Half a croissant, on a plate, with a sign in front of it saying '50c'
h a l f b a k e r y
carpe demi

idea: add, search, annotate, link, view, overview, recent, by name, random

meta: news, help, about, links, report a problem

account: browse anonymously, or get an account and write.

user:
pass:
register,


                   

Distributed Computing Anonymous Currency

  (+7)
(+7)
  [vote for,
against]

Company A allows people to rent out the spare processor power on their home PCs. A bit like seti@home, only done commercially. Users download a client that runs in the background and get paid a few dollars every week in return (I'll call this the open mode). The company sells the combined users' teraflops in bulk to anyone who wants it (eg. drug companies who need to compute protein structures). For security reasons, all data and algorithms are encrypted before they reach the user.

In order to be able to trade the processing power like a commodity, it gets broken down into chunks (I'll call them units). Every day a new set of units is issued according to projected processing power of the network for the next 30 days, minus a buffer of 20% to account for errors and users who cancel their subscription. The units are sold on the same day and expire 30 days after they have been issued. Each unit has two hash sums associated with it: one private and one public. Both are sent to the buyer over an encrypted line.

Let's say a customer (eg. the drug company) wants to perform a computation worth 100 units. They simply send 100 private/public hash sum pairs, which they have purchased previously, to company A. Once the calculation is completed, the hash sums are rendered unusable. The public hash sum only serves one purpose: To query company A if the associated private hash exists and has been consumed yet.

So far so good. Now comes the "anonymous currency" bit. As well as "open mode" users can also run the client in "stealth mode." In this scenario users are sent a hash pair for every unit of computation they perform, instead of cash. Users in stealth mode are not connected to company A directly, but via several hops over other users' computers and layers of encryption, so that it's very hard to trace them, even by company A itself (like i2p and tor).

Why all this trouble? Because these hash pairs can now be used like an anonymous currency. Another company, B, runs an online marketplace like ebay. Except it's not run on a traditonal website, but over company A's encrypted anonymous network (or on similar networks like Freenet and i2p). Company B also allows users to turn their hash pairs back into cash by acting as an agent between home users and buyers of processing power.

Let's say I meet a hacker on some anonymous chat who says he can give me information on how to reverse engineer a program, but he wants $20 for that information. The trouble is, how can I send him $20 without knowing his identity? Simple: I run my client for a few weeks until I have collected $20 worth of hashes, and send him the hashes. He can simply trade his hashes for cash without fear of being revealed - remeber - company A does not know WHO they've sent those hashes to, only the date. What if I want to send larger sums? I could even image that neighbourhood server farms emerge where people can buy hashes for cash.

kinemojo, Aug 24 2007

Halfbakery: CycleCash (2003) CycleCash
Also mentiones translating Seti-style distributed processing into currency. [jutta, Oct 13 2009]

"New Liberty Standard" bitcoin currency http://newlibertystandard.wetpaint.com/
Attempt at interchangable hash-pair currency. [jutta, Oct 13 2009]

bitcoin.org http://www.bitcoin.org/
Satoshi Nakamoto's P2P currency [jutta, Oct 13 2009, last modified Oct 20 2009]

[link]






       Anonymous hash dealers are widely known to be baked.
GutPunchLullabies, Aug 24 2007
  

       I nlike the idea of a processor commodities market. Sounds useful and bake-able
miasere, Aug 24 2007
  

       anonymous hashish dealers, surely?   

       Is Paypal anonymous?
RayfordSteele, Aug 25 2007
  

       There's a reason it's so hard to trade anonymously, it's to prevent money laundering.
marklar, Aug 26 2007
  

       Yup - I think the commercial distributed computing thing has a lot of potential. The anonymous bit? Meh.
wagster, Oct 13 2009
  

       Processing costs only go down, but the problems organizations process only get more complex. I wonder how this market would behave.
plasticspoon, Oct 13 2009
  
      
[annotate]
  


 

back: main index

business  computer  culture  fashion  food  halfbakery  home  other  product  public  science  sport  vehicle