Hypothetical Problems concerning the Theory of Relativity on Cryptographic Currency Implementations (1604.04265v1)

Abstract: Bitcoin has demonstrated there are many security improvements applicable to normal currency. As the human race expands and we colonize other planets, we have to consider how we are going to extend integral parts of of society, and that includes our currency system. Information transferring does not scale well with very large distances, entirely due to physical limitations. For example, there is a maximum speed that any information can travel, and it cannot be faster than the speed of light. In this paper we take these physical limitations into account to give treatment to the following question. Can a single crypto-currency be used across the entire universe? Trivially many currencies can be used with exchange rates but we will try to avoid this as our solution. The idea of this paper was inspired by a paper titled "The Theory of Interstellar Trade" by Paul Krugman, a Nobel Economist.

• The paper explores how Einstein's Theory of Relativity, specifically the speed-of-light limit, creates fundamental challenges for implementing single, unified cryptocurrency systems across vast interstellar distances.
• Significant transaction propagation delays over cosmic distances make standard blocktimes infeasible and introduce vulnerabilities like the 51% attack in potential distributed interstellar cryptocurrency networks.
• The findings suggest that a universal decentralized cryptocurrency is likely impractical across vast distances, necessitating localized regional systems or the development of new relativity-tolerant protocols for future interstellar commerce.

Hypothetical Problems concerning the Theory of Relativity on Cryptographic Currency Implementations

The paper explores the theoretical challenges of implementing a single, unified cryptocurrency system that could function across vast interstellar scales, where the constraints of the Theory of Relativity importantly impact such endeavors. It directly addresses the implications of constant information transfer speed limitations, primarily those governed by the speed of light, and their interactions with cryptographic currency systems, specifically Bitcoin.

Bitcoin Overview

The paper begins with a detailed examination of Bitcoin, outlining its decentralized structure, finite supply cap, and its reliance on cryptographic proof-of-work mechanisms. It underscores Bitcoin's lack of a central authority, contrasting it with traditional currencies like the US Dollar. The mechanics of mining, transactions, and block creation are discussed, emphasizing the technical intricacies of mining, including SHA256-based proof-of-work and how these processes underpin trust within the network.

The Theory of Relativity: Constraints on Information Propagation

The intricacies of Einstein's Theory of Relativity are addressed, especially the postulate that no information can travel faster than the speed of light. The paper employs the Lorentz transformations to elucidate how space-time limitations affect information transfer, providing rigorous academic backing through historical context and theoretical groundwork. This forms the basis for understanding why extensive transactional networks across interstellar distances face significant challenges due to the time dilations and contractions predicted by relativity.

Blocktime Determination in Interstellar Cryptocurrency Networks

A core challenge explored is the determination of an optimal blocktime in an interstellar context. The standard 10-minute blocktime in current Bitcoin implementations mitigates issues like chain splits but becomes infeasible over cosmic distances. The paper explores varying scenarios—such as single and multiple node mining pools—to illustrate how interplanetary distances lead to significant delays, impacting the validity of submitted shares and opening vulnerabilities like the 51% attack.

In hypothetical distributed networks, graph-theoretic models are constructed wherein network nodes represent users and miners. These models help visualize and calculate transaction propagation delays due to the finite speed of light. The investigation further simulates various planetary and orbital configurations, providing a heuristic approach to estimating minimum blocktimes that could facilitate asynchronous yet secure cross-planetary financial operations.

The Conclusion and Future Speculations

Addressing its central question, the paper concludes that a universal, decentralized cryptocurrency seems infeasible due to inherent physical constraints, highlighting a necessity for localized currency systems with regional networks interacting via exchange rates. As human civilization progresses beyond terrestrial trading and toward interstellar commerce, the constraints imposed by relativity underscore the critical need for innovative cryptographic solutions and protocols that accommodate the limitations of physical laws.

The discussion opens the floor to speculative futures in AI-driven networks, suggesting areas for future research into adaptive blockchain protocols and consensus mechanisms explicitly designed for cosmically distributed networks. Such initiatives could explore investment in latency-tolerant cryptocurrencies adaptable to the inevitabilities of relativity, providing a foundation for advancing the practical utility of blockchain in interstellar finance.

Ultimately, this paper contributes to the digital currency domain by blending physical science with cryptography, paving theoretical paths for interdisciplinary research which considers the cosmic scale at the intersection of financial and scientific frontiers.