The Theory of a Perfect Money

Monetary systems have a job to do, and money has a specific role within monetary systems. The job of the monetary system is to track what value an individual adds to the economy and ensure that more value is received than is put in.

If a monetary system does not do this, then it will be deemed unjust and people will “defect” from using it. They may continue to use it if forced to do so, but they will avoid it if they are able.

With the invention of digital currencies such as CloudCoin, many more people will be able to enjoy high-integrity monetary systems as they defect from the fiat currencies that governments and banking cartels offer. The perfect monetary system would be run by system administrators, not bankers, governments or even computer scientists. This is because monetary systems are information systems, and have little to do with banking, government or computers.

The perfect money has perfect integrity. This integrity can be classified under three headings:

  • Physical integrity
  • Logical integrity
  • Preferential integrity

In practice, physical integrity means:

  • No counterfeits
  • No loss
  • No theft
  • No possibility of system-wide failure

Logical integrity requires that:

  • Users must know who the money belongs to (entity integrity).
  • The money must all be of the same stuff (domain integrity).
  • The money must refer to something that is actually there (referential integrity)

With preferential integrity, the system must:

  • Be private
  • Be scalable
  • Be fast to transact
  • Use whole numbers (or at least fractions that are easy to understand)
  • Have high availability (no downtime)

Physical integrity

A monetary system must allow people to prove to others that they added value to the monetary system, and that they deserve to get some value back. If a person gains money through counterfeiting or theft, or by taxation, they are able to “prove” something that is not true. Data and money must be true. That is what integrity is about. And if the system becomes unavailable (fails), then no one can know the truth. That must not happen in a monetary system.

Money has to be there to do the job. If the money just disappeared, we would not have a monetary system. If some of the money disappeared, then it may still be usable but flawed. To be perfect, the money must not disappear; it must not be able to be destroyed, lost or unreadable; and it must not appear out of nowhere.


As of this writing, over 17 million Bitcoins have been mined, and over 4 million of them have been permanently lost.

What happens when the losses exceed the coins mined? The monetary system dies.

The major problem with loss is that it fails to accurately reward people who created value. You may not think of this as a big problem until it happens to you. Anyone can lose money, and it is unfair when it happens. In a perfect monetary system, it would be impossible to lose money.


Some currencies are more susceptible to theft than others. The cryptocurrencies are probably the most susceptible because of their private keys that control the money in the accounts. At CloudCoin we can dramatically reduce theft of most currencies simply by not putting all our eggs into one basket—by reducing the systemic risk. I could go into great detail about this, but I am now in the process of making CloudCoin unstealable even with quantum computers. In a perfect monetary system, there should be no theft, and that is our goal.


In the 1990s, people in California put their gold together into one vault and then issued digital currency against it. They did billions of dollars worth of trade using this e-Gold. But then a state government bureaucracy decided to kick down the doors and take the vault and all the gold. The system did not have physical integrity.

If your currency can be shut down, then it does not have physical integrity and it will not last. Bitcoin was the first digital currency to achieve this physical integrity, but it will not last for long. Quantum computers are likely to put an end to this and other cryptocurrencies.

The cloud can be made quantum-safe, however. A perfect monetary system is always available, and works right every time.

System risk

There are two types of risk: systemic (the risk of collapse of an entire financial system or market) and unsystemic (risk contained within a single company or industry). Digital currencies must be able to eliminate all systemic risk. CloudCoin has done this.

Logical integrity

There are many parts to logical integrity. The first is entity integrity.

Entity integrity means that each money must belong to an entity. This also assumes that an entity must be able to prove that ownership. Money without an owner is lost, and loss is not allowed in a perfect monetary system. Entity integrity is only an issue when it comes to transferring ownership. In a perfect monetary system, ownership is clear.

Another part is domain integrity. This means that all the money must fall within the same “domain.” Systems based on silver, copper, gold and nickel coins do not have domain integrity. They are all made of different stuff (domains), and this stuff does not have the same value.

Even systems that mix paper money and coins lack domain integrity; it is possible that the metal in the coins could be worth more than the numbers printed on them and much more than the numbers printed on the paper.

Digital currencies generally do not suffer from lack of domain integrity. In a perfect monetary system, the money is all cut from the same material—it belongs to the same domain.

Regarding Referential Integrity: Often with money, the data is written on something with physical properties that reflect the value.

We have seen referential money like the U.S. silver certificates, which are no longer in circulation. These pieces of paper referred to an ounce of silver that was supposed to be safely vaulted away and exchangable. The problem was that it was not true—the silver certificates did not possess referential integrity.

There are now many digital currencies, such as Tether*, that claim referential integrity by binding to a currency such as the U.S. dollar. But, as history has shown, monetary systems that work on referential integrity always fail sooner or later. In other words, if you invest long in referential money, you will lose your ass.

Perfect money has 100% referential integrity. This means that it says what it is and there is no doubt as to what it is. A CloudCoin is 100% a CloudCoin. Bitcoin also enjoys 100% referential integrity.

In terms of preference, a perfect money should be easy to use. It should always be available, transact at any time, and have high portability. Of highest importance is privacy. CloudCoin does not require user accounts and may be the most private currency ever created.

Join us at FreedomFest July 11-14, Paris Resort, Las Vegas, where we will answer your questions and tell you more about this fascinating new money. For information go to or call 1-855-850-3733.

Sean Worthington is a tenured computer science instructor who has taught computer science, information system and database design for the past twenty years. While working on his Ph.D. in Computer Information Systems, Sean realized that monetary systems are information systems and that money is data. Worthington further realized that the rules of databases could be applied to monetary systems. Worthington created the first model of “perfect money” based on database theory and is the author of the book Beyond Bitcoin, The Future of Digital Currency. Worthington is the inventor of the RAIDA (Redundant Array of Independent Detection Agents) which, like the Blockchain, is a “Superbase” that is not owned by an individual, company or nation. The RAIDA allows for CloudCoin, the world’s first Cloud-Based currency and what Worthington claims to be the most perfect currency ever created.