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    Author Topic: Designer Cryptocurrencies  (Read 869 times)
    tvbcof (OP)
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    November 17, 2011, 06:03:29 AM
     #1

    I am deliberately not entering this post on 'alternate cryptocurrencies'
    because the intent is very much to support the 'real' Bitcoin
    (and the various alternate cryptocurrencies mostly smell of scams to
    me.)  I consider the solution set I propose to both reduce the
    needless burdon on Bitcoin (which may or may not
    gracefully scale to it's theorized potential), and provide a
    much more flexible and suitable end user experiance.

    In a nutshell, I propose a variety of different 'designer' currencies
    with various combinations of the good ideas tuned to a particular
    goal.  Generally a part of the 'base value' of these currencies
    will be BTC pledged as backing.  This 'backing' could lend
    immediate legitimacy to a new currency, and provide holders a BTC
    a way to leverage their 'investment' to a good cause.

    One of the problems I see are that there are plenty of instances
    where a property is specifically and legitimately desirable for
    some situations and a specifically not desirable for others.
    Some examples:

     - infaltionary, deflationary, or stablized.
     - anonymity -> pseudo-anonmity -> transparency.
     - cycle rate (10-min/block, etc.)
     - charge-back capable or not.
     - cpu capable generation.

    For illustrative purposes, I will elaborate on an idea for
    dealing with chargebacks.  This is one of the things that is
    of interest to me because it limits greatly how much I as a
    potential consumer am willing to use Bitcoin as a currency.

    A transaction could have a 'clawback' flag.  The potential to
    claw-back could decrease over time, and doing so could serve
    some useful benefit for the currency.  For instance, clawing
    back a transaction could entail doing a certain amount of useful
    work in securing the system.  If a user choose to use a specific
    account (abaondoning pseudo-anonymity), a counterparty could
    choose to either transact or not transact with another based on
    their history of performing claw-backs.

    One more illustrative example.  This has to do with 'redeaming'
    a given designer currency for it's BTC backing.

    The rules of the designer currency might be such that the
    currency can be redeamed for it's BTC backing under some
    condition like that the redeamer must mine an equal amount of
    new BTC currency as well.  This would both strengthen the 'real'
    Bitcoin system (which would be of value to those holding the
    backing currency) and would limit the rate at which people could
    cash out (thus insulating the base funders from flash collapse
    type scenarios.)

    Anyway, the goal of this note is just to introduce this idea
    (which I suspect is not entirely novel.)  I will be quite
    honest in saying that I hope it takes off in part because I now
    hold a decent amount of BTC and it could be of benefit to me
    personally.  I do believe, however, that an even bigger goal of
    mine is to see crypto-currencies generally work well for all
    people, and I think that a structure such as I've described
    could play a part in this.


    sig spam anywhere and self-moderated threads on the pol&soc board are for losers.
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