Why NDCoin concept is so innovative?
From an extract of the Whitepaper:
The Bitcoin distributed cryptocurrency system was proposed on Oct. 31 st , 2008 by Satoshi Nakamoto, as a workable solution to the double‐spending problem of decentralized digital cash systems. Today the Bitcoin currency has over $10 billion market capitalization, and the Bitcoin network has a collective computational power (in terms of bit‐operations per second) which is estimated to be 8 times greater than that of the Top 500 supercomputers put together.But, what if a large cryptocoin network like Bitcoin’s could also do useful computational work for other applications? The original idea of using a cryptocoin‐based system as being simultaneously a trusted platform and an automated marketplace for distributed high-performance computing was suggested by David Mondrus, in a discussion between the authors on Feb. 1 st , 2014. We were both partly inspired by some related earlier generalized blockchain platform projects such as Ethereum, and by Frank’s previously‐proposed Nomicoin project (a distributed cryptocoin with an automatically reprogrammable rule‐base)...
...NDCoin the cryptocoin network plays the role of a trusted escrow service. Solver nodes can be guaranteed to receive payment for their revealed solutions (as long as they are among the first N solutions posted that were revealed before the deadline). And, customers are guaranteed not to have to pay the bounty if no solutions are found. Also, a request fee paid by coin burn or recycling (mentioned later) helps ensure that the network will not get spammed with excessively many impossible (intentionally fraudulent) problem‐solve requests.
In NDcoin, as opposed to previous distributed computing services, the architecture of the system provides a cryptographically‐strong guarantee that “payment is tendered for services rendered” – i.e., no party to the transaction is able to cheat. All this is accomplished with no trusted centralized parties, except for possibly a party that does certain preprocessing required for SCIP, although this function can possibly be performed by the customer, or else decentralized (done redundantly by each solver node), using shared random‐number generation techniques.
Because NDcoin’s security model is essentially fraud‐proof, it requires no trust, and so new entities do not have to establish reputations prior to participating in the system. Thus, the barriers to entry for new
entities to join and participate in the system are very low. So, the network should be able to grow very quickly and organically. For comparison, the Bitcoin network’s aggregate hashing power has grown at an average rate of 100x per year for the past four years (2010‐2013). NDcoin, once developed and released into the wild, could become an extremely effective and popular system for harnessing the vast computational resources of a cryptocurrency network to perform arbitrary useful computations, at least, for problem classes having feasible deterministic or nondeterministic algorithms.