Bit-currency Transactional Trust Tools (T3) is a set of tools and procedures based on expressing value through a bit string where the size of the string (bit count) reflects its value, and the identity of the bits is used to distinguish one such digital
coin from the other, and for enabling an
authentication hierarchy that alleviates the
bottleneck of having a single source
coin authentication for all transactions in coins issued (minted) by that mint; also enabling an instant split of a
coin by simply splitting off a portion of the string of the coin, such that the bit count of the split-off string reflects its value. Each coin is comprised of that body string as described above, and a header that contains information regarding coin identifier,
payment conditions, and suchlike. Such bit currency can be carried around everywhere bits are handled, and may be encrypted as necessary. Two online strangers could transact and make a
payment by using the PINprivate procedure where by the strangers create a temporary secret which is sufficient for the payee to access the online location with the
payment, and empty it before any
third party can steal it; the temporary secret is based on the payer pre-calculating several computational tasks allowing the payee to randomly choose a task to compute, and communicating the identity of the chosen task (the temporary secret) by sending back the result, the task being a one-way function, it's unfeasible for any
third party to find the secret before computing all the presented tasks. The bit currency can be exchanged between
software applets carrying out rules of exchange and thereby allowing peer-to-peer networks to work more efficiently, and also allow for peer-to-peer distribution of
digital goods to be carried out while honoring the
digital rights of the
digital file owner, so doing by allowing the mint to
cut a portion of the payment digitally paid by the receiving node and allocate such
cut to the
digital rights owner.