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Author Topic: GoxCoin: Restoring the honest ledger  (Read 658 times)
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March 02, 2014, 02:56:24 PM

I was “goxed” out of 3.97221907 Bitcoins.  My friend Jason was “goxed” out of about 20+ Bitcoins.  Some users were “goxed” out of 100’s or even 1000’s of Bitcoins.  GoxCoin is an attempt to restore the honest ledger.

When it comes down to it, Bitcoin is a glorified ledger.  What does the bankrupt exchange Mt. Gox have?  A ledger of who should own Bitcoins.  Thus, if we started an altcoin with a pre-initialized ledger to the values of Gox when it folded, users who had the possibility of getting nothing will now have GoxCoins.  Because users know how valuable they should be, they will not get rid of them very easily.  Thus, this will give GoxCoins immediate value.

The starting value of a GoxCoin address
At the end, the price of a Bitcoin on Mt. Gox was a fraction of the price of a Bitcoin on other exchanges, as many correctly foresaw that Gox was short on Bitcoins.  Thus, do we penalize these people for being smart and converting to cash and not reward them with coins?  No!  Thus, the starting value in goxCoins of each Mt. Gox user’s account will be set to the total value of each user’s account converted to Bitcoins based on the world price index at the time when Mt. Gox announced bankruptcy.

What do we need?
We need an anonymized ledger of the ending account values.  This requires cooperation from Mt. Gox.  We need 2 things from them: 

1) A way for users to specify the public address they would like their goxCoins deposited. 
  • This can be as simple as allowing users to login and then a single field to collect the public address you want your goxCoin funds deposited into (same address protocol as the Bitcoin protocol)
2) The account ledger anonymized based on the provided addresses.
  • This would consist of entries like:
    • Address:  <goxCoinAddress>
      • BTC:  4BTC
      • USD:  1234.56
      • EUR:   4321.09
3) A modified client to work with the GoxChain

What coin model do we use?
Bitcoin.  GoxCoins should be at least as rare as a Bitcoin, as that is what they initially were supposed to be equal to.  Thus, GoxCoins should be produced at approximately the same rate as bitcoins.  Thus, instead of starting the block reward at 50, we start it at 25 and set it to the same block number as bitcoin so that it halves approximately when Bitcoin does.  This will mean less GoxCoins in the end, but will keep the inflation rate the same as Bitcoin. 

How do we start?
1) The anonymized goxCoin ledger is published.
2) The format for the first block is finalized.  This will include at least the following information:
  • The initial bitcoin balance of every address
  • The initial fiat balance of every address
  • The accepted fiat/btc exchange rates for all currencies at the time of bankruptcy for Mt Gox
  • The starting goxCoin value of every address
    • Calculated based off of 1, 2, & 3
  • The starting difficulty
    • A pre-agreed upon initial difficulty.
  • The Bitcoin Block (GoxBlock) #
    • An agreed upon future block number to start the GoxCoin protocol with.
    • This will also be the block number of GoxCoin, which will cause them to be created at a similar rate to bitcoin.
  • The Bitcoin Block’s Hash
    • The hash of the agreed upon block number
3) When the GoxBlock is found on the Bitcoin chain, miners will incorporate that block’s hash into the first block, and thus be able to start mining on the GoxCoin chain using the same protocol as the bitcoin chain.

This all spawned from a dream I had last night so it is still very rough.  Let me know if anyone is interested.
Bitcoin mining is now a specialized and very risky industry, just like gold mining. Amateur miners are unlikely to make much money, and may even lose money. Bitcoin is much more than just mining, though!
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March 18, 2015, 05:02:27 PM

I think its a great idea, and I can help you out.
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