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Chit-based remote storage

We propose a model for reliable remote storage founded on contract law. Consumers submit their bits to storage providers in exchange for a chit. A chit is a cryptographically secure, verifiable contract between a consumer and the storage provider. A user can use the chit to request the bits from the provider. In return, the provider must be able to supply the chit's bits to the user according to the terms of the chit. If the storage provider cannot supply the bits, then the provider must pay a penalty. Chits make explicit the penalty for losing data, allowing users to value their data and providers to quantify the financial risk they have undertaken by storing a set of chits. We envision chit-based storage being used as a reliable mechanism for users in pervasive environments.