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THEORETICAL DECENTRALIZED INTELLECTUAL PROPERTY AND CURRENCY SYSTEM [/size]
6/21/2013
By: vintagetrex

Introduction
Transaction systems verified by a P2P mining network have proven their utility.  The author proposes a system for transacting intellectual property submissions and currency over a network.  The author proposes a system to monetize the value of intellectual property in a secured transaction network.  A log of valuable intellectual property submissions is stored in a timeline of claims.  The trades associated with ownership of the submissions is verified by the network.  

By creating the first timeline of claims and publishing the intellectual property for the ledger in the ledger first, the system self verifies.  Relating creative processes in people to a  computational process solving a cryptographic problem similar to current P2P mining practices allows for regulation by similar equations as those proposed by Satoshi Nakamoto.  

The author believes current legal practices in the U.S. for intellectual property claims are economically irrational.  Signing a non-disclosure agreement constitutes increased liability for an individual.  A rational economic citizen would never sign any non-disclosure agreements unless an incentive is issued.  

Claim Specific Coins
Inventors or claimers submit claims into a ledger, forming a timeline of claims.  Upon the submission of each claim, claim specific coins are generated.  The number of claim specific coins generated per claim submission is fixed.  The majority of these claim specific coins will be transacted to the claimer while a portion is transacted to an account backing the associated currency.  The author is proposing a crypto currency that is backed by the intrinsic value of claims submitted by a network of claimers, a new type of P2P miner.  

Portion of claim specific coin used for currency backing according to a function of the form:
      
       P(claim) = [C + Ke^(-t)]/100

      where t is a time interval
      C and K are constants, a typical C value could be 1 and a typical K value could be 4

Claimer's Logic
Claimers give currency value by giving a portion of claimed information to the currency.  The threshold for claim efficiency is dependent on the value of the claims.  If the claims are worthless then claiming them in the system will be a waste of the claimer's time, limiting reclaimed and frivolous claim submissions.  The only immediate requirement of the claimer should be time.  Paying the claimer would create a fundamental inefficiency in the system as claims' value would drop due to an incentive to submit poor claims for the reward.  

Memory Miners
Memory miners are valued (and paid with inflation) based on a function dependent on the length (amount) of timeline stored and the distance from other memory miners.  Memory miners provide networked storage.  The value of the storage network is dependent on its ability to survive an attack, including a physical attack.  The memory network cannot be centralized or else its intrinsic value drops due to an inability to survive physical attacks.  

Voting
Memory miners store claims on an approval storage fashion, similar to approval voting.  If a claimer wants to secure his/her spot of the claim, he/she could store his/her own claims by mining. Claims require storage sponsors in order for long term storage to be ensured.  New memory mining units have their votes randomly assigned to claims.  This method prevents the removal of a claim from the timeline in an attack, as long as the claim maintains a single sponsor.  Each IP specific memory miner only has enough votes to vote for the percentage of claims corresponding to the amount of claims it can store.  The max portion a single memory miner may vote for or store is 50%.  This is to encourage these miners to vote for the most valuable claims in the timeline.  The strength of the storage network behind each claim is trackable and transparent.  Diversification of IP addresses is allowed and encouraged for large mining operations.  Older claims will typically have stronger memory networks behind them.  The freedom to choose which claims are stored, allows memory miners not to store items that are illegal.  

Randomly Generated, Randomly Mutating Timeline of Claims
The block chain timeline is a randomly generated, randomly changing sequence.  A block of claims is created upon claim submission or based on a time interval manner, analogous to blocks of coins being made in a crypto currency.  The chain of blocks for claims and blocks for coins is very difficult to surpass by attackers because of the order and time spacing involved.  Redaction by voting mutates the chain.  

The time interval between creation of blocks for claims may be varied over time, similar to an increasing difficulty.  For instance, a block for claims may be created every25 minutes at one point in time, but after a few months, a block for claims may be created every 10 minutes.  The sequence of claims is encrypted by the varying number of claims submitted.   The random sequence acts as an inherent security measure because it is almost impossible to copy.

Claim submissions could occur in this manner:

       Claims      Time Interval for Block Creation
                 0-   9,999      25 minutes
      10,000- 49,999      10 minutes
      50,000- 99,000       5 minutes
    100,000 +          1 minute


Currency/Coin Speculation

Equation for (non claim specific) currency value:

Vcurrency = Summation from i to n, (1- xi)Vclaimi +Vtransactionsystem

Unit specific coins will be valued by the free market depending on scarcity and novelty of utility.  Expanding on the valuation of claim specific coins, these coins will be valued based on the value of the currency before and after the associated submission, which is based on the value of the claim timeline before and after the associated submission.  Since a portion of all claim specific coins produced go directly to backing the currency, a market valuation of claim specific coins should happen immediately.  

Conclusion
The system intends to monetize computer processing power and the human creative process by monetizing memory, syntactical work, and semantic work.  The system intends to bring equality to intellectual property markets by providing incentive for transparency of information.  The system intends to provide incentive for claimers to publish intellectual property.  The system intends to maximize the efficiency of the economy by allowing free markets to competitively value claims, by giving the ability to claim inventions to a larger population (people who can't afford a patent), by allowing claimers to be monetarily rewarded for pseudonymously publishing claims (such as trade secrets), and by publishing ideas of ingenuity immediately, rather than after years of government deliberation. The system intends to give individual creators or claimers the benefits in intellectual property markets available to organizations.  


Additional Information
In the case of a catastrophic event, the network can be restarted from the oldest surviving block.  

Unit specific coins will be valued by the free market depending on scarcity and novelty of utility.  Expanding on the valuation of claim specific coins, these coins will be valued based on the value of the claim timeline before and after the associated submission.  Since a portion of all claim specific coins produced go directly to backing the non claim specific coin, a market valuation of claim specific coins should happen immediately.  
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