Paper 2020/579

BitFund: A Benevolent Blockchain Funding Network

Darrow R Hartman

Abstract

A decentralized funding system that supports companies of online products through mining cryptocurrencies and which renders mining pools benign. Working in tandem with blockchain cryptocurrencies, the system utilizes a user’s computing power to mine cryptocurrencies and future blockchain technologies. The system mines cryptocurrencies through a machine’s hardware during periods of low usage from the user. The blockchain payments received from the mining will be divvied between the services the user accesses via a percentage of use. A layer of blockchain technology is added to authenticate companies of online products and confirm the wallets of these companies. Each block contains the online service wallet’s public key for approved cryptocurrencies, a form of communication, and a DNS to confirm transmissions to the correct online service. After widespread adoption, disputes of DNS registration will result in the oldest block being the legitimate owner. Online services registered would be responsible for updating the blockchain. As the decentralized network of machines grows, the threat of manipulation through the 51% attack decreases as large mining pools lose the percentage of mining they have.