Faircoin: Ideas for the fairest coin possible.

[Vorksholk]

Most of the Alt currencies coming out recently offer few to no changes from the original Bitcoin code. Not that I'm against them, I have more holdings in Alts than in Bitcoins anyhow.

What this coin would try to accomplish:
-Reduce profit for early adopters (but still have it there)
-Resist ASIC devices through a dynamic hashing algorithm
-Resist strong hashrate manipulation
-Well-known genesis block generation


Reducing profit for early adopters:
Bitcoin was made in such a way that early adopters made BANK. Early people to the Bitcoin scene mined blocks with 50 coins with ease. Now, mining a block worth half of that is extremely difficult. Not only does the mint rate of the network decrease over time, it does not increase with increased demand. This makes the perfect environment for mega early profits. These helped establish Bitcoin as a worldwide currency, by encouraging adoption for later profit.

Faircoin (or whatever it be called) . . . would instead increase mint rate with hash rate in such a way that early adopters still benefit, but late adopters aren't as screwed. In a nutshell, I think it would be fair to increase mint rate with the square root of hashrate: 1GH/s network speed (total) would mine 1 Faircoin per block. 2GH/s would mine ~1.4142 Faircoins per block. 4GH/s would mine 2 Faircoins per block. 16GH/s would mine 4 Faircoins per block.

In a way like this, Faircoin would expand with market demand, while still maintaining profitability for early adopters. Quick difficulty changes would allow the network to buffer against huge spikes in network speed by quickly adapting to the new mint speed. As well, instead of the block halving every 4 years, with faircoin every 2 years there would be a 2x increase in mint rate, as very quickly that square root is dwarved by the hashrate. The "doubling" would help to further work to make the coin more fair for a longer period.

Resisting ASIC devices through a dynamic hashing algorithm:
Through a dynamic algorithm with special step orders (basically, mixing and entropy-reducing steps) that would evolve over time (step order for next "round" would be determined by last digit of the last block of the previous round?). Mining programs would have the new step order pushed to them by pools or from the Client itself during solo mining. This changing step order would make ASICs hard to make and expensive to plan. As well, some of the steps would be high-memory steps that require lookup tables based on the last block's hash.

FPGAs would be possible, but also harder to make, and likely more expensive due to extra memory requirements. GPUs and CPUs would have no trouble with the changing step order, and GPUs would encounter minor resistance with the extra memory requirements.

Resist strong hashrate manipulation
Due to fast difficulty changes and the sqrt(hashrate) = mintrate, extreme jumps in hashing power would be adjusted for quickly, so there wouldn't be a >1000 block lag between new hardware and new difficulty. Difficulty would be implemented as it is today implemented in Bitcoin, Litecoin, etc.

Genesis block well-known
Not only would the genesis block be well announced before hand, a test-net would be up for at least a week preceding the official launch so people can get their miners configured, purchase hardware for mining if they desire, and experiment with the dynamics of the currency.

I unfortunately don't know enough to make this type of coin (at least not yet) but I think it would be an interesting idea for a alternate coin to approach.

[nameface]

What about a coin that was simply given away at the start. 7 billion are created and given out gradually via a faucet.
Transactions verified by a huge network of volunteers, no "mining" ie. free coins and cheap energy costs.

[Vorksholk]

What about a coin that was simply given away at the start. 7 billion are created and given out gradually via a faucet.
Transactions verified by a huge network of volunteers, no "mining" ie. free coins and cheap energy costs.

That is an interesting idea, problem is decentralization of the currency. You have one party that has all of the currency, and they slowly give it away, leading to people not feeling safe with one party having so much power. As well, if you don't give miners an incentive, they won't mine.

[nameface]

What about a coin that was simply given away at the start. 7 billion are created and given out gradually via a faucet.
Transactions verified by a huge network of volunteers, no "mining" ie. free coins and cheap energy costs.

That is an interesting idea, problem is decentralization of the currency. You have one party that has all of the currency, and they slowly give it away, leading to people not feeling safe with one party having so much power. As well, if you don't give miners an incentive, they won't mine.

Anyone could mine on their devices via a tiny gui applet that uses hardly any processing power.
I see the trust issue, re: a single party dolling out all the coin. There could be 700+ parties each dolling out ~10,000,000 million coins simultaneously, each checking each other every day and rating each other's trustworthiness.

[chriswen]

This seems very inflationary.

And the block reward system is the EXACT opposite of PPCoin.

[herzmeister]

Crypto-currency was something new. Had Satoshi publicized the concept more widely, people would not have understood it. So there couldn't have been a wider, fairer range of early adopters.

But now, you could wait until the mainstream largely is familiar with this concept via Bitcoin.

Then make a kickstarter for "Faircoin".

Maybe you'll be successful, and people will accept it thankfully, or maybe not.

[codro]

This seems very inflationary.

And the block reward system is the EXACT opposite of PPCoin.

I'd take a coin more seriously if it was designed for the long term instead of allowing a bunch of early adopters and/or already wealthy miners with mining farms to amass ridiculous wealth and manipulate the market at will once the coin gets popular. Pump and dumps would be nearly impossible this way though, so I can see why no one wants to make such a coin. No immediate profit.

[nameface]

This seems very inflationary.

And the block reward system is the EXACT opposite of PPCoin.

I'd take a coin more seriously if it was designed for the long term instead of allowing a bunch of early adopters and/or already wealthy miners with mining farms to amass ridiculous wealth and manipulate the market at will once the coin gets popular. Pump and dumps would be nearly impossible this way though, so I can see why no one wants to make such a coin. No immediate profit.

+1
There are so many greedy people out there who care only about immediate profit, not about making something good for our world. They could be shut out of the profit model of the Faircoin.

Today, bitcoin as is is best. Tomorrow will be different.

I see several cryptos becoming highly successful over the next few years. We're only scratching the surface of what is possible.

[Vorksholk]

This seems very inflationary.

And the block reward system is the EXACT opposite of PPCoin.

The idea is to combat inflation by simply implementing an open end on both supply and demand in the market. PPC makes supply smaller while demand rises, Faircoin would make supply larger as demand rises.

[btbrae]

I think there'd be a lot of interest in something like this as one of the main obstacles to regular not-in-the-know people adopting Bitcoin is that they've "missed the boat" and early adopting geeks are cashing in on a ponzi scheme at their expense. You've obviously put some thought into the logistics but what you need to do is convince some developers to get onboard. I hope you succeed.

[bitcoiners]

Why not just call it CommieCoin?

[Impaler]

What about a coin that was simply given away at the start. 7 billion are created and given out gradually via a faucet.
Transactions verified by a huge network of volunteers, no "mining" ie. free coins and cheap energy costs.

This was essentially the direction we took with Freicoin but not quite as radical, we created a hybrid between that and the BTC standard.  We split the initial creation of coins 80% centralized / 20% mined as normal.  And with a short (3 year) rather then instant creation of all coins.  This was the mix our development team and members felt satisfied with, balancing our desire for fairness with our conservative tendencies to go with the proven BTC distribution system.

Were also currently working on better difficulty adjustments as we speak, but currently have no plans to break away from finite money-supply, though I personally think that this could be done with a inflation-prediction bond market mechanism, I would not put much faith in a hard coded inflation mechanism even one linked to hash-rates as the OP describes.

Vorksholk:  I would recommend you read up on Freicoin, it is by far the most technically and innovative alt-coin ever made.  I think you would find it satisfies most or all of your fairness goals and if you have technical skills then assisting us would be the best means to achieving fairer currencies as Freicoin is improved.

[nameface]

Why not just call it CommieCoin?

It's a coin designed to emancipate the free market and provide stable capital markets.
"Anti-commie coin" would be more accurate.

[loulis]

The fairest coin possible it will be existed only online. 1 coin (or share) online and 0 coins offline. It would be a fair share of global wealth. A really democratic coin.

[herzmeister]

nice idea, someone make a crypto-coin and put it out there with no accessible private keys so that no one can ever get and spend any coins! will be the fairest money the planet has ever seen. 

[loulis]

I'm genius. Surely i will get the Nobel Prize for Economics.

[drakandar]

Since we're already bumping an old topic, how about linking it to a more recent topic and share thoughts on a platform, with a community and a network that already exists


You can read more about FairCoin and the Cooperation behind it at: https://fair.coop/
The wallet is available from http://fair-coin.org/
The BitCoinTalk thread can be found at: https://bitcointalk.org/index.php?topic=702675.0

[johnywalker]

FairCoin has been added to voting list at Comkort exchange!

Vote FAIR