Topic: With GLBSE gone, can somebody PLEASE write something like this or better? - page 2. (Read 4838 times)

He specifically said he will move GLBSE to another country in case of regulation issues.

But another idea came through my mind. What if he's trying to build legitimate stock exchange following all the laws and regulations from scratch? I mean... Even if he started to following the laws suddenly, the GLBSE operation was still probably illegal in the past. If he start another company with possibility to for share issuers to move the stocks there, everything would be clean, and authorities could not complain about the past. However he completely destroyed his confidence here, so there is no point to do that anyway. Maybe his target customers are outside of this community...

No he didn't. It needs 4 glbse shareholders to decrypt the database backups in the event of nefarios death. There is nothing in place prior to this in case nefario was lent on by the government and the 4 shareholders disagree on whether hes been compromised or not.

I don't think so. He had clear vision about the future of GLBSE. Problems must came after the conference.

https://bitcointalksearch.org/topic/assets-otc-contract-management-system-105437  heres one.

He lied.

I think Open Transactions may be a hell of an overkill for this. Since a single entity is being invested in, that single entity can be the centralized source that keeps all the ledgers and keeps track of all transactions. It doesn't really matter if they decide to change their system or use a different database, either, since all that they have to store is "Address so-and-so owns so many shares, until we get a BTC signed message to tell us otherwise." And if the company goes down, it won't matter which exchange manages the stocks, since they would be worthless. Admittedly, I am only barely familiar with Open Transactions. I just could never figure out the point of using a second layer to send Bitcoin to someone when you can just send Bitcoin directly. Maybe there is a module in OT that already does most of what I described?

Regarding not being able to change someone's balance, I'm not sure why that is required. A centralized exchange can also arbitrarily change people's balances, though that would not be very, um, nice. And not having restrictions on changing balances means a company that controls the stock can do stock splits etc. without needing permission from everyone.

The point is, yes, there would be a single point of failure, and a single entity to trust, but that point of failure and trust is also the company being invested in, meaning the trust is redundant. If you can't trust the company to do basic accounting, you likely shouldn't trust them with your investment. And to get something like this off the ground, I imagine all that's needed is a simple database, and a not-so-simple front-end.

I don't understand. Is Nefario behind GLBSE the same Nefario who was speaking at the conference? The same smart and confident guy who said if there are any legal issues, he will simply move to another country? Theymos, can you please continue to operate GLBSE until P2P solution is available? If not, are you able to lower the price of the shares you are selling? Or at least open the source code?

Bitcoin addresses can sign stuff but they cannot encrypt stuff, which is a pity since otherwise you could maybe just replace the crypto layer of Open Transactions with a version based on elliptic curves.

The nyms used in Open Transactions are portable though; you can use the same nym on any server, so it still serves as your identity on any server. So if an issuer of assets switches to a different server to issue on, people's nyms will work just as well there to prove who they are.

Most cryptocoins use slightly different addresses than bitcoin does, they are actually able to be translated from one to another but that maybe adds a layer of confusion, and it seems pretty likely that bitcoins will not be the only coins wanting to use the system.

It would probably be helpful for you to get an Open Transactions client installed and get familiar with how Open Transactions works, so that you can make useful suggestions on what additional features it might need as it probably handles most of what you need already.

Starting from scratch to write a new thing to do what Open Transactions already does seems a poor use of effort/resources compared to simply improving what is already done as it is a heck of a lot of code already written and a heck of a lot of testing and debugging already done and it seems to be pretty bulletproof on the most important thing which is keeping everyone's balances correct.

For example one thing you did not even mention is not being able to change someone's balance without them agreeing to the change...

-MarkM-

You probably heard that GLBSE went down recently. I am hoping someone out there can code software that uses BTC address signed contracts and allows companies to issue and track their own stock shares instead of relying on a single third party. In short:

1) Company announces a number of shares for sale.
2) Users bid on shares
3) Once bidders win, they pay for shares, and their BTC addresses become the owners/signature for their shares. I.e. shares are tied to a BTC address, not to users.
4) Company issuing the shares stores the ledger that states "Bitcoin address X owns so many shares," and any dividends get paid directly to those addresses
5) If a user wants to sell/transfer their stock, he sends a transaction message signed by the BTC address that owns those shares, telling the company ledger that the sold shares now belong to a different address
6) Company updates their ledger, and pays dividends to the new address.

This way
- you only have to trust the company issuing shares (and if you can't, you wouldn't buy those shares anyway)
- there are no costs associated with registering or trading stocks unless the issuing company takes a fee themselves
- stocks traded on the open market can be traded through third party auction houses similar to and as simple as eBay style bidding, and can be traded privately among users using OTC.
- shares can be sold by any company in any country, without concern about what regulatory jurisdiction a specific exchange falls under.

I wouldn't think something like this would be TOO difficult, since it doesn't even rely on Bitcoin transactions and blockchain, just signed messages and any means to see what address payments came from. Comments/suggestions/improvements?