A Question to Devs: Can the btc network be adapted to multicurrency transfer?

TKeenan

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Quote from: jakedeez on January 29, 2014, 08:55:38 AM

Would it be possible to build an layer on top of the blockchain which allowed for the transfer of various currencies, both crypto and fiat, through the blockchain? I am guess you would still be required to pay a fee in BTC... unless it were somehow possible to keep track of the various transfers that take place in a block and then offer the fee to the miner in the mix of currencies that were transferred. I am not asking about an alt coin here, it's really not about the coins themselves but rather the transfer protocol. Perhaps it would have to be an alt coin - but one that was decentralized an is supported by a reward system, unlike Ripple Labs.

I think there is great potential in the money transfer aspects of bitcoins, but why does it have to be limited to BTC itself?

Just wondering.

This is presently being built now. Please look at https://bitcointalksearch.org/topic/mastercoin-new-protocol-layer-starting-from-the-exodus-address-265488 or mastercoin.org. The new decentralized exchange will be running in a week or two. Presently, it will do BTC and MSC. You can trade these on the test platform today! In about 6 months I expect Euro and USD to also be included.

Its not a new idea. JR Willett had this idea more than two years ago.

Mastercoin runs ON the bitcoin blockchain. Mastercoin is going to enhance the already awesome bitcoin.

runam0k

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Touchdown

Quote from: BADecker on January 29, 2014, 11:06:56 AM

How about changing the Bitcoin client so that certain bitcoin transactions can be backed in redeemable fashion by certain dollar bills (or $100s).

Every dollar bill has its own serial number that is unique to it and it alone. Why not change the client scripting a little so that a person can lock a specific piece of currency to a certain Bitcoin transaction. Doing this might stabilize the big Bitcoin value fluctuation a little.

I don't have a clue what would happen in the real world, but think about it and reply with your thoughts.

If I had a fraction of a bitcoin tried to the $100 bill in my pocket, I'd immediately go out and spend both.

BADecker

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How about changing the Bitcoin client so that certain bitcoin transactions can be backed in redeemable fashion by certain dollar bills (or $100s).

Every dollar bill has its own serial number that is unique to it and it alone. Why not change the client scripting a little so that a person can lock a specific piece of currency to a certain Bitcoin transaction. Doing this might stabilize the big Bitcoin value fluctuation a little.

I don't have a clue what would happen in the real world, but think about it and reply with your thoughts.

runam0k

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If there's any type of central issuing authority you can forget about the blockchain protocol - it's technology is completely wasted (useless, in fact) in such cases. Unless I have misunderstood the question.

jakedeez

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ICO is evil

Quote from: The_Gloomfrost on January 29, 2014, 10:19:38 AM

Just wondering why you'd want to transfer fiat AND bitcoin on the same chain? Why not have a bitcoin wallet and a 'fiat wallet' with 2 separate chains? The fiat wallet network would be supported by existing and centralized institutions... hmm this sounds familiar doesn't it? Wink

I think the 'pain point' you're addressing is the inability to transfer fiat currency instantly, at a low fee, to anyone in the world. That's the benefit of bitcoin! Plus stuff like USD will be laundered like crazy and would not be allowed to enter other countries 'anonymously'... so why do we need fiat again?

I personally believe it's the transfer protocol that has the real value, not the currency. (Not that I don't believe that bitcoins have value, they are obviously worth, right now, about $800)

I just wonder if we can't apply the real benefit of the blockchain's transfer mechanism to all currencies - as you identified. The part about dollars not being allowed to enter other countries ect, I'd respond by pointing out that is how most of the world's base funding takes place - via Eurodollars.

The_Gloomfrost

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Just wondering why you'd want to transfer fiat AND bitcoin on the same chain? Why not have a bitcoin wallet and a 'fiat wallet' with 2 separate chains? The fiat wallet network would be supported by existing and centralized institutions... hmm this sounds familiar doesn't it? Wink

I think the 'pain point' you're addressing is the inability to transfer fiat currency instantly, at a low fee, to anyone in the world. That's the benefit of bitcoin! Plus stuff like USD will be laundered like crazy and would not be allowed to enter other countries 'anonymously'... so why do we need fiat again?

zeetubes

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I have no idea what the correct answer is hut that is a great example of original thinking. Cool.

jakedeez

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ICO is evil

Would it be possible to build an layer on top of the blockchain which allowed for the transfer of various currencies, both crypto and fiat, through the blockchain? I am guess you would still be required to pay a fee in BTC... unless it were somehow possible to keep track of the various transfers that take place in a block and then offer the fee to the miner in the mix of currencies that were transferred. I am not asking about an alt coin here, it's really not about the coins themselves but rather the transfer protocol. Perhaps it would have to be an alt coin - but one that was decentralized an is supported by a reward system, unlike Ripple Labs.

I think there is great potential in the money transfer aspects of bitcoins, but why does it have to be limited to BTC itself?

Just wondering.

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