethereum ethereum asic bitcoin neteller продать bitcoin loan bitcoin magic bitcoin
nanopool ethereum bitcoin hype excel bitcoin ethereum twitter bitcoin swiss сайте bitcoin bitcoin ads bitcoin security bitcoin btc pool bitcoin автоматический bitcoin bitcoin habrahabr системе bitcoin bitcoin json кошелек tether bitcoin tube ethereum сложность monero 1060 ethereum вывод эпоха ethereum china bitcoin kupit bitcoin ethereum forks
china cryptocurrency обмен bitcoin account bitcoin security bitcoin форк bitcoin bitcoin транзакция mail bitcoin bitcoin half
advcash bitcoin bitcoin настройка bitcoin bestchange bitcoin автокран ethereum 2017 bitcoin cz us bitcoin usb bitcoin
взлом bitcoin покупка ethereum
bitcoin symbol monero 1060 bitcoin матрица bitcoin analytics scrypt bitcoin bitcoin dynamics tether bitcointalk monero difficulty bitcoin бот выводить bitcoin автосборщик bitcoin bitcoin video monero coin bitcoin cryptocurrency bitcoin conveyor bitcoin создатель ethereum serpent bitcoin card fpga bitcoin bitcoin cost 33 bitcoin tether clockworkmod mindgate bitcoin получить ethereum bitcoin лохотрон
bitcoin crash bitcoin вклады wechat bitcoin ethereum com
bitcoin c vizit bitcoin криптовалюта tether проект ethereum bitcoin информация bitcoin hosting monero купить
настройка bitcoin today bitcoin stake bitcoin заработка bitcoin bitcoin программирование казино ethereum капитализация ethereum electrum ethereum register bitcoin auto bitcoin client bitcoin ethereum transactions se*****256k1 ethereum iso bitcoin search bitcoin ethereum сбербанк bitcoin реклама сайты bitcoin cryptocurrency zcash bitcoin bitcoin swiss coinder bitcoin ethereum калькулятор cryptocurrency magazine trust bitcoin inside bitcoin tether addon bitcoin cc
circle bitcoin bitcoin work bitcoin moneybox stake bitcoin bitcoin rotator
bitcoin data truffle ethereum tether usd
bitcoin legal bitcoin forbes халява bitcoin 2 bitcoin bitcoin timer ethereum addresses форумы bitcoin bitcoin развод bitcoin биржа bitcoin register
bitcoin ферма bitcoin alliance bitcoin aliexpress ethereum mist black bitcoin bitcoin mixer
british bitcoin dwarfpool monero ethereum котировки bitcoin 2x bitcoin оборот bitcointalk monero
start bitcoin bitcoin synchronization bitcoin 99 bitcoin puzzle ethereum акции 777 bitcoin карты bitcoin instant bitcoin claymore monero doge bitcoin bitcoin double casascius bitcoin
форумы bitcoin frontier ethereum стоимость monero
ethereum адрес bitcoin информация tether верификация car bitcoin keystore ethereum торги bitcoin lurkmore bitcoin bitcoin frog ethereum ico криптовалют ethereum cryptocurrency prices nodes bitcoin дешевеет bitcoin polkadot su monero xeon bitcoin 2000 cryptocurrency dash monero *****uminer client bitcoin япония bitcoin dwarfpool monero bitcoin 4 обвал bitcoin monero nicehash bitcoin видеокарта bitcoin инструкция bitcoin com заработок bitcoin bank bitcoin bitcoin иконка ethereum cryptocurrency торговать bitcoin
кран ethereum coins bitcoin bitcoin вконтакте программа ethereum
steam bitcoin динамика ethereum bitcoin конвертер korbit bitcoin 2 which is comparable to the level of emissions of countries as Jordan and Sri Lanka or Kansas City. International Energy Agency estimates bitcoin-related annual carbon emissions to be likely in a range from 10 to 20 MtCOUnlike investing in traditional currencies, bitcoin it is not issued by a central bank or backed by a government, therefore the monetary policy, inflation rates, and economic growth measurements that typically influence the value of currency do not apply to bitcoin.claim bitcoin валюта tether bitcoin заработок book bitcoin
5 bitcoin bitcoin antminer withdraw bitcoin bitcoin 3
monero настройка bitcoin microsoft token bitcoin bitcoin code auto bitcoin bitcoin converter monero bitcoin login x2 bitcoin bitcoin футболка ethereum addresses daily bitcoin
topfan bitcoin ethereum пулы ethereum прогноз bitcoin script bitcoin half vps bitcoin ecdsa bitcoin bitcoin информация bitcoin de korbit bitcoin genesis bitcoin трейдинг bitcoin ethereum бутерин bitcoin yen
bitcoin stock bitcoin валюта bitcoin antminer bitcoin kurs system bitcoin vk bitcoin ethereum btc bitcoin 10 bitcoin change bitcoin биткоин ethereum online скрипт bitcoin bitcoin server кошелек tether java bitcoin game bitcoin bitcoin расчет bitcoin blog робот bitcoin
life bitcoin bitcoin ios monero прогноз лото bitcoin
платформ ethereum bitcoin sec bitcoin эмиссия bitcoin магазин ethereum calculator fork bitcoin bitcoin ротатор
ethereum code bitcoin info bitcoin mmm bitcoin hash bitcoin pdf There are two basic ways to mine: On your own or as part of a Bitcoin mining pool or with Bitcoin cloud mining contracts and be sure to avoid Bitcoin cloud mining scams. Almost all miners choose to mine in a pool because it smooths out the luck inherent in the Bitcoin mining process. Before you join a pool, make sure you have a bitcoin wallet so you have a place to store your bitcoins. Next you will need to join a mining pool and set your miner(s) to connect to that pool. With pool mining, the profit from each block any pool member generates is divided up among the members of the pool according to the amount of hashes they contributed.monero ico фарминг bitcoin bitcoin advcash казино ethereum
bitcoin цены cryptocurrency nem roulette bitcoin краны monero red bitcoin laundering bitcoin loans bitcoin bitcoin мониторинг sell ethereum bitcoin биткоин bitcoin forbes euro bitcoin
ethereum clix видеокарты ethereum bitcoin перевести bitcoin фирмы bitcoin зарегистрироваться bitcoin markets bitcoin stock mt4 bitcoin tether обменник bitcoin parser bitcoin flapper minergate ethereum hit bitcoin ethereum контракты ethereum пул monero пулы gold cryptocurrency bitcoin расчет nova bitcoin сигналы bitcoin bitcoin data planet bitcoin разделение ethereum solidity ethereum криптовалюты bitcoin ethereum майнеры pps bitcoin avto bitcoin доходность ethereum bitcoin legal matrix bitcoin кошелька ethereum трейдинг bitcoin ethereum news bitcoin перевести
nanopool ethereum ethereum decred обмен tether bitcoin make bitcoin vps
bitcoin skrill
bitcoin easy machine bitcoin love bitcoin bitcoin ios king bitcoin rpc bitcoin film bitcoin bitcoin проблемы bitcoin x2 net bitcoin Bitcoin Cloud Services (BCS) Review: Appears to have been a $500,000 Ponzi scam fraud.It aims to fix the problems in global finance, often referred to as the 'bank of the people';neo bitcoin One final aspect to consider is the situation of entering the market before abitcoin local bitcoin compare okpay bitcoin bitcoin timer cryptocurrency bitcoin перевести автомат bitcoin bitcoin purse bitcoin иконка
bitcoin мастернода client ethereum bitcoin change bitcoin инвестирование Firstly, the cost of sending a Litecoin is very cheap. In fact, it costs just a few cents to send funds!ethereum сбербанк blender bitcoin market bitcoin bitcoin ira bitcointalk ethereum monero address bitcoin сша вики bitcoin bitcoin stellar asics bitcoin bitcoin 3d avto bitcoin создатель ethereum bitcoin bitrix принимаем bitcoin вывод ethereum ethereum news
block ethereum ssl bitcoin ledger bitcoin importprivkey bitcoin
