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Offline monsterer

bitcoin->bitBTC gateway needs testers!
« on: January 19, 2015, 11:52:29 AM »

Hi everyone, I'm cross-posting this here for better visiblity!

The metaexchange BTC->bitBTC gateway is live for testing!

Here is how to use this

* Import your bitcoin private keys into the bitshares wallet account that you want to use. The private keys must be compressed* (i.e. not starting with a 5, they look like this L4rK1yDtCWekvXuE6oXD9jCYfFNV2cWRpVuPLBcCU2z8TrisoyY1).

* Funds must be sent from a registered bitshares account

* use wallet_account_update_active_key to set one of your imported keys as the active key

* send bitcoins to our gateway address: 1KduukGNb5SH8L6oDwQf8sDrKk68fjvnvF

* send bitBTC to our gateway account: metaexchangebtc

Any bitcoins you send will be turned into bitBTC by the gateway (after 1 confirmation) and sent to your bitshares account. Any bitBTC that you send to the gateway will be turned into bitcoins and sent to your bitcoin wallet.

We have funded the gateway with 0.5 BTC/0.5 bitBTC for testing purposes, there is a 0.01 BTC transaction size limit at the moment. Please use small amounts to test this with - this is beta software and may contain bugs, you could lose funds.

For this test there are no transaction fees.

We are well aware that this private key importing process isn't usable for the non-techy, so the next step is to create a simple website to make this procress 100% frictionless, which is what I'll be working on next.

Cheers, Paul.

*) The reason private keys must be compressed is that the bitshares client always converts any private key (compressed or uncompressed) into a compressed public key and since there are two different bitcoin addresses associated with each private key (one from the compressed key, one from the uncompressed version) funds may not arrive in your bitcoin wallet if you import the incorrect type, since the bitshares account public key is turned into a bitcoin address by the daemon.

In case of error, you can import the other version of the private key into your bitcoin wallet to get the funds, but this requires a rescan, which takes a while.
« Last Edit: January 20, 2015, 09:19:03 PM by monsterer »
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline svk

Re: bitcoin->bitBTC gateway needs testers!
« Reply #1 on: January 19, 2015, 12:22:26 PM »
Awesome, I'll see if I can find the time to do a test later today!

Am I understanding this right, you do not use an IOU for this?
Worker: dev.bitsharesblocks

Offline liondani

Re: bitcoin-&gt;bitBTC gateway needs testers!
« Reply #2 on: January 19, 2015, 12:25:09 PM »
looking forward to test it!

PS as an advice to testers:
create new BTS & BTC wallets using it only for gateways transactions like this, since secret keys are used/involved and just use the wallets to make the exchanges and not to store your funds there.... like you should do with centralized exchanges  ;)

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Offline Rune

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Re: bitcoin->bitBTC gateway needs testers!
« Reply #3 on: January 19, 2015, 12:33:29 PM »
Awesome, I'll see if I can find the time to do a test later today!

Am I understanding this right, you do not use an IOU for this?

As opposed to x-chain.info this gateway is direct BTC to BitBTC. So they have to charge a spread to monetize this, but it will be much more convenient for an average person to use this since they can pay bitshares transaction fees in BitBTC. Now all we need is to get BitBTC liquid and it will be really easy for anyone to use BitShares to trade BitBTC/BitUSD

Offline svk

Re: bitcoin->bitBTC gateway needs testers!
« Reply #4 on: January 19, 2015, 12:35:10 PM »
Awesome, I'll see if I can find the time to do a test later today!

Am I understanding this right, you do not use an IOU for this?

As opposed to x-chain.info this gateway is direct BTC to BitBTC. So they have to charge a spread to monetize this, but it will be much more convenient for an average person to use this since they can pay bitshares transaction fees in BitBTC. Now all we need is to get BitBTC liquid and it will be really easy for anyone to use BitShares to trade BitBTC/BitUSD

That's even better than what I was expecting, I hadn't realized that was how it was going to work!  +5%
Worker: dev.bitsharesblocks

Offline monsterer

Re: bitcoin->bitBTC gateway needs testers!
« Reply #5 on: January 19, 2015, 01:01:53 PM »
Yes that's right, its not IOUs, its bitBTC for bitcoins :)

* edit: I should mention the gateway code supports both types, so anyone who forks our codebase can still use it to issue their own gateway IOUs if their use-case requires it.
« Last Edit: January 19, 2015, 01:04:18 PM by monsterer »
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline joele

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Re: bitcoin->bitBTC gateway needs testers!
« Reply #6 on: January 19, 2015, 02:12:51 PM »
What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

Offline speedy

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Re: bitcoin->bitBTC gateway needs testers!
« Reply #7 on: January 19, 2015, 03:11:30 PM »
What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

The gateway uses the sending BTC address as the recipient address for BitBTC. Therefore importing the BTC address into your BTS wallet will let it know when BitBTC is received.

I think.

Offline Riverhead

Re: bitcoin->bitBTC gateway needs testers!
« Reply #8 on: January 19, 2015, 03:21:21 PM »

Always nice to see these services come on line! I'll send some today.

Is this a similar service to ShapeShift?

Offline monsterer

Re: bitcoin->bitBTC gateway needs testers!
« Reply #9 on: January 19, 2015, 03:43:59 PM »
What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

Importing private keys is necessary in this very early version so that we know where to send bitcoins after we receive bitAssets from you - the public key is accessible via the transaction, and since this public key is the same as you have in your bitcoin wallet, we can send bitcoins to the address which corresponds to it.

Future versions, coming soon will use a website and this will not be necessary.
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline fluxer555

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Re: bitcoin->bitBTC gateway needs testers!
« Reply #10 on: January 19, 2015, 04:49:15 PM »
What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

Importing private keys is necessary in this very early version so that we know where to send bitcoins after we receive bitAssets from you - the public key is accessible via the transaction, and since this public key is the same as you have in your bitcoin wallet, we can send bitcoins to the address which corresponds to it.

Future versions, coming soon will use a website and this will not be necessary.

It should support both options, for people who want more privacy and/or to disassociate themselves from as much centralization as possible.

This gateway will have the least amount of exposure to counterparty risk of any exchange currently accessible with bitcoin, especially with provable solvency set up. I think this advancement is bigger than a lot of people realize.
« Last Edit: January 19, 2015, 04:53:27 PM by fluxer555 »
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Offline bitfayre

Re: bitcoin->bitBTC gateway needs testers!
« Reply #11 on: January 19, 2015, 04:54:07 PM »
Thanks for setting up a gateway!

I want to exchange BTC for BitBTC. Let's assume I trust your centralized gateway not to just keep my BTC after I send first.

How many BitBTC are available?
Which exchange will you be passing larger orders through on when you run out?
What is the expected time after you receive BTC (0-confirmations) before you send BitBTC?
What security measures have you implemented? Is this an auto-exchange with your private keys held online? Do you have a small hot wallet and keep most funds in cold storage?
What is your business model to assure us you will remain profitable and keep the service running?
What jurisdiction are you based in?
If this business grows, will you plan to seek licensing?

Are you aware of the problems that will arise when trying to implement a service that "sends funds to the address they came from?"  To name one: if you send from any third-party service, such as an exchange, you will typically not control the address the bitcoins appear to come from, so any payment back to that address (on another blockchain in this case) will be sent to the third-party service, who will not likely be easily able to link them to your account (especially since they almost certainly do not have their BTC private keys imported into a BTS wallet).  It is highly recommended to implement the service properly, by requiring the user to specify the receiving address for BitBTC (TITAN name, preferably).  Also a refund address in case you need to cancel their order for any reason.  I recognize the simplicity of using the same privkey for 2 networks, but for usability it's probably a non-starter.  You should also generate a new BTC address on your side for each transaction.

Offline monsterer

Re: bitcoin->bitBTC gateway needs testers!
« Reply #12 on: January 19, 2015, 05:07:12 PM »
Thanks for setting up a gateway!

I want to exchange BTC for BitBTC. Let's assume I trust your centralized gateway not to just keep my BTC after I send first.

How many BitBTC are available?
Which exchange will you be passing larger orders through on when you run out?
What is the expected time after you receive BTC (0-confirmations) before you send BitBTC?
What security measures have you implemented? Is this an auto-exchange with your private keys held online? Do you have a small hot wallet and keep most funds in cold storage?
What is your business model to assure us you will remain profitable and keep the service running?
What jurisdiction are you based in?
If this business grows, will you plan to seek licensing?

Are you aware of the problems that will arise when trying to implement a service that "sends funds to the address they came from?"  To name one: if you send from any third-party service, such as an exchange, you will typically not control the address the bitcoins appear to come from, so any payment back to that address (on another blockchain in this case) will be sent to the third-party service, who will not likely be easily able to link them to your account (especially since they almost certainly do not have their BTC private keys imported into a BTS wallet).  It is highly recommended to implement the service properly, by requiring the user to specify the receiving address for BitBTC (TITAN name, preferably).  Also a refund address in case you need to cancel their order for any reason.  I recognize the simplicity of using the same privkey for 2 networks, but for usability it's probably a non-starter.  You should also generate a new BTC address on your side for each transaction.

Good questions!

Quote
How many BitBTC are available?

Right now this gateway is beta mode for testing purposes, as such only 0.5BTC on each side are available and the maximum transaction size is 0.01BTC. This is because we are in public test mode and will change when we are fully operational.

Quote
Which exchange will you be passing larger orders through on when you run out?

This has not been decided yet, we have a number of things to consider before we can finalise.

Quote
What is the expected time after you receive BTC (0-confirmations) before you send BitBTC?

1 confirmation

Quote
What security measures have you implemented? Is this an auto-exchange with your private keys held online? Do you have a small hot wallet and keep most funds in cold storage?

As we are in test mode we don't have hot/cold wallet arrangement, but we will move to such a set up in production mode.

Quote
What is your business model to assure us you will remain profitable and keep the service running?

We have a couple of options here, again not totally finalised. One is to implement a spread on the buy/sell prices, another is to keep BTC/bitBTC spread and charge free and implement charges on other features in the pipeline, such as different markets.

Quote
What jurisdiction are you based in?

UK / Germany

Quote
If this business grows, will you plan to seek licensing?

We would like to acquire the relevant licences for a fiat gateway in the future.

Quote
Are you aware of the problems that will arise when trying to implement a service that "sends funds to the address they came from?"

Indeed - the production version of our gateway will remove the need for this concession.

Cheers, Paul.
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline bitmarket

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Re: bitcoin->bitBTC gateway needs testers!
« Reply #13 on: January 19, 2015, 05:19:20 PM »
wow. wow. and wow.  this is huge.   Most exciting development for bitshares in months.   can't wait for the non-private-key version.  when do  you think?

If I were running a bounty delegate I would send you  bitUSD2,000 right now

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Offline pc

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Re: bitcoin->bitBTC gateway needs testers!
« Reply #14 on: January 19, 2015, 05:45:06 PM »
Quote
What jurisdiction are you based in?

UK / Germany

In Germany you most likely need permission from the BAFin for such a gateway. I can only recommend *not* running that service from here, you may get into serious trouble.
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