I like the idea... but I also see the use of energy in this calculation as not particularly meaningful.
As it is, it's more of a measure of energy efficiency than anything.
So, let's see, the simplest measure of energy efficiency is hash-rate over energy:
S = H/E
I think if I were to propose a "distributed quality" coefficient, it would be:
S = n^2/H
Honestly, I think that's what you wanted. If the hash-power is very concentrated, you will have a very low number. The problem with this coefficient is that it weights all nodes equally.
S = (n1*H1 + n2*H2 + n3*H3 + ... ) / H^2
Now that would be much better (every node multiplied by its individual hashing power), although much harder to calculate.
Topic: Definition: The Satoshi Coefficient (Read 1191 times)
So, S=n^2/650 
It will be interesting to see if this parameter pops up naturally in some equation somewhere.
It will be interesting to see if this parameter pops up naturally in some equation somewhere.
Of course I used a value for E that I could obtain quickly (650 from Blockchain.info) to calculate the first ever estimate of the Satoshi Coefficient. In reality, determining E precisely is quite difficult. The interesting aspect to this new coefficient is that it lays the groundwork for a new network to efficiently compete with the Bitcoin Network by focusing on optimizing H,n and E to get a better coefficient than Bitcoin's. However, the Bitcoin Network quite naturally is working to increase its Satoshi Coefficient. In fact, a certain network topology, node feature set and energy source is the logical outcome. I think that's enough info for now, I've already given away valuable information. Enjoy the Satoshi Coefficient. :-)
So, S=n^2/650
It will be interesting to see if this parameter pops up naturally in some equation somewhere.
It will be interesting to see if this parameter pops up naturally in some equation somewhere.
What does this number measure? What do you mean by the "quality" of the network? There are a number of criteria that could be used to evaluate the quality of the network, such as the resistance to a 51% attack, the maximum number of transactions, the number of nodes (or n2), or the average time to propagate a transaction, or its energy efficiency (H/E).
Its a calculated number that just uses simple but important metrics. I would speculate that if there was another network right now with a Satoshi Coefficient of 3,000 it would be beating the Bitcoin Network right now. Yes, that network's coins be more valuable than Bitcoin's. Its just an idea, but I think it shows how the Bitcoin Network should be improved: more hash rate, more hashing nodes and less energy. If you follow this thinking out some, it results in a very interesting substrate.
I think energy is an important part of the coefficient because it is a fundamental way in which we measure work. The Bitcoin network brings together mathematics and energy (work) in an amazing process. I think the Coefficient is a way to try to quantify this in an amazingly simple formula.
I still don't see how energy output relates to the quality of such distributed network. If E is high or low, it's because of global electricity prices or hardware efficiency (available globally) respectively. As such, an attacker is usually affected by E as much as honest miners.
What does this number measure? What do you mean by the "quality" of the network? There are a number of criteria that could be used to evaluate the quality of the network, such as the resistance to a 51% attack, the maximum number of transactions, the number of nodes (or n2), or the average time to propagate a transaction, or its energy efficiency (H/E).
stop pretending you care
stop pretending you don't
What does this number measure? What do you mean by the "quality" of the network? There are a number of criteria that could be used to evaluate the quality of the network, such as the resistance to a 51% attack, the maximum number of transactions, the number of nodes (or n2), or the average time to propagate a transaction.
stop pretending you care
What does this number measure? What do you mean by the "quality" of the network? There are a number of criteria that could be used to evaluate the quality of the network, such as the resistance to a 51% attack, the maximum number of transactions, the number of nodes (or n2), or the average time to propagate a transaction, or its energy efficiency (H/E).
I think energy is an important part of the coefficient because it is a fundamental way in which we measure work. The Bitcoin network brings together mathematics and energy (work) in an amazing process. I think the Coefficient is a way to try to quantify this in an amazingly simple formula.
good job. now go get a life.
I think energy is an important part of the coefficient because it is a fundamental way in which we measure work. The Bitcoin network brings together mathematics and energy (work) in an amazing process. I think the Coefficient is a way to try to quantify this in an amazingly simple formula.
I am pleased to provide the first estimate of the Satoshi Coefficient using the following values from Blockchain.info about the Bitcoin Network.
http://blockchain.info/stats
H = 110,559 GH/s
(E will be estimated from Blockchain's 650 watts per gigahash)
E = 100,559 * 650 = 71,863,350 W/s
(n is determined from "nodes connected" at http://blockchain.info/connected-nodes)
n= 1175
Satoshi Coefficient estimate = 2,124
http://blockchain.info/stats
H = 110,559 GH/s
(E will be estimated from Blockchain's 650 watts per gigahash)
E = 100,559 * 650 = 71,863,350 W/s
(n is determined from "nodes connected" at http://blockchain.info/connected-nodes)
n= 1175
Satoshi Coefficient estimate = 2,124
You could raise any term to any power...why pick the ones you did?
... used to rate the quality of a distributed crypto-currency network.
That way the number of nodes parameter has more weight - to signify a more distributed network.
What I'm not getting is what is the energy consumed parameter for? I would switch it for a parameter that tells the mining income, to signify a more competitive network. Throwing in more electricity does not necessarily make the network more or less secure or distributed - an excess of energy output could be spent by either honest miners (better) or dishonest miners (worse). Less profit margin means more competition.
The Satoshi Coefficient can be defined as follows:
Where for any time period:
H is the hash rate
n is the number of hashing nodes in the network
E is the energy consumed to sustain the hash rate
The Satoshi Coefficient is a value that can be used to rate the quality of a distributed crypto-currency network.
Where for any time period:
H is the hash rate
n is the number of hashing nodes in the network
E is the energy consumed to sustain the hash rate
The Satoshi Coefficient is a value that can be used to rate the quality of a distributed crypto-currency network.
You could raise any term to any power...why pick the ones you did?
The Satoshi Coefficient can be defined as follows:
http://latex.codecogs.com/gif.latex?\LARGE S = \frac{ Hn^2}{E}
Where for any time period:
H is the hash rate
n is the number of hashing nodes in the network
E is the energy consumed to sustain the hash rate
The Satoshi Coefficient is a value that can be used to rate the quality of a distributed crypto-currency network.
http://latex.codecogs.com/gif.latex?\LARGE S = \frac{ Hn^2}{E}
Where for any time period:
H is the hash rate
n is the number of hashing nodes in the network
E is the energy consumed to sustain the hash rate
The Satoshi Coefficient is a value that can be used to rate the quality of a distributed crypto-currency network.
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