Friday, December 8, 2017

Smart contracts and blockchain

The two seem seem integral.  Smart contracts need asynchronous access to a consistent ledger system.

Protocols (contracts) are a finite grammar with a timeout. From there we get at least some concatenation operators, and encapsulation.

But, you don't need the coin to make a smart contract. Smart contracts can observe the pits, and wait for events there.

Bitcoin is the exception that proves the rule. Bitcoin is mostly a ledger base FX tool, a smart contract for evading the PBOC. Bitcoin needs to be a coin because of its purpose, blockchain is just the consistent ledger the tool uses. But bitcoin is a ledger based system that offsets the imbalance when a central bank moves off axis. So a bitcoin contract needs a cash tracker, like an apple contract needs an apple tracker.

Bitcoin will never be cash, but always be a cash tracker, it won't price directly, the exception being international travel.  Bitcoin cannot be a general pricing tool else it lose its ability to track central banks. It is a kind of meta coin.

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