Let's walk a bitcoin through a spending cycle

The blockchain recognizes that I have ownership by pointing to my wallet. I secure that with my private key. That blockchain entry is under my control.

Now I create a protocol, identifying my wallet address securely, and an amount of a micro Btc. I send that protocol to the toster company, but first, what happens? Under pipeline control, my personal pipeline will leave a debit entry in the path to completion, the notary can prove, if necessary, that my pipeline cannot proceed with further spending exceeding the blockchain registry. 

The toaster vendor can request it in its own protocol, the two pipelines are made coherent externally by the notaries.   The toaster endor need not clear accounts, it can pass on your obligation to the extent the toaster company trusts pipeline security.

The use of pipeline control is voluntary on the party at risk. For consumers is generally sufficient to double check processor security once a month. The risk of losing coins to counterfeit is low when the cash limits are low. So we can say, with a probability very small, and selected by the owner, all cash is counterfeit proof.

The obligation can be carried around as bearer cash for some time, living in a dynamic pipeline.  The tracking granularity selected according to transaction values. The notary tracking system is always complete in that is resolves  to standard bitcoin blockchain at some finite point. In that case, all the intermediate notary consistency chains can be deleted.  We get a very flexible system, made more perfect as processor companies learn validation.

The big short cut to side chains

The originator of pipeline bearer cash need ultimately to clear account with the bitcoin blockchain.   The user can keep his cash limit on a separate wallet address with a separate signature.  The let pipeline control execute account clearing on the blockchain when counterparties request it.  But the account clearing requires your wallet verification, so the accounts clear back to originator.  There is a shorter way to do this within the notary system. 

If you run a few micro Btc on your cash account, just let pipeline control have full power of attorney over the blockchain registry, take the risk.  Pipeline control is very good idea.  Th alternative iust to hit the notary kiosk once a week and your handheld pipeline will clear all accounts.

In any case, notary chains on the pipeline are meant to be deleted, accounts cleared back to the permanent ledger.


A pure bearer cash monetary system has no master ledger.  The pipeline deemed  secure and honest accounting prevails.  This  raw system will be widespread, the coin issuer maintaining the secret key.  It is simple, easy to use in confined systems like dark pool.