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Similarly, if it were possible (and legal) to provably destroy a US Dollar bill with a specific serial number, you could use that to move value into a stablecoi
by greyface- 2y ago
Similarly, if it were possible (and legal) to provably destroy a US Dollar bill with a specific serial number, you could use that to move value into a stablecoin. Light dollar bill on fire, record and publish a video of it burning (with serial number visible), receive a newly minted digital dollar. Unfortunately, deepfakes + 18 USC 333 make this ineffective + illegal.
- rich_sasha 2y agoPlus, for a stable coin to work, you need to be able to redeem it at face value. If you burned the dollar bill... Hard to do!
- nivertech 2y agoA project like this existed long before deepfakes were possible. And they didn't care about legality (not that other crypto projects do). BTW, instead of burning a dollar bill, have you tried spending it on buying $1 worth of electricity and wasting it on useless computation? Then you can use the invoice/receipt from your utility company as a proof of burn (PoB) ;)
- greyface- 2y agoInteresting - I wasn't aware of prior art here. Do you remember the project's name? One issue with the power company receipt PoB proposal is that the dollar value isn't actually destroyed; the power company still becomes $1 richer, and could repeatedly recycle that dollar to burn more energy and mint more currency. In order to prevent runaway inflation, you'd want to decouple the amount of energy burnt from the amount of issued currency. What if you used the PoB receipts as lottery tickets, and every 10 minutes a winner is picked and receives a fixed amount (say, 50 units) of currency? :)
- acjohnson55 2y agoWhy destroy it, instead of custodying it with a bank, backed by their deposits at the Fed?
- greyface- 2y agoElimination of unnecessary trusted third parties. Custodying it with a bank means trusting that bank to not misappropriate it. Destroying it means trusting physics and the irreversibility of entropy.