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Offline Method-X

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Source: http://www.coindesk.com/hedgy-hopes-tackle-bitcoin-volatility-using-multi-signature-technology/

What are your thoughts on the utility of a solution like this?
  • Pro: It's not centralized.
  • Con: Can't send funds directly from person to person.
Relevant quotes from the article:

Quote
“Imagine I have 1,000 BTC and want to enter into a forward contract to sell 1,000 BTC in three months for $500. At the end of that three months, my 1,000 BTC at $500, or $500,000, will still be worth $500,000.”

Quote
“When two people enter into a contract, the collateral is always held in a multi-signature wallet. And the only authorization we have is to determine which party gets what with our signing key at the end of the contract. We don’t hold any of the funds.”

Quote
“We’re not holding the funds, we’re not taking custody. Our vision and what we’re building here is a smart contract that executes itself. Once it’s released, it’s released into the block chain.“

Quote
“[The] merchant product is called the BitLock. Enter in an amount of bitcoin you want to hedge, and we take care of everything else.”

Offline gamey

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Re: Hedgy tackles Bitcoin volatility with multi-signature futures contracts?
« Reply #1 on: October 19, 2014, 02:33:12 AM »
NHZ is a coin that some people have been working with that show up on the mumble hangouts.  This is either implemented or what they are working to implement.

Is it anything but an escrow system ?  So anyone can have a futures contract if they put up escrow and the source of the escrow decision can be trusted to make the correct decision. 

I didn't read the article, just your quotes.  Meh unless there is more to it.

Lol - Do they mention how they put USD in a wallet by any chance ?   

Actually this would likely be some future addition to a BTSX now that I think about it..

2nd edit - No probably not.  We have bitUSD + price feeds so it would never need to be a multisig account.  I mean unless a consensus network controls the third account, then it is centralized.  TBH I don't even really know what "smart contracts" are so maybe I should shut-up.
« Last Edit: October 19, 2014, 06:17:52 AM by gamey »
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Offline Method-X

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Re: Hedgy tackles Bitcoin volatility with multi-signature futures contracts?
« Reply #2 on: October 19, 2014, 11:37:27 PM »
Lol - Do they mention how they put USD in a wallet by any chance ?   

I don't think it's meant to track USD or even be transferrable. It's service is meant to plug into wallets and allow its users to push a button and peg their balance manually. It's just like Coinapults Locks but the owners can't run off with the funds and they can't be seized, etc.

Anyone else get a chance to look at this?
« Last Edit: October 19, 2014, 11:40:12 PM by MeTHoDx »

Offline Rune

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Re: Hedgy tackles Bitcoin volatility with multi-signature futures contracts?
« Reply #3 on: October 19, 2014, 11:42:37 PM »
Lol - Do they mention how they put USD in a wallet by any chance ?   
It's just like Coinapults Locks but the owners can't run off with the funds and they can't be ceased, etc.


Even though they cant run off with the funds unilaterally, they can still conspire with users, or just create fake users themselves that takes up massive positions and then assign the entire multisig balance to themselves. As the service grows, the payoff for this one-off heist would also grow. Should the owners run into trouble somehow, or simply get bored with it, they might be incentivized to just take the money and hide. I don't think it will be possible to make the system entirely trustless.

Offline gamey

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Re: Hedgy tackles Bitcoin volatility with multi-signature futures contracts?
« Reply #4 on: October 20, 2014, 01:45:16 AM »
Lol - Do they mention how they put USD in a wallet by any chance ?   

I don't think it's meant to track USD or even be transferrable. It's service is meant to plug into wallets and allow its users to push a button and peg their balance manually. It's just like Coinapults Locks but the owners can't run off with the funds and they can't be seized, etc.

Anyone else get a chance to look at this?

The quote talks about $500 in the contract.  So how can you put $500 in a crypto-wallet?  BitUSD and NuBITS ?
« Last Edit: October 20, 2014, 01:48:21 AM by gamey »
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