Topic: DNotes 2.0 - Staking, CRISP Interest, DNotes Pay - page 323. (Read 148866 times)

I really like the video, and am looking forward to more in the series. It is important to learn the lessons put forward by people who have walked the walk before making your own endeavors - there are some major lessons to be learned that can cost you your business that are in the fine print!! If people can take heed of these lessons, many people may be able to succeed / revive their hopes of having a successful business venture.

Alan this is a very inspiring video, your story is the true to life definition of 'building from the ground up'. Those humble beginnings play an impact on just how wide a range of people you can relate to, which is a huge advantage for DNotes. A sizeable number of competitors in our industry have a tough time relating to the people outside of cryptocurrency's notorious echo chamber; people who must be participating if mass acceptance is ever to be achieved.

Welcome minerbro, appreciate the comments. Please let us know if you have any questions, concerns, or suggestions.

How great is it that the DNotes shirt works as a conversation starter? That was something I hadn't even considered. And while the term "digital currency" is still forging its place in our lexicon, I think that the concept of Bitcoin is quickly becoming more mainstream. Then it isn't much of a leap for someone to understand that there can be more than one of them.

The best thing, that can be fairly easily communicated, about digital currency is that you can have multiple copies of it, but still only spend it once. Just ask anyone if they've ever lost or destroyed some cash in their life. You'll always get a "Yes", and hopefully a good tale. When you let them know that their digital currency is backed-up in a record stored on thousands of computers, and it can never get lost, they will instantly see an advantage. If you then save your encrypted password file in a couple of places, not only can you never lose your digital money, you can gain access to it anywhere you have an Internet connection.

The only thing that can be lost is your memory. Either the passphrase, or the place you hid your passphrase if you had to write it down. An advantage of a passphrase over a password is that they can be written down with only minimal impact on their security by using classes. For example, writing down:
DessertHatPlantTravelSong could be used to remember,
JellyBeanieGumBerlinMyWay where the words used in the password are significant to the owner.

Of course, the use of randomly discovered words for a passphrase, and having no reference to it, is more secure. But for those likely to forget and lose things, that just isn't an option.
And there are so many possible variations that it would be very hard to brute force attack. I think getting people comfortable with passwords is fundamental to getting non-tech people comfortable with digital currency.

Its my pleasure DNotes. You guys are awesome and I look forward to all the developments you have planned for the DNotes currency. The future is bright for this coin

Joe, thanks for up-dating this video.

I like to encourage all DNotes supporters to watch and share my videos. You will get to know my background and understand why I am totally dedicated to our missions in the fulfillment of DNotes' vision. I have invested a significant amount of time and money to get the book written and published. I greatly appreciate the encouragement and editing help from our community. DNotes Global, Inc. has been granted 100% royalty free rights to all sales proceeds from this book. I believe that this book will be one of the major contributors to DNotes' success; hopefully to many business owners as well.

I will be spending a lot of time in writing articles and producing videos for the book website. I am very passionate about helping new start-ups and current business owners, and trust that I can make a difference because of my wide-ranging experience of over forty years in different industries.

These mean a lot to me. Your feed-back will be well appreciated. Please share my videos, as you wish, of course. Thank you.

Tim, you are amazing. I like your thought process. Some of your suggestions are very much in line with our vision. I wouldn't go into any details, but five years from now, hopefully earlier, some mobile phone manufacturers will want to be our partners because of our globe reach, scale, and technologies. We have some very innovative ideas that will be added to our strategic road-map at the right time.

"With a few thousand dollars it can easily be dressed up to look like a $10, $20 $100 million (bill) (ICO)." - When the ICO bubble pops, it is going to be painful, and my only hope is that it doesn't take the legitimate projects down with it. On a lighter note, there are quite a few people who are knowledgeable of the industry, calling it like it is:

1. Adam Draper‏

Company: I have no product. I'm raising $40m.
#VC: Not interested
Company: But... it's an ICO.
#VC: Do you think you can make room for me?

2. Neeraj K. Agrawal‏, Communications Director at CoinCentre.org
 
ICO  =  "Insane Clown Offering"

 

"It is becoming nearly impossible to find the "rough diamond"." - They can't find the 'rough diamond', because they don't know what the diamond looks like. Most people outside the industry don't understand what is important and/or possible in cryptocurrency (this includes all ICO's), and the majority of people in cryptocurrency don't understand the financial and business world they are expecting their crypto/token to take over.

You know, in the end, all this discussion about money and value boils down to a very old, deeply held principle: If you and I agree something has value to both of us, then it is so and we can trade. Ergo crypto.

PS: Love the shirts! Guess I'll have to order one...

Mine showed up in the mail yesterday. The shirt is black and the logo is gorgeous. Wore it to pick up a few coils at the vape shop, and had several people ask me what it meant. Sadly, the term "digital currency" didn't seem to register with anyone other than the owner of the shop (who told me that he owns some Bitcoin). Once the word "Bitcoin" entered the conversation, however, we were able to have a nice conversation about DNotes, its potential benefits, and the company's broader vision and goals. Thanks to everyone involved in the shirt's design and manufacture. It's truly a work of art, and a great conversation piece.

Will post a pic when my wife gets around to taking it. I am the master of blurry photos and am no longer allowed to utilize cameras of any kind. In fact, I'm pretty sure Congress passed a law to that effect a few years back...

Burger King to Accept Bitcoin in Russia

https://dcebrief.com/burger-king-to-accept-bitcoin-in-russia/

Looking good! I agree it pops out more than I expected on that color.

That is really cool, MiningHabit. Imagine that one day we all go to a DNotes convention wearing a DNotes T-Shit and all going shopping with a DNotes Multi-currency card. That will be awesome. The world is changing rapidly but the process of change is challenging and can be quite complex, especially, when money, regulatory constraints, "old-school", the establishment, etc are involved.

DNotes is much more than just a decentralized digital currency. Unfortunately, on the surface, we are just like any other digital currency - an open-sourced copy of Bitcoin - the pioneer. Launching a digital currency or a "digital asset" is the easiest part. With a few thousand dollars it can easily be dressed up to look like a $10, $20 $100 million (bill) (ICO). It has been done with much more to come. Frankly, our industry is getting overwhelmed and becoming quite confused. It is becoming nearly impossible to find the "rough diamond".
Invest with caution.

I am spending a lot of time getting ready to officially launch the book web site -  https://fourpillarsofbusinesssuccess.com/ This is one of DNotes Global, Inc's assets. Although I have personally spent a whole year writing the book as well as spending a significant amount to get it published, 100% of the sale proceeds are going to the company. Perhaps, just as important Chapter 15 of the book is about the DNotes' story. Don't under-estimate the enormous long-term value the book can bring to the party - contributing some real intrinsic value. Check it out from time to time as new contents are added. This is one of our strategic building blocks and they are all linked to give us powerful synergistic impact.  

I really like how you enumerated the value aspects of an item used for a medium of exchange. It made discussing it further much simpler.

As for your bartering example, for the purposes of this discussion it was fine, but it did make it look completely unworkable unless you were the fishing tribe trading fish with the banana tribe and nothing else. Feel free to re-post the formula where there is a society of 100 people. There are 100 item types. Each person has 10 item types to trade, and 10 desired item types. The 100 item types all sit on a bell curve of the number of people that possess one. The same bell curve is used for the number of people that desire one. And the time it takes to ask if any of my ten items have trade potential with any of your 10 items is 1 minute. We're all at the market on market day.

My guess is that this formula will get your transaction time below the 9,000 hours mark.

I can understand how your example incorporates feedback loops that amplify market activity. It also focuses attention on aspect (2) which DNotes has the most influence over. How simple is DNotes to trade for goods and services? How simple can it be in the future? What is the minimum achievable time to get there?

I think a good starting point to answer the 'ease of use' aspect of (2) is to list the known barriers, and then determine what is being done about breaking through them.

a) Mobile functionality.
--1 All offline trade is done outside of the house, so a mobile device capable of exchange is required.
--2 Mobile devices are battery dependent so software must use minimal power.
--3 Mobile devices have limited storage, so partial chain transactions must be possible.
--4 Data can be expensive via network, but cheap via WiFi, so data usage must be optimised to reduce cost.

b) Adoption rate.
--1 To trade DNotes for product or services, both parties must be able to give and accept them. This requires a level of user adoption.

c) Speed.
--1 Traders won't want to spend more than a few seconds confirming that the transaction has been successful.

d) Cost
--1 The customer, trader, or both, will have to accept a minimal transaction cost, or in some other way contribute to the network that maintains the service and does the work.
--2 People are happy to pay a fee or percentage for convenience and security. This value proposition will influence adoption and usage rates.

e) Visibility - clarity
--1 Seeing how much you've got and what you've spent needs to be as simple as glancing into a purse.

f) Privacy
--1 Many people don't care if you can see that they bought bread. But just as many have personal lives where their purchase history, or just the shops they frequent, can be a cause of embarrassment.

g) Confidence
--1 Knowing that the money in your wallet will be worth something when you wake up tomorrow.
--2 Knowing that your money won't disappear if a company, server, or software crashes.
--3 Knowing that the only way to get your money is with your consent.

h) Web services and plug-ins
--1 How easy it is for website developers to implement a payment portal.
--2 How easy it is for hosted users like those on Wordpress to implement a payment portal.

i) I'm sure I have not thought of everything.

Having a comprehensive answer to these questions, including a projected timeline would be really interesting. But I also understand DNotes' policy of doing, not hyping and claiming.

Wow! Thanks for posting the photo. It looks like a good clean print too. I'm pleased with how well the grey shows up on the dark shirt too. Nice and subtle. Now you just need to make a badge, with a QR code for your DNotes payment address, to pin on.

I see a good conversation going on here. I may add my own thoughts / elaborations every once in a while.

Both of you have put forward good cases / reasoning about what is, and what is not intrinsic value. My personal opinion tends to be one that constitutes a 'nearer' and 'longer' term paradigm depending on meeting set conditions regarding trust networks.

Gold in my view has very little, if any 'intrinsic' value. You can't eat it, and looking pretty doesn't really count for anything (that's another subjective value, just like a painting in my view). You can use it for teeth fillings and in some electronics -- for which copper and silver have some advantages as alternatives -- and that's about it. Gold is valuable because it is historically rare, and a subjective cultural value associated to it.

This subjective value then takes us to a medium of exchange value, based on its rarity. It's medium of exchange value, in my view, is the product of the aforementioned cultural subjective value for its use in jewelry etc. This means that people are prepared to receive it as a form of money, for the sake of history, and a relative rarity limited by how much is mined every year. Tim Marsh has very well identified that people will always be prepared to pay a set price for things that they value - whether these things be based in cultural value (art, and jewelry etc), or an obscure skillset, or any other perceived value. Gold is no different than cryptocurrency with respect to perceived value in my view. The applications of blockchain itself, could be argued, to have a value scope much larger than Gold ever can.

So gold and crypto have:
1. A subjective value based on culture and rarity, based on their intrinsic use-case value.
2. A medium of exchange value as currency on top in surplus to 1,
3. A speculative value based on future predicted value that is rooted in predictions on 1 and 2.

We focus on creating an intrinsic value behind DNotes - a token that is mathematically limited in supply, by backing the currency with the profits of a separate company that provides value in the modern world's free-market. This approach exploits the value in real-world services that people view as having subjective value, and those profits are then are funneled back into the ecosystem. Thus by providing subjective value to customers, the return on it is a floor-price value (intrinsic value) along with further subjective value from the reinvestment to create a wider offering of services (wider ability to function of medium of exchange). These offerings will be financial and investment services, turnkey blockchain solutions, banking, VC and crowdfunding, news, and other services. The growth of the separate company (DNotes Global) creates a growth feedback loop into the currency through exploiting 1 and 2 above.

Point 3 is more a mathematic trust model of game theory. The more value is built into a system, the higher expectations for future value become. The higher expectations for the future become, the more this speculative value rises, and thus subjective value (1) use value (2) rise today as the network becomes more widely known and accepted.

Ergo, subjective value and medium of exchange value increases lead to speculative rises, which feeds back into more exposure and network effects, bringing us round circle to even more subjective, and medium of exchange value.

So speculative value can loosely be seen as part of this growth loop trajectory. But expectations can not be controlled, though perception can be managed, and a math game of trust must be played. Trust is therefore an economic primitive; it is as basic to economic transactions as self-interest. DNotes works to be trusted, and this trust helps to maintain expectations of the future. I know this is a lot of logical sequential flows and re-used terms, but I need to explain it in steps.


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While I'm here, I might as well touch a little more on medium of exchange value for those interested. Enter Bancor's astute observation supposedly worth 150m in ICO sales: the "double coincidence of wants" problem.

Money is required because of an economic problem called the "double coincidence of wants". Before money there most exchanges that didn't involve violence were done through barter. The problem with barter was that a person who wanted to purchase something also needed someone else to want what they had to offer.

This creates a search cost. In a single attempt to trade, you must spend time finding someone who coincidentally wants what you also want. If you don't have what they want, you need to find something that they DO want, and then try trade for that first... but then of course you need to find somebody who has that... and what if they don't want it? The cycle repeats ad infinitum.

So:

J = the number of goods in the economy
J²= The possible combinations of trade in the economy.

J² - J = the possible trading combinations for you (because you won't be trading with yourself).

Ergo: the probability of finding a trading partner who has what you want is 1/J² - J) on any given attempt. And J² - J is the mean number of attempts before you'll find this "double coincidence of wants" for a given encounter (a successful trade).

So, if there are 100 goods in the economy:


The chance you'll find what you want in a single attempt: 1 / 100² - 100 = 0.0001%
The mean number of attempts until you find what you need: 100² - 100 = 9900

Now, back to the search cost component... if "a" is the amount of time that it takes you to find what you want (let's say 1 hour), so a = 1, then the equation is:

a(J² - J) = 1(100² - 100) = 9900 hours...



Enter the fiat monetary system:

1. You acquire money, then you trade the money for whatever you want. There are two transactions (so a=1, so search costs are 2aJ). Everybody accepts money, but they still have to 'want to' trade with you.

The probability that you'll find what you want: 1/J = 1/100 = 1%
Mean number of searches to find it: J = 100

There are only

Search costs = 2aJ = 2 x 1 x 100 = 200.

Viola. Now, the higher the number of products offered in the system, the larger the time saving made by using money than using barter.


So this is basically bancor's 150m ICO idea - solving this problem for currencies by having a 'reserve currency' that has no current value to act as a reserve to save you search time - which manual exchanges already do. They want to be the people who save you time because they view each cryptocurrency as a "barter" system, even though at any time any of us can go to an exchange and know exactly how to get whatever currency we want - search cost is literally a few clicks away. They have other ideas on how to reduce the spread between crypto - but I'm still doubtful their model can work. Even if Bancor tokens become worth a lot. The "PhD" economists who agree with their model are mainstream economists who are always last to figure out what is going on in the world, and hold PhD's in "science fiction" economics, which is why they'll be watching bancor with a keen interest. So listen to whoever really.

I feel like a sartorial genius, sporting such fancy new threads today at the office....

There is a new report out today from the World Economic Forum on blockchain and cryptocurrencies. I didn't have the time to read much of it, but it seems to be a good 'education' for the decision makers of the world.  It is on my never-ending to-do list...   


Realizing the Potential of Blockchain

A Multistakeholder Approach to the Stewardship of Blockchain and Cryptocurrencies

“The platforms that will win will be the ones that can fulfil
both the operational and the governance requirements
of a range of applications – because you are not going to
move equity settlement, for example, to an environment
that cannot meet the disclosure requirements of capital
markets regulators,” said Jesse McWaters of the World
Economic Forum. “Capital markets regulators are not going
to change their view on what should and should not be
disclosed simply because the process is now occurring on
a blockchain.”

Perianne Boring, founder and president of the Chamber
of Digital Commerce, which has over 100 members from
the digital asset, blockchain and traditional capital markets
industries, said, “At the platform level, efforts to assist with
scaling and interoperability are in most high demand.”

Bitcoin, the largest cryptocurrency and platform by value,
volume and hashing rate (a measure of participation),
started as an experiment in monetary theory, where the
network functioned in service of the bitcoin token of
value. Satoshi Nakamoto attempted to align stakeholder
incentives through the code itself, and the technology
thrived in its early years, blossoming into the ecosystem we
know today.

In our research, we found that code alone has been
insufficient. Open-source collaboration is a great organizing
principle but it’s not a modus operandi for making big
decisions and moving forward. Open-source projects like
Wikipedia and Linux, despite their meritocratic principles,
still have benevolent dictators Jimmy Wales and Linus
Torvalds. To many observers, bitcoin has a governance
crisis. As with all disruptive technologies, competing
interpretations of Satoshi’s vision have emerged. Even
the core blockchain contingent has begun splitting into
different cryptocamps, each advocating a separate
agenda."

https://www.weforum.org/whitepapers/realizing-the-potential-of-blockchain      http://www3.weforum.org/docs/WEF_Realizing_Potential_Blockchain.pdf

Every once in a while, a great comment shows up from a well informed reader. 


From Forbes:




https://www.forbes.com/sites/jasonbloomberg/2017/06/26/what-is-bitcoins-elusive-intrinsic-value/#7838fdf87194