Over the past 3 years, the Ethereum project has developed the idea of consensus-by-bet, co-ordination games where millions of stakers converge on a block, and where the path to converge on that block follows a Nash equilibrium.

Two years ago, I designed a system for virtual pseudonym parties, called Proof-of-Individuality, which branched of with the Proof-of-Personhood project, and I’ll borrow the word Proof-of-Personhood for the Ghostbusters consensus mechanism.

The idea is to develop Proof-of-Personhood that is as unbiased as possible. These PoP tokens are “temporary access tokens”, given out each month in global events, in co-ordination games where 5 random people from the planet are grouped together into pseudonym parties, where each party happens at the exact same time.

The PoPs are "temporary access tokens", ephemeral, they are only valid a month, and can be disposed of afterwards.

PoP tokens would better approximate what it means to be a human being, compared to first the definition of personhood as being a male (19th century), then as being either male or female (20th century) and then after 50 years of so of evolution of gender studies then with PoP tokens, being a person is defined as being recognized by 4 random peers on earth.

Ghostbusters, “proof-of-power” and betting pools

Ghostbusters uses proof-of-power, where millions of betting pools, operated by anonymous individuals, are “powered up” by PoP users that join the pool.

A pool with power from 10000 PoP users, would be similar to 10000 ETH in Casper, and a pool with 1000 PoP users similar to 1000 ETH in Casper.

Proof-of-power could provide very broad consensus, and builds on the legacy system of representative democracy, while producing a permissionless virtual state where a free market for governance-as-a-service can live, using dApps.

The pools compete for “power” from PoP users by being competitive in consensus-by-bet, and earning consensus-by-bet rewards for its PoP users.

There will be a distribution of PoP users across the betting pools based on how successful a pool is at betting, and at what distribution each person gets the biggest returns, and at what size the pools are able to produce secure consensus.

An unbiased, global, virtual state, and a free market for nations, codes-of-law, and governance-as-a-service

On top of a permissionless and global virtual state, powered by “proof-of-power”, a pseudo-anonymous consensus system, P2P nationality, like http://uport.me from Microsoft and ConsensSys, and Bitnations idea of a global marketplace for competing virtual nations, and codes-of-law (using the Proof-of-Nomic token) could all live and evolve through a free market and competition.