Money Lost its Identity, and then Came BitMint
Crypto Money regained identity but at a price of complexity. BitMint is Identity + Simplicity.
The truth is that we have digital money, and have been having it for decades. In fact 90% of all the money in the world is strictly computerized, digital. Only 10% is expressed in banknotes and coins. Alas, something got lost when we migrated money from jingling coins, and rustling banknotes, to blinking screens, and flash drive memories.
Money lost its identity, and became a number.
Legacy money, as it is handled today in banks, large and small, has no identity, no serial number, like banknotes. It’s comprised of no chunck of metal like old fashioned coins. Just a number. And to validate and protect that number — the money — we need to store it, surround it with a protective fence, observe it, and compare it — a huge overhead that makes payment a motion with friction. And as money criss-crosses the world, its protection, its protocols, are getting ever more complex. Now complexity is the fertile ground for fraudsters. And so we have to add more overhead to protect the machination of payment. And the root cause for all this vulnerability is the subtle loss of identity. Banknotes, coins, shells, cigarettes — all forms of money in history — combined identity with value. A dollar bill is marked with its unique serial number that distinguishes it from the next dollar bill. But a number 1.00 sitting in a computer address has only value. When we migrated our money into our computers we stripped it from its identity, and retained just the value. And now we have to expend enormous effort to guard this number from unauthorized changes. Because legacy money today has no identity, it cannot be paid with the utter simplicity of passing it naked from one stranger to the other. To pass a number the payee must identify the payer, and the payer.must identify the payee, to some degree, and the two must agree on mutual adjustment in the numbers that represent their money, each in its own computer address. The bottom line: we pay for the loss of identity with the burden of complexity.
And that is where crypto currencies made the dramatic difference. Bitcoins are individually mined, and are identified and distinguished from other bitcoins, like a coin in your pocket, or a banknote in your wallet. And that’s the secret of their power and promise.
Identity secured all right, but at a price too high. Nominal crypto currencies are put together through daunting complexity. The regulatory banking protocols have been replaced with wrapped up mathematical intractability that intimidates even those who design it, and yet, they are vulnerable to hidden mathematical insight that may remain hidden for not much longer. These convoluted algorithms also wait to be compromised by the rising power of quantum computing. Not a good deal. Identity was regained, but this would be like minting money as mothballs; here today, gone tomorrow. And all that regardless of the inherent instability of the crypto coin before it sublimates.
It’s not a satisfactory situation: legacy money is without identity, crypto money is without simplicity. Here comes BitMint: a formula for identity and simplicity. BitMint digital money is a string of bits that expresses monetary value and carries individual identity. The string stores like bits, encrypts like bits, is paid like bits, accounts like bits. Having value and identity in a fused form, renders it tetherable. BitMint money can be tethered to its owner or to its purpose, using cryptographic locks. Tethering money revolutionizes its security, and alleviates the risk of its theft, abuse and misuse.
BitMint is designed for a smooth and efficient flow within payment networks. And it is especially efficient within dynamic-clustering networks that mimic the human brain. The simpler the building blocks, the more powerful and more robust the constructions that can be achieved with them. We at BitMint focused on the utter simplicity of payment, emulating the old fashioned cash transfer between two strangers. We have put together “financial Lego Blocks” to build a well-serving financial edifice.