Introducing the timechain - a DAC based on time-lock encryption

[Uptrenda]

http://roberts.pm/timechain

What is the timechain? The timechain is a chain of encryption keys that can be used by anyone to encrypt information for a certain period of time - exactly how long depends on how far up the chain the keys are as each key is spaced 5 minutes apart. The timechain is also a DAC or decentralized autonomous corporation - it gives financial rewards to participants for breaking links in the chain which simultaneously releases the secrets needed to decrypt information.

By breaking links in the chain you consume 5 minutes of computing resources to be able to derive the encryption keys - which is what keeps information encrypted for a certain amount of time. When a link is broken - it also releases a puzzle to the rest of the network. The first person to solve the puzzle receives what input to use for their 5 minutes of computing resources - this is what keeps the process fair. If the first person to break a link receives the starting value for the next link then they can just keep breaking links and steal all the currency. The timechain solves that problem with mining - a very similar process to how Bitcoin does it. So our native currency with the timechain is Time (physically - since its a real cryptocurrency and ah metaphorically too.)

Why does this matter? Because as it turns out you can solve a number of important problems with the timechain. For example, if you want to do smart contracts like micropayment channels, cross-chain contracts, or anything with a refund protocol you actually can't in Bitcoin because of tx malleability - and even if you fixed that you're still screwed for alt-coins.

And what about security? We all know exchanges and wallets suck - even with multi-sig. Keeping private keys around all the time just isn't a good idea. A much smarter idea would be to store money over time. If money wasn't all available at one point in time it would be much harder to steal. So the timechain is all about making smart contracts possible today and opening up new possibilities for how we can keep our cryptocurrencies safer. Plus, there may be new uses we haven't thought of yet and that's kind of exciting.

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We're still making changes to the paper but let us know what you think.

[tobeaj2mer01]

Will keep an eye on this project.

[Argwai96]

I know a few people that would love to see this fully in the works on smart contracts and time based functions, Setting up a payment based on a timestamps period for x amount to y individual for  D contract.

[Acidyo]

I like the sound of this project, its kinda like snapchat if im not mistaken!

[Dogedigital]

I will be keeping a very close eye on this.

Great work.  Keep it up.

[Uptrenda]

Thanks for the encouraging words everyone It really does help us stay motivated (believe it or not.)

Elías, the guy I wrote the paper with is currently working on a GPU prototype for the first timechain. Not sure on an ETA, but if he's successful we'll probably try get some time on a GPU cluster and build a yearly timechain. After that, it will be used to create secure refund systems for smart contracts (that don't require a third-party to hold private keys), experimental time matrix wallets that are extremely hard to hack, unhackable p2p currency exchanges, even a publishing platform for journalists.

I'll keep you all updated but try to keep the thread bumped as it helps raise awareness.