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Types of stakes

  • question - what is "optimal nature of the stake" for digital/crypto money?

In Etherium, the stake are the Etherium coins, so essentially the stake is crypto capital.
The modern economics works on the basis of monetary (state issued) capital as well as commodities.

The stake needs to be easily exchangeable but well protected, valuable and universal.

  • important to distinguish different functions - store of value and medium of exchange

possible types of stakes


Energy is universal, but the energy storage makes such a stake non-universal.
The conversion of energy from one type to another is not frictionless.

from PL - I’ve not followed the space-time thing and not sure I understand it. But it seems important. We are all focused on money as a medium of exchange, but for many people money as a store of value is how they think of it (despite what the economists will tell them). Most people I think would be happy to accept a pension provision in kWh rather than an annuity in an uncertain currency in 20 years or so. Perhaps one can shake up the life insurance/pension business.

... not quite the idea above, still related?...Blockchain technology in the energy sector: A systematic review of challenges and opportunities

Bitcoin as an electrodollar
The Interview - The Electrodollar: Venture Capitalism, Technology, and Silicon Valley with Bill Tai


Bitcoin is based on proof of work based on hard computation, but notice that there is no minimum amount of energy required (Landauer-Bennett)


In the digital age, information and entropy comes almost in any topic (markets, artificial intelligence, physics, economics, etc.). File storage is one of the basic well-known cryptocurrencies
Yet some mechanisms are required to evaluate how valuable the information is.

Should the stake be measured by some UNIQUE information content? Just the amount of the stored information or the capacity to store do not seem to be a good idea. Human-based subjective or information theory-based (therefore objective) information capacity should be valued?
How to appreciate "unique information without opening the box"?

proof of space-time

BitTorrent inventor holds the key to greener, less centralised cryptocurrency mining

Bram Cohen explains how proofs of space and time can solve the sort of ASIC centralisation you find in Bitcoin.