- Archiving virtual currency (Image: Stephen Crowley/Eyevine)
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As with all cryptocurrencies, bitcoins are created by a process called "mining", which involves setting up machines to solve a series of mathematical problems. Such puzzles are a waste of computing power if they are not harnessed to solve real-world problems, says Andrew Miller at the University of Maryland. So, along with colleagues from his university and Microsoft, Miller proposes a spin-off named Permacoin, whose mining process would create an enormous archive as well as currency.
"It's pretty clear that there is a lot of effort being consumed," says Miller. "It would be nice if you could get more from it."
His team envisions using Permacoin for data that is valuable but unwieldy to store, such as the Library of Congress, estimated to be around 200 terabytes.
This is not the first time Bitcoin's processes have been put to work. Previous spin-offs have tackled problems such as protein folding, but it is difficult to turn these into meaningful puzzles that are sufficiently difficult and still reliable as a cryptocurrency. The team plans to develop a Permacoin prototype later this year.
This article appeared in print under the headline "Bitcoin puzzles tackle real-world problems"