Saturday, November 4, 2017

Monroe - Simplified strengthened Bitcoin


I use the term credit-card-coin for bitcoin, ultimately backed by NOTHING! Think about it. Why would you need ANYTHING, except control on Banks, to have any real money! What is money, anyway, but paper used to control accounting. It could be radioactive minerals enclosed in lead-shielding, enormously heavy but matters not to anyone but central cashiers of Banks. Since central banks are dictators on Banks, NO cash is needed but numbers in central bank!

My way has the positive view that arya-coin can be like bit-coin (more advanced like cryptoNote) but backed by dollars, rupees, oil or gold! The essential add by me is that all conversions to backing material is reported to a government and backing up is on nation basis. Fraudsters will keep away because of exposure. At the same time, the entire system operates on interest derived from back up. For this purpose, every application for conversion has to be met only 1 month post posting. Is it a central bank? No, why should the reserves be one currency or commodity or not be ethereal things like real estate and some stocks! Reserves only to ensure people will get something eventually. NO creation of money since all has to be backed up! Only way to spend is instruct the bank to transfer the backup. Creation of money serious offence! Hence every bank must belong to central clearinghouse blockchain. Prove they have adequate backup in other banks vaults. Zero money velocity! Not a bank but anti-bank!

Unlike a bank, there is NO transaction posting! Every transaction in stream is ordered the same in all transaction-keepers because the keeper (miner) performs a cryptographic proof of work on something like CryptoNight that works well on ordinary pc, but is unlikely to be sped up by special hardware! Posting a valid answer (check is easy) completes the block of transactions and every one defers to keeper ordering.

This egalitarianism is a consequence of random memory accesses to large RAM (defeats caching) and large number of sequential computations that cannot be parallelized because each step requires the result of previous step! This means the keepers operate essentially equally. What is proof of work? Say string with SHA-256 digest with 40 zeros! Here my idea is interesting. Every keeper submits a say 40 bit random. The XOR of all is taken. This is the next 40 bits needed in next SHA-256 digest! Every pre-computation of any keeper is a waste!

The control is statistical. Everyone has equal chance. While the 40-bit problem takes 2^40 operations (trillions of years), the chances of someone finding it in, say 10 minutes, is pretty good, and chances of two finding it are pretty low! Straight-forward things are done on collisions. Simplest is associate a static distinct priority (caste) with every keeper. Higher caste keeper wins on very rare collisions. A keeper caste may depend on number of mines and time of joining.

Next we insert cryptoNote learning to defeat linking (many same user receives) and tracing (many same user sends). Trick is to understand ring signatures and stealth addresses.

stealth addresses

Lets recall basic RSA. For 1000 bit integers, public^ private = 1 mod semi prime and also private^ public = 1 mod semi prime. Pre-use OAEP+ to get IND-CCA2! Use of same public defeats privacy. Monroe (based on cryptoNote) expands this to (view, spend, public) where view is receive-private, spend is send-private, and public is used by others to derive the person send to. The public should not be used because of privacy concerns, actual key used is a one way function of it!

Statistics


ring signatures

A ring signature is formed by selecting random blockchain public by triangular distribution and the public send to and own private. Someone outside the blockchain is fucked as the target person in blockchain itself is hidden. A spy in blockchain can narrow down to between one of the ring person but not further, as all have plausible deniability!  The receiver can look at who send and how much by view key!

Almost nothing has to be implemented (I shall see) to use monroe. Interesting if it can be used for something useful! Think now! An open source will prove my return from the dead (or mad!).
arya-coins.

A first remarkable easy research by me

Why should complex ring signatures be needed? Select blockchain people and using IBE, send (target // +-update) i.e. ((sender// -update) and ((receiver// +update) to others and (sender // receiver // update) to receiver. Every one will update account correctly. Tracing dies because targets of a send are not known. Linking dies because sources of updates are not known. In cases needing more security against spies, an account can be several accounts! All kinds of traffic analysis dies by random rotation and send opportunity for all blockchain keepers, who alternate (r1,+r2) and  (r1,-r2) if nothing to say. Distributed random permutation can be done with just one broadcast of new field integer.

Does not work as a keeper can cheat easily. But change the update to update // transaction-digest, matching for send and receive. Now everyone can assert there is exactly one correct pair. (point must-pair) Here transaction digest is digest{ unique-random } for send, and unique-random in receive. Point is digest is not-invertible but easy to compute.

 But that allows the spy to match sender and receiver! But let every sender or receiver identity be encrypted so that only update function in every keeper can decode!! Now the spy constructs a useless pair! Moving certain operations to non-reverse-engineer-able hardware greatly simplifies encryption. One can always do them on cloud unless evaluations are extensive! In this case, every keeper maintains account balance on cloud and submits add or subtract to their balance to always-unique encrypted entities.

These entities get a unique encryption  by encrypting unique-random // keeper in cloud decrypt-able-field!

So arya-coin is good way to learn by pretend-teaching and concurrent-development – two basis of my learning from professorship of 20 years and self-directed research in isolation for 20 years! In all modern cases, the student is virtual and asks hard questions.

Great toy application

Ar ya-coin need not be a currency. The backup may be axioms. People compute theorems. Theorems are added for research priority. The value of a paper is tha of the referees. All the money they give is spent of references as per the authors. One can postulate self-organising journals. Every non-zero citation adds to the value. In turn, the cited references become more valuable. This continues unless a cycle is encountered. Given any set of nodes, a directed acyclic set of reference-visit able nodes is formulated in any graph. One can compute the weights starting from some egalitarian summing of referee weights.

Lets call it the crypto-libertarian way over the socialistic equality arxiv. Latter will insert any paper by anyone that meets its guidelines and is sufficiently cryptic, dense and well-referenced! It is NOT a good idea to use it as a metric for anything. Things become very hard for allocating value added for any movie or CERN paper! The hardness need not be addressed by current socialistic practices. A far more value-added approach may be possible using arya-coin technology!



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