Greenpaper For The Ouroboros Cryptocurrerncy
I were reading a lot about cryptocurrencies, and as it always happens some new and revolutionary idea that I cannot implement occurs to me. Let me share this here.
The idea is to build a cryptocurrency based on a blockchain that eat itself, let me explain. The idea is to use CryptoNote in which each payment is received in a brand new address so we are not really interested in old transactions that involves addresses that have no more money and will never have.
This way, each address can only appear in the blockchain twice, the first in the block they receive coins and the second when the address make a payment sending coins. In this blockchain, all transactions should empty the originating address, but it is an standard practice anyway.
This way addresses will have a limited lifetime of let say 1 year, after that old blocks are eaten and digested by the blockchain once the limit is reached.
Eat and digestion process explained.
Once 364*24*20 (174720) have been created, the next block start the eating process, the block then generate new coins based on the first block, it also stores the hash of the eaten block. It also contains new transactions but will not accept transactions from addresses on the blockchain being eaten.
The next block will eat and digest the second block, and this process will continue, the last 20*24 (480) blocks should be stored for reference, but after that old blocks can and should be trashed. Those 480 blocks (one day), should allow to verify the chain correctness.
What is the purpose
The idea is that it makes sure that old accounts are removed, forgotten private keys are removed, but coins can be recovered, making it possible to know more about the current usage of the coin. It also promotes coin usage instead of accumulation.