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Offline karnal

New to bitshares, some questions
« on: February 21, 2015, 07:55:25 PM »

So, after setting up a linux vm for running the client (which, by the way, works just fine on ubuntu 11.04 for me) and playing around with the system a bit, I decided to register here and ask several questions that have been on my mind.

Being a newbie, I have read a lot of the documentation, youtube bitshares.tv, and have been lurking the forum for a week now.

Without any further ado, here's the question list:

1. What would happen to the network if due to a large-scale disaster/government censorship/etc, large parts of the network became isolated from each other?

2. Is it possible to create new pegs to cryptocurrency as an user? Say I decided having BitDRK (for darkcoin) was an excellent idea. How to go about it?

3. Why is it (seemlingly) not possible to delete accounts from the client? I can think of several use cases where having a registered account is not desirable. And it is unintuitive that sending funds to an account means they can't be traced very well, as I believe I've seen claimed -- say I use shapeshift.io and input my account name, what guarantees they do not save the account name and see where the transaction ends up? Either I'm misunderstanding something or this could over time be used to compromise privacy.

4. Regarding backups, is it necessary to re-backup once a new account is added?

5. NXT/nubits seem to be getting a lot of traction in terms of media, the superNET, etc. Does this concern you, and if not, why not? Why BitShares instead?

6. Are there plans to implement proxy support in the client? I have tried tsocks/usewithtor, neither worked. Didn't get to play with redirecting packets at the firewall level yet.

7. On what grounds is the interest rate of a bitAsset calculated? And when is it credited in the account? After how long?

8. Supposedly 1 USD will always be worth 1 bitUSD. Would you then trust this system to deposit your life savings? As an added bonus, it would appear you'd get more interest from this than from a regular savings account... too good to be true?

9.The system appears to depend on matching people who are betting the price will go up vs people who are betting that the price will go down. What if this dynamic is not in place? What if everyone goes bull, what are the consequences?

10.In your opinion, what are the killer features of this system?


That's all I can think of for now.. beware, if the replies are good quality, endless more questions will soon follow...:)
« Last Edit: February 21, 2015, 07:57:42 PM by karnal »

Offline VoR0220

Re: New to bitshares, some questions
« Reply #1 on: February 21, 2015, 08:25:38 PM »
So, after setting up a linux vm for running the client (which, by the way, works just fine on ubuntu 11.04 for me) and playing around with the system a bit, I decided to register here and ask several questions that have been on my mind.

Being a newbie, I have read a lot of the documentation, youtube bitshares.tv, and have been lurking the forum for a week now.

Without any further ado, here's the question list:

1. What would happen to the network if due to a large-scale disaster/government censorship/etc, large parts of the network became isolated from each other?

2. Is it possible to create new pegs to cryptocurrency as an user? Say I decided having BitDRK (for darkcoin) was an excellent idea. How to go about it?

3. Why is it (seemlingly) not possible to delete accounts from the client? I can think of several use cases where having a registered account is not desirable. And it is unintuitive that sending funds to an account means they can't be traced very well, as I believe I've seen claimed -- say I use shapeshift.io and input my account name, what guarantees they do not save the account name and see where the transaction ends up? Either I'm misunderstanding something or this could over time be used to compromise privacy.

4. Regarding backups, is it necessary to re-backup once a new account is added?

5. NXT/nubits seem to be getting a lot of traction in terms of media, the superNET, etc. Does this concern you, and if not, why not? Why BitShares instead?

6. Are there plans to implement proxy support in the client? I have tried tsocks/usewithtor, neither worked. Didn't get to play with redirecting packets at the firewall level yet.

7. On what grounds is the interest rate of a bitAsset calculated? And when is it credited in the account? After how long?

8. Supposedly 1 USD will always be worth 1 bitUSD. Would you then trust this system to deposit your life savings? As an added bonus, it would appear you'd get more interest from this than from a regular savings account... too good to be true?

9.The system appears to depend on matching people who are betting the price will go up vs people who are betting that the price will go down. What if this dynamic is not in place? What if everyone goes bull, what are the consequences?

10.In your opinion, what are the killer features of this system?


That's all I can think of for now.. beware, if the replies are good quality, endless more questions will soon follow...:)

I can only answer a couple of these. The rest I am learning myself.

1. From what I have heard the chains would split and have to re hardfork in whichever chain had 51 delegates.

2. Yes, it is. But you would have to implement it into the code yourself I believe. Wouldn't be a hard process. Right now is not the best time to do it as its still in the prototype and the transactions of the assets are slow. But they will eventually get faster.

3. You'll want to read up on TITAN to understand how it works. It's a little complicated, but it's rather neat. I'll link you in the hope that I'm answering your question here: http://wiki.bitshares.org/index.php/TITAN

4. I recommend it. You can do as you like, but once that account is gone...it's gone bruh. That's why I always back up the Json file. Not a hard process either.

5. It doesn't concern me, personally. I think both cryptos work on different aspects of the crypto realm and are both doing some very innovative things. I obviously tend more towards the side of bitshares, and if you'd like to learn more about why, take a look at Dan Larimer's blog on Bitshares vs NXT (a bit biased, obviously, but it's technically well put together argument). You can also read about his views on Nubits on his blog as well. http://bytemaster.bitshares.org/article/2015/01/13/Decentralization-of-Nxt-vs-BitShares/

8. I think that's the intended goal. It would seem that you get interest according to the market demand for bitUSD. When market demand for bitUSD is high, you will get more interest and vice versa. This works in a sort of constantly adjusting in the long run to the value of said asset.

10. IMO, it's the 10 second block confirmation times, the ability to mold the delegates and this model to so many other forms, the idea of a decentralized exchange of assets that work pretty damn well and will only get better, TITAN is also a pretty neat feature, hard to explain, but ultimately pretty awesome. Also can't beat a proof of stake that uses less power and less harm to the environment.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline santaclause102

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Re: New to bitshares, some questions
« Reply #2 on: February 21, 2015, 08:31:52 PM »
Regarding:

2. https://bitsharestalk.org/index.php?topic=14373.msg187501#msg187501

5.
Quote
Does this concern you, and if not, why not?
everyone can just answer that for himself. The reason it personally does not concern me is that Bitshares has most fundamentals right, especially economic fundamentals. Second 90 % of the media/authors that write or speak about blockchain technology are of terrible quality (of course there are exceptions: Beyond Bitcoin Show on the LTB network and a few blogs). It takes a while to understand Bitshares but the quality and the scope of what is produced by over 10 full time developers is hard to beat. Time for big media attention will come when everything is user friendly and the ecosystem (entrepreneurial activities by delegates) is more mature. That doesn't mean we shouldn't get more media attention!
Better sources (although biased naturally) in terms of quality and density of information are:
Bitshares hangouts: https://soundcloud.com/beyond-bitcoin-hangouts 
BM blog: bytemaster.github.io
Overall conclusion: The wise investor manages to distinguish the projects that make up nice stories for the average fool and the ones that actually innovate.

7. The Interest rate of a BitAsset depends on the volume of the assets since Interest is paid from various trading fees.

8.
Quote
Would you then trust this system to deposit your life savings?
Depends on the size of your life savings :) Such a risk assessment question can just per answered subjectively: I personally do not depend on my savings (no big expenses, positive income). I personally would entrust all my cash reserves (not too much) to a BitAsset. The longer the system exists and the higher the market cap the more would I trust it.

9. The are hardcoded incentives that dynamically regulate that. If everyone would be bullish on BTS and short BitUSD for example then the interest rate for BitUSD would rise dramatically (shorts that offer a higher interest rate to BitUSD holders are prioritized).

10. The killer feature imo is the team. Daniel and his coding friends have put out a lot of solutions to pressuring problems in the crypto space (most of which are not understood by cypto media / public). Also there is an evolving ecosystem of high level / professional entrepreneurs evolving around Bitshares (especially in China, see this as an example https://bitsharestalk.org/index.php?topic=13428.0 and do some research on the people behind it (DACX, Zafed).
DPOS including the potential of the DAC to hire and pay its emloyees and so grow itself and outcompete other DACs, market pegged assets (MPE) / decentralized exchange functionality, and many more. Those two (MPE and DPOS) should be the two crucial killer features. 

There will be others who can answer the other questions better.
« Last Edit: February 21, 2015, 08:46:38 PM by delulo »

Offline robrigo

Re: New to bitshares, some questions
« Reply #3 on: February 21, 2015, 08:59:38 PM »
Hey karnal. Welcome to bitsharestalk! Here are some answers to your questions.

1) I suppose the network could become forked in that manner, if the physical backbone between geographical regions was compromised.

2) You can register a new market pegged asset for Darkcoin by using the console command "wallet_asset_create". I believe market pegged assets costs 500k to register. The asset market won't be open (i.e. shorts can't execute to increase the supply) unless at least 51 delegates are publishing a feed for the asset.

Code: [Select]
>> h wallet_asset_create

Usage:
wallet_asset_create <symbol> <asset_name> <issuer_name> <description> <maximum_share_supply> <precision> [public_data] [is_market_issued]   Creates a new user issued asset
Creates a new user issued asset

Parameters:
  symbol (asset_symbol, required): the ticker symbol for the new asset
  asset_name (string, required): the name of the asset
  issuer_name (string, required): the name of the issuer of the asset
  description (string, required): a description of the asset
  maximum_share_supply (real_amount, required): the maximum number of shares of the asset
  precision (uint64_t, required): defines where the decimal should be displayed, must be a power of 10
  public_data (json_variant, optional, defaults to null): arbitrary data attached to the asset
  is_market_issued (bool, optional, defaults to false): creation of a new BitAsset that is created by shorting

Returns:
  transaction_record

3) You don't have to register an account name if you don't want, but once it is registered it can't be unregistered. You could create a new wallet and import the accounts you want to use into that new wallet atm. But I agree, it would be nice to be able to remove an account from the client if you registered it and want to retire it.

4) Good question. I'm not sure about new account creation requiring another backup. Probably?

5) I'm not concerned about those projects detracting from BitShares adoption because I think that DPOS is more efficient and nobody offers the same value proposition as BitShares does with the decentralized exchange & market pegged assets.  You can read some comparisons between BitShares and NXT here and some further discussion comparing the economics of NuBits to BitShares here. The big difference between a NuBit and bitUSD is that the bitUSD has BTS collateral backing it.

As utility increases and the software matures, I think BitShares will gain some additional traction in the media. The NullStreet collective has been coordinating together to pursue educational, advertising, marketing materials and entrepreneurial / business development opportunities. There are a lot of irons in the fire atm. The brand message is becoming much more refined.

6) Not sure.

7) Yield is based on market fees that are collected into a reserve fund. When you transfer a BitAsset, the yield is credited.

8) When BitAssets are more ubiquitous and easy to use, I would definitely consider holding my some of savings as BitAssets in a cold wallet. A savings account is a great anology for holding bitUSD and likely one of the better angles to market it as.

9) You can short bitAssets to yourself, another bull position. The price of a bitAsset can fluctuate around the peg depending on supply or demand. So if everyone went super bull and wanted to sell all of their bitUSD, they may sell it for $.98 apiece or something. This would incentivize a buyer that wants to make a free 2%.

10) Market pegged assets, crowdhiring (i.e. funding projects / developers via delegates), 10 second block times, UIA configurations to support AML / KYC compliance for user issued assets enabling gateways, ability to send to registered names, .p2p decentralized DNS.

Offline karnal

Re: New to bitshares, some questions
« Reply #4 on: February 23, 2015, 12:05:17 PM »
Thanks, everyone. I still have some doubts, and will do some more research.
Regarding the first question though, could anyone clarify? Would a split of a considerable part of the network spell doom, chaos, and lost BTS/BitAssets?

Also, I confess to having read about delegates but not fully (or even adequatedly) understanding the subject matter yet. If you understand it very well and don't mind ELI5'ing it, please!

 

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