Latest Blog Posts
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Uncoinventional Living Tour Day 11 Bitcoin at Aperitivo in NYC and the Need for Merchant Training
July 15th, 2014 by
SovBTC In this podcast, John and Cat stop in to Aperitivo, a bitcoin accepting Italian restaurant in Brooklyn. John recaps the dificult experience he has paying with BTC, including being on the phone with the manager for 20 minutes trying to explain to him the best way to accept the payment. John also gives recommendations on how these difficulties can be avoided by merchants in the future. Check out the regular audio updates on the SovereignBTC podcast feed and follow the li... Read More -
Blockchain Bootstrapping Resource based Economy
July 14th, 2014 by
lainfinity ADAM's NOTE: PLEASE EDIT THIS COPY FOR THE TEST
Summary- Differentiation of the blockchain from proof of work to proof of resource.
- Advantages of a resource based economy.
- Disadvantages of a consumption based economy.
- Examples of resource based crypto-currencies.
What is Proof of Resource?
The Bitcoin network is built on Proof of Work, which is based on an algorithmic assymetry: valid hashes are computationally easy to verify but difficult to create. The vast processing power devoted to mining consumes electricity and therefore the bitcoin network is resource-backed.
Downsides of the proof of work model such include the cost of maintaining the network and centralization of the asymmetric processing power. However instead I would like to discuss the upside which is long term impact of blockchain technology on the economy.Resource Based Economy vs Consumption Based Economy
The concept of resource-based economics was developed by Jacque Fresco through his Venus Project in 1995.
The Venus Project is an organization founded by Jacque Fresco that advocates for what it calls a resource-based economy. The goal is to combine Fresco’s versions of sustainable development, energy efficiency, natural resource management and advanced automation in a global socioeconomic system based on social cooperation and scientific methodology.
Jacque Fresco’s work focuses only on natural resources of the planet such as minerals, natural gas and oil. However in the internet era, the scope of resources goes beyond natural resources of the planet. In a decentralized computer network resources include processing power, storage and network bandwidth. In any given community, resources include member skills, software development, availability of tools, and content produced.
Since our current economy is based on the equilibrium between production and consumption, perpetual growth is only possible with perpetually increasing consumption. In other words, for growth to never reverse or cease, consumption must eventually become infinite. As inflation is baked into the very core of the growth pattern of this economy model, it is like a tornado that feeds itself anything on its path. Among this model's destructive consequences are peak oil, depletion of natural resources, and ever increasing pollution.
Transition from division of labor which is Proof of Work by humans to Proof of Resource has already begun. Division of labor was advocated by Adam Smith in The Wealth of Nations. Thanks to the innovation of Blockchain, the technology is moving towards transforming centralization and corruption into decentralization, transparency and accountability at all levels.
One of the main advantage of Proof of Resource model is that it is based on deflation rather than inflation. This is because the resources do not and cannot be inflated to infinity. Gold or any mineral mining are very good examples of this model. By implementing the Proof of Resource in a decentralized system we are making sure the resources are not controlled by few but managed by the people based on group consensus.The Blockchain enables the group consensus and empowers the people on a grass roots level.
When we observe how nature operates, we can infer that the natural world conserves resources by reducing, reusing and recycling them. The planet powers itself by with plants that photosynthesize rather than combust fossil fuels. The planet’s ecology does not operate under the premise of inflation but is guided by the principle of conservation.
Resource based Crypto-Currencies
Proof of Resource model is implemented in some of the crypto currencies such as LTBcoin and SolarCoin. These are backed by resources such as community produced content and production of electricity through solar energy.
Why is LTBcoin Proof of Resource based?
Proof of Publication and Proof of Participation are the basis of LTBcoin. This model considers content produced by the community as a resource. The end users, who are the consumers, earn coins by participating in the community and enhancing the content through Proof of Participation. The distribution of LTBcoin for the next five years is as follows.
- 60% of LTBcoins will be distributed to members who publish content on the LTB Network
- 25% of LTBcoins will be distributed to members who are the end users
- 10% of LTBcoins will go towards the maintenance of the platform
- 5% of LTBcoins will go towards administration
The main advantage of this model is that group concencus is required to control the discussion. This makes subtle censorship less likely than on sites like reddit or slashdot.
Solarcoin
SolarCoin is backed by two forms of proof of work. One is the traditional cryptographic proof of work associated with digital currency. Another proof of work is a 3rd party verified meter reading. SolarCoin is equitably distributed using both of these proofs of work as a means to reward solar energy generation.
SolarCoin is the first renewable energy currency and also a resource based coin as it is backed by production of solar electricity. One solarcoin is rewarded to the producer of 1 megawatt of electricity.
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DisclosureThis article is meant for informational purposes and is not an endorsement. Articles published on the LTB network are the author's personal opinion and do not necessarily represent the opinions of the LTB network.
Further Readinghttp://www.youtube.com/watch?v=KphWsnhZ4Ag#t=13
http://www.youtube.com/watch?v=jsV_3yBDXXI
https://en.wikipedia.org/wiki/The_Wealth_of_Nations
http://www.hashcash.org/
http://wiki.solarcoin.org
http://solarcoin.org/news/ -
Pittsburgh Poised to Become First Municipality to Accept Bitcoin
July 13th, 2014 by
bcohen -
Uncoinventional Living Tour Day 10 Bitcoin in the Beltway Recap and Big Apple Here We Come
July 11th, 2014 by SovBTC In this podcast, John and Cat are on their way from D.C. to NYC. They recap their experience at Bitcoin in the Beltway and preview what is to come in NYC. They also talk about the first time they had to use USD on their journey. Check out the regular audio updates on the SovereignBTC podcast feed and follow the live blog on Bitcoin Magazine - bitcoinmagazine.com/13694/uncoinventional-tour/ You can contribute to the project in the following ways (all donations will go toward travel and ... Read More -
Uncoinventional Living Tour Day 8 Bitcoin in the Beltway Jacob Sears College Crypto Network
July 7th, 2014 by SovBTC In this podcast, John and Cat are in Washington D.C. at the Bitcoin in the Beltway conference. John sits down to chat with Jacob Sears of the College Crypto Network. Check out the regular audio updates on the SovereignBTC podcast feed and follow the live blog on Bitcoin Magazine - bitcoinmagazine.com/13694/uncoinventional-tour/ You can contribute to the project in the following ways (all donations will go toward travel and marketing the journey): BTC: 1HJ3WRuEEapWgEFNTDCxpTxzWoJCZ8Y... Read More -
Pentagon’s Net Assessment Group Gives Marines Bitcoin Homework Assignment
July 6th, 2014 by bcohen Pentagon’s Net Assessment Group Gives Marines Bitcoin Homework Assignment Read More -
Uncoinventional Living Tour Day 8 Bitcoin in the Beltway Dimitri of Mycelium Wallet
July 6th, 2014 by SovBTC In this podcast, John and Cat are in Washington D.C. at the Bitcoin in the Beltway conference. John sits down to chat with Dimitri of the Bitcoin Mycelium wallet. Check out the regular audio updates on the SovereignBTC podcast feed and follow the live blog on Bitcoin Magazine - bitcoinmagazine.com/13694/uncoinventional-tour/ You can contribute to the project in the following ways (all donations will go toward travel and marketing the journey): BTC: 1HJ3WRuEEapWgEFNTDCxpTxzWoJCZ8YZQc... Read More -
Uncoinventional Living Tour Day 5 Asheville, NC Jared Woodard of Ethereum Meetup
July 3rd, 2014 by SovBTC In this podcast, John and Cat are in Asheville, NC screening the Bitcoin Episode of Sovereign Living. In attendance were several local crypto enthusiasts, among them Jared Woodard of the local Ethereum Meetup. Check out the regular audio updates on the SovereignBTC podcast feed and follow the live blog on Bitcoin Magazine - bitcoinmagazine.com/13694/uncoinventional-tour/ You can contribute to the project in the following ways (all donations will go toward travel and marketing the journ... Read More
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