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Offline bytemaster

Our Technology - For Average Joe
« on: November 09, 2014, 04:44:25 PM »

I am working on explaining our technology in terms that are understandable.  This should describe how BitShares works without getting into jargon or assumed knowledge of Bitcoin. 

Our Technology

  BitShares brings us the future of banking based on relatively simple technology that is easy to understand because it merely automates something that could be done with pen and paper.   

The BitShare - known as BTS, is the foundation upon which everything else is built.  A BTS is a digital asset that has a value determined by the market.  You can think of it like the stock of a bank. Unlike stock in traditional banks a bitshare confers no legal rights and is not a security.    BTS are created when individuals make capital contributions that contribute to the growth of the BitShares ecosystem.   

Democratic Governance - 101 individuals, known as delegates, are elected by gaining the approval of the most bitshare holders.  Each bitshare is allowed to approve of up to 111 delegates.  Once elected these delegates are paid a salary approved by the bitshare holders to grow, secure, and maintain the network.    The process used to select the delegates is known as approval voting and in theory all 101 delegates could have 100% approval by all bitshare holders. 

Transparency - the core of BitShares is transparent accounting that allows everyone to audit the accounts and prove the system is solvent and all transfers are authorized.

Irreversibility - every transaction is added to a public ledger that is signed by the delegates approved by the bitshare holders.  After the majority of delegates have publicly signed the ledger containing your transaction it becomes a permanent part of history.

Unforgeable Digital Signatures - BitShares uses well known cryptographic signatures that allow you to securely sign every transfer from your account.  Without your digital signature no one in the world can spend your money.   Cryptographic signatures are mathematically impossible to forge or guess.

Backed Assets - All balances for gold, silver, or national currencies are backed by three times their value in BTS.  These balances are known as BitAssets.  They are created when a BTS holder wishes to borrow a dollar from BitShares and secures their loan by using BTS as collateral.   The delegates ensure that the loan is called and repaid long before the collateral becomes worth less than the loan.   A BitUSD or dollar deposit can be thought of as an IOU the value of a dollar from the BitShares network.  They are only redeemable for a variable number of BTS which will have the market value of a dollar.

Blockchain - Everything described above is built on the technology of a blockchain which was first introduced by Bitcoin.  A blockchain is nothing more than a transparent global transaction record that follows defined rules for accounting and governance secured by digital signatures.   
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline Riverhead

Re: Our Technology - For Average Joe
« Reply #1 on: November 09, 2014, 04:51:21 PM »
I'm wondering if we can come up with something other than "blockchain". It's a secure encrypted ledger that happens to currently use the blockchain. For those not steeped in Bitcoin, or crypto-currencies in general, it may be an unimportant implementation detail of what's actually being achieved (and sold) as the integrity assurance.

Integrity - Using modern distributed cryptographic technology  a transparent global transaction record that follows defined rules for accounting and governance secured by digital signatures....
« Last Edit: November 09, 2014, 04:54:05 PM by Riverhead »

Offline Fanya

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Re: Our Technology - For Average Joe
« Reply #2 on: November 09, 2014, 04:53:21 PM »
I think it is still too hard to understand for people who has no knowledge about bitcoin

Offline btswildpig

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Re: Our Technology - For Average Joe
« Reply #3 on: November 09, 2014, 05:00:35 PM »
blockchain should have described as

"ownership validation of distributed collective"

OVDC    :P
« Last Edit: November 09, 2014, 05:03:06 PM by btswildpig »
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Offline fluxer555

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Re: Our Technology - For Average Joe
« Reply #4 on: November 09, 2014, 05:25:35 PM »
I think this is prefect as a 'How does it work?' section on a non-technical site. If this is too hard to understand, then there is little more you can do.

This could then point to full specification documents for those that want to dig deeper
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Offline pendragon3

Re: Our Technology - For Average Joe
« Reply #5 on: November 09, 2014, 06:15:43 PM »
This still seems complicated for the average joe and maybe could be presented in a simpler way.

Does the Average Joe even need to know much of the details of the technology? I'm assuming he will be introduced first to BitUSD and will learn that these are digital units that function much like USD, and they can be transferred around the world, they hold virtually the same value as USD, can be stored in a prepaid card or wallet, and on top of that can earn a yield.

At that point, most average joes won't even really care about the background technology. They may not even need to hear the word "Bitshares," as long as they believe BitUSD is sound, closely tied to USD, and does what it's supposed to do.

Then, for the more inquisitive average joe, an explanation of the technology could be given. This should focus on the features of the technology that are most important for the soundness and functioning of BitUSD. It could be presented in a Q&A format.

E.g:

How do I know my BitUSD are safe?

BitUSD is backed by a supply of digital units called Bitshares. Each BitUSD is fully backed by the equivalent value in Bitshares. The value of the bitshares to BitUSD varies to ensure that BitUSD is closely tied to the value of the dollars. In fact, BiTUSD is backed at all times by at least 3x the value, etc.

How are BitUSD transactions processed?

All transactions included on a public ledger, but your privacy is maintained.
A group of 101 democratically elected Delegates around the world cryptographically sign blocks, making transactions transparent, non-forgeable, irreversible.

How do BitUSD earn interest?

From transaction fees, etc.


Is BitUSD similar to Bitcoin?

It is similar to Bitcoin in that it is based on "blockchain" technology that records transactions in a tamper-proof public ledger. But the underlying bitshares technology is different because of X, Y, Z, permitting faster, more secure, less socially wasteful transactions, etc....


The above are vast oversimplifications, but the point is that most of the bitshares technology features could be organized under three or four basic questions that the average joe might have about BitUSD.
Using the Q&A format rather than listing the features of bitshares one by one may be an effective way to touch upon the key technology features of Bitshares without overwhelming the average joe.



Offline santaclause102

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Re: Our Technology - For Average Joe
« Reply #6 on: November 09, 2014, 07:32:41 PM »
It's a nice and simple summary.

Why "capital contributions"? Inflation paid delegates also crate new BTS and do not contribute capital...

Mentioning approval voting is a bit too much detail imo (incl. the 100% by all sh....).

"technology of a blockchain" <- is that proper english.

"Cheap, fast, secure" could be added as an extra point.
Since blockchain technology allows to transfer value without a middle men and does not require a third party to hold your funds, it is unbearably cheap and fast and evades the chance of seized or embezzled funds.

Offline Ander

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Re: Our Technology - For Average Joe
« Reply #7 on: November 09, 2014, 07:52:37 PM »
It's a nice and simple summary.

Why "capital contributions"? Inflation paid delegates also crate new BTS and do not contribute capital...


Agreed, should explain that paid delegates get bitshares for 'creating value for bitshares' or something like that.
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Offline bytemaster

Re: Our Technology - For Average Joe
« Reply #8 on: November 09, 2014, 08:16:44 PM »

It's a nice and simple summary.

Why "capital contributions"? Inflation paid delegates also crate new BTS and do not contribute capital...


Agreed, should explain that paid delegates get bitshares for 'creating value for bitshares' or something like that.

Capital is not limited to money.  Labor is also capital. 
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline xh3

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Re: Our Technology - For Average Joe
« Reply #9 on: November 09, 2014, 08:26:06 PM »
subtract until it breaks.  I think that breakdown works for semi-technical people.  I think that for the average joe, it needs to be simpler yet.  speak in terms of what people understand and care about + add a bit of jargon to give them a feeling of technology magic.

The bitshares network= a peer to peer network that behaves like a bank.
A bitshare= a digital token that behaves like a stock
A bitasset= a digital token that behaves like a dollar

The system is transparent, anonymous, and tamper proof.

or

The Bitshares Network is a robotic bank that issues digital shares and currencies such as dollars.  The bank is secured with math and is tamper proof, anonymous, and transparent.



Offline Ander

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Re: Our Technology - For Average Joe
« Reply #10 on: November 09, 2014, 08:26:39 PM »
But the average joe thinks capital means money.


Actually, the average joe probably doesnt understand what capital means at all. :D
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julian1

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Re: Our Technology - For Average Joe
« Reply #11 on: November 09, 2014, 08:38:02 PM »
Wondering if it should lead by explaining BitUSD and other bitassets BitGold first, since that's what the average Joe needs to make an online purchase, or send a remittance etc. BTS is merely a detail in that scenario when value moves USD -> BTS -> BitUSD. 

Offline Shentist

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Re: Our Technology - For Average Joe
« Reply #12 on: November 09, 2014, 08:42:38 PM »
I am working on explaining our technology in terms that are understandable.  This should describe how BitShares works without getting into jargon or assumed knowledge of Bitcoin. 

Our Technology

  BitShares brings us the future of banking based on relatively simple technology that is easy to understand because it merely automates something that could be done with pen and paper.   

The BitShare - known as BTS, is the foundation upon which everything else is built.  A BTS is a digital asset that has a value determined by the market.  You can think of it like the stock of a bank. Unlike stock in traditional banks a bitshare confers no legal rights and is not a security.    BTS are created when individuals make capital contributions that contribute to the growth of the BitShares ecosystem.   

Democratic Governance - 101 individuals, known as delegates, are elected by gaining the approval of the most bitshare holders.  Each bitshare is allowed to approve of up to 111 delegates.  Once elected these delegates are paid a salary approved by the bitshare holders to grow, secure, and maintain the network.    The process used to select the delegates is known as approval voting and in theory all 101 delegates could have 100% approval by all bitshare holders. 

Transparency - the core of BitShares is transparent accounting that allows everyone to audit the accounts and prove the system is solvent and all transfers are authorized.

Irreversibility - every transaction is added to a public ledger that is signed by the delegates approved by the bitshare holders.  After the majority of delegates have publicly signed the ledger containing your transaction it becomes a permanent part of history.

Unforgeable Digital Signatures - BitShares uses well known cryptographic signatures that allow you to securely sign every transfer from your account.  Without your digital signature no one in the world can spend your money.   Cryptographic signatures are mathematically impossible to forge or guess.

Backed Assets - All balances for gold, silver, or national currencies are backed by three times their value in BTS.  These balances are known as BitAssets.  They are created when a BTS holder wishes to borrow a dollar from BitShares and secures their loan by using BTS as collateral.   The delegates ensure that the loan is called and repaid long before the collateral becomes worth less than the loan.   A BitUSD or dollar deposit can be thought of as an IOU the value of a dollar from the BitShares network.  They are only redeemable for a variable number of BTS which will have the market value of a dollar.

Blockchain - Everything described above is built on the technology of a blockchain which was first introduced by Bitcoin.  A blockchain is nothing more than a transparent global transaction record that follows defined rules for accounting and governance secured by digital signatures.   


Blockchain Think about trading on a traditional marketplace - face to face - everyone can see what is going on and for this everything is transparent and the transactions are to everyone known. But with modern technoligy this "traditional" marketplace is now the global world with over 6 billion people.

Offline santaclause102

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Re: Our Technology - For Average Joe
« Reply #13 on: November 09, 2014, 08:43:32 PM »
But the average joe thinks capital means money.


Actually, the average joe probably doesnt understand what capital means at all. :D
The word has many meanings / definitions. There is "human capital" etc. But the narrow definition I gathered is "Capital is everything that fuels the value creation (production) process with the intended purpose to multiplying itself." If that definition applies capital can only have the form of money (not necessarily a fiat currency but something that people use as money, is fungible etc.).
Edit: The definition could be made wider this way: Labor or other resources can also be capital since they can be measured in / converted to money. 
So BM is right labor can also be regarded as capital since it has a common reference point (money) to measure its value like all other goods.

But that all doesnt matter to the target group... I'd just say "contribute value".
« Last Edit: November 09, 2014, 09:08:35 PM by delulo »

Offline davidpbrown

Re: Our Technology - For Average Joe
« Reply #14 on: November 09, 2014, 08:43:53 PM »
I would suggest keep the What separate from the How. If you are looking to define What, then the How is less important. Keep the What simple and punchy.. it could be just [The BitShare]; [Blockchain]; [Backed Assets].

Contrary to Riverhead above, I think talk of Bitcoin and Blockchain is essential and I like the sentence you have there for that. The idea of BitShares being founded on Bitcoin and Blockchain is a simple route to establishing confidence in what BitShares is. 'Blockchain' will become a common unavoidable terminology in time.


"to borrow a dollar" I would worry about suggesting what is offered is real fiat. bitUSD is a digital asset pegged to the value of the dollar and not a dollar in the sense that it has been issued by ye olde Fed or other central bank.

BitShares provides an opportunity to buy digital assets whose value is pegged against real world assets, like a dollar; GDP; JPY; Gold; Silver; and many others.


[Transparency] is a bit vague.. maybe do away with it or instead: [Transparency] then is about it's being auditable in the same way as Bitcoin and many other crypto-currencies and crypto-assets are.


Perhaps important to answer the Who too.. as having evidence of a strong dev team is a huge positive relative to other competitors that have only a couple of core devs. Setting out the ambitions of the core DACs would also help give a sense of what BitShares is.

Perhaps talk of tokens in contrast to currency and how those tokens enable trade and voting and more exotic capability than ever olde money could.


Also, stick to talking BitShare OR BTS and avoid switching between the two in that first paragraph.
« Last Edit: November 09, 2014, 08:45:46 PM by davidpbrown »
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