Branching off a local currency backed by Bitcoin?

[Elwar]

Would there be a way to branch off a local currency backed by the contents of a single address?

Imagine there were 100 BTC in a single BTC address. Then this community that is on an island in middle of nowhere uses this address as their currency but runs their own mining software and exchanges coins back and forth between each other spawned from this single address.

Then, if ever necessary, they could all put their money back into the one address and use it as BTC.

I have no idea how something like that would work, I am just thinking of how it would work if a small community shut off from the rest of the world would be able to exchange their own local currency while still being technologically tied to Bitcoin.

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[nwbitcoin]

Its a complex way to do something quite simple.

What you actually do is start another altcoin - a local bitcoin

That way you don't get any of the problems that a sub branch and all the associated nonsense would bring!

[markm]

For a local currency using a blockchain is a pointless expense, securing a blockchain is hard, even the chains that can be merged mined are mostly not actually being merged by most pools, and even the most popular of them, namecoin, is only merged by a few pools.

Cyclos is free open source software for local currencies and suchlike things, a complete banking-software system, check that out.

Or of course you could use Open Transactions if you don't want all the nasty insecurity that comes along with using websites.

-MarkM-