I will need to construct several new POW algorithm since the current POW algorithms and all hash functions are unsuitable as RCO-POW problems. I already have an outline of how these RCO-POW algorithms will work.
A couple of the RCO-POW algorithms that I have in mind use chaotic non-linear 2D reversible cellular automata. Chaotic reversible cellular automata have already been studied by the cryptography community and they have been proposed to use as symmetric encryption-decryption schemes. Therefore, these RCO-POW problems are not completely new. In this paper,
https://thesai.org/Downloads/Volume5No5/Paper_31-A_fast_cryptosystem_using_reversible_cellular_automata.pdf,
the rule itself is used as the key for the encryption-decryption system (and thus nearly any rule is chaotic enough to be suitable for cryptographic purposes), and the efficiency of this cryptosystem is on par with the AES. Reversible cellular automata have the reversible computing advantage that the bits are not far from each other, and thus these RCO-POW problems will be suitable for mechanical nano-computers (mechanical nano-computers may be a good idea after all
http://www.imm.org/Reports/rep046.pdf), and reversible quantum dot cellular automata. You can simulate the 2D reversible cellular automata that I am considering on this site
https://dmishin.github.io/js-revca/index.html.
The other randomizing permutations f that I have in mind pretty much consist of circuits of randomly placed Toffoli, Fredkin, NOT, and CNOT gates.
It usually takes several years to evaluate the security of a cryptosystem and these cryptosystems sometimes get broken even after they have been approved (for example the hash functions MD2,MD4,MD5,SHA-1 are broken. Unfortunately, I would like to get this POW problem launched as soon as possible, so these RCO-POW problems will not be as rigorously tested before launch as AES or other cryptosystems. However, I have a couple solutions that will ensure security even though these problems have not gone through rigorous tests.
My first solution is to obtain security is what I would like to call "security-through-overkill." With security through overkill, I will simply be conservative about the security of the cryptosystem in the sense that I will include more rounds that are typically used for symmetric cryptosystems.
My second solution is to use the cryptocurrency itself to test the security of the POW problem and to calibrate its level of security automatically. My idea is to have two versions of the POW problem in the cryptocurrency. The first version of the POW problem will be the POW problem with its full security (in my case, I would need to use 3n rounds for full security) and the second version of the POW problem will be a version of the POW problem with weakened security (in this case, I will just use n rounds). The solution to 9/10 blocks will be the solution to the POW problem with full security while the solution to 1/10 blocks will be the solution to the POW problem with weakened security. The number of rounds in the weakened POW problem will increase if they are broken too quickly.
Keep in mind that the level of security required for a cryptocurrency POW problem is much less than the level of security required for hash functions and symmetric cryptosystems since one is usually given a couple minutes to break an instance of a cryptocurrency POW problem while an entity has an unlimited amount of time to break hash functions or versions of symmetric encryption. Also, the symmetric cryptosystems need to satisfy more stringent requirements since symmetric cryptography requires one to use a secret key while my RCO-POW systems require no such key. The main reason why symmetric cryptosystems need years of testing is that symmetric cryptosystems must be as secure and efficient and secure as possible and security and efficiency are opposing requirements. RCO-POW systems need to be efficient, but the efficiency of RCO-POW problems is not as crucial as it is for symmetric encryption-decryption systems or for cryptographic hash functions.
An RCO-POW problem will not be ASIC resistant. I want to construct problems which are as easy to solve as possible using future reversible computing devices, but ASIC resistant problems are meant to be difficult to solve using specialized devices. Since reversible computing devices can be thought of as ASICs, RCO-POW problems are by definition not ASIC-resistant. The closest thing that I can think of to an ASIC resistant RCO-POW problem is a problem that randomly reconfigures itself over time.
My proposed solution to the centralization problem is to use several different kinds of proof-of-work problems in order to maximize security. I am looking into using several kinds of RCO-POW problems where the reversible devices to solving each of these problems will need to have radically different designs. Another thing that one can do is to use RCO-POW problems together with ASIC resistant problems in order to maximize decentralization so that the neither the ASIC/RCO entities nor the GPU/CPU entities will control a majority of the mining power.