How would you setup your perfect currency? And why?

[oxxymoronn]

Hello all,

I had a question for the community and am looking forward to hearing other peoples point of view.

The questions is:

If you were to create your own "perfect" digital currency, what specifications would you decide on and why?

By specifications I am referring to total coins, starting coins per block, half rates etc.

Looking forward to hearing the different schools of thought on this.

Cheers

[Cryddit]

#1)  It must scale to millions of tx per second. This is the single most important criterion.

#2) It must keep the costs of transferring vending-machine sized amounts down to less than Sales Tax/VAT/Card Processing fees/Bank "coin handling fees"/ whatever the alternatives are charging.

#3) It must keep the costs of transferring remittances and purchase-sized amounts down to less than the cost of sending it via Western Union/Bank Transfer/Travelers Cheques/Card Processing Fees/Exchange Rates/ whatever the alternatives are charging.

#4) It must keep the costs of transferring large sums or stock purchase prices down to less than the costs of brokerage fees.

#5) It must NOT limit mining to people who buy special equipment or use acres of computer resources.  Mining should be limited to nodes with always-on Internet connections, but should not have many other limitations. Ideally, most nodes ought to be able to mine, with similar opportunities for everything from a Raspberry Pi to a top-of-the-line supercomputer. 

#6) The amount of stuff you have to download or keep to verify a transaction should not normally exceed 4 MebiBytes.  The amount of stuff you have to download or keep in order to run a full node and mine should not normally exceed 4 GibiBytes.

#7) It must be possible to download this stuff more-or-less at full speed, rather than one block at a time in a rigid sequence.

#8) Running a full node and mining should not require more bandwidth than half of what most connections provide.

#9) The protocol must support complicated transactions, conditional transactions, "Colored coins", and Contracts.

[oxxymoronn]

Great post thanks,

What would your total coin count be? starting coins/block, half rate etc be?

[Cryddit]

I'd start with a "bump" to reward the early birds for the first couple of years, then taper off similar to how most coins do, and finally settle into a steady state of mild inflation. 

With apologies to those who can't see the graphs of equations in their heads, I think the mining reward per block in any given year would be something like ...

50 - (50 x ( Y³/(50 + Y³))) + (3 x 1.03^Y)

where Y is the year from the start of the coin.  This amount would be paid to miners about once every fifteen minutes, making about 96 rewards per day.

Fifty minus the first complicated term is the "Bump" that plays essentially the same role as starting at 50 and halving it every two years (it goes close to zero after about 26 years) and thrice one point oh three to the Y power is the long term inflation rate.

The minimum payment would be about twenty-three years out, I think, with something like four coins per block. After that the reward would grow at an annual rate of about three percent and the money supply  would show a rate of inflation slowly approaching three percent.

Block times - that's hard to say.  If it scales to millions of tx per second then it probably doesn't use anything like the same structure as Bitcoin's block chains, so it's hard to say what the question would mean exactly.  But as I said, the above for an approximate mining reward per fifteen minutes.  It might wind up split among thousands of miners who each contributed in some way to the construction and checking of the "block".

I think I'd try for very quick (10 seconds or so) initial confirmation of small transactions at least (albeit with some *very* small possibility, less than one time in a hundred thousand, of being wrong) because that's consistent with getting something from a vending machine.  Larger transactions represent longer-term decisions, so insta-confirm is possibly not as important there.  For absolute commitment type confirmations on the level of the way ten blocks means "confirmed" in Bitcoin, an hour or so would be acceptable.

[oxxymoronn]

I can see you have put alot of thought into this bud, thanks for the very detailed reply.

Does anyone else with a different train of thought on this concept?