Wednesday, August 31, 2022

Cryptothermodynamics Why Not



Physics-based cryptocurrency transmits energy (not just information) through blockchain
Jun 2022, phys.org

In their new paper, Lawrence Livermore researchers Maxwell Murialdo and Jon Belof have detailed how this connection between energy and information allows for the creation of a cryptocurrency token that is directly backed by and convertible into one kilowatt-hour of electricity. While it requires the input of one kilowatt-hour of electricity to mint an E-Stablecoin token, that digital token can later be destroyed to extract back out one kilowatt-hour of usable electricity. Thus, the price of one E-Stablecoin token is pegged to the price of one kilowatt-hour of electricity in a manner that is robust, stable and trustless (a system that does not depend on an institution or third party for a network or payment system to function).

As Murialdo explained: "Any anonymous party can mint an E-Stablecoin token with the input of roughly one kilowatt-hour of electricity. They can then transact with the digital token like any other cryptocurrency, or even turn it back into usable electricity—all without the need for electrical power companies, electrical transmission lines, permissions or authorities. It is a trustless system from top to bottom."

A feat made possible by using the interplay of thermodynamics and information theory, it may help to distribute electricity to remote locations that are not connected by an electrical grid system, or combat climate change by enabling intermittent, renewable energy to be transmitted to the places where it is needed most for efficiency.

via Lawrence Livermore National Laboratory: Maxwell Murialdo et al, Can a Stablecoin Be Collateralized by a Fully Decentralized, Physical Asset?, Cryptoeconomic Systems (2022). DOI: 10.21428/58320208.adf5637a

Image credits: Pretty sure the entire goal of this weblog is to get me to identify searchwords that do not yet exist. (Screenshot taken August 24 2022)

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