My idea for a cryptocurrency, again!

First of all, this post is just to make a few things clear and answer some feedback. If you haven’t read the first one yet i strongly suggest you do.

So u/Tradedash from r/CryptoCurrency/ says “ On a conceptual level, it’s basically a bunch of encrypted boxes layered inside of each other. Each time I receive a box I encrypt it with my key and send it away. So, lets say the original message hops between 10 people before it reaches its intended target, that means that the original message will have been encrypted 10 times by 10 different public keys”.
I might not explained it as needed in the first post but the transaction chain does not encrypt the transaction, they sign it. basically they encrypt the hash of the transaction using their private keys and add it to the transaction along side their public key, so anyone can verify the signed it and only it while keeping it computationally simple.

u/thieflar from r/Bitcoin says “ Cool, I always wanted to un-solve the double-spend problem”, even though I can appreciate a little bit of sarcasm my system solves the double-spend problem better than any blockchain can.
It’s the circles job to block people from spending more than they can, because if they let them they will lose money themselves (because the way the transactions move backwards through the chain), and if they only let legit transaction go they will get their fees. You basically pay fees for people to verify your transactions and keep everything legitimate.

I had some interesting conversation on r/BlockChain with u/tea-drinker and made me think about something that i want to make clear:

1. The circles do have a center, so anyone has their circle which transfers transactions from them forward and wire them backward to them for confirmation. So if Alice wants to move coins to Bob, the last person in the transaction chain is not necessarily in Bob’s circle, rather Bob is a part of their circle.
2. You can’t have two circles, meaning you can’t send a transaction only to a half of your circle (dividing it to two circles), because your circles are public knowledge and you need more than half of your circle to sing the transaction to make it legitimate.
3. Tea-drinker asked me “ How do you oblige me to publish my circles and how do you ensure the person I am trying to con has full and accurate knowledge of it?”.
   This is really not an issue because your circle info is a part of all of your transactions. So you can’t con people into thinking you have a bigger balance than you do because they can verify it with your circle. and you can’t double-spend (as explained above).
4. Another importamt point in the conversation we had is privecy.
   Tea-drinker brings up the following question “ So in order to send you money I have to give you my entire bank account history and a a list of all my friends?”. And the answer is that it’s complicated, firstly your circle is not a list of your friends, it’s a list of random addresses that really don’t mean anything. and your banking record is public in all blockchains, you can just move your balance to a different address or keep multiple ones for increased privacy (like many bitcoin wallets do).

So after addressing these issues let’s discuss another major one:
Mining!

Traditional Cryptocurrency

This is an unsolved problem at the time, how do we create new coins?
I would love to hear your suggestions but here are some ones i heard from people and my problems with some of them:

1. No mining:
   This is the simplest solution, just don’t create new coins. start with a fix amount and keep it.
   So why not? It’s simple, it creates a network where all the coins start at one place, making it unfair, not fully decentralized and is basically what governments and banks are doing with traditional currency.
2. Forking:
   Again, simple, just take an egisting network and use it’s history (blockchain) as the one for the new currency.
   Why not? It creates a currency that is partly based on blockchain and makes implementation a nightmare.
3. The 3rd solution is a better one in my opinion, start with mining the coin traditionally and use the computational power as a way to connect new people to new circles. then when the growth of the networks slows down and mining is no longer profitable the network could stay alive and handle transactions with a minimum amount of power consumption.

One more thing i’d like to discuss is how to create the network, i think we can use TOR hidden services as wallets and with a special protocol we could use the TOR private keys as the private keys for the wallets
This allows better privacy, handles traffic easily and makes it so websites could receive payments using their .onion address.

Lastly, I would love to hear your feedback on all of this and any ideas for a name for this project would be more than welcome!