Here is some information that can be included in a FAQs or simply used here to help beginners.
If you dont know anything about protoshares, this will explain what they are, how to get them, how to use them to claim shares as well as some info on protoshares wallet management.
assumes you know what a DAC is, if you don’t, click here http://invictus-innovations.com/i-dacWhat are protoshares (PTS)?
PTS is a way to create a community around BitShares and other future DACs. PTS was launched as a crypto-currency that can be mined. What special about this crypto-currency is that for every PTS you own Invictus will reward you with corresponding shares in every new DAC that Invictus launches. This is done by forking the blockchain of a future DAC from the blockchain of PTS. In this way your public PTS address with be rewarded with shares of a new DAC and you can claim these shares using your private key.
Essentially PTS functions as a social contract between Invictus and PTS holders.
The really cool thing is that this social contract can be used by DAC creators other than Invictus. Other DAC creators would do this so that they can gain the attention of the PTS community. A good example of this is the launch of Memory coin where the Memory coin creators honoured PTS holders with 1% of total memory coin money supply.
To see some more information about PTS check out the website: www.protoshares.comHow do I get some PTS?
The easiest way to obtain some PTS is to purchase them through an exchange.
offer PTS exchanging services.
Cryptsy is a new exchange and can sometimes be slow to execute trades, there have also been issues with withdrawals and deposits where funds can take up to a day to show up. Cryptsy charges 0.01PTS for withdrawals.
Bter is a more established exchange. It is also faster to execute trades but charges a hefty 0.1PTS fee for withdrawals.Important
: To reduce exchange risk: Do not trade with high volumes of BTC/PTS on an exchange at any given time. Instead make a small deposit, trade it and withdraw. If this is successful, repeat.Why must I withdraw my PTS to a PTS wallet?
There is risk in storing your PTS on an exchange so its best practice not to do this.
In addition you wont get any BitShares (or shares in any other DACs) if you keep your PTS on the exchange. This is because when Invictus launches a DAC it will reward PTS holders with shares in the new DAC by rewarding the addresses which contain the PTS. If your PTS is stored on an exchange, the exchange’s PTS address will receive your BitShares.PTS wallet managementHow do I safely store PTS on a PTS wallet/client?
You can download the client for MAC or Windows or download and compile the code from here www.protoshares.com
.Note: I prefer to use MAC as there are less security issues.
Run the client and allow it to sync with the network.
Before you send any PTS to your wallet, you first need to encrypt the wallet. You can do this by clicking on the ‘settings’ tab and then ‘encrypt wallet’.
It will ask you to type in a password (encryption key) twice. Use a password of at least 32 characters. It is best to not use any real words or patterns but a random string of letters (in lower case and capitals), numbers and characters such as $@^&*Important
: Do not save your password on your computer or type it into any program. Your password should be written down on good old fashioned paper. You write the password down twice on two different pieces of paper for storage in different locations. DO NOT LOOSE THIS PASSWORD OR YOU WILL LOOSE YOUR PTS.How do I backup my PTS wallet?
You can create a backup of your wallet by clicking on the ‘file’ tab then ‘backup wallet’.
Just to be 100% sure also backup your wallet by making a copy of your wallet.dat file found in %AppData%/protoshares on Windows and ~/.protoshares on Linux.
The .protoshares folder is a hidden folder.
To make it visible on mac check out this link: http://www.mikesel.info/show-hidden-files-mac-os-x-10-7-lion/
To make it visible on windows check out this link: http://www.bleepingcomputer.com/tutorials/show-hidden-files-in-windows-7/
Store your backups in multiple off-line, off-computer locations. You can store it on flash drives and cds which can be stored at different locations (such as home and work).
Once you have backed up your wallet. You can delete the wallet.dat file found in the .protoshares folder. This will remove your wallet from your computer making your wallet less vulnerable to hackers. Hackers may be able to get into your hard drive but they will find it allot harder to get into your desk at work.Note: Store your wallet.dat file and pass-phrase separately. So that if someone gets hold of one they still wont be able to get your PTS without the other.Importantly:
you should refresh this backup of your wallet.dat file at least every 99 transactions. You need to do this because the wallet starts out with a pool of 100 key pairs that are used for transactions that require new key pairs. Once you have used up the 100 key pairs your wallet can create new key pairs when syncing with the network. This new wallet with refreshed key pairs should then be saved. IF YOU DO NOT DO THIS YOU CAN LOOSE PTS!How do I restore my PTS wallet from a backup?
If you need to gain access to your PTS do the following:
• Install the client
• copy your wallet.dat back into the .protoshares folder (replacing the wallet.dat file that will be there)
• Sync with the network and you should see your transactions and balance.Note: Only keep your wallet.dat file in your .protoshares folder when you want to have access to your PTS. Otherwise keep it offline for safety.How will I claim BitShares (BTS) using PTS?
Invictus is developing a user friendly software where you would simply download the BitShares client and then point it at your PTS wallet.dat file to collect your BTS.After collecting my BTS what do I do with my PTS?
I would advise you keep them! PTS has value because it functions as a social contract. May more DACs may come and honour the social contract, thus you are earning a stake in a new industry of DACs.Note: Compare this to being able to buy a piece of every future internet based company when the internet just started out.
If you found my advice useful, consider buying me a beer
I am providing some answers to commonly asked questions in hopes to help PTS newcomers. My answers do not constitute financial advice and before doing anything it is recommended to obtain as much information as you can from multiple sources. I do not take any responsibility for any losses anyone may experience when using virtual currency.