The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.
In this paper, we propose a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions. The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.
If you're sad about paying the fee, you could always turn the tables and run a node yourself and maybe someday rake in a 0.44 fee yourself.
It's very attractive to the libertarian viewpoint if we can explain it properly. I'm better with code than with words though.
The proof-of-work chain is the solution to the synchronisation problem, and to knowing what the globally shared view is without having to trust anyone.
Since 2007. At some point I became convinced there was a way to do this without any trust required at all and couldn't resist to keep thinking about it. Much more of the work was designing than coding.
Fortunately, so far all the issues raised have been things I previously considered and planned for.
The proof-of-work chain is the solution to the synchronisation problem, and to knowing what the globally shared view is without having to trust anyone.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party.
The design supports a tremendous variety of possible transaction types that I designed years ago. Escrow transactions, bonded contracts, third party arbitration, multi-party signature, etc. If Bitcoin catches on in a big way, these are things we'll want to explore in the future, but they all had to be designed at the beginning to make sure they would be possible later.
Since 2007. At some point I became convinced there was a way to do this without any trust required at all and couldn't resist to keep thinking about it. Much more of the work was designing than coding.
Fortunately, so far all the issues raised have been things I previously considered and planned for.
I'm happy if someone with artistic skill wants to contribute alternatives. The icon/logo was meant to be good as an icon at the 16x16 and 20x20 pixel sizes. I think it's the best program icon, but there's room for improvement at larger sizes for a graphic for use on websites. It'll be a lot simpler if authors could make their graphics public domain.
The credential that establishes someone as real is the ability to supply CPU power.
A generation ago, multi-user time-sharing computer systems had a similar problem. Before strong encryption, users had to rely on password protection to secure their files, placing trust in the system administrator to keep their information private. Privacy could always be overridden by the admin based on his judgment call weighing the principle of privacy against other concerns, or at the behest of his superiors. Then strong encryption became available to the masses, and trust was no longer required. Data could be secured in a way that was physically impossible for others to access, no matter for what reason, no matter how good the excuse, no matter what.
You could use TOR if you don't want anyone to know you're even using Bitcoin.
We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure.
Lost coins only make everyone else's coins worth slightly more. Think of it as a donation to everyone.
Lost coins only make everyone else's coins worth slightly more. Think of it as a donation to everyone.
How does everyone feel about the B symbol with the two lines through the outside? Can we live with that as our logo?
The requirement is that the good guys collectively have more CPU power than any single attacker.
The receiver of a payment must wait an hour or so before believing that it's valid. The network will resolve any possible double-spend races by then.