Author Topic: Ethereum introduce the function to build the pegged currencies on their platform  (Read 4114 times)

0 Members and 1 Guest are viewing this topic.

Offline starspirit

  • Hero Member
  • *****
  • Posts: 948
  • Financial markets pro over 20 years
    • View Profile
  • BitShares: starspirit
Is anyone else worried that before BitShares becomes profitable, Ethereum might just copy BitAssets completely? Of course they would need the surrounding infrastructure to make it usable such as a tradeable web wallet, but they do have a much larger developer base.

Is anyone worried that before Ethereum becomes profitable, BitShares might copy any innovation it provides completely?
Assuming that any BitAsset structure can be replicated in a Turing complete system, we have to assume it will be. The critical question then becomes what competitive advantage does bitUSD retain in that context?  Is it transaction speed? Confidence in BTS versus competing forms of collateral? Better transparency on collateral? Veracity of price feeds? Better incentives and tools for arbitragers and market-makers? Utility of bitUSD within a broader ecosystem, such as under-pinning a fully decentralised trading exchange? I don't know the answer, but we need to ponder that, and solidify and leverage that advantage.

As far as the EUSD proposal, I think the role of Maker as a market-maker would be better to sit outside the collateral pool like market-makers in BitShares. Why risk the security of the collateral pool with a risky enterprise using those funds? The risk for a market-maker is the same as for EUSD holders - if ETH falls substantially, then the market-maker ends up getting loaded with ETH in a falling market. And the "liquidity" and collateral just as rapidly disappears.

The fallback safety measure proposed is that Maker can force calls on the issuers, particularly in a collateral crisis or approaching black swan event. Well, if that's a feature that has merit, we can also do that in bitAssets. So variations on features like this are not sustainable competitive advantages to anyone.

My point is that everybody can do (at least conceptually) what everybody else can do. We just have to accept that, and be clear on what competitive advantage we can build on by doing it in our special environment versus theirs.

[Edit: Putting this another way - the best design will migrate to the platform best suited to its implementation, so we'd better make sure we have the best platform for implementing the best design.]
« Last Edit: March 28, 2015, 04:22:37 am by starspirit »

Offline ebit

  • Committee member
  • Hero Member
  • *
  • Posts: 1905
    • View Profile
  • BitShares: ebit
It's good news for "Multi-platform Bridge and Gateway "
telegram:ebit521
https://weibo.com/ebiter

Offline Tobo

  • Newbie
  • *
  • Posts: 19
    • View Profile
Is anyone else worried that before BitShares becomes profitable, Ethereum might just copy BitAssets completely? Of course they would need the surrounding infrastructure to make it usable such as a tradeable web wallet, but they do have a much larger developer base.

The thing is that Ethereum does not build the derivatives. Ethereum only provides the platform. Every user can build this kind derivatives on top of the Ethereum platform. The pegged assets are a type of smart contracts on Ethereum. If you have a better financial model you can create your own better eDallar on Ether platform.
« Last Edit: March 28, 2015, 12:58:59 am by Tobo »

Offline Troglodactyl

  • Hero Member
  • *****
  • Posts: 960
    • View Profile
Is anyone else worried that before BitShares becomes profitable, Ethereum might just copy BitAssets completely? Of course they would need the surrounding infrastructure to make it usable such as a tradeable web wallet, but they do have a much larger developer base.

Is anyone worried that before Ethereum becomes profitable, BitShares might copy any innovation it provides completely?


Offline speedy

  • Hero Member
  • *****
  • Posts: 1160
    • View Profile
  • BitShares: speedy
Is anyone else worried that before BitShares becomes profitable, Ethereum might just copy BitAssets completely? Of course they would need the surrounding infrastructure to make it usable such as a tradeable web wallet, but they do have a much larger developer base.

Offline onceuponatime

Ok... Generally Ethereum meets BitShares' bitAssets (*1 stripped down version of the feed-based assets, btw). A bit of Nubits style market making is sprinkled on top of this.



Questions/Thoughts/Info requests:

 - Badly lacking info on 1.how those price feeds gonna work and  2.why they will be decentralized. ( the writing talks about buying ONE feed, that's about all the info there is)

- Very interested how this centralized entity ( Maker operator ) will add those other different collaterals (other than the native ether). Hope Rune shed some light when he gets to coding those.  :)



*1 essentially everybody is 'shorting' eDollar to themselves at will with 0% yield.

I can't find Rune's original post on this project. Could you provide the link please?

zerosum

  • Guest
Ok... Generally Ethereum meets BitShares' bitAssets (*1 stripped down version of the feed-based assets, btw). A bit of Nubits style market making is sprinkled on top of this.



Questions/Thoughts/Info requests:

 - Badly lacking info on 1.how those price feeds gonna work and  2.why they will be decentralized. ( the writing talks about buying ONE feed, that's about all the info there is)

 - Very interested how this centralized entity ( Maker operator ) will add those other different collaterals (other than the native ether). Hope Rune shed some light when he gets to coding those.  :)



*1 essentially everybody is 'shorting' eDollar to themselves at will with 0% yield.
« Last Edit: March 27, 2015, 05:44:26 pm by tonyk2 »

Offline xeroc

  • Board Moderator
  • Hero Member
  • *****
  • Posts: 12922
  • ChainSquad GmbH
    • View Profile
    • ChainSquad GmbH
  • BitShares: xeroc
  • GitHub: xeroc
@Rune, how come you are so active in ethereum nowadays? I was wondering why I don't see you around here that often anymore..

curious also!

"I was delighted to find out that even with just my meager programming skills, developing for Ethereum is so incredibly easy"
I see .. and it totally makes sense to me .. I wish him good luck and that he learns alot from coding there :)

What are performance specs and associated costs to secure the network compared to BitShares?

AFAIK Ethereum will be a 'slow' but decentralized computer .. it will in the beginning be secured by proof-of-work until they switch over to POS eventually

Offline yellowecho

What are performance specs and associated costs to secure the network compared to BitShares?
696c6f766562726f776e696573

Offline CLains

  • Hero Member
  • *****
  • Posts: 2606
    • View Profile
  • BitShares: clains
@Rune, how come you are so active in ethereum nowadays? I was wondering why I don't see you around here that often anymore..

curious also!

"I was delighted to find out that even with just my meager programming skills, developing for Ethereum is so incredibly easy"

Offline davidpbrown

Last I saw of Ethereum was talk that they were burning through money and it seems that have a long way to go. If there are no hipcups with such ambitions, I will be very surprised. I always liked the proposal but never invested as seemed a stretch too far. Simple projects are struggling with the basics and Ethereum proponents that I've seen appear hellbent on confronting the establishment and kicking up a storm.. who needs laws etc. So, I've a mind to sit a watch that one and learn from it, expecting it'll evolve later perhaps by partnering with another effort like BitShares.

eDollar also reminds me of the comedy that is eMunie :D
฿://1CBxm54Ah5hiYxiUtD7JGYRXykT5Z6ZuMc

Offline cass

  • Hero Member
  • *****
  • Posts: 4311
  • /(┬.┬)\
    • View Profile
@Rune, how come you are so active in ethereum nowadays? I was wondering why I don't see you around here that often anymore..

curious also!
█║▌║║█  - - -  The quieter you become, the more you are able to hear  - - -  █║▌║║█

Offline xeroc

  • Board Moderator
  • Hero Member
  • *****
  • Posts: 12922
  • ChainSquad GmbH
    • View Profile
    • ChainSquad GmbH
  • BitShares: xeroc
  • GitHub: xeroc
@Rune, how come you are so active in ethereum nowadays? I was wondering why I don't see you around here that often anymore..

Offline Rune

  • Hero Member
  • *****
  • Posts: 1120
    • View Profile
It will also partially be leveraging the stability of bitUSD to reduce risk (assuming it becomes possible for the contract to hold it with a two way peg).

You mean hedging edollar with bitUSD?

If we can figure out a way to get bitUSD onto the ethereum block chain, then it can serve as a source of diversified collateral that is highly isolated from certain kinds of risk, such as the risk of seizure. There could always be a (continously growing) pool of bitUSD held transparently and locked in a smart contract that would be backing eDollar in case of a black swan event, kinda like the rainy day fund on bitshares, but with diversified assets.