Satoshi Nakamoto is widely known for inventing Bitcoin. In 2008, he published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," describing an electronic currency he called "Bitcoin" and its algorithm.
The great thing about Bitcoin is that it uses a decentralized computer network to build a bookkeeping system that can rival the world's largest banks, the total amount of money is constant, no one can over-issue money without authorization, and if there is severe inflation in any country, people can resist inflation in their own country as long as they buy Bitcoin.
What's even more amazing is that the Bitcoin Foundation is managed in a very loose mechanism, and Satoshi Nakamoto himself "sees the beginning and does not see the end" but also deduces what is called decentralized management.
The Bitcoin network, by prescribing the issuance mechanism, consensus mechanism and encryption technology, interlocks the issuance, bookkeeping and transfer of bitcoin, forming a huge system of spontaneous development and growth.
Perhaps, no one can replicate Bitcoin's success. Therefore, although there are thousands of altcoins and imitation coins, most of them have no problem, and even if there are small achievers, it is difficult to reach the height of Bitcoin.
I'm not Satoshi Nakamoto, but I've also found a way to issue a digital currency. The whole set of ideas is similar to Bitcoin, but the mechanism is far inferior to Bitcoin. The following is an introduction to this digital currency, because my surname is rice, I will use rice coins to call this digital currency scheme.
The rice coin issuance scheme adopts the method of binding paper money, that is, one paper note corresponds to the same amount of rice money. As for the issuance mechanism, unlike Bitcoin's mining and proof-of-work, the "proof of liquidity" approach is used. We take the $100 denomination of the banknote as an example, the first person to mine, with the mobile phone to take a picture of the banknote, through the graphic recognition of the denomination of the banknote, image and issue number, as long as the successful upload of the photo, and record to get a quarter of the denomination of the rice coin.
So, how should the remaining three-quarters of this $100 denomination of rice coins be distributed?
The basic property of money is circulation, so recording the circulation of money should become a proof of mining similar to proof of work. My plan is that when the second person gets the note and uploads the same number again, he will only get half of the value of the previous uploader, which is one-eighth. And so on,
According to the summation formula of the equal ratio series, the result of such mining will be to cumulatively dig out one-half of the currency value, and the more the end, the lower the mining income, and finally close to 0. This is another proof mechanism: the proof mechanism for destroying paper money.
Generally, when the currency flows to a certain extent, it will become a damaged currency, it will have to withdraw from circulation, the bank will take back the residual currency, and issue a "destroy recovery certificate", this proof, you can get half of the value of the virtual currency.
Through this mechanism, a huge database formed by banknote numbers can be formed, and with the help of the distributed ledger of the blockchain, a digital currency currency can be formed against the paper currency.
Compared to Bitcoin, the idea of this rice coin is more like a game, and in order to make this game more spreadable, we can even stipulate that it will only really take effect when there are more than 8 owners of the rice coin. In order to make the rice coins in their hands take effect, people have rushed to tell each other, forming a virus spread.
I believe it's an interesting game, and paper money is becoming scarcer in countries where credit money and wireless payments are becoming more and more common, and in theory this kind of play will have the same deflationary properties as Bitcoin; however, in underdeveloped and inflation-rich countries, the game can only record how bad inflation is in the country, and other than that, it is not of much value.
The rice coin scheme can be made into an interesting game, but it is still risky to use it in the digitization of paper money.
The first is inflation risk in small and medium-sized countries. Some sovereign currencies in some African countries and South American countries have experienced severe inflation. A digital currency tied to paper money is equivalent to discovering a new inflationary currency. This solution is more suitable for countries where electronic money, digital currencies, credit cards and wireless payments are becoming more common, such as the US dollar, euro and japanese yen.
Second, this scheme may be used by illegal organizations for illegal ICOs, and people who are familiar with the local currency are often more likely to be recruited.
Third, the scheme may also result in the deliberate destruction of banknotes. Because the return of the final "proof of destroying paper money" is too high, once someone speculates, someone will not hesitate to damage the paper money to obtain digital currency. This possibility is not completely ruled out, but it is something I do not want to see.