https://blog.ethereum.org/2014/05/24/on-long-term-cryptocurrency-distribution-models/
Useful proof of work in ethereum is a very exciting idea to computer scientists. Using functions in EVM code as the proof of work is so recursive,.
1) The POW helps fund software and hardware research to run EVM code faster, which makes all other parts of ethereum work better too. Whereas asics for bitcoin only made the hash function fast, and everything else stayed slow.
2) This is a convenient and fair way to distribute initial coins.
This is a very complex process for ethereum, but truthcoin can have this advanced behavior with no modification to Paul's design.
By simply wording the predictions for an assurance contract correctly, we can crowd-fund the creation of any sort of cryptographic artifacts. We could pay people to repeatedly execute the python code that runs truthcoin. Someone would re-write all the python in C, and optimize it to an extreme. They would do this to mine more coins and get a reward.
I am starting to think Paul might be right about this: everything valuable ethereum could do, truthcoin could do even better.
In the useful proof of work scheme it takes as long to make a cryptographic artifact as it does to verify the artifact.
So we need the miner of the artifact to provide a large deposit, and be able to have his deposit taken away, if someone else can show his artifact was invalid.
If we have 2 assurance contracts that reference each other, we can do it from a non-modified truthcoin.
1) philanthropists who want to help truthcoin make an assurance contract to fund the creation of an artifact. Bet N moneys.
2) Miner creates the artifact, and bets 100N moneys that the artifact they created is valid.
3) wait time for someone to bet against 2.
4) (2) expires saying that the proof is valid, and the creator gets his 100N money back.
5) (1) finally expires giving the N money to the person who made the miner.
This form of mining works even if P=NP.