Upon reflection the ByteCoin's original proposal to link to the balance sheet from the block seems better, since the blocks are the canonical source of validation.

It appears at first glance that the serialization code provides for software versioning so adding a field has hopes for not breaking previous versions.

For any given block, any client should calculate the same balance sheet and the sorted sheet would reproduce the hash listed in the authoritative block.


Gavin is right about the current need to tie and validate transactions to prior transactions rather than bitcoin addresses. However, for me that is a bit of a non-feature. Interestingly, while generating the balance sheet, the node could generate (unsigned) merging transactions and insert them into the block. Merging transactions could be deemed valid if all inputs and the output went to the same bitcoin address. That would certainly break prior clients though.

Is this a completely connected network? Or is there some sort of ordered propagation scheme? Didn't read that section of code yet.

So imagine that, just read the code and all my questions were answered. All but one at least!

Is the bitcoin address a SHA-1 hash of the public key? or perhaps some other 160 bit hash? and why is it a 34 character string instead of say the more common 32 char 5 bit representation?

By the way, very nice code base guys! Kudos!

I'm curious about the developers feelings on scalability. For example, could the system handle a million users, doing say 5 transactions each per day. 5 million transactions per day is roughly 35,000 transactions per 10 minute period?

Is there a bottle neck in propagating 35,000 transactions to a million nodes for block generation? Or has that issue been designed for?

Are there any design diagrams other than those in the white paper?

Specifically, I'm looking for details of how the block list/tree is implemented and how each transaction is represented.

UML would be nice but any other data model would do. If they don't exist, could someone point me to the appropriate header files? At the moment, I'm on limited hardware so I can't build and poke around as I normally would.

If the balance sheet referenced the block, instead of the block referencing the balance sheet, then you could probably implement this system without breaking existing nodes.

Newer nodes would send the balance sheet in a separate message from the block. it would only ask for the balance sheets from nodes of the appropriate system version.

But I could be talking out of my ass too. ;-)

I can take your word that you were here at the beginning and you know the identities of all the initial node operators. (and I do!)

But I hope you realize, that aside from trust, I and anyone that comes afterwards can't know. And the point of bitcoin was not to have to rely on trust. That's in the white paper. :-)

Actually no pro bitcoin argument changes if 1,000,000 coins each were distributed to the first 21 node operators.

It just seems less like free money to the 22 node operator.  

I know the coins and  blocks were generated according to the code fiat. But no one knows who they belong to. That is the point of the system. If it's not, I'm no longer interested.

Well I lost a great post. I'll retype it when I get to a real keyboard.

I'm not actually worried about the developers. If they haven't accumulated wealth already, they are held hostage to the same "fiat of the code" as everyone else.

However, as with a ponzi pyramid they could have stacked the early deck and no one can know. I'm not making any accusations here or casting aspersions.

Relatively speaking, I'm an early adopter. For $1,000 I could buy up and hoard 1% of the currently available coin. Anyone long term bullish would do so. Only a bearish early adopter would sell.

According to the deflationary model, there is no reason to ever be bearish.

Unless you think bit coin will fail to gain acceptance. In that case you should cash out, as in any ponzi scheme.

The lords are not the developers. The lords are the early adopters. Isn't that why everyone is here?

I hate for this to be my first post because I have lots of nice things to say to Satoshi Nakamoto and the team. I'll have to put those in another post though.

My first though when I saw bitcoin's disbursement model is that it is structured like a ponzi scheme. Or at least structured like systems people often express frustrations over.

Ponzi like things...

1. It may seem like coins are somehow distributed "fairly" but in reality, 1/2 of all bit coin value is distributed to the initial bitcoin operators. (first four years). If you expect bitcoin to go mainstream (exponentially growing number of users, over say 20 years). Then you've created a class of "landed gentry" based upon arrival time rather than outside commodity value. Ponzi designed his scheme the same way. Early "investors" see disproportionate benefit even though everyone is given the feeling they start equally.

2. Initially bit coins have limited commodity value. No matter how many you have, there are simply few commodities you can buy with them. Relative latecomers are expected to bring "your" commodity value with them. The more relative latecomers you attract, the more your existing savings is expected to increase in commodity buying power. Ponzi would have been proud.

3. While the accounting is clean. The market seems subject to manipulation. For example, this forum is obviously a tightly knit group relative to the worlds general population. And this tight group has all the bit coins and decides the rules of how they operate. For example it would be trivial for you bit coin rich to decide that you would keep the community in close beta for a year or two. Thereby assuring yourselves an initial hidden stash. Those coins could be considered "lost" to the latecomers. Then after  commodity values begin to rise, this group would control say 30% of all currency.  That is as close to a fiat currency and a federal reserve as I've ever seen.

Am I missing something?
 

Deflation is bad. Unless of course you hold lots of cash-on-hand. In that case it is invaluable. Early users that hoard bit coins are rewarded for doing nothing to help the bit coin ecosystem. They are simply "lords".