First comment from "my genius" after he has spent an hour or so looking over all that stuff:
"I find a blog that is useful:
http://www.righto.com/2014/02/bitcoin-mining-hard-way-algorithms.html
Note that finding a successful hash is an entirely arbitrary task that doesn't accomplish anything useful in itself. The only purpose of finding a small hash is to make mining difficult, which is fundamental to Bitcoin security. It seems to me that the effort put into Bitcoin mining has gone off the rails recently.
Further note that the result of all of this work is a 256 bit number. DUH. There are ton of ways to create an essentially random (and scarce) 256 bit number. Scarcity is really the main property here. I do not believe in my mind of minds (heart of hearts) that scarcity is that hard either. All of this makes me think that the core mining thing in Bitcoin is just wrong.
But I suspect that mining bitcoins is a dying industry, which may well have been Satoshi ́s intention. Get a finite stock of Bitcoins out there then go ahead with scarcity established.
All of this rant because I woke in the night with an alternative to mining. Let the coins be kicked out of routers ( the things that tell packets that make up the lower levels of the data transmission under the Internet where to go) as a by product of doing useful work. So every router on the Internet becomes a source of coins. essentially his would ba commodity based currency with the commodity being packets.
I do not know if this makes sense or not, but it might. Needless to say,, as you have heard me speculate before, I prefer commodity based currencies (cryto anonymous currencies but commodity based.) Packets are the beans and rice of modern communications systems.
I do like and appreciate what Darkcoin is doing in the layers they are building on the Bitcoin though and will dig deeper."
While I have no clue what is he talking about, I will let you know what he has to offer, if anything, after he has, well, dug deeper
He's not the first to suggest that mining could actually be made useful...
Gold isn't arbitrarily scarce though... maybe he was thinking about diamonds, which are as common as muck?