Multicoin, Namecoin, Goldcoin, Silvercoin, OilCoin, 1971coin, backed by bitcoin! - page 4.

Zerbie

member

Activity: 72

Merit: 10

Quote from: Stephen Gornick on July 22, 2011, 10:22:28 PM

Quote from: Zerbie on July 22, 2011, 09:41:26 PM

Instead, make a modified system of contract ownership that can be traded through a blockchain accounting system.

Are you aware of Open Transactions?
- http://en.bitcoin.it/wiki/Open_Transactions
- http://forum.bitcoin.org/index.php?topic=20425.0

Also:
- http://forum.bitcoin.org/index.php?topic=28841.0

Yes. Sorta like those.

I envision a tradeable contract. For example... I create the following text and then sign it with my private key

-------------
Zerbie Contract #: 0000153

I promise to ship the owner of this contract $1 in 90% U.S. coins anywhere in the continental United States.

To redeem, contact me at:

Signed...
PGP key for [email protected]
-------------

Now I do an md5sum and attach it to the block chain in one of my BinCoin wallets. Note that it does not have the text, but simply shows that I own the thing that has the given md5sum. (Add more checksums to be sure...) Now I go and sell this contract to whomever trusts me enough to give me BTC for it. If my reputation is good, I'll get a good price for the contract.

When I find a buyer, the buyer will give me his email address and his BTC address. I will send the text of the contract to him as well as opening my wallet and sending him the ownership of the md5sum I created to show the ownership. The buyer can then do the same for successive buyers of the contract.

When the final owner wishes to redeem the contract, he contacts me, then sends me ownership of the md5sum to show that he owns it and is now redeeming it. I then take his shipping address and send him the silver.

NOTE: A more advanced system would store the contract distributively so everyone can see the text of the contract and there is no need to ship the text via email.

If my reputation is world rewound, then my contracts will trade for a premium. If my reputation is shaky, my contracts will trade for a discount, and will probably be redeemed quickly.

Olomana

newbie

Activity: 18

Merit: 0

Consider gascoins / anti-gascoins. The problem with pegging a gascoin to a gallon of gas like a futures contract is that the holder of the anti-gascoin (the person who is short one gascoin) has unlimited liability, and he can't place an infinite number of bitcoins into escrow. (The price of gas can't go below zero, but there's no limit to how high it can go.) There would have to be some way to manage risk, issue margin calls, etc.

An Intrade-style prediction contract might work better. For example, a contract might settle at 1 BTC if the price of gas is $5 or greater at the end of the year, or settle at 0 BTC otherwise. Contracts are created out of nothing whenever a buyer (long) and seller (short) agree on a price. Maximum escrow is 1 BTC for the short. Contracts are destroyed whenever a short buys back a contract, or at the time of expiration when all contracts are settled at 1 BTC or 0 BTC.

A small fee on each transaction could keep the miners going.

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

Quote from: Zerbie on July 22, 2011, 09:41:26 PM

Instead, make a modified system of contract ownership that can be traded through a blockchain accounting system.

Are you aware of Open Transactions?
- http://en.bitcoin.it/wiki/Open_Transactions
- http://forum.bitcoin.org/index.php?topic=20425.0

Also:
- http://forum.bitcoin.org/index.php?topic=28841.0

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

Quote from: dacoinminster on July 22, 2011, 08:31:03 PM

According to their merged mining proposal I linked to in post #1 above, it IS backed by bitcoin (backed by bitcoin mining, specifically). I think their latest client actually implements the change.

I don't believe you are using the term "backing" properly:

Quote

Today many private currencies are backed by a commodity to increase asset security and nullify inflation, which can be caused by an issuer increasing money supply.

- http://en.wikipedia.org/wiki/Private_currency#Currency_backing

Though there are exchanges where I can convert namecoins to bitcoins and vice-versa, the values for both are free-floating. There is no "backing" as far as ensuring that my 1 namecoin can be redeemed for a specific number of bitcoins.

As far as the upcoming change for Namecoin mining -- yes, those running the bitcoin+namecoin mining will mine for both currencies simultaneously. Both gold and silver can come from the same hole in the ground, but that doesn't mean gold is backed by silver, or vice-versa.

Zerbie

member

Activity: 72

Merit: 10

Why create coins pegged to a particular commodities? Instead, make a modified system of contract ownership that can be traded through a blockchain accounting system. For instance, I issue a contract to ship 1 oz of silver to the holder of a contract I issue and then sell it for BitCoins through a block chain. The owner of the contract can either trade it to someone else for a different type of contract or issue it back to me for redemption. The block chain would use a similar accounting method to determine who the owner is along with added mechanisms to ensure trade takes place smoothly (e.g... one contract for another contract or BitCoins for the contract).

marcus_of_augustus

legendary

Activity: 3920

Merit: 2349

Eadem mutata resurgo

Anti-gascoins ... ? is that something like Mylanta? ... or a brother to Roger Gascoine maybe?

dacoinminster

legendary

Activity: 1260

Merit: 1031

Rational Exuberance

Quote from: Stephen Gornick on July 22, 2011, 08:27:12 PM

You might wish to change the name of the title of this post as it is confusing. Namecoin is not backed by bitcoin.

According to their merged mining proposal I linked to in post #1 above, it IS backed by bitcoin (backed by bitcoin mining, specifically). I think their latest client actually implements the change.

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

You might wish to change the name of the title of this post as it is confusing. Namecoin is not backed by bitcoin.

dacoinminster

legendary

Activity: 1260

Merit: 1031

Rational Exuberance

Here's a conversation I recorded from the future:

Quote

Jimmy:   Gas is sure cheap right now. I wish I could buy all the gas I want at today's prices like the airlines do.
Joey:      You can!

Jimmy:   How? Commodity trading is so expensive . . .
Joey:      Just buy some Gascoins!

Jimmy:   Gascoins? Is that like bitcoins?
Joey:      Yup! In fact, Gascoins are backed by bitcoins, and each Gascoin is pegged to the value of a gallon of gas! Buy all you want now, and sell them later when gas is more expensive!

Jimmy:   Gee. That sounds pretty easy. I know how to get some bitcoins, but where do Gascoins come from?
Joey:      Just convert your bitcoins to Gascoins to buy however many of them you want. It's an advanced option in the program.

Jimmy:   OK, so who am I betting against?
Joey:      You are betting against anybody who holds AntiGascoins

Jimmy:   AntiGascoins?
Joey:      Yeah, it's like matter and antimatter. For every Gascoin, there is an AntiGascoin. They represent bitcoins held in escrow. That is why the Gascoin and AntiGascoin prices don't perfectly follow market prices all the time. They reach their own equilibrium, but they always converge with the current market price due to arbitrage.

Jimmy:   Wow, thanks! I'll try that.

Of course, the "bitcoins held in escrow" would actually have to be a price stabilized bitcoin such as the ones resulting from the 1971coin/hyperbitcoin pairing I suggested here: http://forum.bitcoin.org/index.php?topic=30741.0

dacoinminster

legendary

Activity: 1260

Merit: 1031

Rational Exuberance

This thread is now locked!

I have decided that I like morpheus' idea better than my own, so I am locking my threads about this stuff, and I encourage anyone interested in concepts like this to check out his thread:

https://bitcointalksearch.org/topic/goldcoin-and-stablecoin-proposals-29135

==================================================

Quote from: dacoinminster on July 22, 2011, 05:05:34 PM

I've recently become aware of some of the work that is being done on alternate block chains, and I was pleasantly surprised. Apparently, there are already plans to make alternate block chains piggyback on the hashing power of the bitcoin network:

https://en.bitcoin.it/wiki/Alternative_Chains

I always assumed that alternate block chains would be doomed because no bitcoin users would want to use them since they would compete with bitcoins for hashing power and e-commerce acceptance. It turns out that is not necessarily true!

If I understand what is going on correctly, these alternate chains will piggyback on bitcoin acceptance and usage.

People are already putting these ideas into use:
http://forum.bitcoin.org/index.php?topic=24209.0
http://dot-bit.org/Merged_Mining

I predict that not only will we get alternate blockchains with pegged values, we will also get blockchains that are pegged to gold, silver, oil, google stock, and anything else you can think of. Sweet!!!

All you need is network rules for each chain which hold old-fashioned bitcoins in escrow, then pay them out in proportion to the movements of the commodity being tracked!

It's a bright future for bitcoin. Very bright.

If alternative block chains are created which are pegged to various commodities, and which get their value from bitcoin hashing and holding bitcoins in escrow, there will be bitcoin holders that are worth trillions of dollars, and I don't think that is an exaggeration at all. (Here's how I do the math: http://forum.bitcoin.org/?topic=7985.0)

Some people claim that a distributed currency with a pegged value is not possible. I believe it is possible, and I describe a possible way to implement it here: http://forum.bitcoin.org/index.php?topic=30741.msg387215#msg387215

edit: I think this is so important, I'm paying people to post in this thread. Read the rules and post your appalled comments about my forum abuse here: http://forum.bitcoin.org/index.php?topic=31057.0

There is now a second thread derived from this one ("The Second Bitcoin Whitepaper" http://forum.bitcoin.org/index.php?topic=31645.0). Posts in that thread are also eligible for payment.

Topic: Multicoin, Namecoin, Goldcoin, Silvercoin, OilCoin, 1971coin, backed by bitcoin! - page 4. (Read 12188 times)