Additional decentralized currencies?

Hi guys.

I'm keen to know. One of the things I'm interested in, is creating decentralized currencies that is more secure than the current way of creating separate chains for each currency (this isn't secure if you assume a long tail of low hashrate coins). One such conceptual proposal I came up with uses a modified proof-of-sacrifice to mint new colored alts on the Bitcoin blockchain (https://groups.google.com/forum/#!topic/bitcoinx/mUb86IOeXdU).

However, it has some issues and would require considerable effort to implement. You still have to trust the issuer. Making it so that you don't have to trust the issuer, means you'll probably have to keep the whole chain to back-scan (which reduces scalability).

I assume, conceptually this would be possible with Ethereum? Before I delve too deeply into the coding, can someone confirm that this is possible with Ethereum?

Comments

  • que23que23 Member Posts: 14
    There won't be separate chains. All you have to do is create a contract that keeps a ledger of transactions.
  • StephanTualStephanTual London, EnglandMember, Moderator Posts: 1,282 mod
    Vitalik recently posted this on the bitcointalk forums:

    ----
    "The nice thing about having a Turing-complete scripting language is that you can integrate many interesting models for how one currency can be integrated into another:
    (1) The sub-currency can be fully stored as a contract (space heavy, time heavy)
    (2) The Merkle root of the sub-currency state tree can be stored in a contract, and the leaves off-chain. Each update to the tree is validated by the contract (space light, time heavy)
    (3) Two blockchains, but where the Ethereum chain includes an SPV client of the other chain (space light, time light)"
    ----

    Probably not the answer you were looking for, but only time will tell how scalable storing entire sub currencies in a contract actually is. Come to think of it, not all currencies have to scale that high - even a very large national retailer (grocer) is very likely < 10 TPS (transactions per second). You'd be surprised how many retailers are < 0.1 TPS despite being 'large brand names'.
  • ChristianPeelChristianPeel Member Posts: 26
    edited January 2014
    In case anyone's interested, here's a link to Vitalki's comments on bitcointalk that Ursium extracted the quote above from.
  • ChristianPeelChristianPeel Member Posts: 26
    I obviously did not do the link right the first time; hopefully this one works:
    https://bitcointalk.org/index.php?topic=428589.msg4686833#msg4686833
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