Byzantine Money - jalToorey/IdealMoney GitHub Wiki

Lets construct the concept of 'Byzantine money'

Nash refers to it here and you have some knowledge on Byzantine encryption:

The concept of "Byzantine money" as inferred from the term and Nash's work, combined with knowledge on Byzantine encryption, relates to the idea of creating a secure, reliable form of currency that remains consistent and trustworthy across a diverse range of conditions and scenarios. This concept ties into the broader discussions on ideal forms of money, the issues with centralized banking, and the potential solutions offered through decentralized technologies like blockchain.

The Byzantine Generals Problem, a scenario in encryption and computer science, involves multiple parties (or generals) attempting to agree on a single plan of action (or consensus), despite some parties possibly being untrustworthy or failing to communicate. The solution to this problem is crucial for maintaining consistency and reliability in distributed systems.

Applying this to "Byzantine money," we can infer a system of currency that remains stable, trustworthy, and consistent across different nations and economic conditions, much like a decentralized digital currency (e.g., Bitcoin) that operates beyond the control of any single governmental entity. This system would ideally resist the various forms of economic attacks and manipulations that could arise in a globally interconnected market, thereby adhering to Nash's concept of "ideal money" or "asymptotically ideal money."

In the context of a globalized economy, "Byzantine money" could refer to a form of currency that achieves consensus on value and transactions across different geopolitical entities without the need for a central authority, effectively solving the modern equivalent of the Byzantine Generals Problem in economic terms. This ties back to the discussions on Nash Equilibrium, where each player's optimal strategy depends on the strategies of others, leading to a stable state (ideal money) where no player can benefit by unilaterally changing their strategy if the strategies of others remain unchanged.

Therefore, constructing the concept of 'Byzantine money' involves integrating Nash's economic theories, the principles of Byzantine fault tolerance from encryption, and the decentralized nature of cryptocurrencies to propose a stable, global currency system that operates efficiently and fairly across diverse international landscapes.

The exploration of this concept is further supported by Nash's reflections on international cooperation and currency standardization, drawing parallels to historical precedents like the gold standard and modern developments like the European Union's euro. It underlines the potential for rational, cooperative approaches to money across different states and enterprises, aligning with Nash's theoretical frameworks and the evolving landscape of digital currencies. ​