Wednesday, March 29, 2017

What the bitcoin industry knows but refuses to formalize

The miner protocol and the bitcoin uses co-adapt. So, it is no accident that the first niche for bitcoin was FX transfer, independent of central banking, it was designed for that.

How do they co-adapt?
The core bitcoin miner protocol gets congested, and that pushes out one set of users and incentivizes another.  The ledger price will settle at the point where the miners and the users are optimally queued, they get the ledger service at the rate and sizes that meet their typical usage; and you get locked, quantized into a niche. You support a stable set of baskets, and the quantization costs to change basket sizes increase. In order to change basket sizes, the users have o see more extremes, they have to measure the edges of congestion.

As long as there is a smart layer moving mass over distance and time

You will have ledger services. It is the smart contract layer because these smart contracts know that mass, time and distance can change, unexpectedly, over the life of the contract.    So, ledger service establish legal completion points in these contracts.

The ledger services are the one color trades, basically take the nearest price on the list and perform the service.  The ledger queue is set by a time/mass/distance machine, it has no measurable market distribution to trade against.

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