Researchers at the Lawrence Livermore National Laboratory (LLNL) have devised a physics-based cryptocurrency that links electrical energy and blockchain technology in new ways.
This new blockchain concept, called “E-Stablecoin,” enables electricity to be transmitted between users around the world without the need for interconnect wires or grid-based transmission systems. This work is the design of the first fully decentralized cryptocurrency token to solve important digital asset stability issues, secured by physical assets and protected by the laws of statistical mechanics.
The study will be published in the journal Cryptographic economic system..
Digital assets and cryptocurrencies (such as Bitcoin) have experienced explosive growth since their inception in 2009, encouraging President Biden to sign a presidential order to ensure the responsible development of digital assets. .. Enforcement orders include areas such as data privacy and security, financial stability and systemic risk, crime, national security, the ability to exercise human rights, financial inclusion and fairness, energy demand and climate change. It states that it has a serious impact on. Therefore, the presidential directive calls for coordinated efforts between ministries on the responsible development of digital assets, including technological advances and payment innovations.
The new LLNL cryptocurrency concept is a step towards implementing responsible digital assets that are tied to the physical world in a more concrete way, not just the digital world. E-Stablecoin takes advantage of the latest advances in thermodynamics to transmit energy as a form of information.
The seed of this idea dates back to the “Maxwell’s demon” thought experiment proposed by James Clerk Maxwell in 1867. In this thought experiment, a “decent finger demon” can break the second law of thermodynamics on a nanoscale. This claim has been controversial for a century and ultimately unraveled the deep link between energy and information.
In a new paper, Lawrence Livermore researchers Maxwell Muriald and John Belov show how this relationship between energy and information can be directly backed by 1 kilowatt-hour of electricity to create a convertible cryptocurrency token. Explains in detail what makes it possible. You need to enter 1kWh of power to create an E-Stablecoin token, but you can later discard the digital token to draw 1kWh of available power. Therefore, the price of one E-Stablecoin token is fixed to the price of electricity per kilowatt hour in a robust, stable and unreliable way (systems that work network and payments independent of institutions and third parties).
As Murialdo explained, “Anonymous parties can enter about 1 kilowatt hour of power to create an E-Stablecoin token. Then they can process and use digital tokens like any other cryptocurrency. It can be returned to power without the need for a power company, transmission line, permit or authority. It is an unreliable system from top to bottom. “
An important issue that plagues many cryptocurrencies (such as Bitcoin) is the tendency for cryptocurrency exchange prices to fluctuate sharply. These extreme price fluctuations increase risk and discourage consumer transactions, long-term smart contracts, and other applications built on the blockchain.
One solution is to create “stablecoin”, a cryptocurrency token specially designed to retain a stable value against external assets. By allowing tokens to be exchanged directly for assets, Stablecoins can lock the value of tokens to the value of external assets such as US $ 1 or 1 gram of gold. However, in the past, fixing the value of a cryptocurrency token to the value of a physical asset required trust in a central institution (which can maintain and execute the physical asset). Demanding trust in a centralized institution presents a potential obstacle that is the exact opposite of the decentralized spirit of cryptocurrencies.
E-Stablecoin is the first stablecoin concept that eliminates this obstacle. This is a feat made possible by using the interaction of thermodynamics and information theory. In the future, E-Stablecoin will be able to distribute power to remote areas that are not connected by grid systems and to send intermittent renewable energy to where it is most needed for efficiency. May help fight climate change in.
“Through thermodynamic reversibility, to the extent possible by a modern understanding of statistical mechanics, not only is it rooted in real assets such as energy usage, but it is also a more responsible manager of natural resources in the future. We assume blockchain. We support the economy. ”
Senator proposes drastic oversight in the crypto turmoil
Maxwell Murialdo et al, can Stablecoin be secured by fully decentralized physical assets? , Cryptographic economic system (2022). DOI: 10.21428 / 58320208.adf5637a
Courtesy of Lawrence Livermore National Laboratory
Quote: The physics-based cryptocurrency is the blockchain acquired from https://techxplore.com/news/2022-06-physics-based-cryptocurrency-transmits-energy-blockchain on June 13, 2022 (6 2022). Send energy (not just information) via (13th of March) .html
This document is subject to copyright. No part may be reproduced without written permission, except for fair transactions for personal investigation or research purposes. Content is provided for informational purposes only.