Topic: DNotes 2.0 - Staking, CRISP Interest, DNotes Pay - page 110. (Read 148870 times)

Good arbitrage opportunity for anyone who wants to try out this new exchange-
Buy support up to 1750 sat on listex.io (currently only BTC withdrawals) https://dashboard.listex.io/trading/notebtc
Note sell orders as low as 1050 on Mercatox https://mercatox.com/exchange/NOTE/BTC

I would consider many cryptocurrency/token exchanges more similar in functionality to a bank, than a currency or securities exchange. As soon as an exchange engages in lending activities, I'm pretty sure that puts them into a different regulatory classification. Many financial institutions offer currency exchange services, but no currency exchange services can offer other financial instruments like financial institutions can.

That's a tough one, and I guess people and businesses should always have a choice. So, in that case, some standards for "appropriate" fractional reserve would be in order. However, I would still reserve the very top rating to exchanges that don't engage in this. I personally think that fractional reserve banking isn't really the place of an exchange, plus the exchange already profits on trading fees so there isn't a need to try to figure out a way to make money while making everything free (as an American bank kind of has to these days). The trading fees are already accepted practice. Some exchanges discount for makers, but not all do and it's not a major expectation. So, it's not like the exchanges can't make money without fractional reserve schemes.

My initial thought would be to agree with you on banning fractional reserve lending, but if a digital group wants to or needs to capitalize on this untouched opportunity then maybe they should be allowed to? All we can do is inform the public to the best of our abilities so they can make wise decisions. Since the majority of new fiat money is created through fractional reserve lending, a digital token should be able to function in the same manner. But don't get me wrong, I think it will end the exact same way as the countless other currency debasement schemes that have taken place over the past several thousand years; but they will never gain such widespread adoption with an informed public. That being said, the industry needs some way to fund oversight and enforcement, because if there isn't someone willing to back up the rules, they aren't worth the paper they were written on. I highly doubt that most cryptocurrency users will be willing to fork over the money to protect their investment, so some sort of debt based monetary system may be a necessary part of the equation.

How about NO fractional reserve banking at all. Just use funds the way the customer thinks they are being used. If a customer wants to tie up some funds in a loan, maybe said exchange could offer some options. A few exchanges already offer the ability to lend to margin traders at interest and that's always fun to participate in if you have some BTC you're willing to tie up for a few days. There could be some kind of interest bearing loan for a set amount of time where the user lends money to the exchange for the exchange to invest in infrastructure or whatever and the loan gets paid back in an agreed upon manner. But I don't think an exchange should ever believe that because they consistently have a certain amount of funds on their exchange at any given time, they are free to spend those funds in other ways. To be able to do that, you really need to be a bank, not an exchange, and it's arguable as to whether or not banks should even be doing that in the first place.

The way in which limit orders are processed needs to be fully disclosed. Most people assume limit orders fill in the order they were placed. That should be stated. If there's a different process, that should be disclosed as well. If there are hidden orders, that needs to be disclosed (not the individual hidden orders, but the fact that there are hidden orders), and the way to place a hidden order should be clearly explained.

Any wallet maintenance that disables any part of the wallet function (such as withdrawals, deposits, etc.) needs to be done with very regular progress updates and ETAs for going back online. And if for any reason an ETA can't be reached, then a new ETA with a good explanation for why earlier one wasn't reached needs to be posted. All that info should be accessable from each user's wallet page. That will cut down significantly on support requests so I don't see why more exchanges don't do this anyway.

State of the art security for customer funds needs to be a high priority. I believe specific security standards should be developed by IT people who understand that stuff. Related to that, there should be standards set for how many "glitches" are allowed per day or any other interval, where things aren't working as expected, and standards can be drawn up for how to minimize those issues, which are usually related to scaling. Some kind of minimal infrastructure could be a requirement to receive a certain type of rating (such as A, B, C, etc.). I think in a similar way to how there are standards and recognized procedures for how to build bridges, automobiles and airplanes, there can be those standards and procedures for how to build exchanges. Some things that you can throw together in your garage may be OK for a very small group of people but won't hold up when your user base grows beyond a couple thousand users.

All fees need to be clearly disclosed both ahead of time and as transactions are being set up.

A really nice feature BitTrex has is the ability to go straight to a coin's wallet from the market page so you can make a deposit of that coin without leaving the market page. Another feature I like in BitTrex is having a coin hyperlinked to its market so you can go directly to the desired market from your wallet.

Thorough transaction records need to be kept and made accessible to users via export and API at any time (with maximum allowed "outage" periods). Trading records need to include what coin was bought, what coin was sold, and how much of each, time stamp of trade, and what fees were paid in what currency.

Full disclosure on procedures for customers reclaiming funds in the event of a hack. I would like to log in to an exchange and be able to know ahead of time how the exchange will handle the return of my funds if despite all security measures, funds get stolen. The main reason is that the better prepared to handle an event such as a hack resulting in loss of funds, the less likely such an event is to happen.


I'm sure I can think of more...

Great question.

As Joe notes below, the effort to tell the world about DNotes Pay is already underway. With that said, though, there's nothing to prevent others from copying the idea. In fact, I would be surprised if that doesn't happen, since it happens pretty much everywhere you look in the marketplace. There's a reason that we have so many different types of soda, cars, toilet paper, potato chips, and so many of the other products that we find in our supermarkets and retail stores. Someone comes up with a great idea, and others follow along and imitate it. I fully expect one or more projects to move to create a similar payment system. It's almost impossible to fully protect ideas once they're out of your head and into the public square.

The thing is, though, that DNotes Pay is part of a broader ecosystem that others will struggle to replicate. Few would even want to attempt the feat. And without that ecosystem, it doesn't really matter if someone else tries to say that they were first. What matters is what they are able to accomplish with the idea. Unless they have a strategy to effectively push toward mass adoption, they're not likely to make much of an impact.

Of course, this is an issue that is likely to come into play in the months and years to come, as DNotes Global continues to innovate and release additional products and services. There will always be imitators.

Thanks Brandon, this will be helpful for development of a DNotes exchange. Abiding by the existing laws will be very important for creating a long term solution for exchanges.

Thanks The Chezzz, marketing DNotes Pay will be an ongoing and multi-pronged effort, as part of our package of offerings.

You can see our first press release here:
https://bitcointalksearch.org/topic/m.41860816
Which has already started making it's way around to major financial sites, and CryptoCurrency news sites, and social media. Reference Google search here

We will reach people where they are looking for easy and cheap ways to accept payments. That is why integrating into existing web payment and ecommerce platforms will be important.

Cryptocurrency Exchanges Should be Self Regulated - US Think-Tank
https://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/

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I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?

First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown: https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/

Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.

POLICIES
-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.

STANDARDS
-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold

GUIDELINES
-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities

This is exciting news!!!! Other than reading about it here how will the public learn that we are the first to do this? Others might find out and make it happen quickly with their organization and say they were the first to have it working. Then DNotes is second. Just asking how is going to be advertised?

Agreed Tim, well said. Running your own server just for the daemon / wallet to run and manage transactions is simply not a viable solution for the majority of people who want to sell products. If we want to truly be an inclusive digital currency for the benefit of everyone, we need to come up with solutions for everyone to be able transact between two parties.

That is exactly what we are doing, we are providing solutions from the ground up, rather than form the top down. This is what makes DNotes and DNotes Global, Inc. concept so amazing. It is actually beneficial for DNotes Global to act in the benefit of the majority of people, rather than just the ones with the money. What's good for DNotes is good for DNotes Global, and vice versa.

I'm really looking forward to the next releases of the invoicing scripts that are in the works! I find the current solution rather impressive. There is simply no other solution to date that I have seen (and I've googled) that completely disintermediates payment processing to just buyer and seller. The only alternative to using middlemen is to run your own bitcoin wallet as a server -- and that requires technical skills, security skills, and includes additional cost and complexity that just wouldn't be feasible for small businesses. In every other shopping cart instance that exists, creating invoices, receive payment, and distribute goods online requires paying third party middlemen fees that make the cost of online business much more than it needs to be!

DNotes' solution does away with all of this, creating one of the first true "killer apps" for cryptocurrency in the blockchain-sphere. Bitcoin evolved ledgers to solve the double-spend problem to make decentralized payments possible. DNotes is actively making that technology useful for mainstream adoption.

And to think Joe was bouncing ideas with me some three-or-so years ago for this particular concept, before it was announced mid 2017 as a feature of DNotes 2.0. Now the first experimental versions are releasing, with a range of other shopping cart integrations.

Leadership is a differentiating requirement within decentralized systems that people often don't immediately understand isn't it Alan!

What is inevitable, even in an open-source environment is that there are a team of developers with some type of hierarchy or influence over the network. While there are many ways to control what is finally implemented into a decentralized currency through democratic voting systems, and the end of the day without a form of strong leadership there is little chance that any project can survive and thrive as a purely decentralized system.

This is what makes trust in your leaders, and the competence of leaders themselves so important. DNotes has the unique strategic advantage that it is not operated by young and excitable twenty-somethings who can certainly hype a product, but much less deliver among the nuances that competitive strategy requires, but a 45-year business veteran who was there as a pioneer in the last two technological revolutions. When I look back and think on it, the first thing back in February 2014 when DNotes launched that attracted me to the project was the high emphasis on business strategy, what sealed the deal was knowing the project sat within competent hands who had experience working with new technologies.

It is my belief that most everyday people who are new to this industry, or who have yet to come will think just the same.

That is correct, Tim. As I have mentioned many times in the past, to gain mass adoption majority of the transaction must be between two parties without the control of any central authority or middleman, at nearly zero cost.  

That coin or coins must also solve a whole array of problems including inclusiveness, trust, security, usefulness, currency stability, liquidity, in compliance with existing laws and more.

DNotes Global is committed to providing the leadership and management to assist DNotes in gaining mass adoption. It will not happen overnight, but our path is very well defined. We will continue to deliver solutions.  

However, we are confident that the coin that gain mass adoption will be quite valuable. Meanwhile, our focus is to build stakeholder value and let the price of DNotes take care of itself.

It is almost impossible to overstate just how important this innovation will be going forward - and not just in the technical sense. Sure, it represents a true game-changer for individuals, companies, and organizations - providing an almost cost-free way to engage in online commerce, which in turn opens up new opportunities for micro-payments and other innovative solutions. Jut as important, though, it is an inclusive solution that perfectly aligns with DNotes' promise as a trusted, inclusive digital currency for everyone around the world. As Alan notes, "No one shall be left behind."

It should also have a profound impact in the area of public perception, once more people become aware of and understand its benefits. All those industry promises and snake oil solutions that Alan referenced sounded good at the time they were made, but the crypto space has been slow to advance toward any of those goals. Too many projects have contented themselves with cash-grabs through ICOs or speculative price increases in the crypto markets, and it's sometimes easy for outside observers (and many within the industry for that matter) to start to dismiss the industry's promise of change as nothing more than hype. As usual, DNotes is a different type of project, with a different type of approach to solving real-world problems. This payment solution is just another example of why DNotes will succeed in its efforts to become the world's trusted, inclusive digital currency solution.

Report: Crypto Could be ‘Mainstream Payment Solution’ within Ten Years

https://dcebrief.com/report-crypto-could-be-mainstream-payment-solution-within-ten-years/

Nice work guys! VERY nice! This shows what can be done with talent and dedication. Go DNotes!