Correct me if I'm wrong, but don't Ripple and OT also require strong linkage with the existing fiat system in order to confirm contract completion before releasing from Escrow, where a fiat currency is referenced?
And yes, the fiat currency would affect the barter currency a little, but I don't think significantly (this is highly dependant upon the maths and it needs someone qualified to specify this). As I said, this is for use as a currency and not a commodity. It is not exchange rate proof as it uses the existing exchange rate system to stabilise the currency. They key, if it is possible, is that it uses a predetermined algorithm to control that exchange rate rather than being down to regular market forces.
The trust free way can be done through OT's system, or at least the pool & voting systems that have been described in relation to OT discussions, (I think!) if you read up its details.
I'll take a look at your currency once I'm off planes, trains, and automobiles.
Topic: Fixed exchange rate cryptcurrency / OT / Ripple (Read 1287 times)
Quote
Barters are bought from a central pool
You have answered your own question. Even if you could find a way to do this in a trust-free way that was unable to be controlled by the governments, you still have the problem with whatever crony capitalistic bs happens with the fiat currency will affect the barter currency.
I think I have proposed a cryptocurrency that is the best of all worlds--decentralized, relatively stable, and efficient. See my signature if you would like to know more or discuss it.
If volatility is the enemy of Bitcoin as a currency, and it was designed to be digital cash and not a commodity...
Why isn't a cryptocurrency set at a fixed exchange rate calculated based upon current fiat currency exchange rates and a notional number of coins. The coins would effectively be bought and returned to a pool in exchange for a currency.
In principle, this means 1 'Barter' could be $1, give or take, for the long term. It's still de-centralised digital cash but where the exchange rate is determined by algorithm and the Barters are bought from a central pool. People could still sell them if they wished, but anyone could buy or sell at the current exchange rate (minus a small transaction fee to those doing the processing).
This is somewhat related (in my understanding) to Open Transaction and Ripple, except OT has no currency and Ripple currencies don't have a fixed exchange rate relative to fiat, so both miss out on having a stable currency. No party gets rich selling coins (Ripple).
There is probably a really good reason, such a the maths or economics simply wouldn't work, but if the exchange rates are open source algorithms using open data, surely this is better for a currency versus Bitcoin's current commodity issues?
Why isn't a cryptocurrency set at a fixed exchange rate calculated based upon current fiat currency exchange rates and a notional number of coins. The coins would effectively be bought and returned to a pool in exchange for a currency.
In principle, this means 1 'Barter' could be $1, give or take, for the long term. It's still de-centralised digital cash but where the exchange rate is determined by algorithm and the Barters are bought from a central pool. People could still sell them if they wished, but anyone could buy or sell at the current exchange rate (minus a small transaction fee to those doing the processing).
This is somewhat related (in my understanding) to Open Transaction and Ripple, except OT has no currency and Ripple currencies don't have a fixed exchange rate relative to fiat, so both miss out on having a stable currency. No party gets rich selling coins (Ripple).
There is probably a really good reason, such a the maths or economics simply wouldn't work, but if the exchange rates are open source algorithms using open data, surely this is better for a currency versus Bitcoin's current commodity issues?
Jump to: