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.