A New Digital Currency Whose Value Is Based on Your Reputation
Bitcoin turned money into something completely virtual. Using a worldwide network of machines and the power of pure mathematics, it put currency in the hands of computer programmers, free from the rules and regulations of big government and big banks. But J. Chris Anderson wants to do something even more radical.
Anderson is starting a new digital currency project tentatively dubbed Document Coin. It’s a bit of an odd duck, but it’s intriguing, and Anderson is worth listening to. He’s the co-founder and chief software architect of Couchbase, a kind of new-age database with some serious cred among Silicon Valley developers.
Instead of using pure mathematics to prevent things like the same person spending the same money twice, Document Coin will rely on personal reputation to keep all transactions in order. And each unit of currency created using Document Coin could have different values in different situations. If you use a coin in one place, it might be worth more then if you use it in another. The goal, Anderson says, is to get people to completely rethink the entire idea of money.
UNLIKE WITH BITCOIN, ANYONE WILL BE ABLE TO CREATE A NEW DOCUMENT COIN ANYTIME THEY WANT.
Unlike with bitcoin—which keeps its currency scarce by rewarding it only to those who participate in what amounts to a race to solve complex cryptographic puzzles—anyone will be able to create a new Document Coin anytime they want. The value of each coin will be completely subjective, depending on who creates the coin and why. “For example, the coin my disco singer friend created and gave me at my barbeque might be what gets me past the rope at the club,” Anderson says. A coin minted by tech pundit Tim O’Reilly might be highly prized in Silicon Valley circles, but of little interest to musicians. “It’s a bit like a combination of a social network with baseball trading.”
Ultimately, he hopes to get developers thinking about the social implications of crypto-currencies, and to get people to question the idea that everything needs to have a set, numeric value. “If bitcoin is the toy version of what we’ll all be using the future, then I want to build the crazy art project version of the future,” he says. Document Coin’s usefulness as a real currency is limited, but Anderson does hope people will eventually want to use it. “If you build something, you don’t want to be disappointed if it succeeds,” he says. “You need to build things that you would be happy to see take off.”
To that, end, Anderson is working on getting the technology right. The idea is that each new Document Coin will be a cryptographically unique token that contains two parts: a set of encrypted data that only the owner of the coin can see, and a set of public data about the coin. “I could show you that I have a Tim O’Reilly coin without showing you exactly which one,” he says.