This was designed from input with several members of this forum. If you think you can help, please email me at the address in the proposal.
It addresses early adopter, 51% attack, double spends, trust, transaction times, and various other issues. It is a work in progress and is only a design document without much hard data to back it up. However, I believe everything discussed in the proposal is possible. The bootstrapping process hopes to succeed by awarding both EnCoins and BitCoins for the same work.
Link to the document:
http://www.mediafire.com/file/kpe2fibudg8yfrr/EnCoin%20Proposal%202.3.docHTTP link (does not format well in IE):
http://pastebin.com/czquukGXSome talking points:
* EnCoin is based around a constant cost to produce, approximately 10kWh of electricity. In contrast, a BTC's cost to produce has increased by a factor of 2,250 from the 1st to the 7.3 millionth.
* Transaction fees that destroy currency create new demand on existing coins, rather than an ever increasing cost to produce. The fees are required, and they do not go back into the mining pool.
* Supply and demand determine the final sell price, but the network is designed so that it will always be moving back towards an equilibrium where a sell price is the cost to produce plus a reasonable profit margin. As fiat currency inflates, so will the value of EnCoins, so it is a "safe" hedge against inflation. This happens because producing new EnCoins will cost more because 10kWh of electricity is more expensive.
* Initially, EnCoin will award both EnCoins and BitCoins for performing work on the network. It is possible to piggy-back on the BC network, and EnCoin will do so until some time down the road.
* In lieu of dangerous pools, EnCoin has smaller "Network Trusts" that are formed. These Trusts mint coins non-competitively. They agree on what has happened to the network once a day. Agreement is not based on computational power, but by a system of trust.
* Transactions are able to be approved and re-spent in under 1 minute. More likely than not the network will support 15-30 second transactions.
* Only the most recent block in the block chain is required for a client to be up to date. EnCoin stores the balance of every account in each block. While this may sound like a lot of data, it is much more efficient than storing the entire history of every divisible piece of coin that has ever been used. (My gross estimate is about 10MB for every 500,000 accounts--updated once per day.)
2011/09/21 V2.2 UPDATE: Added more technical details and potential issues.
2011/09/23 V2.3 UPDATE: Moved some of the technical details into the main proposal. Network Trusts, Transactions, The System of Trust, Anonymity, and Why EnCoin have been updated.
IRC: irc.freenode.net #encoin
