Torcoin Whitepaper

Abstract

Abstract. The Tor network relies on volunteer relay operators for relay
bandwidth, which may limit its growth and scaling potential. We
propose an incentive scheme for Tor relying on two novel concepts. We
introduce TorCoin, an “altcoin” that uses the Bitcoin protocol to reward
relays for contributing bandwidth. Relays “mine” TorCoins, then
sell them for cash on any existing altcoin exchange. To verify that a given
TorCoin represents actual bandwidth transferred, we introduce TorPath,
a decentralized protocol for forming Tor circuits such that each circuit is
privately-addressable but publicly verifiable. Each circuit’s participants
may then collectively mine a limited number of TorCoins, in proportion
to the end-to-end transmission goodput they measure on that circuit.

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Torcoin Whitepaper

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