Sub-currency

Since a sub currency will be using ethereum blockchain, could you issue a genesis block for that? How would mining work in this case? What could be changed (like the behavior) of the coin through scripting?

Comments

  • mlacortemlacorte Los AngelesMember Posts: 27 ✭✭
    A sub currency could be pretty much whatever you want it to be. The blockchain/mining enforces that only proper transactions are run, and you can define what a proper transaction is through the scripting language.

    For example, I'm working on a distributed datastore which allows users to "buy" storage space and bandwidth in return for the user's storage space and bandwidth. I'm probably going to implement this by having both parties digitally sign their transaction, and if Ethereum receives both signed messages and confirms that they're valid, it will then make any transfers/issuances it needs to based on whatever algorithm I decide to use.

    The entire mining/blockchain portion gets handled by Ethereum, so your currency can be handled however you want. Want it pre-mined? Want it earned through some external factor? Want it to be randomly generated (like a lottery)? Want to make it illegal to spend if the amount you have is an odd number? You can pretty much do whatever you feel like.
  • pocesarpocesar Member Posts: 5
    I see, but I'm trying to understand how it can have a sub currency (I understood how the genesis block is created), I need to understand how mining happens on sub currencies (if it's at all possible).

    It doesn't seem possible to have a PoW in subcurrencies because ether needs to be sent to the contract address.
  • mlacortemlacorte Los AngelesMember Posts: 27 ✭✭
    That's correct. There is no way for a subcurrency to generate ether. The only way to make this happen would be to set up some form of ether to subcurrency exchange, and for that to be successful, your currency would have to be worth something.

    When you hear about subcurrencies in Ethereum, they don't really behave like an altcoin. Instead, they are meant to act as a representation for something else. Say you wanted to create a raffle using Ethereum. One way you could do this would be to issue a fixed number of "raffle tickets" which people could buy from the original contract and then trade amongst themselves and/or put them in a "basket" for whatever prize they want.

    That said, if you wanted to, you could create a contract which issues a fixed amount of your subcurrency based on the successful completion of a PoW algorithm. It'd still cost some ether to make these transactions, but the trading value of your currency might overtake the transaction costs. It probably won't, but I've seen the market do weirder things before.
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