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Electricity as a Currency

Author: Youngjin Kang

Date: 2022.10

In the future, people will be able to use electricity as a currency.

The future internet has a built-in protocol which supports direct exchange of electrical power between any pair of users. The private key of the owner of any batch of electrical energy will be encoded in the form of slight frequency variations in the power line's high-voltage AC waves (similar to FM signals).

Sending electricity from one IP endpoint to another will simply be part of the existing HTTP protocol. That is, the amount of electric charge that is promised to be transferred to the recipient will just be one of the parameters of the sender's HTTP request header.

Electrical substations in the recipient's local area, with the help of inter-data transformers which automatically convert fiber-optic IP/TCP signals into their AC analogues, will figure out who owns which electrical impulses within the stream of power that has been being transferred concurrently, and redistribute such identifiable blocks of energy to their appropriate owners.

Being able to send energy directly to someone else through the internet allows people to use it as a global currency. Inflation is not a primary issue here because the only way to increase the total amount of currency in circulation is to generate more electricity (which subsequently gets consumed away anyways).