Cryptocurrency Tied to Useful Electronic Resources
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Solution Overview
Problem
Current cryptocurrencies based on blockchain technology lack inherent value, as their value is not tied to any physical goods or services, and their computational power is primarily used for securing transactions without practical application, leading to speculative market value and potential deflation.
Innovation Solution
A cryptocurrency system that ties the generation of currency to the provision of useful electronic resources such as computational power, storage, or connectivity within a network, where nodes are rewarded for performing tasks like frame rendering, optimization, or data storage, and the distributed ledger is secured using a variation of proof of stake concepts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If proof-of-work concept is used to secure the network, then the network security against sybil attacks is improved, but the computational power is wasted without practical application
Solution Approach 1:
The patent converts the wasted computational power from proof-of-work into useful electronic resources by allowing nodes to perform practical calculations (such as scientific computations, data processing, or rendering tasks) while still securing the network. The computational work serves dual purposes: securing the cryptocurrency network and producing valuable electronic goods or services.
Solution Approach 2:
The patent makes the computational resources serve multiple functions simultaneously: (1) securing the network against sybil attacks through the distributed ledger mechanism, and (2) performing useful calculations that produce electronic resources. This multi-functionality resolves the contradiction by eliminating the waste of computational power.
2Adaptability or versatility
If cryptocurrency value is not tied to physical goods or services, then the decentralized properties and blockchain ledger usage are maintained, but the currency becomes purely speculative
Solution Approach 1:
The patent ensures continuous production of useful electronic resources by the network nodes, which ties the cryptocurrency value to the ongoing generation of valuable electronic goods or services. This continuous useful action provides inherent value to the currency while maintaining decentralized properties through the blockchain ledger.
3Reliability
If computational power is used solely for securing transactions, then network security is improved, but productivity for practical applications is reduced
Solution Approach 1:
The patent enables computational power to serve universal purposes: securing transactions through the distributed ledger mechanism and simultaneously performing practical calculations that generate electronic resources. This resolves the contradiction by making the same computational resources productive for both security and practical applications.
Data Source
AI summary
Methods and systems are presented for a cryptocurrency based on distributed ledger (such as blockchain) technology, where a currency emission mechanism is tied to providing useful electronic resources such as computational power, storage, or connectivity to other nodes of the network, effectively creating a distributed computational cloud or supercomputer. Such resources may be provided in a secure (in case of computation sandboxed) environment in order to provide security for the nodes providing the resource. Stored data chunks may be encrypted in order to prevent the storage nodes from accessing the information. Resources may be provided on a non-exclusive basis, with a certain degree of redundancy to assure the nodes requesting the service about its integrity. The present disclosures allow free trading of electronic resources, and have a cryptocurrency that has its value associated with them, effectively building a supercomputer or a cloud where the nodes are rewarded monetarily for their participation.