Folks:

Speaking as a list member rather than as the moderator,
[email protected]'s statements that "money has to be based on
something", that Bitcoin is "based on" proof-of-work and that people
would need to waste CPU cycles in order to trade files (under
danimoth's proposal) are all incorrect. ☺

Money, to be useful as money, only has to be acceptable and valuable
to enough people. It doesn't have to be "based on something".

Bitcoin isn't really "based on" proof-of-work. It's mostly "based on"
digital signatures. The proof-of-work part is really just to make it
difficult (but not impossible) for attackers to perform a rewind
attack. There are designs floating around which replace the
proof-of-work with other mechanisms intended to deter rewind attack,
and the properties of the resulting systems are almost the same as the
properties of Bitcoin.

People would not have to burn CPU cycles in order to trade files in
danimoth's proposal. Only the transaction-verification-servers (also
called "miners" in Bitcoin) need to do any proof-of-work (in order to
deter rewind attack). Normal users who want to send or receive Bitcoin
do not need to do any proof-of-work.

Regards,

Zooko Wilcox-O'Hearn

Founder, CEO, and Customer Support Rep

https://LeastAuthority.com
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