It amazes me that the initial bitcoin set up was basically a pyramid scheme and this doesn't seem to put anyone off.
Not to mention the fact that all that computing work is wasted doing nothing useful.
I'd much rather see grid computing networks offer signed certificates proving that you did a certain amount of work for them in place of money, but also allow you to swap them for cash.
That way, the computing power did something useful. Sure every grid computing network would be it's own 'central authority', but as long as they all adhere to a common api, I don't think that's a problem.
The computing work secures the block chain. That's the opposite of wasted.
In your computation certificate proposal, would you be able to trade certificates? If so, each grid network would be able to trade counterfeited certs (generate certs for which no work was performed). If not, it isn't a currency. Not to mention that exponential increases in computing power would cause the system to be inflationary, where a goal of bitcoin is to be deflationary.
> In your computation certificate proposal, would you be able to trade certificates? If so, each grid network would be able to trade counterfeited certs (generate certs for which no work was performed).
Yes, you'd be able to trade certificates and portions of certificates. The point is that the certificates have some real value too since they are essentially vouchers for more computer time on the grid network (some percentage of the time you contributed in the first place), that's why a grid provider wouldn't want to distribute more certificates than necessary.
There are a number of ways around the inflationary problem, the simplest would be for the certificates to be in whole grid computing seconds, so as the grid grew larger and more able, the certificates would increase in value at the same rate.
By the way being deflationary is a really bad idea - it stops investment and shrinks the whole pie of economic activity. Perhaps it wouldn't matter too much for a parallel currency, but for your main currency it'd result in massive unemployment.
Not to mention the fact that all that computing work is wasted doing nothing useful.
I'd much rather see grid computing networks offer signed certificates proving that you did a certain amount of work for them in place of money, but also allow you to swap them for cash.
That way, the computing power did something useful. Sure every grid computing network would be it's own 'central authority', but as long as they all adhere to a common api, I don't think that's a problem.