This idea isn't new: I called it middlecoin when I had it:
https://bitcointalksearch.org/topic/a-decentralized-anonymous-exchange-between-chains-31643
https://bitcointalksearch.org/topic/a-fee-only-chain-before-the-miners-reward-halves-32258
Later I discovered that you can do atomic trust-less exchange between coins using contracts and I abandoned the idea.
Topic: Conditional Coin (Ccoin): The decentralized trading coin (Read 576 times)
I think it's absolutely necessary, and not that hard to build. The questions that remains is where does the Ccoin come from/go to? Is it destroyed in the transaction? Does it go to the block miner like a transaction fee?
In fact, that's not bad, right? If it went to the miner, there would be an incentive to mine: Nominal coin generation + transaction fees, just like how it works now.
So in fact, you wouldn't need an alt-chain for this: You could do it directly in the bitcoin block chain itself, and simply send the actual money to yourself in order to post the transaction.
Amirite?
In fact, that's not bad, right? If it went to the miner, there would be an incentive to mine: Nominal coin generation + transaction fees, just like how it works now.
So in fact, you wouldn't need an alt-chain for this: You could do it directly in the bitcoin block chain itself, and simply send the actual money to yourself in order to post the transaction.
Amirite?
The sole purpose of this coin would be to allow for decentralized trading across the crypocurrencies.
Any transfer of the Ccoin would be conditioned on certain activity happening on another crypto network (bitcoin,litecoin,...) being observed first before the Ccoin can successfuly be sent from address A to address B.
Here an Example as to how this would lead to decentralized trading:
Suppose user B wants to purchase one Ccoin for .1245 BTC.
(1) User B Post's a message on forum/marketplace with his Ccoin Address
(2) User A is willing to transact.
(3) Using the Ccoin client, User A sents 1 Ccoin to User B's Ccoin address, with the following condition: 0.1245 BTC must be observed on bitcoin network being transferred to User A's BTC address.
(4) The conditional statements are all required inputs before coins can be sent. If statement is not met within a certain amount of time (could alse be user input variable), the transaction is invalidated and coins go back to User A's wallet.
(5) User A alerts User B of the pending transaction, which can be observed as verified by the network awaiting conditional statment to be met.
(6) User B sends .1245 BTC to User A's address, network verifies BTC transaction and CCoin network releases coins to User B.
This entire exchange is done with no centralized third party. Ccoins will gain value due to their exchange ability, and as crypocurrencies begin to trade against it. A user could convert litecoin to bitcoin by first exchanging litecoins for Ccoins and then doing another exchange of the Ccoins for bitcoins.
What do you guys think?
Any transfer of the Ccoin would be conditioned on certain activity happening on another crypto network (bitcoin,litecoin,...) being observed first before the Ccoin can successfuly be sent from address A to address B.
Here an Example as to how this would lead to decentralized trading:
Suppose user B wants to purchase one Ccoin for .1245 BTC.
(1) User B Post's a message on forum/marketplace with his Ccoin Address
(2) User A is willing to transact.
(3) Using the Ccoin client, User A sents 1 Ccoin to User B's Ccoin address, with the following condition: 0.1245 BTC must be observed on bitcoin network being transferred to User A's BTC address.
(4) The conditional statements are all required inputs before coins can be sent. If statement is not met within a certain amount of time (could alse be user input variable), the transaction is invalidated and coins go back to User A's wallet.
(5) User A alerts User B of the pending transaction, which can be observed as verified by the network awaiting conditional statment to be met.
(6) User B sends .1245 BTC to User A's address, network verifies BTC transaction and CCoin network releases coins to User B.
This entire exchange is done with no centralized third party. Ccoins will gain value due to their exchange ability, and as crypocurrencies begin to trade against it. A user could convert litecoin to bitcoin by first exchanging litecoins for Ccoins and then doing another exchange of the Ccoins for bitcoins.
What do you guys think?
Jump to: