restribute ~ wealth re-distirbution by blockchain hardfork ~

Restribute.orgRe-distribution of wealth for

company/organization/project/government by

Blockchain Hardfork

By Tomoaki Sato from Japan

Target of audience- Who has interesting in blockchain

- Who has blockchain tokens (Bitcoin, Ether, Ripple etc…)

- Who has questions about recent Ethereum hardfork

- Who has questions about Ethereum classic & Ethereum ( ex: What is the ETC on Poloniex !? )

- Who has questions about “distribution of wealth” on blockchain economy

- Who has questions about “decentralization”

Topics - 1. What is public blockchain economy ?

(cryptocurrency market)- 2. What is hardfork ? - 3. Hardfork example: Ethereum applyDAOHardfork()- 4. Hardfork and personal wealth- 5. Distribution of wealth (ex: Ethereum case)- 6. Hardfork can be useful for re-distribution of wealth- 7. Merits and Demertis of re-distribution of wealth.- 8. Schedule for the first testing hardfork - 9. Join our slack !

What is the economy on blockchain ?How can I see Bitcoin, Ethereum value and the total supply ?

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2 types of blockchain

Bitcoin, Ethereum, Bitshares etc. These are permissionless networks.Anybody can join in.

Financial institutions try to use blockchain for future finance.Allowed members(banks, exchanges) can join in the network

1.Permissionless blockchain 2.Permissioned blockchain

2 types of blockchain

Bitcoin, Ethereum, Bitshares etc. These are permissionless networks.Anybody can join in.

Financial institutions try to use blockchain for future finance.Allowed members(banks, exchanges) can join in the network

1.Permissionless blockchain 2.Permissioned blockchain

We are going to talk permissionless blockchain.

Economy on blockchain(Start of the economy)

Tokens generated by mining or staking *mining: computation work for the consensus network*staking: investment for the consensus network ※rough description

Tokens generated by crowdsale*crowdsale: people pay tokens to buy newly created tokens (like pay Ether to buy theDAO token )* rough descr

Economy on blockchain(transition)Currently, more than 600 crypto currencies are on the list.

These crypto currencies have value & total supply. So it shows the market cap by 1 token value * total supply of the token.

Day by day the price of tokens will change by the trade at crypto currency exchanges

Economy on blockchain(end ?)Low market volume token, or no-developer-support-tokens are sometimes stopped trade at crypto currency exchanges.

If there are no exchanges in the world for the token, it’s difficult to estimate value of tokens.

So, we can not see the value of tokens, and we can consider the value of the token is zero (for most people in the world)

Economy on blockchain(end ?)In Ethereum case, after the DAO hacked $50M amount of money from frawed contract, by the voting of network community decide switch to apply hardfork.

Apply hardfork change to the Ethereum source code, DAO frawed contract related balances are moved to refund contract address.

But if you use not-applying the hardfork change version of Ethereum source code, you will use different network from the changed version.That’s Ethereum classic.After the hardfork, original Ethereum network value seems to be

zero(or goes to zero). And only hardforked Ethereum has value

Only 1 Ethereum world

Hardforked network

There’s no original network

Economy on blockchain(end ?)At first, Ethereum classic is not on any exchange, and traded.

There are supporters, and people who believe the thoughts.

So poloniex starts to exchange Ethereum Classic, and then the value is suddenly priced.

Now we have 2 network Ethereum and Ethereum Classic, both tokens have values.

Now we have 2 Ethereum network.

Both network have value, original code difference between the 2 network is about 15 lines (apply DAO Hardfork to the blockchain or not)

Hardforked network

And original network has value

What is hardfork ?2

Hardfork is simple

Hardfork is non-backward compatible, softfork is backward compatible consensus rule change.If you use old software in hardforked network, you can not communicate with If you use PlayStation2, you can not use PlayStation3 software (hardfork)

Old network users New network users

If they can have same consensus, it’s softfork(they can have same blockchain)

If they can not have consensus,it’s hardfork(they can NOT have same blockhchain)

Software upgrade

What is hardfork ? In Ethereum case.

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Hardfork in Ethereum case

ApplyDAOHardFork in go-ethereum repository, and this change makes different network with different consensus (further transactions will be different)

Hardfork in Ethereum case

There are 2 communities originally from the same source code made by Ethereum developers.

Hardfork and Personal wealthHow much do you have in Ethereum network and Ethereum classic network ?

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Hardfork and personal wealth

Hardfork is only the change like this, so another state of the network is not changed.So if you have 1,000 Ether in Ethereum network before the hardfork (1,800,000 block)then you have 1,000 Ether also in Ethereum classic network (what we call 1,000 ETC)

Example account on Ethereum blockchain which has both balances(314,807.84 Ether and 314,807.84 Ethereum classic)

Distribution of wealth How to measure distribution of wealth ?

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How to measure distribution of wealth

Gini index is one way to measure distribution of wealth across people. For example if total supply is 100 tokens and 100 people in the network.All people have 1 token, then it’s totally equal distribution, gini index = 0If onle one people have 100 token, and others 0, then the gini index = 1

How to measure distribution of wealth

Gini Index is 0.830 just after crowdsale by Vitalik Buterin researchanybody can research and verify

World gini index

World gini index measured by the local fiat currencies(government currency).(from wikipedia https://en.wikipedia.org/wiki/Gini_coefficient)

Ethereum gini index

More than 1 EthertxCount less than 100

Then Gini index 0.972

※ In order to exclude some business account like exchange withdraw account, I exclude big txCount addresses

Github: https://github.com/Restribute/RestributeGini

Ethereum gini index

More than 10 EthertxCount less than 100

Then Gini index 0.948

Ethereum gini index

More than 100 EthertxCount less than 100

Then Gini index 0.900

Ethereum gini index

More than 1000 EthertxCount less than 100

Then Gini index 0.817

Ethereum gini index

More than 10000 EthertxCount less than 100

Then Gini index 0.7401

Hardfork can be useful for distribution of wealth6

Two Ethereum communities by hardfork• Different developers

• Different community• Different consensus algorithm (will be)• Different applications on top of it.

etc … so what if we measure the re-distribution effect ?

Transition of economy

Hardforked network

And original network has value

At the time of hardfork(block 1,800,000) Now(block 2,148,877)

Different distribution of wealth in the 2 network with different communities

Just after the hardfork, all accounts and balances in the 2 network is same.

So let’s measure Gini index of Ethereum + Ethereum ClassicCurrently under working…

Merits and demerits of re-distribution of wealth7

Merits and demerits in blockchain contextMertis:

1. Expanding financial markets2. Removing oligopoly situation3. Making more business opportunity

Demertis:

1. Government or any centralized authority can be corrupsed for the redistribution.=> Smart contracts or blockchain protocol is difficult to be collapsed if it’s decentralized.

2. To do re-distribution, it’ll take huge operational costs=> Much less costs to do it, because it doesn’t take time

Traditional way by governments

Taxation = by centralized authorityWelfare = by centralized authorityCharity = by centralized authorityMonetary policies = by centralized authority

Sometimes said, “Redistribution of wealth is not fairness, is theft”

New way by blockchain hardfork◇ Taxation = issue new coins or demurage holders by voting◇ Welfare = ?◇ Charity = ? ◇ Monetary policies = issue new coins or demurage holders◇ Hard-Forking

= Create new currency and allocate to existing holders.If more people believe the re-distributed value, more value will be generated by the allocation.

Schedule of Redistribute.org 8

Develop:API for all states at given block1.If there is API for getting all state objects at given block, it’s easy to revert to

history at some point and generate newGenesisBlock for hardforking.

1,920,000 block 1,920,001 block 1,920,002 block

Roadmap

11/2016

- Re-distribute Hardfork

- Development for making economical stastics easier

- Write whitepaper with economical point of view

- Make the model for initial allocation of new blockchain for re-distribution by hardfork.

- Measure stastics around the re-distribution (gini index, developer numbers etc…)

09/2016

- Make power point presentation for re-distribution

- Make some teams for doing re-distribution on blockchain by hardfork as a social experiment.

- Gini index measurement for current Ethereum & Ethereum classic

- Slack, Github, Twitter, Forum construction

Join our slack and more discuss !https://restribute.herokuapp.com/

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