Hello I am a C/C++/C#/PHP software engineer. I've been following the evolution of bitcoin since its initial release, and I would like to open a discussion of ethics and propose a possible stepwise evolution in its development.

For the sake of this discussion I am going categorise bitcoin as a first generation cryptocurrency. I realise there are other "bitcoins" cryptocurrencies emerging, all are mined in a similar fashion, and all claim to be better than bitcoin, etc. etc. for some unique property or feature, but they are all essentially created in the same way - in an inhuman environment "mined" by machines solving complex mathematical problems. I think this will alienate a lot of people seeking a more humanistic alternative to our present fiat system who dont necessarily understand just what gives a currency its properties. As far as I understand, Bitcoin's value is based almost entirely on its digital properties, and the ethical arguments of mining and power consumption will continue as long as mining continues.

IMO mining is a bad analogy because it is essentially a destructive process. I would like to make a draft proposal for the second generation cryptocurrencies. This is a proposal not a definition. Here goes...

Rather than mining currency with the present "fastest machine wins" philosophy, and its potential for capital monopolies I propose a cryptocurrency that is farmed by community "currency collectives" where currency is harvested from the activities in networks of mutual currency exchanges. The general idea is to replace GPU/CPU/machine cycles with metrics derived from human collaboration and cooperation recorded through a network of mutual currency systems. In simple terms: the circulation of local currencies becomes the engine for solving hash algorithms, which offer the same anti-inflationary. Would it be possible to plug these nodes in to the existing network so that communities who do not have their own GPU warehouse could participate through community activity. Such an approach could combine all the benefits of mutual currencies and cryptocurrencies and seems (to me) to be the next logical step toward the evolution of a genuine, universal alternative to fiat currency or precious metals as a store of wealth.

I believe this proposition is a more humanistic and inclusive system that would not only promote cryptocurrencies in much wider circles than at present (a lot of people simply don't "get it" based on its properties as a currency), but will also rekindle interest and enthusiam in the vast networks of mutual credit systems that exist today. Communities could start "farming" digital commodities with all of the properties, algorithms, and properties of bitcoin, but with the shift of VALUE moved over to CREATING the coin.

I propose the following working title for further discussions: Trustcoin. Communities creating their own trust, encapsulated in a digital unit of currency.

I look forwards to hearing your views and opinions

Laurence