Author Topic: What capacity controls would be imposed on the menu of privatised Smartcoins?  (Read 1289 times)

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Offline starspirit

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(Guess) All the UIA/smartcoin "data" is stored on the blockchain which will grow in size as the network develops. Transaction fees pay for the privilege of being included in a block and stored indefinitely.
I assume that the existence of a UIA/smartcoin will be verified at the point of a transaction. If the "lookup" on the blockchain of the desired smartcoin transfer fails, then the transaction is deemed invalid. (?)
A UIA that is deemed to have 'failed' will have had very little use, and therefore will take up some of the least space on the blockchain, so why bother pruning it? Any space it DOES occupy has been paid for in tx fees.
UIAs (smartcoins too?) require a fee to be registered. I assume this is to cover any hosting costs.
To avoid control-vectors I think that all entries into the blockchain should be irreversible. This means that extra-care should be taken to avoid problems further down the line.
For example the 'molecatcher squatter' (20k domain names squatted) and the (now solved) mistake of ridiculously high transaction fees on the stock exchange UIAs (Shanghai, Shenzhen etc).
These mistakes should be taken as lessons to further improve both BitShares the protocol and BitShares the community.
So you're saying the block-chain ledger is covered. What about the need for all nodes to run the matching algorithms, and other related processes (creations, settles, covers etc)? To maintain the desired network performance, wouldn't there need to be some limits on total processing allowed?

Startspirit, your posts are always very interesting - would you consider doing a Beyond Bitcoin hangout to discuss privatized smartcoins?
I feel that a personal discussion would better convey your ideas and I would love to hear a professional discussing existing financial instruments and how bts could take advantage of them.
Thanks, and maybe....it depends on purpose and the best way to motivate the discussion.

Offline Permie

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(Guess) All the UIA/smartcoin "data" is stored on the blockchain which will grow in size as the network develops. Transaction fees pay for the privilege of being included in a block and stored indefinitely.
I assume that the existence of a UIA/smartcoin will be verified at the point of a transaction. If the "lookup" on the blockchain of the desired smartcoin transfer fails, then the transaction is deemed invalid. (?)
A UIA that is deemed to have 'failed' will have had very little use, and therefore will take up some of the least space on the blockchain, so why bother pruning it? Any space it DOES occupy has been paid for in tx fees.
UIAs (smartcoins too?) require a fee to be registered. I assume this is to cover any hosting costs.
To avoid control-vectors I think that all entries into the blockchain should be irreversible. This means that extra-care should be taken to avoid problems further down the line.
For example the 'molecatcher squatter' (20k domain names squatted) and the (now solved) mistake of ridiculously high transaction fees on the stock exchange UIAs (Shanghai, Shenzhen etc).
These mistakes should be taken as lessons to further improve both BitShares the protocol and BitShares the community.

Startspirit, your posts are always very interesting - would you consider doing a Beyond Bitcoin hangout to discuss privatized smartcoins?
I feel that a personal discussion would better convey your ideas and I would love to hear a professional discussing existing financial instruments and how bts could take advantage of them.
JonnyBitcoin votes for liquidity and simplicity. Make him your proxy?
BTSDEX.COM

Offline starspirit

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There could be unlimited ideas for different parameter variations on privatised Smartcoins.

Is there a hosting cost to the network irrespective of the number of transactions?
What key factors determine how much total "network capacity" each market will draw?
How would this be economically rationed, and would there be a limit on the number of Smartcoins?
Where particular markets fail to find material use, or outright fail to perform as expected, could there be a pruning process, and how could this operate cleanly without raising legal issues around control etc?