Peerless: A Radically Decentralized Digital Monetary Framework
Bill Dembski | 2016.11.01 | revised 2016.11.19
firstname.lastname@example.org | www.peerless.money
Abstract: Decentralized digital currency that for its creation, value, and transmission depends intrinsically on more than one individual is not truly decentralized. Instead, a group consisting of multiple individuals ends up constituting a problematic monetary authority, however well-intentioned and however small in relation to the state. A radically decentralized digital currency would depend solely on the lone individual for its creation and transmission. Moreover, it would depend for its value on the individual (intrinsic value) or on an assignation of value by a trusted third party (extrinsic value) or on some combination of the two. Peerless is a monetary framework that enables the single individual to create and transmit money. The framework uses well understood cryptographic tools and can accommodate numerous types of value. Peerless is therefore not a currency per se, but a family of currencies based on different values capable of being encapsulated by them. The currencies within the Peerless framework all operate in the same way and can be organized into tranches capable of being combined, teased apart, and exchanged. Peerless is not merely a system of credit and clearing based on an arbitrary unit of account. It provides an actual store of value. Though purely digital and though issuing from a single individual, Peerless encapsulated currency operates according to precisely defined protocols by which it is able to exhibit the standard features we associate with money: scarcity, durability, divisibility, verifiability, portability, fungibility, and immunity to double-spending. But Peerless also exhibits additional desiderata: frictionlessness, globality (indeed omnipresence), complete privacy/anonymity, robust and expandable security, complex ownership relations (conjunctive as well as disjunctive), and automaticity (smart contracts). For Peerless to be able to achieve these results requires hashing, public key cryptography, digital signing, a publicly accessible digital space with permanent storage, and reliable timestamping. Peerless is in fact more than money: it is a cryptographic technology for claiming and transferring ownership of information, money being a key type of information that requires ownership.