Topic: **MANDATORY UPGRADE REQUIRED** [ANN] B&C Exchange - All users must upgrade - page 37. (Read 174430 times)

What's the block time?

No. In most cases, all signatures will go in the same block.

Is it one signature per block?

It's likely that shareholders will not vote for signers who have not taken the necessary precautions to run an effective, safe signing operation. This includes preparing for the possibility of hardware failure.

An earlier quote is relevant:


It is also important to note that the design of B&C Exchange is very fault tolerant in regards to signers, as mentioned in previous answers. This would include situations where a signer is dealing with a temporary hardware failure or other interruption of service.

What happens if one of the signer's server explodes and all their keys are lost?

Is it generally possible to correct a bid after it has been submitted?

I totally share your view that the auction method keeps small investors a little bit out of the game. At the same time we have to have in mind that point of view of the developers and why they have chosen those thresholds.

I would therefore be willing to support you and help you place your bid as I will take part in the auction. Thank you very much for that article.

For all those skeptical about the trustworthiness of Jordan Lee and the team: I am also very skeptical when it comes to crypto and fundraising and all these things. Nevertheless, one has to admit that Jordan Lee has a clean slate with regard to his achievements in cryptocurrency. Taking into account that he pulled off huge projects where he could have scammed people for quite some money, I am feeling comfortable right now with supporting the development of that exchange.

I feel like B&CEx is a business easier to understand than Nu and better defined -
As a custodian that got elected by shareholders, they sell credits, and distribute the proceeding to shareholders - credits are then used to be pay tx fees

On Nu, custodians receive Nubits that they sell/buy on Markets (that get hacked) and are at the mercy of Bitcoin whose volatility traders hedge against Nubit free stability.
The 1st playing field of Nubits should have been payment processors, exchanges, and gateways (PEGs)
See: https://discuss.nubits.com/t/draft-promoting-nubits-to-internet-payment-processors-exchanges-and-gateways/2037

I am struggling to see how B&CEx is going to bring business to Nu, i.e. convert and transform Nu into a profitable business.

Thank you to everyone who has submitted a bid so far!

If you are planning on eventually bidding please remember to submit it as early as possible to ensure you have priority in the event of a tie.

Your assessment is correct, yes. We would also add that Polvos would only sell his BKC on an approved exchange(s) as outlined in the terms of his custodial agreement with shareholders, and so not necessarily just any exchange that supports BKC.

Here, I suppose Polvos can sell the BKC in any exchange that accepts BKC.
After selling, he or she would have to transfer the BTC proceeds to his or her wallet (B&C client) and then distribute the dividends.
So the only ways to lose the BTCs are the followings:
- the exchange is hacked (in case the exchange is B&C, the likelihood of being stolen is very low since that would imply collusion between several trusted signers)
- his or her client is hacked.

I am correct?

Jordan, here is a question from r/cryptocurrency...


Edit: At first I thought he meant auditing the code to make sure it's secure, but now I'm not sure.

Edit 2: He expanded on his comments here...


Edit 3: Here is the Reddit thread with his comments...

http://www.reddit.com/r/CryptoCurrency/comments/345zng/bc_exchange_is_an_upcoming_decentralized_bitcoin/cqs04nh

Thank you all for your answers. I think I get it now.

Excellent explanation. There's still a lot of work to do but we're pretty much first to enter the competition and these ideas are solid gold. Also, I would rather see the price of NuShares soar than receive dividends. Dividends might sound attractive but in our current state of development they would slow us down too much.

I just wanted to say something about this real quick. While all Nu shareholders are entitled to receive a percentage of the dividends based on how large their equity stake is in the network, it is however not guaranteed that dividends will be given at all. In order for there to be dividends, there needs to be profit for the network. Just think of Nu as a decentralized business in this case. No one in the business should receive dividends if there is no profit.

Unfortunately as you mentioned, shareholders were the victims of 4 centralized exchange failures in which a lot of shareholder funds were lost. If shareholders want to receive dividends, then they need to work hard to figure out how to prevent things like this from happening and to figure out new ways of making profit. If the employees of a business don't put in the hard work and effort, then they won't receive the reward.

Since the February hackings, shareholders have been working hard on these issues. One of the main reasons so much money was lost was because we still had a centralized liquidity operation, with only several liquidity providers managing all the money on these exchanges. To help prevent shareholder funds from being lost again, we've been working on decentralizing our liquidity operations through the development of liquidity pools, in which anyone can join in with their own funds and provide liquidity for the Nu network, also getting paid for it. People don't even need to be elected as LPCs anymore in order to provide liquidity. They simply need to join the pool with their own funds and collect interest.

Another way to prevent this from happening again is Jordan's work on this decentralized exchange, in which our liquidity operations will be protected from hackings and theft. Nu shareholders are still very much in the process of perfecting their product. It's still going to take a long time and a lot of hard work. In my opinion, this is a project that will most likely take years before we see large and consistent profits. I believe we'll get there eventually though, as long as shareholders continue to solve problems and we continue to expand into new areas and figure out new ways of making profit.

We appreciate the questions! We feel it is important that we are able to articulate and defend the design decisions we've chosen. If we couldn't, prospective bidders would not place much credibility in our efforts.


Custodians will not risk any of their own BTC in this design. In contrast to NuBits, where liquidity-provider custodians must place buy and sell walls, BlockCredit custodians will only place sell-side walls. A custodian has no obligation to purchase back BlockCredits they have sold.

A relevant section from the design document:


Let's pretend you have been elected as a BlockCredit custodian by shareholders after you have solicited their votes. Here would be a sample timeline of events from the perspective of shareholders:

Day 1: Polvos is elected BlockCredit custodian. Shareholders vote to provide him with 5000 BKC.
Day 2-7: Polvos sells his 5000 BKC in small increments for BTC. At the end of the 7th day he has 20.000 BTC. He announces that he will send a dividend to anyone who was holding BlockShares at the end of Day 7.
Day 8: Polvos logs into his BlockShares client. He selects the "Distribute Dividends" button, inputs "23:59 UTC Day 7" for a snapshot date, and enters in 20.000 BTC. He clicks "send". All shareholders who are eligible to receive Bitcoin dividends will then receive them, provided they are eligible for a dividend that is greater than the transaction fee required to send it.

Ok, that's a good point I didn't think about and a serious difference with the Nubits/Nushares system.


Aren't custodians risking bitcoins too in the pair BKC/BTC offered in the exchange? If so, custodians could lose both and, as hackings/adminrunnings occur, less and less custodians will be willing to request a grant. Something similar happened in nubits/nushares and, the only way to provide confidence, was to compensate custodians diluting Nushare holders. Why can't this happen here?


It's curious. I'm, at the same time, Nushareholder and criticizing all these subjects but, in my opinion, transparency in this development must be fundamental. I hope you understand me.

We agree. Thank you for your support!

No, we are unable to guarantee a date that the BlockShares production blockchain will launch. Jordan Lee addressed it earlier:

any estimation on the snapshot date?