- Qi Quai, Updating kQuai, Amount of Quai
- Cost of computing, Blockchain, Economics of maintenance
- Free Energy Principle, Expected Free Energy, Entropy, Maximum Entropy Principle, Understanding entropy
Qi Quai Report
Andrius Kulikauskas
Contents
- Questions to explore
- Facts to consider
- Marketing
- Overcomplicating
- Values and priorities
- Understanding how values are updated
- Updating {$k_{Qi}$}
- Updating {$k_{Quai}$}
- Reward mechanism for receiving {$k_{Qi}$} or {$k_{Quai}$}
- Numerical simulations
- Game theory analysis
- Learning from Bitcoin
- The applicability of theoretical ideas: Energy, entropy, free energy
- The cost of doing business
- The merit of two currencies
- Qi and quai, energy and entropy
- Conclusions
- Suggestions
Questions to Explore
- Problem: want endogenous pricing, independent of fiat currencies
- Principle: bimetallism, Gresham's law
- Analogy: relate them to entropy and free energy, or kinetic and potential energy
- Formula: formulate a useful calculation such as for a Kalman filter
Facts to Consider
- caveat: even a perfectly well-founded system has only a tiny chance of success because luck is required
- caveat: the system lacks a way to update the protocol in response to future circumstances
Observations
- the system is not being used for real exchanges
- there is no balance to the system
- there is no evidence to be seen that the controller is functioning properly
- people are only mining and owning quai
- qi is more expensive than quai
- block difficulty is going down
Values and principles
Positive
- open community, meetings
- quAI available and helpful
Negative
- error not corrected
- comment not corrected
- there is no explanation how to know if the system is functioning properly
- there is no simulation to show how the system could be working properly
Updating kQuai
Understanding how to calculate {$k_{Quai}(i)$} given {$k_{Quai}(i-1)$}.
Numerical simulations
The graph of how the averaging works.
Game theory analysis
Learning from Bitcoin
| year | tW-hr per year | bitcoins created per year | mW-hr per bitcoin | exa-hash per year | hash per W-hr | US electricity $ per kW-hr | market cap billion $ | $ billion cost per year | energy cost over cap | tera-hash per block |
| 2011 | 0.14 | 2,628,000 | 0.05 | {$1.4 \times 10^{2}$} | {$1.0 \times 10^{9}$} | 0,10 | 0,02 | 0.014 | 90% | 0.0000005 |
| 2012 | 0.10 | 2,505,934 | 0.04 | {$5.2 \times 10^{2}$} | {$5.2 \times 10^{9}$} | 0,10 | 0,09 | 0.01 | 12% | 0.000002 |
| 2013 | 1.06 | 1,314,000 | 0.8 | {$1.6 \times 10^{5}$} | {$1.5 \times 10^{11}$} | 0,10 | 5 | 0.11 | 2% | 0.007 |
| 2014 | 4.73 | 1,314,000 | 4 | {$5.2 \times 10^{6}$} | {$1.1 \times 10^{12}$} | 0,10 | 7 | 0.47 | 7% | 0.02 |
| 2015 | 3.62 | 1,314,000 | 3 | {$1.7 \times 10^{7}$} | {$4.6 \times 10^{12}$} | 0,10 | 5 | 0.38 | 8% | 0.07 |
| 2016 | 5.73 | 998,066 | 6 | {$5.4 \times 10^{7}$} | {$9.5 \times 10^{12}$} | 0,10 | 11 | 0.59 | 6% | 0.2 |
| 2017 | 12.93 | 657,000 | 20 | {$3.0 \times 10^{8}$} | {$2.3 \times 10^{13}$} | 0,10 | 124 | 1.36 | 1% | 1 |
| 2018 | 43.32 | 657,000 | 66 | {$9.3 \times 10^{8}$} | {$2.2 \times 10^{13}$} | 0,11 | 150 | 4.56 | 3% | 4 |
| 2019 | 54.63 | 657,000 | 83 | {$2.3 \times 10^{9}$} | {$4.3 \times 10^{13}$} | 0,11 | 98 | 5.75 | 6% | 10 |
| 2020 | 67.14 | 446,078 | 151 | {$3.8 \times 10^{9}$} | {$5.6 \times 10^{13}$} | 0,11 | 350 | 7.11 | 2% | 16 |
| 2021 | 89.00 | 328,500 | 271 | {$4.6 \times 10^{9}$} | {$5.2 \times 10^{13}$} | 0,11 | 732 | 9.88 | 1% | 22 |
| 2022 | 95.53 | 328,500 | 291 | {$7.1 \times 10^{9}$} | {$7.4 \times 10^{13}$} | 0,12 | 608 | 11.8 | 2% | 30 |
| 2023 | 121.13 | 328,500 | 369 | {$1.4 \times 10^{10}$} | {$1.1 \times 10^{14}$} | 0,13 | 576 | 15.4 | 3% | 54 |
| 2024 | 168 | 216,677 | 775 | {$2.3 \times 10^{10}$} | {$1.4 \times 10^{14}$} | 0,13 | 1,346 | 21.8 | 2% | 91 |
The cost of doing business
Have in mind not all expenses but those that are essential for maintenance
Cost of maintaining a civilization, an economy, a system
More examples
- Gold, silver, other resources...
- Maintaining a house
- Maintaining a road
- Maintaining a car
Economics of maintenance
The merit of two currencies
Default mode (doing nothing specific) vs. action mode (doing something specific)
Grisham's law - bad money chases out good
The applicability of theoretical ideas: Entropy, energy, free energy
Conclusions
- Problem: want endogenous pricing, independent of fiat currencies
- Principle: bimetallism, Gresham's law
- Analogy: relate them to entropy and free energy, or kinetic and potential energy
- Formula: formulate a useful calculation such as for a Kalman filter
- kQi relation to technology changes is crude