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Heart Beacon Cycle Jan 22, 2016

Heart Beacon Cycle Jan 22, 2016

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Published by Steven McGee
slide show for Heart Beacon Cycle -- slides are (admittedly) busy so downloading slides in native Powerpoint or PDF format is preferred

World Economic Heartbeat / Trade Federation on the Bitcoin Blockchain, system of systems signaling and telemetry framework supporting Distributed Autonomous Organizations, Bitcoin Programmable money - reinventing money metrics, meters, survey methods in context with IRS memo 1421 Bitcoin is property for tax purposes

The Heart Beacon Cycle: improve systemic solutions through signaling, telemetry, news-casting of sync delta updates across a systems of systems, network of networks supporting regional, global systemic sustainable solutions using equitable metrics and meters for trade arbitrage among federated, autonomous trade groups. Reinvent Money. Trade Federation on the Bitcoin Blockchain Blueprint for a New Economy
slide show for Heart Beacon Cycle -- slides are (admittedly) busy so downloading slides in native Powerpoint or PDF format is preferred

World Economic Heartbeat / Trade Federation on the Bitcoin Blockchain, system of systems signaling and telemetry framework supporting Distributed Autonomous Organizations, Bitcoin Programmable money - reinventing money metrics, meters, survey methods in context with IRS memo 1421 Bitcoin is property for tax purposes

The Heart Beacon Cycle: improve systemic solutions through signaling, telemetry, news-casting of sync delta updates across a systems of systems, network of networks supporting regional, global systemic sustainable solutions using equitable metrics and meters for trade arbitrage among federated, autonomous trade groups. Reinvent Money. Trade Federation on the Bitcoin Blockchain Blueprint for a New Economy

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Published by: Steven McGee on Aug 28, 2013
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Internet of Everything

Value Index
Time-Space
Meter
HEART BEACON CYCLE
SYSTEM OF SYSTEMS SYNCHRONIZATION
System of systems: collection of tas-oriente!" !e!icate!
systems poolin# reso$rces" capa%ilities to#et&er to
create a ne'" more comple( system 'it& more
f$nctionality" performance t&an simply t&e s$m of
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also encompass t&e concept of f$nctions)
TRANSACTION refers to t&e si#ne! !ata paca#e t&at
stores a messa#e to %e sent from an e(ternally o'ne!
acco$nt) Transactions contain t&e recipient of t&e
messa#e" a si#nat$re i!entifyin# t&e sen!er" t&e amo$nt
of et&er an! t&e !ata to sen!" as 'ell as t'o Eal$es calle!
START7AS an! 7AS1RICE) To preEent e(ponential %lo'$p
an! inMnite loops in co!e" eac& transaction is reS$ire! to
set a limit to &o' many comp$tational steps of co!e
e(ec$tion it can spa'n" incl$!in# %ot& t&e initial messa#e
an! any a!!itional messa#es spa'ne! !$rin# e(ec$tion)
START7AS is t&is limit" an! 7AS1RICE is t&e fee to pay to
t&e miner per comp$tational step) If transaction e(ec$tion
<r$ns o$t of #as<" all state c&an#es reEert - e(cept for t&e
payment of t&e fees" an! if transaction e(ec$tion &alts
'it& some #as remainin# t&en t&e remainin# portion of
t&e fees is ref$n!e! to t&e sen!er) T&ere is also a
separate transaction type" an! correspon!in# messa#e
type" for creatin# a contractj t&e a!!ress of a contract is
calc$late! %ase! on t&e &as& of t&e acco$nt nonce an!
transaction !ata)
An important conseS$ence of t&e messa#e mec&anism is t&e <Mrst class citiQen< property of
Et&ere$m - t&e i!ea t&at contracts &aEe eS$iEalent po'ers to e(ternal acco$nts" incl$!in#
t&e a%ility to sen! messa#e an! create ot&er contracts) T&is allo's contracts to
sim$ltaneo$sly serEe many !i,erent roles: for e(ample" one mi#&t &aEe a mem%er of a
!ecentraliQe! or#aniQation ^a contract[ %e an escro' acco$nt ^anot&er contract[ %et'een
an paranoi! in!iEi!$al employin# c$stom S$ant$m-proof /amport si#nat$res ^a t&ir!
contract[ an! a co-si#nin# entity '&ic& itself $ses an acco$nt 'it& MEe eys for sec$rity ^a
fo$rt& contract[) T&e stren#t& of t&e Et&ere$m platform is t&at t&e !ecentraliQe!
or#aniQation an! t&e escro' contract !o not nee! to care a%o$t '&at in! of acco$nt eac&
party to t&e contract is)
EIO0ERE> FIR+T CLA++ CITIME8+
+ITCOIN MANW
Toen Systems: On-%locc&ain toen systems e)#)" s$%-
c$rrencies representin# assets: 0S-" #ol!" company
stocs)) In!iEi!$al toens may represent smart property"
sec$re $nfor#ea%le co$pons" an! toen systems 'it& no
ties to conEentional Eal$e at all" $se! as point systems
for incentiEiQation
CO/ORE-
COINS
SMART
1RO1ERTY
COMMO-ITIES
C0RRENCY CON4ERT
COM1ANY STOC>
5-OMAINS6
+AN>IN7 SYSTEM: state transition f$nction !istri%$tin# c$rrency $nits f$nction allo' ot&er contracts
S$ery for t&e %alance of an a!!ress)" Et&ere$m-%ase! toen systems actin# as s$%-c$rrencies can
potentially incl$!e anot&er important feat$re t&at on-c&ain +itcoin-%ase! meta-c$rrencies lac: t&e
a%ility to pay transaction fees !irectly in t&at c$rrency) T&e 'ay t&is 'o$l! %e implemente! is t&at t&e
contract 'o$l! maintain an et&er %alance 'it& '&ic& it 'o$l! ref$n! et&er $se! to pay fees to t&e
sen!er" an! it 'o$l! reMll t&is %alance %y collectin# t&e internal c$rrency $nits t&at it taes in fees an!
resellin# t&em in a constant r$nnin# a$ction) 0sers 'o$l! t&$s nee! to <actiEate< t&eir acco$nts 'it&
et&er" %$t once t&e et&er is t&ere it 'o$l! %e re$sa%le %eca$se t&e contract 'o$l! ref$n! it eac& time)
Financial !eriEatiEes an! Sta%le-4al$e C$rrencies: smart Mnancial contracts reS$ire reference to an
e(ternal price ticerj e)#)" &e!#e a#ainst Eolatility of et&er ^or anot&er cryptoc$rrency[ 'it& respect to
t&e 0S !ollar" reS$ires contract to no' '&at t&e Eal$e of ETH20S- is) 0se a <!ata fee!< contract
maintaine! %y a speciMc party ^e#) NAS-A3[ so t&at party &as a%ility to $p!ate contract as nee!e!
proEi!in# an interface t&at allo's ot&er contracts to sen! a messa#e to t&at contract an! #et %ac a
response t&at proEi!es price) HE-7IN7 CONTRACT:
:ait for party A to inp$t ITTT et&er) :ait for party + to inp$t ITTT et&er) Recor! t&e 0S- Eal$e of
ITTT et&er" calc$late! %y S$eryin# t&e !ata fee! contract" in stora#e" say t&is is `() After AT !ays"
allo' A or + to <reactiEate< t&e contract in or!er to sen! `( 'ort& of et&er ^calc$late! %y S$eryin# t&e
!ata fee! contract a#ain to #et t&e ne' price[ to A an! t&e rest to +)
Namecoin-lie name
re#istration system on
Et&ere$m -NS system"
mappin# !omain names
lie <%itcoin)or#< ^or" in
Namecoin=s case"
<%itcoin)%it<[ to an I1
a!!ress
-ECENTRA/I
ZE-
FI/E
STORA7E
<!ecentraliQe!
-rop%o( type
contract<
+itTorrent-lie s'arm tec&nolo#y system
'&ere%y stora#e reso$rces are
compensate! 'it& 8Internetcoin9) A$to-
e(c&an#e !i#ital assets t&ro$#& a Ripple-
lie net'or to +itcoin or any preferre!
local c$rrency)
Static serEer reso$rces can easily %e
!istri%$te! amon#st peers '&o are
economically incentiEiQe! to participate7  
-NS C)T
-ecentraliQe! A$tonomo$s Or#aniQation< Eirt$al entity 'it& mem%ers or
s&are&ol!ers '&ic& for e(ample" 'it& a K\_ maZority" &aEe t&e ri#&t to spen!
t&e entity=s f$n!s an! mo!ify its co!e) Mem%ers collectiEely !eci!e on &o'
t&e or#aniQation allocates f$n!s) -AO=s f$n!s co$l! ran#e from %o$nties"
salaries or internal c$rrency to re'ar! 'or e)#)" Time +anin#) Replicates
t&e le#al co!e of a tra!itional company or nonproMt $sin# crypto#rap&ic
%locc&ain tec&nolo#y for enforcement) 8Capitalist< mo!el of a
<!ecentraliQe! a$tonomo$s corporation< ^-AC[ &as !iEi!en!-receiEin#
s&are&ol!ers an! tra!a%le s&ares
-ECENTRA/I
ZE-
A0TONOMO
0S
OR7ANIZATI
ON
-AO
-ECENTRA/I
ZE-
A0TONOMO
0S
COMM0NITY
-A
C
-ECENTRA/I
ZE-
A0TONOMO
0S
COR1ORATIO
N
-A
C
-ecentraliQe! !ata fee! in Mnancial contracts for
!i,erence Eia a protocol calle! <Sc&ellin#Coin<)
Sc&ellin#Coin 'ors as follo's: N parties all p$t
into t&e system t&e Eal$e of a #iEen !at$m ^e)#)
t&e ETH20S- price[" t&e Eal$es are sorte!" an!
eEeryone %et'een t&e CDt& an! \Dt& percentile
#ets one toen as a re'ar!) EEeryone &as t&e
incentiEe to proEi!e t&e ans'er t&at eEeryone
else 'ill proEi!e" an! t&e only Eal$e t&at a lar#e
n$m%er of players can realistically a#ree on is
t&e o%Eio$s !efa$lt: t&e tr$t&) T&is creates a
!ecentraliQe! protocol t&at can t&eoretically
proEi!e any n$m%er of Eal$es" incl$!in# t&e
ETH20S- price" t&e temperat$re in +erlin or
eEen t&e res$lt of a partic$lar &ar! comp$tation)
+"art "ulti;#ignature e#(ro!B Bit(oin "ulti;#ignature
tran#a(tion (ontra(t# exa"1le/ three out of five &ey# (an
#1end fund#$ Ethereu" allo!# for "ore granularity_ for
exa"1le' four out of five (an #1end everything' three out of
five (an #1end u1 to .-U 1er day' and t!o out of five (an
#1end u1 to -$4U 1er day$ Ethereu" "ulti;#ignature i#
a#yn(hronou# ; t!o 1artie# (an regi#ter their #ignature# on
the %lo(&(hain at different ti"e#$ The la#t #ignature !ill
auto"ati(ally #end the tran#a(tion$
Clo$! comp$tin#7 E4M tec&nolo#y can also %e $se! to create a EeriMa%le comp$tin# enEironment"
allo'in# $sers to as ot&ers to carry o$t comp$tations t&en optionally as for proofs t&at
comp$tations at certain ran!omly selecte! c&ecpoints 'ere !one correctly) T&is allo's for t&e
creation of a clo$! comp$tin# maret '&ere any $ser can participate 'it& t&eir !estop" laptop or
specialiQe! serEer" an! spot-c&ecin# to#et&er 'it& sec$rity !eposits can %e $se! to ens$re t&at t&e
system is tr$st'ort&y ^i)e) no!es cannot proMta%ly c&eat[)
E4M
C/O0-
COM10TIN7.
/I30I- -EMOCRACY 4OTIN7 SYSTEM 1RE-ICTION MAR>ETS 7AM+/IN7
On-c&ain !ecentraliQe! maretplaces.
i!entity an! rep$tation system as %ase)
Mo!iMe! 7HOST Implementation protocol) <7ree!y HeaEist O%serEe!
S$%tree simpliMe! Eersion of 7HOST '&ic& only #oes !o'n one leEel)
Stale %loc can only %e incl$!e! as an $ncle %y t&e !irect c&il! of one
of its !irect si%lin#s" an! not any %loc 'it& a more !istant relation) 
:HIS1ER: SEC0RE" 1RI4ATE MESSA7ES
THE TERRA TRC
Trade Reference Currency
HEART +EACON CYC/E
TERRA 2 ETHERE0M 2 NC:
ETHERE0M 2 3BC 2 TERRA
$---. $-4 $-. $. - 4 .4 5- 66
NIST TIME +EACON
5OR7.I-6
5OR7.I-6
5OR7.:I-6
57EO./OC6
5OR7.I-650RN6
500I-6500I-6
-ECENTRA/IZE- A0TONOMO0S
OR7ANIZATIONS
FE-ERATE- I- IN
C/O0-
A-HOC OR7-
REOR7
4S MER7ER"
AC30ISTION
COMMO-ITIES 2 -EMIER7E CHAR7ES 2 1AR>IN7 FEES
>e(entrali:ed data feed in finan(ial
(ontra(t# differen(e# 2 (hange# via
1roto(ol (alled =+(hellingCoin=
FI?" S:IFT H
HEART+EAT 2
HEART+EAT
MESSA7ES
1RE-ICTION MAR>ETS
REA/ TIME A0CTIONS
7AM+/IN7 SYSTEMS
/I30I- -EMOCRACY
4OTIN7 SYSTEMS
50RN650RN650RN650RN6
50RN60RN60RN650RN6
50RN650RN650RN650RN6
TIME 2 S1ACE
STOCHASTIC
HARMONIZATION
TERRA TRC IS A -OC0MENT" R0/E SET)
TRC NEE-S TRANS1ORT 1ROTOCO/
THE HEART +EACON CYC/E H
1ROCE-0RA/ TEM1/ATE NEE-S
TRANSACTION
STATE 2 4A/0E TRANS1ORT
SYNC
C/O0-
.
1RO1ERTY /AN-
MEME
+"art "ulti;
#ignature
e#(ro!$
STATE META -ATA
SNA1S
INCENTI4ES TIME
+AN>IN7))
ETHERE0M STATE TRANSITION
F0NCTION
E4ENT 2 A/ERT 1ROCESS +Y 1RECE-ENCE
C)T
WHISPER
SEC0RE" 1RI4ATE
MESSA7ES
+it Torrent
lie 1C1
Mle s&arin#
Color
Coins
PROJECT
STELLAR
50RN650RN650RN650RN650RN650RN6
C0RRENCY CON4ERSION
7ATE:AY
ECONOMIC MICRO-CYC/ES
ECONOMIC MACRO-CYC/ES
C/O0- FE-ERATION
NET A--"
MER7E
;OIN"
MO4E"
-RO1
STORM
:OR>ER
TAS>
HEART+EATS
START 2 STO1 2 TT/ 0NMET NEE-S
U8U+E> RE+OURCE+ DUR8E
```
A--
-RO1
MO4E
;OIN
5TO>E
NS6
FireNy 2 Heart%eat
Sync
H+C STATE TRANSITION AMON7
-IS1ARATE SYSTEM OF SYSTEMS
NET:OR> CHAN7ES"
TRANS/ATIONS OF /EA-ER9S
INTENT" -ECISIONS" OR-ERS TO
NET:OR> E30I4A/ENT
I-ENTITY
RE10TATION
SYSTEM:
0SE
5OR7.I-6
5OR7.I-65OR7.I-6
m$lti-si#nat$re
transaction
contracts
Systemic: system-'i!e"
a,ectin# #ro$ps or systems"
s$c& as economy" maret or
society as a '&ole
N-N 5INTEREST6
N-N 5CONTENT6
N-N 5-OMAIN6
TERRA TRC H COMMO-ITY +AS>ET of 50RNs6
IC or more commo!ities 5+itcoin657ol!65SilEer6
/an! 0se Meme
S$rEey Met&o!s
MICRO 2 /OCA/ C0RRENCIES
-OMAIN 4A/0ES
RE%U&'TI()
*R'ME+(R,
BIT-(I) )D) . --) )-+ . )E( TERR' TR-
-()TE)T COLOR COIN
<TYPES><URN>
<Precedence>
</INTEREST>
</CONTENT>
<Precedence>
MACRO Econ cycles
MICRO state data
Cyclical Reportin
Co!!odity
Type "y <URN>
<Or#I$> trac%in
&(%I- &ILTER "y
<TYPE><TIME>
<'eo(Loc> <)ectors>
<t*res*olds>
< + > <s,!>
Closer + c*eaper-
.aster
Closer + reater
interest
Sa!ples state !eta
data "y <URN>
<Or#I$>
Ti!e(sta!p "e.ore
data .,sion li)e .eed
$e!i,re <URN>
par%in- *andlin
.ees "y Ti!e-
distance- .re/,ency
Micro(!acro cycle
I)*( . D'T' Coin Types "y <URN>
Content type <tas>
tele!etry- )ectors
T*res*old data
Sonar0op
I$Maps s,r)ey-
trian,lation
!et*ods- eo(
spatial sa!ples
'eo(spatial te!poral
intensity )ectors-
!etrics- !eters-
OPTEMPO
Roles- R,les- .ilters
<URN>
co!!odity stat,s
"y reion- scarcity
<URN> type
t*res*old !onitor
U/ER . (R% <OR'#I$> Tele!etry <OR'#I$>
M0<99+ – M1<9+ C-<,34
<Or#I$>
C&o$cri an!
Clar ^CTIC[
simpliMe!
8fo$r-layere!
mo!el
essential
feat$res of
interest9:
internetGs
p&ysical
fo$n!ationsj
lin" I1 an!
transport
layers
encaps$late
lo#ical
f$nctions of
an
applicationj
information is
store! an!
transmitte!
t&ro$#&
pro#rams in
t&e
application
layerj $sers
mae
!ecisions an!
carry o$t
actions 'it&
information in
t&e content
layer)
CONTENT /AYER: National Science Fo$n!ation NSF Name!--ata Net'or a))a) Content Centric
Net'orin# CCN) Content 5ta#s6 ro$ta%le %y 5type6 prece!ence $sin# Net'or Centric :arfare=s
-EFCON 2 INFOCON D layer mo!el to facilitate MCM IeT Internet of EEeryt&in# 2 EEery'&ere mo!el
'&ere closer is of #reater interest an! closer is c&eaper an! faster com%ine! 'it& $r#ency of nee!
criteria 5Nas&6
/O7ICA/ /AYER: fo$n!ation for innoEation '&ere anyone can %$il! on top of t&e +itcoin protocol)
Nota%ly" t&e +itcoin protocol contains t&e %loc c&ain" a transaction !ata%ase s&are! %y all no!es in
t&e system) +ase! on t&e %loc c&ain" applications can %e %$ilt on top an! information No's can %e
reconstr$cte!" as e(plaine! in t&e ne(t section of t&e article)
IINFORMATION /AYER: +itcoin e(c&an#es o,er serEices to non-miners to e(c&an#e %et'een %itcoins
an! conEentional c$rrencies) :allet an! escro' serEices allo' in!iEi!$als to store %itcoins sec$rely
an! conEeniently) 1ayment processors proEi!e inte#ration serEices
0SER /AYER: +itcoin &as attracte! a 'i!e ran#e of $sers" from tra!ers an! spec$lators tain#
a!Eanta#e of +itcoinGs price Eolatility" in!iEi!$als sen!in# remittances" to cons$mers main# real
payments) On t&e ot&er &an!" criminals are attracte! %y +itcoinGs pse$!onymity to en#a#e in ille#al
actiEities s$c& as money la$n!erin#" terrorism Mnancin#" !r$# !ealin#" online #am%lin#)
+ITCOIN
., 0ay# to ea#ure Bit(oin 8et!or&<# 3ealth
I) T&e +itno!es 1roZect +itno!es estimates siQe of %itcoin net'ors
%y Mn!in# all reac&a%le no!es in t&e net'or) T&e c$rrent
met&o!olo#y inEolEes en!in# geta!!r messa#e rec$rsiEely to Mn!
all t&e reac&a%le no!es in t&e net'or startin# from a set of see!
no!es) It performs t&is pollin# eEery CU &o$rs an! !isplays t&e
res$lts on a 'orl! &eat map of co$ntries" incl$!in# ranin#s an!
Eersion of %itcoin reference client)
C) -ata 1ropa#ation Maintaine! %y +itcoinStats" propa#ation eEol$tion c&art
s&o's t&e DTt& percentile of in'"%essages receiEe! %y peers ^ie: t&e plot
s&o's t&e time since a transaction or %loc enters t&e net'or $ntil a maZority
of no!es &as receiEe! an! processe! it[)
A) -NS +ootstrap SerEers -NS see!s are $se! %y most %itcoin clients to
i!entify a set of no!es to connect to '&en startin#) T&e see!s are r$n %y
Eol$nteers $sin# a m$ltit$!e of mec&anisms to ens$re t&e ret$rne! see!s
represent a #oo! sample of no!es c$rrently online) E(cept for %itsee!)(fC)or#"
t&e see!s aim to ret$rn no!es t&at are c$rrently online an! reac&a%le) Also
proEi!e! %y +itcoinStats" t&e c&art s&o's res$lts from re#$lar %ootstrap
attempts $sin# t&e see!s 'it& t&e plot representin# t&e aEera#e &o$rly
connection s$ccess rate for eac& of t&e see!s) T&e closer to ITT_" t&e %etter
t&e see! is) An a$(iliary c&art 'it& response time of -NS see!s to S$eries is
also proEi!e!" '&ic& in!icates t&e response times in millisecon!s ^ms[ elapse!
%et'een sen!in# t&e S$ery an! receiEin# a response) U) Net'or Has&in# Rate 1ieter :$illeGs series of #rap&s !isplay &as&in#
!icc$lty @ estimate! n$m%er of tera&as&es per secon! ^comp$tation spee![
t&at t&e net'or is performin# for Eario$s time 'in!o's ^I tera&as& eS$als
I"TTT #i#a&as&es[) Calc$late! %y !iEi!in# %a(i%u% target %y current
target '&ere tar#et is a CDK-%it n$m%er" !icc$lty meas$res &o' !icc$lt it is to
Mn! a ne' %loc compare! to t&e easiest it can eEer %e) -icc$lty a!Z$sts eEery
C"TIK %locs ^or t'o 'ees[ an! to Mn! a %loc" t&e SHA-CDK &as& of a %locGs
&ea!er m$st %e 5 or eS$al to t&e c$rrent tar#et for t&e %loc to %e accepte! %y
t&e net'or)
D) Has& Rate -istri%$tion A ta%le of solEe! %loc statistics lists all statistics
t&at can %e !eriEe! from t&e n$m%er of %locs a &as& rate contri%$tor &as
solEe! for t&e past 'ee) +loc attri%$tions are eit&er from primary so$rces
or secon!ary so$rces s$c& as coin%ase si#nat$res" or no'n #eneration
a!!resses)
HEART +EACON CYC/E
METHO-: 0SE S0R4EY
TECHNI30ES E)7)"
S0R4EY METHO- ]
TRIAN70/ATION TO
-ESCRI+E A SAM1/E
1O10/ATION IN A
S1ECIFIC 7EO-S1ATIA/
TEM1ORA/ AREA s$c&
as a TE/CO MESH
FA+RIC
TE/CO
MESH
FA+RIC
AREA
TRIAN70/ATION
5Or#.I-6
-NS
Mappin#s
1rotocols
I!entity
1roEi!ers
KE7+TO8E
RO/ES:
5O1S6
57C6
FE>ERATIO8
5Or#.I-6
5Or#.I-6
5Or#.I-6
5Or#.I-6
., 0ay# to ea#ure Bit(oin 8et!or&<# 3ealth
K) SelMs& Minin# In!icator Since t&e %itcoin protocol relies on miners
follo'in# t&e r$les lai! o$t %y t&e soft'are" as soon as miners &aEe
fo$n! a %loc t&ey nee! to anno$nce it to t&e net'or) SelMs& minin#
!eMes t&is r$le" %eca$se certain miners" once t&ey &aEe fo$n! a %loc"
can 'it&&ol! it from t&e net'or an! start 'orin# on t&eir ne(t %loc)
Once t&ey &aEe a n$m%er in t&eir &i!!en c&ain" t&ey can release t&em to
inEali!ate t&e %locs t&at t&e net'or t&o$#&t 'ere part of t&e main
c&ain) T&e lo'er t&e pro%a%ility t&at at least ) ^act$al !istri%$tion[
%locs 'ill %e fo$n! in t&e time represente! %y t&e Mrst %$cet" t&e more
liely t&at miners are en#a#in# in S$ic s$ccession %e&aEior $n!er t&e
SelMs& Minin# strate#y) *One +a, to esti%ate the li)elihoo! of such a
strateg, #eing i%ple%ente! is to %easure the !istri#ution of the ti%e
#et+een #loc)s against the e(pecte! !istri#ution The rate of creation of
#itcoin #loc)s is !eter%ine! #, ho+ -uic)l, the .rst %iner sol'es for a
hash %eeting the !i/cult, re-uire%ents of the protocol E'er, atte%pt
to %eet this !i/cult, has a set pro#a#ilit, of #eing correct The
pro#a#ilit, is in!epen!ent #et+een hashes As a result the rate at +hich
#loc)s are generate! shoul! follo+ an e(ponential !istri#ution*
\) Orp&ane! +locs Orp&ane! %locs are Eali! %locs not part of t&e main
%itcoin %loc c&ain) T&ey can occ$r '&en t'o miners pro!$ce %locs at
similar times or t&ey can %e ca$se! %y an attacer 'it& eno$#& &as&in#
po'er attemptin# to reEerse transactions) Initially accepte! %y t&e
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