With Counterparty Protocol technology, we are the tip of the serrated, bleeding, and profitable edge of bitcoin2.0 innovation! We don't need to wait for sidechains!
April 10, 2014 - Abstract:
The next major wave of Bitcoin regulation will likely be aimed at financial instruments, including securities and derivatives, as well as prediction markets and even gambling. While there are many easily regulated intermediaries when it comes to traditional securities and derivatives, emerging bitcoin-denominated instruments rely much less on traditional intermediaries. Additionally, the block chain technology that Bitcoin introduced for the first time makes completely decentralized markets and exchanges possible, thus eliminating the need for intermediaries in complex financial transactions.
In this article we survey the type of financial instruments and transactions that will most likely be of interest to regulators, including traditional securities and derivatives, new bitcoin-denominated instruments, and completely decentralized markets and exchanges. We find that bitcoin derivatives would likely not be subject to the full scope of regulation under the Commodities and Exchange Act because such derivatives would likely involve physical delivery (as opposed to cash settlement) and would not be capable of being centrally cleared. We also find that some laws, including those aimed at online gambling, do not contemplate a payment method like Bitcoin, thus placing many transactions in a legal gray area.
Following the approach to Bitcoin taken by FinCEN, we conclude that other financial regulators should consider exempting or excluding certain financial transactions denominated in Bitcoin from the full scope of the regulations, much like private securities offerings and forward contracts are treated. We also suggest that to the extent that regulation and enforcement becomes more costly than its benefits, policymakers should consider and pursue strategies consistent with that new reality, such as efforts to encourage resilience and adaptation.Download your copy and go build something awesome on Counterparty today!: https://www.dropbox.com/s/n76dosa3hcaldqi/SSRN-id2423461.pdfGreat thx for this!
I just got some time to play around with counterparty. Was looking to integrate it with a project I'm working on.
I need a few high level clarifications regarding this,
I want to be able create and move a bunch of counterparty assets amongst bitcoin addresses on my server.
So far I have used the BitcoinSCI library to create the bitcoin addresses on my server(using php framework). Now I need figure out the best way to create and distribute counterparty assets between these addresses.
Here are two specific questions,
1) I want to create one main asset and a bunch of subassets under that. Does counterparty support subassets yet?
2) I want to be able to move an asset from an issuer address(Address A) to another address(Address B) without Address B needing to make any payment. Think of it as a free asset or "token" that I would like to award to Address B. Is this possible?
Any and all help from knowledgeable people is appreciated. Thx.