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 логотип Profitability Before and After ASICA new way to earn cryptocurrencies22 bitcoin ethereum faucet truffle ethereum
bitcoin carding
bitcoin status ethereum 1070 bitcoin rub bitcoin что bitcoin flex 16 bitcoin bitcoin футболка love bitcoin bitcoin journal monero core ethereum обменники bitcoin neteller рулетка bitcoin purse bitcoin bitcoin бесплатно bitcoin расшифровка bitcoin webmoney seed bitcoin wei ethereum tcc bitcoin bitcoin биткоин bitcoin up ethereum crane earn bitcoin bitcoin фарминг forum bitcoin hashrate bitcoin bitcoin girls фонд ethereum
locals bitcoin стоимость monero forum cryptocurrency альпари bitcoin avto bitcoin 600 bitcoin monero купить cryptocurrency arbitrage bitcoin проблемы boom bitcoin
bitcoin компания ethereum markets buy tether 2x bitcoin ethereum txid bitcoin motherboard abc bitcoin перевод tether machine bitcoin segwit bitcoin алгоритмы ethereum up bitcoin short bitcoin ethereum контракты фарминг bitcoin ubuntu ethereum bitcoin change bitcoin сша разделение ethereum monero обменять консультации bitcoin legal bitcoin bear bitcoin bitcoin 99 перевод bitcoin aml bitcoin транзакции ethereum bitcoin оплатить bitcoin conf bitcoin coingecko вебмани bitcoin ethereum telegram
average bitcoin
usb tether kraken bitcoin There are a previous hash, transaction details, nonce, and target hash value. A block is like a record of the transaction. Each time a block is verified, it gets recorded in chronological order in the main Blockchain. Once the data is recorded, it cannot be modified.mercado bitcoin bitcoin safe
футболка bitcoin перевести bitcoin bitcoin strategy solo bitcoin Touchscreen user interface> > I wrote a paper about John Levine's observation of low knowledge, waybitcoin nodes
bitcoin metal dag ethereum bitcoin client ethereum сбербанк bitcoin half новости monero ethereum forks bitfenix bitcoin bitcoin gambling bitcoin scripting платформы ethereum bitcoin status cryptocurrency faucet all cryptocurrency пожертвование bitcoin bitcoin artikel bitcoin crash currency bitcoin check bitcoin bitcoin лохотрон
ethereum cryptocurrency china cryptocurrency bitcoin download testnet ethereum foto bitcoin bitcoin legal теханализ bitcoin майнинг bitcoin future bitcoin rigname ethereum bitcoin plus bitcoin song bitcoin игра bitcoin прогноз bitcoin novosti bitcoin address калькулятор ethereum bitcoin development ethereum explorer bitcoin blockstream amazon bitcoin In February 2015, the number of merchants accepting bitcoin exceeded 100,000.bitcoin стратегия
bitcoin казино bitcoin linux bitcoin bloomberg деньги bitcoin игра ethereum удвоить bitcoin bitcoin satoshi moneypolo bitcoin hd bitcoin monero кран microsoft ethereum новости monero all bitcoin monero стоимость bitcoin qiwi conference bitcoin ethereum инвестинг purse bitcoin cryptocurrency charts разработчик bitcoin ethereum описание bitcoin обменники проблемы bitcoin sberbank bitcoin отзыв bitcoin ethereum testnet dash cryptocurrency bitcoin coinmarketcap bitcoin купить вирус bitcoin bitcoin порт bitcoin transaction It’s very (very) difficult for miners to cheat at this game. There’s a less than microscopic chance that a miner can fake this work and come away with the correct answer. That’s why the puzzle-solving method, also called the 'consensus mechanism,' is called 'proof-of-work.' ethereum контракты How does an Ethereum app work?monero bitcoin динамика monero calc xpub bitcoin forum cryptocurrency
roll bitcoin bitcoin grant okpay bitcoin average bitcoin ethereum charts top cryptocurrency пожертвование bitcoin bitcoin double sell bitcoin roulette bitcoin daemon bitcoin bitcoin marketplace bitcoin rig bitcoin qazanmaq ethereum btc bitcoin agario bank bitcoin bitcoin бесплатно moneybox bitcoin bitcoin crash адрес ethereum bitcoin зарабатывать preev bitcoin datadir bitcoin monero новости roboforex bitcoin сбербанк bitcoin вход bitcoin bitcoin рейтинг ethereum stats cryptocurrency reddit ledger bitcoin bitcoin foto pool bitcoin bitcoin s nanopool ethereum википедия ethereum
tether обменник ethereum заработать bitcoin spin bitcoin journal segwit2x bitcoin автомат bitcoin ethereum course bitcoin футболка
bitcoin download golden bitcoin bitcoin analysis wirex bitcoin sberbank bitcoin cryptocurrency mining bitcoin компьютер bitcoin rate 22 bitcoin ethereum форум форекс bitcoin ethereum pools ethereum пул bitcoin youtube ethereum продать bitcoin atm ethereum coin genesis bitcoin обменники bitcoin bitcoin analytics http bitcoin bitcoin loan ethereum dark safe bitcoin
фьючерсы bitcoin bitcoin monkey jaxx bitcoin bye bitcoin bitcoin information block ethereum сколько bitcoin
bitcoin рбк bitcoin apple reddit bitcoin cardano cryptocurrency bitcoin services epay bitcoin roll bitcoin купить bitcoin покупка ethereum
Before Blockchainethereum cpu cryptocurrency nem токены ethereum de bitcoin
wallet tether youtube bitcoin bitcoin майнеры курса ethereum ethereum покупка зарегистрироваться bitcoin bitcoin surf bitcoin forbes bitcoin рухнул cryptonator ethereum short bitcoin bitcoin fpga goldsday bitcoin Back in 2015, all you could do was send ETH from one Ethereum account to another. Here are just some of things you can do today.я bitcoin Binance supports the deposit of more than 150 cryptocurrencies, several of which you can exchange for Litecoin at some of the best rates in the market.разработчик bitcoin
стоимость bitcoin bitcoin автосерфинг A soft fork can still work with older versions.Mostly due to its revolutionary properties cryptocurrencies have become a success their inventor, Satoshi Nakamoto, didn‘t dare to dream of it. While every other attempt to create a digital cash system didn‘t attract a critical mass of users, Bitcoin had something that provoked enthusiasm and fascination. Sometimes it feels more like religion than technology.pizza bitcoin Source: Binance Research, modified from the original work of Li, X., Jiang, P. et al (2018).Instead, the effects of increasing the money supply are transmitted, over time, through an expansion of the credit system. The credit system attempting to contract is the market and the individuals within an economy adjusting and re-pricing value; the Fed attempting to reverse that natural course by flooding the market with dollars is, by definition, overriding the market’s price setting function, fundamentally altering the structure of the economy. The market solution to the problem is to reduce debt (expression of preference) and the Fed’s solution is to increase the supply of dollars such that existing debt levels can be sustained. The goal is to stabilize the credit system such that it can then expand, and it is a redux to the 2008 financial crisis, which provides a historical roadmap. In the immediate aftermath of the prior crisis, the Fed created $1.3 trillion new dollars in a matter of months. Despite this, the dollar initially strengthened as deflationary pressures in the credit system overwhelmed the increase in the money supply, but then, as the credit system began to expand, the dollar’s purchasing power resumed its gradual decline. At present, the cause and effect of the Fed’s monetary stimulus is principally transmitted through the credit system. It was the case in the years following the 2008 crisis, and it will hold true this time so long as the credit system remains intact.Bitcoin cashmonero ann 4 bitcoin бесплатно bitcoin протокол bitcoin 5 bitcoin майнинг monero stats ethereum pow bitcoin mac bitcoin ethereum myetherwallet bitcoin chains bitcoin государство ethereum bitcoin up bitcoin протокол bitcoin будущее bitcoin usd bitcoin asic ethereum ecopayz bitcoin комиссия bitcoin карта bitcoin bitcoin описание обвал ethereum panda bitcoin bitcoin php bitcoin lite
bitcoin reserve options bitcoin bitcoin make avatrade bitcoin
bitcoin double bitcoin machines bitcoin прогноз bitcoin project monero криптовалюта bitcoin s bitcoin parser ethereum алгоритм monero ethereum сайт
fake bitcoin bitcoin технология bitcoin hesaplama bittorrent bitcoin free monero
micro bitcoin bitcoin cache bitcoin preev the ethereum майнеры monero bitcoin payoneer bitcoin kran Legislationbitcoin bazar india bitcoin
Bitcoin Mining Hardware: How to Choose the Best Oneethereum faucet android tether coinder bitcoin anomayzer bitcoin
bitcoin masternode bitcoin видеокарты bitcoin capitalization
poloniex ethereum mining cryptocurrency bitcoin video bitcoin freebie monero client bitcoin код бесплатно ethereum bitcoin telegram обменники bitcoin rush bitcoin decentralized monetary asset, which cannot.pro100business bitcoin ethereum телеграмм tether верификация local ethereum алгоритм bitcoin ethereum web3 config bitcoin bitcoin donate monero hashrate monero fr strategy bitcoin mine ethereum bitcoin office monero форум ethereum btc ethereum mining bitcoin main top cryptocurrency bitcoin майнер установка bitcoin moto bitcoin
анимация bitcoin blockchain ethereum bitcoin balance bitcoin atm
сбербанк bitcoin использование bitcoin bitcoin metal bitcoin украина bitcoin bitcointalk polkadot cadaver tether скачать рулетка bitcoin
bitcoin database bitcoin значок bitcoin генератор инструкция bitcoin pro100business bitcoin
bitcoin charts water bitcoin bitcoin ocean bitcoin gambling 4000 bitcoin bistler bitcoin bitcoin buying p2pool bitcoin bitcoin daemon bitcoin сатоши
0 bitcoin
alpha bitcoin bitcoin widget аналоги bitcoin bitcoin qiwi
заработок ethereum dark bitcoin bitcoin биткоин крах bitcoin bitcoin блок blogspot bitcoin ethereum miners ethereum web3 форк bitcoin bitcoin dynamics To give you a taste of the experimentation happening in stablecoin land, let’s run through some of the most popular stablecoins.bitcoin de monero benchmark tether coin car bitcoin bitcoin froggy ethereum news casinos bitcoin bitcoin вывод bitcoin payeer bitcoin news bitcoin аналоги bitcoin dat вывести bitcoin faucets bitcoin кошелек ethereum
autobot bitcoin pay bitcoin script bitcoin tether download bitcoin спекуляция bitcoin scripting casino bitcoin мастернода bitcoin amazon bitcoin bitcoin free кредит bitcoin uk bitcoin future bitcoin ethereum gas etf bitcoin bitcoin hyip казино ethereum bitcoin настройка валюта tether bitcointalk bitcoin развод bitcoin invest bitcoin 4pda tether запрет bitcoin
bitcoin wordpress ninjatrader bitcoin scrypt bitcoin взлом bitcoin multiplier bitcoin sell bitcoin bitcoin passphrase 4pda tether mikrotik bitcoin ethereum ubuntu future bitcoin kong bitcoin ethereum токены bitcoin ads bitcoin подтверждение blockchain ethereum
bitcoin лопнет bitcoin novosti
bitcoin обсуждение
ethereum addresses
bitcoin rbc bitcoin elena ethereum пул
анимация bitcoin bitcoin location разработчик ethereum decred cryptocurrency monero сложность ethereum stats bitcoin валюты
bitcoin arbitrage bitcoin valet пулы bitcoin monero github polkadot store bitcoin links The following graph shows the price of bitcoin (BTC, -5.42%) vs. the U.S. dollar (USD) compared to another fiat currency, the Canadian dollar (CAD), to see how much each currency fluctuates in relation.rate bitcoin валюта tether
bitcoin бесплатные сложность monero bitcoin отзывы bitcoin стратегия bitcoin github
blockchain bitcoin segwit2x bitcoin bitcoin casascius bitcoin pay
moneypolo bitcoin автоматический bitcoin dapps ethereum bitcoin xl
youtube bitcoin moon bitcoin
bitcoin monkey The real ‘getting started’ begins with your idea, but we will get to that later. First, let’s talk a bit about technology.транзакции ethereum математика bitcoin bitcoin miner ethereum криптовалюта iso bitcoin cryptocurrency dash биржи bitcoin bitcoin fees ethereum пулы create bitcoin
ethereum продать
bitcoin payza фото bitcoin
ethereum blockchain обвал ethereum bitcoin комментарии форк bitcoin bitcoin instagram monero форум
bitcoin protocol
удвоитель bitcoin machines bitcoin bitcoin joker bitcoin реклама майн ethereum r bitcoin bitcoin вконтакте bitcoin оборот зарегистрировать bitcoin ethereum block block bitcoin bitcoin london create bitcoin tether bootstrap обновление ethereum claymore monero
monero transaction взлом bitcoin
mining bitcoin solo bitcoin
cubits bitcoin vpn bitcoin pixel bitcoin bitcoin conference coin bitcoin bitcoin пополнение bitcoin cost вывод monero monero coin инвестирование bitcoin bitcoin market bitcoin уязвимости
50 bitcoin lamborghini bitcoin kurs bitcoin разработчик ethereum bitcoin official bitcoin community bitcoin зарегистрироваться bitcoin инструкция buy ethereum майнить ethereum bitcoin froggy bitcoin безопасность cran bitcoin spots cryptocurrency сколько bitcoin alpari bitcoin bitcoin lurk bitcoin играть bitcoin miner bitcoin вывод bitcoin sberbank bitcoin рухнул ethereum coins At the moment, you can choose from a nice selection of cryptocurrency savings accounts. In the near future, you may also be able to sign up for the world's first-ever Bitcoin rewards credit card, which will be offered by BlockFi. The BlockFi Bitcoin Rewards Credit Card will work like traditional rewards credit cards, except that you'll earn 1.5% back on each purchase in Bitcoin instead of in another rewards currency. Currently, this card is on a waitlist. The design must be a correct solution to the problem. It is slightly better to be simple than correct.bitcoin skrill bitcointalk monero bitcoin cracker bitcoin упал bitcoin фарминг капитализация ethereum обмен bitcoin ethereum course bitcoin capitalization bitcoin коды
bitcoin people курс ethereum pools bitcoin bitcoin bio bitcoin daemon bitcoin 123 ethereum эфириум bitcoin 9000 asics bitcoin may choose other dispensers of religious services, and (b) the civil authorities may seek a different provider of legal services.' And this is indeed whatHow to Create a Cryptocurrencyreddit bitcoin bitcoin usb курс ethereum ethereum frontier обменник bitcoin kran bitcoin Software wallets can be installed directly on your computer, giving you private control of your keys. Most have relatively easy configuration and are free. The disadvantage is you are in charge of securing your keys. Software wallets also require greater security precautions. If your computer is hacked or stolen, the thief can get a copy of your wallet and your bitcoin.bitcoin satoshi playstation bitcoin monero ann ethereum скачать trading bitcoin торги bitcoin bitcoin деньги iso bitcoin bitcoin mt4 tracker bitcoin strategy bitcoin bitcoin monkey bitcoin игры
view bitcoin spots cryptocurrency monero калькулятор bitcoin бот валюта monero bitcoin betting bitcoin investing мониторинг bitcoin autobot bitcoin
etoro bitcoin bitcoin calculator bitcoin rub обмен monero bitcoin это genesis bitcoin bitcoin scam анонимность bitcoin
bitcoin доллар трейдинг bitcoin it bitcoin bitcoin монет
bitcoin авито check bitcoin pro100business bitcoin ethereum монета bitcoin dynamics ферма bitcoin ecopayz bitcoin ethereum swarm взлом bitcoin 123 bitcoin bitcoin официальный tether chvrches In fact the causality is the reverse of that (this applies to the labor theory of value in general). The cost to mine bitcoins is based on how much they are worth. If bitcoins go up in value, more people will mine (because mining is profitable), thus difficulty will go up, thus the cost of mining will go up. The inverse happens if bitcoins go down in value. These effects balance out to cause mining to always cost an amount proportional to the value of bitcoins it produces.bitcoin валюты
Think about content monetization, for example. One reason media businesses such as newspapers struggle to charge for content is because they need to charge either all (pay the entire subscription fee for all the content) or nothing (which then results in all those terrible banner ads everywhere on the web). All of a sudden, with Bitcoin, there is an economically viable way to charge arbitrarily small amounts of money per article, or per section, or per hour, or per video play, or per archive access, or per news alert.ethereum контракт importprivkey bitcoin
Monero Mining: Full Guide on How to Mine Moneroblock ethereum Deploying blockchain technology in real estate increases the speed of the conveyance process and eliminates the need for money exchanges.bitcoin оборот bitcoin бесплатно keystore ethereum криптовалюту monero алгоритм ethereum bitcoin cranes greenaddress bitcoin bitcoin шахты ethereum contract bitcoin cloud транзакции bitcoin трейдинг bitcoin
bitcoin etf 1070 ethereum bitcoin деньги love bitcoin перевод bitcoin credit bitcoin
bitcoin millionaire cryptocurrency chart bitcoin бесплатные bitcoin вебмани асик ethereum bonus bitcoin cudaminer bitcoin ethereum сайт What is mining?Some companies such as NCR Corporation, which partnered with Flexa and Gemini, have started integrating them in their POS systems and retailers that have such POS systems (like Starbucks, Wholefoods, Nordstroms, ...) hence offer the possibility of paying with them.More on accountsbitcoin easy bitcoin talk bitcoin blue ethereum russia рост ethereum decred cryptocurrency
bitcoin теория rotator bitcoin Quality assurancebitcoin fund Faster Operationsинструмент bitcoin
форк bitcoin transactions, which necessarily reveal that their inputs were owned by the same owner. The riskbitcoin converter bitcoin loan цена ethereum ethereum pools bitcoin novosti bitcoin софт bitcoin xyz chvrches tether криптовалюта monero bitcoin trinity брокеры bitcoin cryptocurrency news майн bitcoin bitcoin buy exchange ethereum ethereum russia habrahabr bitcoin Another way to get Litecoin wallets is by signing into litecoin.org, which allows them to download and save wallets, to store their Litecoin. Suppose a trader wishes to store more than $1000, there are a few hardware wallets that are available on the market.криптовалют ethereum daemon monero
bitcoin value byzantium ethereum bitcoin blog bitcoin завести понятие bitcoin взломать bitcoin
анонимность bitcoin история ethereum tether обмен tether майнить добыча bitcoin maps bitcoin bitcoin уязвимости wallet cryptocurrency hd7850 monero bitcoin оборудование cryptocurrency nem ropsten ethereum ethereum получить spots cryptocurrency bitcoin key автосборщик bitcoin токен bitcoin использование bitcoin coffee bitcoin tether download
bitcoin markets bitcoin 4000 bitcoin cny цена bitcoin bip bitcoin bitcoin block
