Topic: Dollar-Backed Digital Currency Aims to Fix Bitcoin’s Volatility Dilemma (Read 6809 times)

How would the network be secured? Would it be done by a central authority or would it somehow be decentralized?

What if realcoin issues dollars via blockchain rewards?

If the price of this so-called 'realcoin' is pegged to the dollar, and the 'realcoin company' issues and redeems them, how can there be any mining reward? If there is no mining reward, what would be the motivation to maintain the blockchain? If the blockchain is not being maintained, how will transactions be validated?

I'm not seeing any mechanism by which 'realcoin' can take advantage of blockchain technology.

I think it is to take advantage of the features of the blockchain.

This is true, but what if you wanted to buy something from another country? Or from an online merchant? Using cash would be impossible in such circumstances. You would have no other choice but to use the banks, credit card companies, and PayPal - and you will get hit with fees along the way.

If you have physical dollars then you would not even need the blockchain (nor would you need to pay miner fees) as you can simply use your dollars to pay for your goods/services in cash.

I think it is to take advantage of the features of the blockchain. The blockchain removes the need for fee-charging middlemen such as banks, credit card companies (Visa/MasterCard), and payment processors (PayPal). Think of it as USD with a blockchain.

I have no interest in it, but I don't see it as being a terrible idea.

So when the usd collapses so will realcoin?

Why not just invest in usd and cut out the middleman (realcoin)?

Well.... thanks for the laugh. I think many people fail to understand why BTC and it's plethora of (functional) babies exist. People are trying to leave the fiat system behind, to actually back one with fiat (IMO) actually increases the DCs' volatility and opens new avenues of exploitation. For a currency to have value, it usually needs to be backed by finite resources and in it's self be finite.

To back with  fiat currency means to value it at the entire fiats' value. Which is diluted everyday as the printing presses never stop running.

Unless they introduce some radical means of limiting this, this will be a flash in the pan and doomed to fail. The evry idea of backing with fiat means opening yourself to national regulation, banking regulation and you can be accused of subversion of bankjing systems , so much can go wrong.

....
Background Refresher: Electronic money needs a way to keep track of who has spent what. We've had (technically) decent ways to do that using authoritative/centralized entities (PayPal, Square, Banks, etc) for a while. And since 2009, we've had a *decentralized* way to do that: blockchain-based crypto-coins.

RealCoin's Problem: If there's a central organization fixing the value of a crypto-coin, it is by definition NOT decentralized, but the whole point of blockchain-style crypto-coins is still to get *decentralized* global consensus. Thus, the entire concept of a a dollar-backed blockchain makes no sense.
....

Bitcoin’s does not have a Volatility Dilemma
rather most human don't like the uptake curve of btc because it doesn't match their time scale of $10 more each day.
"Volatility" it is actually one of BTC's most powerful bootstrapping features that attracts traders and entrepreneurs, media, and gets it used faster.
the 'volatitliy' myth belongs in the same bin as the LTC on GOX and BTC on AMAZON.

So, the people behind realcoin are one or more of the following:
1) Stupid
2) Exploiting other people's stupidity for profit.

It may work. There is a lot of benefit having dollar version of crypto coin. If they can convince merchant to accept it, and make it easy and secure for smart phone users to buy, the potential is higher than bitcoin as most bitcoin users are hoarding it hoping for higher price rather than using it.

It may work. There is a lot of benefit having dollar version of crypto coin. If they can convince merchant to accept it, and make it easy and secure for smart phone users to buy, the potential is higher than bitcoin as most bitcoin users are hoarding it hoping for higher price rather than using it.

Or laugh louder so that we draw attention to the fact that it's technically garbage.  Perhaps if the internet had been a thing in 1980, the word would have spread more easily that the mac was the inferior product and Xerox wouldn't have been relegated to photocopiers, printers and fax machines.  If there's a marketing battle to be won, then we should point out the flaws in our competition where we see them.  And realcoin is definitely flawed.

Sometime in the 1980s I was a student intern at the Xerox Palo Alto Research Center (PARC).  Some years before they had developed the Alto, the first usable personal workstation with an ethernet interface, bit-mapped display (instead of the then-standard 25x80 character display), a three-button mouse, and the basic ideas of a GUI -- menus, buttons, sliders, etc.

With much effort, the PARC researchers had managed to convince the upper Xerox management that those weird things could be marketed.  So Xerox started developing commercial versions of the Alto, that were planned to cost 80'000$ or more.

But, before those machines were ready, Apple unexpectedly launched the first Macintosh, which cost only a few thousand dollars and also had a bitmapped display, mouse, and a GUI with buttons, menus etc.  In fact Jobs had seen the Alto and copied those features from it.

As soon as the Macintosh was announced, someone at PARC collected all its TV ads and showed them in the lab's auditorium.  While most of the audience was a bit stunned and worried, there was a small group who laughed at every "weakness" of the Mac: its tiny screen, the mouse with just one button, the lack of a network interface, the floppy disk, and so on.

Needless to say the Xerox workstations were a complete flop, and Xerox had to pull out of the computer market.  And you all know what happened to the Mac.

So, perhaps it is not yet the time to laugh at RealCoin just because it is technically garbage.