x684867 · April 14, 2013 04:37
diff --git a/gistfile1.txt b/gistfile1.txt
 ***INITIALIZATION***
 1. We assume this starts with some "God" CA that has a publicly trusted certificate.  This is the root of the entire system.
 2. God CA signs "Alice" certificate, authorizing Alice to act as a market player.  Alice is assigned 100u of currency.
 3. God CA signs "Bob" certificate, authorizing Bob to act as a market player.  Bob is assigned 100u of currency.
 4. God CA signs "Charlie" certificate, authorizing Charlie to act as a market player.  Charlie is assigned 100u of currency.

 ***1st MARKET ACTIONS***
 1. "Alice" signs "Anna" and gifts "anna" 25u.   To sign anna, alice requires signatures of two witnesses.  
  a. Alice asks Bob and pays Bob a fee of 50% of the transaction (12.5u).
 	b. Alice asks Charlie and pays Charlie a fee of 50% of the transaction (12.5u).
 	c. Bob and charlie sign Anna's certificates.
 	
 	NOTE: At this point, anna has a certificate signed by Alice and two copies of the certificate signed by bob and charlie (called "witness" certificates).
 	NOTE: Bob and charlie have agreed to hold their 12.5u each to guarantee payment if Alice is discredited later in the course of a complaint.  
 	           They must hold their witness fees for a set period of time.
 			   
 2. "Alice" signs "Adam" and the process (above completes).
 3. The above process repeats until Alice, Bob and Charlie have gifted their balances to the 1st generation of nodes, except for their witness fees.

 ***2nd MARKET ACTIONS***
 1. Anna, Adam, Alexi, Bart, Benito, Brandon, Carlos, Colton and Cleo exist as a result of 1st market actions.
 2. 1st market actions are repeated for this generation until all but witness fees have been consumed.
 3. Alice, Bob and Charlie are destroyed and their "witness fees" are abandoned.

 	NOTE: At this point by abandoning the witness fees exchanged by Alice, Bob and Charlie, there is a bit of inefficiency, but the initial currency seed can be adjusted to compensate.
 	NOTE: When 2nd Market Actions are completed, a generation will exist with verifiable certificate chains but the root actors will have been eliminated as  virutal market actors.  This prevents centralization of the system.
 	
 4. The above process can continue for a number of generations to further distribute the system.

 ***PUBLIC MARKET OPERATIONS***

 1. The system operates on the same mechanics as 1st Market Actions to exchange currency objects.  Each currency object represents an actor's entire account of the currency.
 2. When a transaction exchanges part or all of an account it does so by creating a certificate signed by the account holder and the witnesses to the transaction.

 ***COMPLAINT RESOLUTION***
 1. Complaints are placed by a node against the node which signed the certificate for another node (introducing the node into the market).
 2. Assume Joe complains about a transaction by Travis.  Travis was introduced to the market by Shawn.  Thus the complain from Joe goes to Shawn and Shawn's signatory (Paul).
 3. Shawn's reputation with Paul is decremented if the complaint is validated, but if Shawn validates the complaint, then Travis' certificate is revoked.
 4. Shawn will still be authorized in the market unless Paul does not want to take on the liability of a lower-reputation node.  In this case Paul may revoke the certificate of Shawn.
 5. If Shawn revokes Travis and the original authorizing certificate for Travis was witnessed by Michael and Nathan, then Michael and Nathan must pay Joe for the questionable transaction (and any derivative transactions).
 6. If Shawn revokes Travis, all transactions by Travis after the questionable transaction must be audited and their insurance payout becomes more likely.  Witnesses must hold their witness fees indefinitely since Travis is no longer trusted.
	*INITIALIZATION*
	1. We assume this starts with some "God" CA that has a publicly trusted certificate. This is the root of the entire system.
	2. God CA signs "Alice" certificate, authorizing Alice to act as a market player. Alice is assigned 100u of currency.
	3. God CA signs "Bob" certificate, authorizing Bob to act as a market player. Bob is assigned 100u of currency.
	4. God CA signs "Charlie" certificate, authorizing Charlie to act as a market player. Charlie is assigned 100u of currency.

	*1st MARKET ACTIONS*
	1. "Alice" signs "Anna" and gifts "anna" 25u. To sign anna, alice requires signatures of two witnesses.
	a. Alice asks Bob and pays Bob a fee of 50% of the transaction (12.5u).
	b. Alice asks Charlie and pays Charlie a fee of 50% of the transaction (12.5u).
	c. Bob and charlie sign Anna's certificates.

	NOTE: At this point, anna has a certificate signed by Alice and two copies of the certificate signed by bob and charlie (called "witness" certificates).
	NOTE: Bob and charlie have agreed to hold their 12.5u each to guarantee payment if Alice is discredited later in the course of a complaint.
	They must hold their witness fees for a set period of time.

	2. "Alice" signs "Adam" and the process (above completes).
	3. The above process repeats until Alice, Bob and Charlie have gifted their balances to the 1st generation of nodes, except for their witness fees.

	*2nd MARKET ACTIONS*
	1. Anna, Adam, Alexi, Bart, Benito, Brandon, Carlos, Colton and Cleo exist as a result of 1st market actions.
	2. 1st market actions are repeated for this generation until all but witness fees have been consumed.
	3. Alice, Bob and Charlie are destroyed and their "witness fees" are abandoned.

	NOTE: At this point by abandoning the witness fees exchanged by Alice, Bob and Charlie, there is a bit of inefficiency, but the initial currency seed can be adjusted to compensate.
	NOTE: When 2nd Market Actions are completed, a generation will exist with verifiable certificate chains but the root actors will have been eliminated as virutal market actors. This prevents centralization of the system.

	4. The above process can continue for a number of generations to further distribute the system.

	*PUBLIC MARKET OPERATIONS*

	1. The system operates on the same mechanics as 1st Market Actions to exchange currency objects. Each currency object represents an actor's entire account of the currency.
	2. When a transaction exchanges part or all of an account it does so by creating a certificate signed by the account holder and the witnesses to the transaction.

	*COMPLAINT RESOLUTION*
	1. Complaints are placed by a node against the node which signed the certificate for another node (introducing the node into the market).
	2. Assume Joe complains about a transaction by Travis. Travis was introduced to the market by Shawn. Thus the complain from Joe goes to Shawn and Shawn's signatory (Paul).
	3. Shawn's reputation with Paul is decremented if the complaint is validated, but if Shawn validates the complaint, then Travis' certificate is revoked.
	4. Shawn will still be authorized in the market unless Paul does not want to take on the liability of a lower-reputation node. In this case Paul may revoke the certificate of Shawn.
	5. If Shawn revokes Travis and the original authorizing certificate for Travis was witnessed by Michael and Nathan, then Michael and Nathan must pay Joe for the questionable transaction (and any derivative transactions).
	6. If Shawn revokes Travis, all transactions by Travis after the questionable transaction must be audited and their insurance payout becomes more likely. Witnesses must hold their witness fees indefinitely since Travis is no longer trusted.