Blockchain, Gold and Community Driven Central Bank

[hellwolf]

Here is a disruptive idea of how to end the central banking as we know it.


Pretty all forms of paper money were started from being backed by gold or silver. No paper money that went off the commodity standard ended up well in the long run. Paper money were just a form of gold or silver certificates.

In the digital age, even the usage of paper can be eliminated by issuing digital gold certificates. While blockchain provides a sound technological foundation for issuing digital gold certificates, it needs to guarantee them redeemable and its balanced supply.

One way to look at this problem is that, blockchain technology solves the issues of balanced supply, trustful transactions and authenticity of digital assets by using a rigid algorithm, having a public ledger and validating computing works using distributed computers; when dealing with physical assets like gold, we could instead use an “analog” version of blockchain, which is to have a open community with transparent process, records and distributed power structure.

Please read full initial proposal at:

http://rothbardiangoldprice.com/2015/10/blockchain-gold-and-community-driven-central-bank/

And your thoughts and feedback is most welcome!

 

[kpitcher]

I don't see anything really new in your proposal, unless I'm missing something from a quick read through.

Ripple has been pushing being able to handle anything via their ripple, be it gold, silver, bonds, or any asset.

Also Egold, which while not secured with the blockchain was still the closest to digital gold that we've seen, was closed by the US Government even through it was in another country. Not sure how you'd get around not repeating that.

As for contracts, which you have a community court idea, Etherium has worked very hard to have digital contracts based via eth. You could sell gold or any commodity via etherium.

Of course any market can have multiple players. If you can make it better than existing systems then it may catch on and not be just another alt coin.

 

[hellwolf]

What I think is unique in my proposal is that, there is no central ownership of this "central bank" setup. It's owned by community, and decisions(of issuing gold certificates to gold dealers, resolve dispute of misbehaving gold dealers) are made by community according to the rule agreed by the community. In that case, gold dealers themselves need to comply to the regulation, they cannot sell/buy gold certificates without complying with KYC/AML rules.