The confusion I expect is about the meaning of bit error as managed in tyhe trading pits. Take he exchange pit as an example. Ther rules say bid and ask accepted to 8 bits, contracts quantized to 7 bits. Coin A tradrs to Coin B and both parties walk away with the LSB=0. The pit boss collects, or loses, pennies in the quantizaton, but chatges a cycle price to keep the accumulated within bounds.
The distribution contracts, the conditional distribution between the coins having less resolution than their individual distribution. No money created or destroyed in the trading pit, that happens at the official S&L pit for each coin, under contract.
Where is security?
The trading pit is a spreadsheet function, it assumes it is operating in a secure environment.
If the network can guarantee security, then the only residual back up its the probability distribution of bit error at the S&L of origin, because that bit error does give and take an integer now and then. Otherwise the digits obey laws of conservation.
So, the whole security model is built around the human biometrically engaged with a trusted device. Then the network is built around a set of trusted devices at each end point, and all transfers are point to point, simple and the path is verifiable.
Block chain, and ethereum do not go away, they become essential to the background verification that ultimately must happen, but it gets geared way down, doesn't necessarily work at transaction speed, except when chasing an immediate fraud. Transaction speeds are geared way up.
No comments:
Post a Comment