Thursday, September 22, 2016

Cryptocoins equally to all people w/o 3rd party OR transaction fee feedback to create constant value coin

Maybe there is a way to issue a fixed quantity of coin to all people on Earth without a 3rd party.

Your biomeasures are different kinds of "hashes" of your genes (and environment and chance). The following might work because single genes affect multiple systems. Given the right set of biomeasures it may not be feasible to generate a valid survivable human DNA sequence. One biomeasure constrains DNA one way, and another in another way, and so on. But given the biomeasures and DNA sequence the blockchain might prove a given pairing is valid. People would use the set of biomeasures and their DNA to apply to the blockchain for coins and a private key. DNA and private key would generate wallet addresses.

The key is that each gene usually affects multiple biometric measures, maybe in the same way a prime can be used to generate many different public keys when combined with other primes. Or maybe I should view the biometric measures as a hash of the genes. Either way, there seems to be a 1-way function that can be exploited. You can get biometrics from genes, but maybe not valid genes from biometrics.

Genes causing the expression of biometrics (genotype creates phenotype) is such a messy business (a huge and messy kind of hashing, not subject to strict mathematics and influenced by environment and randomness), traditional cryptography might not be usable. At first it might require a world class neural net to get started, then the blockchain would have to take over as the neural net. The neural net would take all available DNA and biometric data and find all patterns backwards and forwards (genes -> biometrics, biometrics -> genes) that it can. It would attempt to predict viable DNA from biometrics and vice versa. The vice versa (determining biometrics from genes) is relatively easy, but we are in its infancy. A lot of medical research is doing this because having a disease is a biometric result of the genes. But getting DNA from biometrics could be made very difficult if the right biometrics are chosen. A neural net could predict viable biometrics from DNA, but my thesis is that it could be really difficult to create viable DNA from a correctly chosen set of measured biometrics. The neural net's job is to discover the best biometrics to use (the ones it can't crack), and to constantly try to crack it. Successful cracks are rewarded. Along the way it is discovering what genes do as the preliminary step to cracking (it has to get its list of "primes"?).

Since population growth I think is around 2% and slowing, the inflation problem should be small, and even a benefit as I stated before, in contradiction to the usual cryptocoin beliefs concerning fixed-quantity coins.

It seems I am requiring people to apply for their coins using their biometric and DNA data before others get their DNA and generate viable biometrics.

BTW, a 3rd party is always present if the code can be changed at any time after launch. Developers being guided by users is the same as government being guided by voters. Lobbies like the rich or bankers (PoS and miners) that subvert the users' voting process is the same system we have for the dollar.  Observational evidence for this viiwpoint: we seek ethics in the developers in the same way we seek ethics in government leaders.

There is another way to achieve a constant-value coin that is a lot less difficult than using DNA, but does not retain the virtue of blocking machines out of human economics. **Let the market-determined transaction fees per coin determine the coin release-rate.** If the fee rises there is a shortage of nodes compared to daily coin transaction volume.  Additional fees per byte and a base fee per transaction would be needed, but not used to determine the coin release rate. This uses the velocity of money theory.  So the developers are not allowed (and not required) to decide the final quantity or release schedule of the coin. The market does.  A PID controller would take the transaction fee per coin as the input and output the coins per block.  If the fees drop too much, it indicates the coin is not being used much  and coins per block can go to zero, keeping coin quantity constant.  Miners would stop mining and nodes would live off the base fee for transactions.  Another controller would take the number of nodes per transaction as the input and drop the base fee and/or per byte fee if the ratio of nodes to transactions got unnecessarily high, which keeps the coin competitive and lean without oversight. The more feedback controllers used intelligently, the more intelligent the coin (and anything else) is.

 I am not saying the above is perfectly correct or complete. I wanted to show that some idea like it could create the cryptocurrency holy grail: a constant value coin not based on perception, opinion, miners, or developers.

Intelligent direction (i.e. controller feedback) of permission  (i.e. legal tender, aka currency) to use available resources is the basis of all intelligence. Be it glucose and molecules in the brain, energy and matter in economics, or CPU time (kinetic joules=expenses) and RAM/HDD space (potential joules=initial investment) in computing, the intelligent direction of the currency directs the energy and matter for personal profit (growth based on more and more energy and matter coming under control of the movement of the currency). Democracy uses the feedback of votes to guide the taxes which directs the energy and matter in government which a controller on the economics which gives voters what they want.   The most intelligence cryptocoin will be a growing, spreading, changing A.I.  of feedback controllers (smart contracts directing the coin) that enables the market place that falls under its control to be the most profitable and growing so that the cryptocoin itself can be profitable and grow by riding (lightly) on its back so that it is a symbiotic relation instead of viral/cancerous.  The end goal is congeal the matter on Earth into a more ordered form, releasing entropy to the universe. We are doing this by shifting from organic bonds to metal and metalloid bonds, removing oxygen from metals, silicon, and carbon so that we have greater control through lower entropy per kg of our economic machine. Earth's unusual because of the order injected by the Moon, and why we look for life on Titan and Io (geological disturbances are cyclic forces that inject order into thermodynamically-stable systems).

The market itself is just a bunch of feedback going on between agents, under the rules of some governing coin (i.e. legal tender).   So ideally, the feedback systems would probably be nested and complicated from bottom to top so that the distinction between government and market is not clear, while the coin would be very clear.  Separate "organs" of law (code) could easily have their own internal coins, but still be based on a system wide coin. Maybe the highest level coin describes the boundaries and definition of an entity. The highest I know of is energy (Gibbs free energy). Maybe there is some sort of negative entropy that could be higher.  But a single coin and system without distinguishable "organs" should be the most efficient, like a highly compressed algorithm.

But for current work on cryptocurrencies, it seems 1 to 5 feedback measures should be the limit.

There is currently no feedback from the market place  (other than the difficulty) to tell cryptocoins how the coins are to be issued in order to best benefit the market. The arbitrary nature of coin quantity, release schedule, and fees needs to be changed and connected to the coin's usage and computational power.
Let transaction fee per coin control coins per block issued and never let difficulty fall. Problem solved? A base fee per transaction and fee per byte would also be needed. A standard PID controller on the transaction "error signal" would be used. Difficulty can easily get too high, but there is no incentive for attacks to make it go high because they can't profit on downturns. Large miners can't profit from random difficulty swings or manipulate it for profit. If difficulty is too high, miners will get out if fees are not high enough. But surviving this demonstrates the system is not a Ponzi scheme that will end when mining ends. A decrease in network hash rate might adjust the set point that the transaction fee error signal needs. With the right feedback (checks and balances) developers would not be required (or allowed) to choose any aspects of coin issuance (not total quantity, schedule, coins/block, difficulty, or fees). The market should be able to dictate everything without anyone needing to explicitly vote except by their marketplace choices (miners getting in or out, and transaction fees). If the market for the coin starts to dry up (it's fees were too high to sustain miners) then it merely shows a more efficient coin is taking its place, and it should dry up. But the quantity of the at the point is constant.

1 comment:

  1. This coin info was really interesting and worth to read, consider listing your coins to coinpedia platform for free, click on the tags | currency encyclopedia | List your Coin