Proof of Stake vs Proof of Work
The debate of which consensus is better proof of work or proof of stake is an ongoing debate. Even though there are advantages and disadvantages of both the consensus. Let me explain that each consensus has its own primary and secondary objectives. The Bitcoin network utilises PoW consensus which is used for pure monetary value and preservation of buying power as a primary objective by burning a physical resource. Have you ever come across any Defi exchanges using Bitcoin network in its exist...
Ethereum smart contract lessons in designing ₿itcoin covenants
Ethereum smart contracts have become more resilient over the years because of many hard forks, radical non-conservative management and POS migration. If we implement covenants in ₿itcoin it will be wise to learn from Ethereum mistakes and to prevent ₿itcoin network getting stuck in similar loops and traps. Let me discuss a concrete example, taproot was activated in 2021 with the objective of progressively upgrading to covenants. We all know the unintended consequences of ordinals and BRC20 on...
Scope of Non-Fungible Tokens
Non-fungible tokens represents a unique non-fungible digital asset that is stored in a blockchain. It tracks the proof of ownership of the digital asset from its very existence and its authenticity is verifiable on the blockchain. NFTs can be created for anything that can be encoded into a digital format. NFTs can either be minted as ERC 721 or ERC 1155. ERC 1155 standard was developed by the gaming company Enjin and was released in June 2018. It was specifically designed for GameFi, a web3 b...
Proof of Stake vs Proof of Work
The debate of which consensus is better proof of work or proof of stake is an ongoing debate. Even though there are advantages and disadvantages of both the consensus. Let me explain that each consensus has its own primary and secondary objectives. The Bitcoin network utilises PoW consensus which is used for pure monetary value and preservation of buying power as a primary objective by burning a physical resource. Have you ever come across any Defi exchanges using Bitcoin network in its exist...
Ethereum smart contract lessons in designing ₿itcoin covenants
Ethereum smart contracts have become more resilient over the years because of many hard forks, radical non-conservative management and POS migration. If we implement covenants in ₿itcoin it will be wise to learn from Ethereum mistakes and to prevent ₿itcoin network getting stuck in similar loops and traps. Let me discuss a concrete example, taproot was activated in 2021 with the objective of progressively upgrading to covenants. We all know the unintended consequences of ordinals and BRC20 on...
Scope of Non-Fungible Tokens
Non-fungible tokens represents a unique non-fungible digital asset that is stored in a blockchain. It tracks the proof of ownership of the digital asset from its very existence and its authenticity is verifiable on the blockchain. NFTs can be created for anything that can be encoded into a digital format. NFTs can either be minted as ERC 721 or ERC 1155. ERC 1155 standard was developed by the gaming company Enjin and was released in June 2018. It was specifically designed for GameFi, a web3 b...
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Any resource that has utility, relatively scarce & difficult to produce is an asset. For example g⊙ld has unique properties like malleability, incorruptibility etc. Also it has lot of utilities & aesthetic value.
It is also used as money for ages because it’s relatively scarce & someone have to put a lot of effort in mining & to purify which is a proof of work (POW).
G⊙ld is an example of space oriented time unbound asset because you can mine, purify and issues physical tokens as coins and its not bound by time. 1 gm of g⊙ld is always 1 gm of g⊙ld immaterial of time like past, present & future.
Not very liquid such as g⊙ld & land.
Very tangible & physical.
Very trustworthy but not very secure.
Value appreciates over time.
Long term asset.
Tends to be centralized because of security.
Negates time but bound by space.
Time is a concept which has high entropy & non-reversible resulting in impermanence. In time based assets its mostly information about physical objects that moves in the time domain.
Time based asset is based on information about some physical object. Credit is an example of time based asset, those who give credit to you will be based on your future 5 years proof of your work. It’s based on the information about you that you are fit & will be able to work for next 5 years. That’s why old people don’t get any credits easily unless they are filthy rich with lots of other assets to back their credit as collateral.
As time passes the asset value depreciates, for example automobiles. Since time is involved the asset becomes non-trust worthy as time passes by and has to be validated by a third party. We have to trust somebody for a time based asset, this is a 35 trillion dollar American economy problem. The assets are not trust worthy, ages & corrupts with time. There is no silver bullet to fix the problem.
The only viable solution is to migrate to a trustless space-time based asset and completely negate the third party.
Very liquid like credit & cash.
Very intangible, abstract & information oriented.
Relatively secure.
Value depreciates.
Short term.
Asset ages & corrupts as it’s bound by time.
Works only with centralized institutions & with counter party risks.
Space-time based asset have both the advantages of time based asset & space based asset. How to create space-time based asset is to move quantum computing & energy from space in time and link them together like a thread of a tapestry.
Quantum time is the time to mint 01 block & in space the quantum energy & computation needed to find a solution to POW puzzle to mint that 01 block is linked by causality hash tree & previous block POW solution.
High entropy hash tree link creates the causality & the list of potential txs in mempool is finalized in 01 Block time by the random POW solution.
The crux of the bitcoin network is the time stamping of the causality based hash chain with a quantum energy & computation that’s needed for 01 block time. Every 01 block time the destiny of the hash link chain is etched in stone with the solution of the POW puzzle by a free will laser mining pen, that’s the beauty of Bitcoin.
Map is not the territory, menu is not the meal & cryptocurrencies are not the money without reverse reification except bitcoin.
Any other cryptocurrency other than Bitcoin cannot be classified as a space-time asset as its an example of abstract power without reverse reification because it lacks the physical energy from the space component which is the proof of work. And thus can only be classified as time based assets like any other stocks & securities with all of its drawbacks not nullified but just toned down to some degree.
Very liquid like time based asset.
Very tangible computing hardware & power with intangible information.
No counter party risk & it’s trustless.
De-centralized with distributed nodes.
Very Secure.
Ages but not bound by time.
Negates space & time, it can be moved across space-time in an instant .
Value appreciates.
Losses & mistakes are irreversible
Summary
If computers are state machines, money is abstract time & energy and bitcoin is the reverse reification of our time & energy in space, a space-time asset that maintains a distributed ledger by a distributed state machine.
REFERENCES:
https://dergigi.com/2021/01/14/bitcoin-is-time/
Any resource that has utility, relatively scarce & difficult to produce is an asset. For example g⊙ld has unique properties like malleability, incorruptibility etc. Also it has lot of utilities & aesthetic value.
It is also used as money for ages because it’s relatively scarce & someone have to put a lot of effort in mining & to purify which is a proof of work (POW).
G⊙ld is an example of space oriented time unbound asset because you can mine, purify and issues physical tokens as coins and its not bound by time. 1 gm of g⊙ld is always 1 gm of g⊙ld immaterial of time like past, present & future.
Not very liquid such as g⊙ld & land.
Very tangible & physical.
Very trustworthy but not very secure.
Value appreciates over time.
Long term asset.
Tends to be centralized because of security.
Negates time but bound by space.
Time is a concept which has high entropy & non-reversible resulting in impermanence. In time based assets its mostly information about physical objects that moves in the time domain.
Time based asset is based on information about some physical object. Credit is an example of time based asset, those who give credit to you will be based on your future 5 years proof of your work. It’s based on the information about you that you are fit & will be able to work for next 5 years. That’s why old people don’t get any credits easily unless they are filthy rich with lots of other assets to back their credit as collateral.
As time passes the asset value depreciates, for example automobiles. Since time is involved the asset becomes non-trust worthy as time passes by and has to be validated by a third party. We have to trust somebody for a time based asset, this is a 35 trillion dollar American economy problem. The assets are not trust worthy, ages & corrupts with time. There is no silver bullet to fix the problem.
The only viable solution is to migrate to a trustless space-time based asset and completely negate the third party.
Very liquid like credit & cash.
Very intangible, abstract & information oriented.
Relatively secure.
Value depreciates.
Short term.
Asset ages & corrupts as it’s bound by time.
Works only with centralized institutions & with counter party risks.
Space-time based asset have both the advantages of time based asset & space based asset. How to create space-time based asset is to move quantum computing & energy from space in time and link them together like a thread of a tapestry.
Quantum time is the time to mint 01 block & in space the quantum energy & computation needed to find a solution to POW puzzle to mint that 01 block is linked by causality hash tree & previous block POW solution.
High entropy hash tree link creates the causality & the list of potential txs in mempool is finalized in 01 Block time by the random POW solution.
The crux of the bitcoin network is the time stamping of the causality based hash chain with a quantum energy & computation that’s needed for 01 block time. Every 01 block time the destiny of the hash link chain is etched in stone with the solution of the POW puzzle by a free will laser mining pen, that’s the beauty of Bitcoin.
Map is not the territory, menu is not the meal & cryptocurrencies are not the money without reverse reification except bitcoin.
Any other cryptocurrency other than Bitcoin cannot be classified as a space-time asset as its an example of abstract power without reverse reification because it lacks the physical energy from the space component which is the proof of work. And thus can only be classified as time based assets like any other stocks & securities with all of its drawbacks not nullified but just toned down to some degree.
Very liquid like time based asset.
Very tangible computing hardware & power with intangible information.
No counter party risk & it’s trustless.
De-centralized with distributed nodes.
Very Secure.
Ages but not bound by time.
Negates space & time, it can be moved across space-time in an instant .
Value appreciates.
Losses & mistakes are irreversible
Summary
If computers are state machines, money is abstract time & energy and bitcoin is the reverse reification of our time & energy in space, a space-time asset that maintains a distributed ledger by a distributed state machine.
REFERENCES:
https://dergigi.com/2021/01/14/bitcoin-is-time/
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