BEYOND BITCOIN. The Future of Digital Currency. Part VI CloudCoin - Putting Theory Into Practice / Blockchain Socialism

By CloudCoin | CloudCoin | 19 Aug 2019

CloudCoin History

June of 2016 - Sean Worthington was sitting in his bath listening to the Stephan Molynuex Philosophy program when he realized that monetary systems are physical implementations of information systems and that money is data. If the principles of good data could be applied to money then a perfect monetary system could be created. Worthington was working on a PhD (Computer Information Systems) dissertation on artificial intelligent object recognition system that could recognize money from images. The system used Worthington's "Magic Neuron" design that required many data structures to act like neurons. The data store could be taught and memorize the notes. He understood that he could create a brain in the cloud that could identify millions of individual notes and even be taught to recognize changes.

June 11, 2016 - Posted a video on Facebook, LinkedIn and about his new theory of money.

June 11 2016 - Emailed PhD Economist Robert Murphy to ask about idea that monetary systems are Information systems and money is data. He seemed to think it was legit.

6/24/2016 - Got a patent Pending

6/28/2016 - Bought Patent Search Service

Created PieMoney (The original name of CloudCoin).

7/2/2016 - Tested first prototype with Tara, Vica and Sam Worthington.

7/3/2016 - Decided to use Random.js in client

Decided to use base 32 implementation.

July 4th.2016 - Made art for bills. Money would show prehistoric animals: Mammoths, Bison, Raindeer, Boar, Rabbit. Make file name format:

Got files to load in browser.

July 5th - Decided that the RAIDA would need 6 servers. Found way to save three servers. (Would later change mind).

7/6/2016 - Thought about encrypting data into the database from the web server. Would make the db 10 times bigger. So I decided against it. Added a “last time checked” field to the db to allows us to know when it was checked and block it. Will block $250 for 10 minutes. $100 for 5, and so on. (The blocking would later be removed).

7/11/2016 - Today I switched almost eveyrthing to Linux and Apachee. Still need to work out the details.

New design: 5 servers with 5 mirrors. Five or more webservers. Probably need 10. Need 10 datbases. Unless I can figure out how to mirror them.

Switched from PieMoney to CakeCash at families advice.

RULES FOR VENDORS: Do not allow Chrome to store passwords.

7/12/2016 - I got the result for the patent search. There are many systems. Some are similar to mine. However, I think mine is unique enough to be different. The biggest difference is that my system does not require “ownership information.” Also mine changes every time protecting against counterfeiting.

7/13/2016 - Started making flowcharts of pages, created messages, ,and developed ideas of Mirror Send pages and how to get servers to talk to each other through Curl.

7/15/2016 - Today I got awoken by the fact that it is difficult to have a client contact many servers. Firewalls will block it. So I decided to allow the web server to do this. This means that people will need to trust their web servers. Also, I decided to go back to Microsoft for security reasons. I created the usp_detect stored procedure and now things are in the database in binary form.

7/16/2016 - Got Microsoft Servers working. Now need to clone them and get the client to use them all.

I will get things working and then do a go fund me. After go fund me I will Then start creating the real system. Need to do some real hosting.

7/20/2016 - Got first client (detect.html) up and going.

7/30/2016 - Now the system is called HIDRA and has 25 servers in a 5 x 5 matrix. Core 9 hold data and there is a ring of parity with each corner having a mirror. System still needs to fix parity and mirrors Expect to do this soon. But so far the system seems to be working pretty well. I will need to make some friends around the world to make this work.

Moved linux stuff to the server ( desktop folder. Need to setup servers for mirror and parity checks.

Pretty much finished the server side send-mirror. Got it encrypting. The receiving end is also well underway. I want to change the database access to PDO so that it can be used on Microsoft and Linux without modification.

7/30/2016 - Got back end of Mirror and Parity done! Yea! Now need to get front end working with mirror and parity.

7/31/2016 - Too complicated to work on the front end Mirror and parity without 25 virtual machines. But, made it so the Pans are always the same so money is alwasy good. This will help in testing.

Began creating the mint. Can write on an image and can write comments programmatically.

8/6/2016 - Started looking at hosting. What a bitch. How can I get it so that each person is a host? Thinking.

8/14/2016 - Got all twenty five servers up and going Took 3 days. Now I can test the whole system. Got the front end of mirroring done. Realize that I don’t really need RAID. What I need is the authority of servers to override each other. May add 25 ans to money. Tried to use SVG. Found that it was prone to javascript injections. Created some money using C# but it puts the comments in wrong. Need to re-create it so that the comments go in differently. Need to write binary instead of doing it object oriented

In August 2016, Worthington minted 16,777,216 CloudCoin notes and registered them with the RAIDA - then in experimental development.

I got the public key system working and now I an use public keys.Every server will trust the one in front and one in back and the ones five in front and five in back.

9/24/2016 - Ready to submit the full patent on Monday.

10/20/2016 - Changed the name from HIDRA to RAIDA. RAIDA is not as threating. Started contacting System Admin around the world.

10/26/2016 - Getting ready to deploy first RAIDA over

9/21/2017 - CloudCoin Founders runs on Mac and Linux. Investors Edition runs on Windows 10 and Windows 7.

General Notes: The CloudCoin Consortium was created in October 2016 by its founding member Sean Worthington.

After filing a provisional patent he set out to create the RAIDA. The provisional patent was granted (#62354022). Because monetary systems are information systems, Worthington first needed to recruited world-class Systems Administrators throughout the world. This has been completed and System Administrators and Programmers joined the Consortium from countries including Taiwan, Philippines, Japan, India, Serbia, Russia, Germany, UK, Macedonia, Venezuela, Columbia, USA, Italy and many more. The proof of concept tests conducted in January 2017 showed conclusively that the CloudCoin Concept works in practice as in theory. The RAIDA was now a permanent data store.

Putting theory into practice


The theory behind CloudCoin was worked out. The next step was to put the theory to the test.

  • Twenty-five RAIDA administrators of different nationalities were recruited. Twenty-five clusters were set up in the following countries:

• Australia • Luxembourg • Sweden • Bulgaria • Macedonia

• Switzerland • Canada • Philippines • Taiwan • Colombia

• Romania • Ukraine • France • Russia • United Kingdom

• Germany • Serbia • United States • India • Singapore • Venezuela

  • The objective was to include as much geographical diversity as possible, and still keep the administrators within those countries that have mostly liberal governments.
  • The operating systems used were either Microsoft ® Windows or one of several versions of Linux operating systems.
  • The CloudCoins were created, and authenticity codes were embedded in them.
  • Software applications were developed to validate the ownership transfers, and CloudCoins were passed by email through five different people using the applications. Each person took ownership of the CloudCoins.

During the experiment, RAIDA5 went down. Because of this, RAIDA5's data became unmanageable. RAIDA5 was taken out of the RAIDA network and a new RAIDA5 was implemented. The CloudCoins in the test became fractured, or fracked (because, in this case, not all slices in the coins could be authenticated).

However, within seconds, each CloudCoin was able to fix itself - as the system was designed.

The experiment concluded on February 4, 2017.

This experiment demonstrated that CloudCoin is viable as an electronic currency, and that the RAIDA invention works stably as a new fault-tolerant authentication system.

  • RAIDA performed much better than the blockchain used by Bitcoin because RAIDA required less than two seconds to perform a transaction.
  • RAIDA required no user accounts or large software downloads.
  • The transactions were 100% private, as opposed to semiprivate as with Bitcoins.

A patent has been filed for the RAIDA technology with the United States Patent and Trademark Office. A trademark claim has also been filed for the term CloudCoin.


The CloudCoin Consortium is now preparing to provide CloudCoins as a global currency, and transactions will be offered free of charge as the RAIDA will be funded by the scavenging of lost CloudCoins.

The proof

The concept of a cloud currency has features that make it superior to cryptocurrencies.

Cloud currencies such as CloudCoin do not require user accounts, and do not collect or track user data (except the month of the CloudCoin last transaction). This makes CloudCoin potentially more private than Bitcoin.

Because CloudCoin does not depend on encryption, CloudCoin is much faster to confirm.


It appears to be impossible to double-spend CloudCoins.

It also appears that CloudCoins are safe from quantum computer decryption, which may become an issue in the near future.

The infrastructure of CloudCoin can be self-funded by allowing RAIDA administrators to scavenge lost CloudCoins (CloudCoins that have not been spent or checked in two or more years) to pay for their operations.

Blockchain Socialism


Once there were two countries, each with a society of about 10 million people. Every day, the citizens of each country would go to work, earn money, trade with other citizens, and try to economize.

This was the natural state of things until one day the President of one country noticed that some families were very good at working and had collected a lot more money than the other families.

The President, who was interested in creating a just societywanted all people to have equal money, so he said to his most trusted advisor, his brother Brutus, “You will create a blockchainbased digital currency and assign everyone an account. You will include an algorithm so that all people will end up with the same amount of money. You will take from those with abundance and give to those who have less so that all families can be economically equal. Take some of the money for yourself.”

Brutus devised the system, and it was implemented.

When some of the citizens got paid at the end of the month, they were delighted to find that extra money had almost magically appeared in their accounts. Other citizens, however, rushed to tell the President that they had been robbed. “A thief has hacked our account and stolen our money!” But the President assured them that it wasn’t theft, but sharing, and that the country had become a more just society because of it.


Now this country, which had introduced a blockchain-based socialism, soon grew poor. Not only were there fewer people who worked (Brutus redistributed instead), there were also unintended behavioral changes among the country’s people.

People who used to work hard to make money grew tired of all their toil being taken by someone else, so they only worked half as much and brought home less money. Some of the people stopped working altogether because they learned that they would still get money even when they didn’t work.

Some of the more talented workers and traders were so mad that they packed up their families in airplanes and flew off to their neighbor country, while homeless people slipped quietly across the borders, wanting to become a part of this “just society.”

Then the President’s brother, Brutus, started skimming a little extra from the algorithm for himself, and he was soon the richest citizen in the country (a fact he hid from others by using many secret accounts).

The blockchain socialist country grew poorer and poorer. The system required large amounts of expensive electricity to run, and trades grew slower and slower too. People now had to wait in line.

Meanwhile, in the naturally free country that used CloudCoin, all the citizens had to work for their money. They knew that if they did not work hard they might end up hungry or worse. They worked so hard that some of them even had surplus money.

Soon they found that surplus money could be used to allow some citizens of the country to research new ways to work and trade more efficiently. The research paid off, and the total product and trade grew with each new technology invented. They soon called the people with surplus money who performed this research “CloudCoin capitalists” because they were using their heads (since they knew “capital” means head). They called their system CloudCoin Capitalism, but many just called their system the free market because this is what happens when people are free to act naturally.


It was only a matter of time before the CloudCoin capitalist country grew so economically powerful and the blockchain socialist country grew so poor that it became clear to the blockchain socialists they needed to change.

So the President of the blockchain socialist country called for a vote to see if the people wanted to change. But brother Brutus liked the system and knew the people would vote against it.

He murdered his brother and canceled the election.

To keep the talented people from leaving the country, Brutus (who was now running the country based on the influence of his enormous wealth), outlawed emigration.

He declared laws to limit the natural rights of people. He kept them from communicating, collaborating or making weapons that could be used to overthrow the socialist system.

All of this worked very well for Brutus. He lied to everyone and told them that their system was “just.”


But in reality, he stole from hard-working people and gave the money to laggards, including the greatest laggard of allhimself.

The economy became submerged because the money no longer sent signals to people to economize. In the end, hackers with quantum computers were able to take the system down and the people were freed.

The moral of the story is that the blockchain can be used for evil just as easily as it can be used for good.

We need good money to make good economic decisions. The Blockchain requires accounts. Like Ayn Rand said, “Civilization is the progress toward a society of privacy.”

The blockchain can do the exact opposite because every purchase anyone has ever made can be tracked, and the system can even be used to redistribute. The blockchain could be used as a powerful tool for repression.

This story avoids sharing the gruesome details of hundreds of millions of victims of democide (the murder of any person or people by their government, including genocide, politicide and mass murder) who were killed or starved because their monetary system was controlled by a central government.

Monetary systems must be decentralized and privatized to work.


Now all can try our Perfect Money!

Skywallet is an important new component in the wallet software that enables CloudCoins to be used more efficiently, including functionality to make change, merchant payment acceptance, exchanges, stores and allowing currency to crossover into video games and other programs.

This application provides the ability to rapidly and securely transfer authentic coins from person to person. No email or other file transfer systems are needed. What makes Skywallet so powerful is that like RAIDA, it cannot be brought down because, like RAIDA, Skywallet has data supremacy.

CloudCoin Wallet features and new functionality!


✅ Allows users to send CloudCoins to each other quickly and securely through SkyWallets.

✅ Enhanced UI/UX with similar look and user-experience across platforms (Windows, Android, Mac, etc.).

✅Optimized efficiency that reduces measured CPU usage to 0%

✅A vault to eliminate any possibility of theft.

✅ Ability to automatically recover coins by email.

✅ Easily make change/split notes.

✅ Support for collectibles, a decentralized exchange and ATM functionality.

✅ Support for merchant services.

✅ Crossover currencies for games and other apps.

✅ Multi-fix functionality that can fix thousands of fracked coins within seconds.

✅ Multi-language support/localization.

We are now officially in the Liquidity phase. This is when we make it so our coin can be changed into goods, services and other currencies very quickly. Projects include the P2P Exchange, The Escrowed Exchange, The Craigs-List type Store, the Merchant software, APIs and Video games.

The Peer To Peer Exchange. The backend and frontend business layer are 95% done. The GUI for the P2P exchange is 50% done. Then we need to add payments systems.

The Merchant Software: Creates a "Pay With CloudCoin" button. It is completed and now in testing.


To be continued..........

Sean H. Worthington PhD ABD for CloudCoin Consortium.



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CloudCoinTM – The world’s first cloud currency! The Perfect Global Currency! CloudCoin is a digital currency. That cannot be counterfeited, controlled, tracked or stolen. CloudCoins cannot be double-spent, mined or lost. It is 100% private and requires no public ledgers, accounts, or encryption. CloudCoin is a completely fair and ethical monetary system.

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