I have modified my FAQs according to the suggestions made by Brian. I have shortened the whole thing and simplified the answers so that they can be understood by everyone.
I have provided a short answer and then a longer explanation (which can be hidden) and provided to the viewer through a
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I think the option to gain the understanding needed to get involved (without having to go to many other places to look for more information) is important. When I started out I had to bother Stan with tons of little detailed questions so this bounty was a good idea. This will help a beginner to learn about I3, understand the concepts and then purchase some PTS/AGS and properly manage those wallets so they can receive shares in new DACs.
FAQ Invictus Innovations (I3)Who/what is Invictus Innovations (I3)?I3 is a flesh and blood corporation in the business of creating open-source software that functions on the blockchain as decentralized, autonomous companies (DACs).
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I3 started in 2013 and is located in Virginia, USA. The novel blockchain technology (which allows people to reach a global consensus on information) is what allowed bitcoin to function as a means of exchanging value. I3 sees bitcoin as being the tip of the ice-berg and they aim to use the blockchain technology to build DACs and change business the same way bitcoin has changed currency.What is a DAC?A Distributed Autonomous Corporations (DAC) is a distributed software which operates on a blockchain. A DAC is governed by a set of hard coded rules which allows it to provide the same functions as a traditional company.
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DACs are now possible because of the novel blockchain technology (which allows people to reach a global consensus on information). Bitcoin can be thought of as the first DAC. DACs run without the use of human involvement because they are governed by a set of rules that are hard corded into the software. The software is distributed globally and is audited by everyone running the software. DACs can then be used as a tool for people to do business with. These are the same properties bitcoin has!
You can pay for the services the DAC provides using shares in that DAC, the shares in the DAC have value because they are needed to make use of the services the DAC provides (with the bitcoin DAC service; bitcoins are the shares used to gain access to the service of cheap, global, fast transfer of value). Just like with flesh and blood companies you can obtain shares in the company through purchasing them or through earning them by performing tasks (like mining, or processing transactions using your computer). The main differentiator between I3 DACs and other DACs (such as bitcoin, litecoin, namecoin, datacoin etc) is that I3 DACs are designed to be profitable for shareholders.What does the I3 DAC pipeline look like?I3 has been mainly focused on building the world’s first decentralized bank and exchange, BitsharesX. Other DACs in the pipeline include; BitShares DNS, BitShares Bingo, BitShares Music, BitShares Vote.
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BitShares DNS, a domain name service similar to Namecoin, however this system has built in disincentives for domain name squatting.
BitShares Bingo, a bingo game held on the network where players will be able to buy into and sell stakes in bingo cards.
BitShares Music, a novel take on the music industry where artists IPO their music and the free market determines the success of artists.
BitShares Vote, a decentralized voting system designed to work along-side other voting systems (such as presidency elections).How do I get involved with I3?You can invest in and support future DACs built by I3 by getting your hands on some protoshares or angel shares (FAQs below).
You can also earn protoshares by claiming bounties for certain tasks submitted to the community by I3.
https://bitsharestalk.org/index.php?board=38.0FAQ Protoshares (BitsharesPTS)What are BitsharesPTS?BitsharesPTS is a minable cryptocurrency that comes along with a social promise, I3 will reward you with corresponding shares in every new DAC that I3 launches (at least 10% of the shares of the new DAC will go to BitsharesPTS holders).
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BitsharesPTS has provided a way for developing a community around I3 and future DACs. BitsharePTS holders will receive shares in future DACs by forking the blockchain of a future DAC from the blockchain of BitsharesPTS. In this way your public BitsharesPTS address with be rewarded with shares of a new DAC and you can claim these shares using your private key.
The really cool thing is that this social contract can be used by DAC creators other than I3. Third party DAC creators would do this to gain the attention of the BitsharesPTS community.How do I get some BitsharesPTS?You can mine BitsharesPTS (see invictus.io/bitshares-pts.php) or earn them through bounties held up I3 (bitsharestalk.org/index.php?board=38.0). However the easiest way to obtain some BitsharesPTS is to purchase them through an exchange.
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Currently https://www.cryptsy.com/ and https://bter.com/ offer BitsharesPTS 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.
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 BitsharesPTS to a wallet?There is risk in storing your BitsharesPTS on an exchange so its best practice not to do this. In addition you won’t get any shares in DACs if you keep your BitsharesPTS on the exchange.
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Keeping your BitsharesPTS on an exchange won't allow you to claim shares in new DACs. This is because because when I3 launches a DAC it will reward BitsharesPTS holders with shares in the new DAC by rewarding the addresses which contain the BitsharesPTS. If your BitsharesPTS is stored on an exchange, the exchange’s BitsharesPTS address will receive your shares.BitsharesPTS wallet managementHow do I safely store BitsharesPTS on a BitsharesPTS wallet/client?You can download the client for MAC or Windows or download and compile the code from here
http://invictus.io/bitshares-pts.php and sent your PTS to your wallet address.
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Run the client and allow it to sync with the network.
Before you send any BitsharesPTS 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 $@^&*
Obtain the public key (receiving address) on your client. You can find this by clicking on the ‘receive’ tab on the client and copying the address shown. It will look something like this: PhVq6eidddft6Ut3dcC3RsFWYQskdmK7US
Withdraw your BitsharesPTS from your exchange to your public key. The BitsharesPTS should show up on your client’s balance after a short while.
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 LOSE YOUR BitsharesPTS.How do I backup my BitsharesPTS wallet?You can create a backup of your wallet by clicking on the ‘file’ tab then ‘backup wallet’.
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As an extra precautionary measure you can also backup your wallet by making a copy of your wallet.dat file found in %AppData%/bitsharesPTS on Windows and ~/.bitsharesPTS on Linux.
The .bitsharesPTS 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 .bitsharesPTS 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 a lot harder to get into your desk at work.
Store your wallet.dat file and pass-phrase separately. So that if someone gets hold of one they still won’t be able to get your BitsharesPTS without the other.
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 LOSE PTS!How do I restore my BitsharesPTS wallet from a backup?If you need to gain access to your BitsharesPTS do the following:
• Install the client
• copy your wallet.dat back into the .bitsharesPTS folder (replacing the wallet.dat file that will be there)
• Sync with the network and you should see your transactions and balance.
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Only keep your wallet.dat file in your .bitsharesPTS folder when you want to have access to your BitsharesPTS. Otherwise keep it offline for safety.How will I claim shares in I3 DACs (like BitSharesX) using BitsharesPTS?I3 is developing a user friendly piece of software where you would simply download the DAC client and then point it at your BitsharesPTS wallet.dat file to collect your new shares. Neat!
After collecting my BTS what do I do with my BitsharesPTS?I would advise you keep them! BitsharesPTS has value because it functions as a social contract. Many more DACs are in the pipeline (see above FAQs about I3 DAC pipeling) and will honour the social contract, thus you are earning a stake in the new industry of DACs.
FAQ BitsharesX DACWhat is a DACDAC stands for Decentralized-Autonomous-Corporation and is a general term used to describe an unmanned company whose shares are the crypto-currency and the value of those shares are backed up by the service the company provides. Bitcoins can be said to be the shares of the company ‘Bitcoin, DAC’ where the value of a bitcoin is backed up by the value of the service Bitcoin provides.
BitsharesA general term referring to a crypto-equity based company, a DAC.
BitsharesXThe specific name of a DAC I3 plans to launch. (BitSharesX was previously called BitShares, the renaming is part of a branding strategy).
What is BitSharesX?BitsharesX is a DAC which provides the services of storing value (like a traditional bank) and a derivative market (like that of Forex and CFD markets).
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A derivative is a representation of a real world asset. BitsharesX creates derivative assets that are representative of real world assets (stores of value) such as USD, gold, oil etc. The derivatives will exist in the form of bitUSD, bitGold, bitOil etc.
Users will be able to hold assets such as bitUSD in the BEX bank and thus use BEX as a savings vehicle through buying bitAssets or trading shares in BitsharesX for bitAssets, ‘buying long’. BitAssets can also be used as a means for transferring value.
Users will also be able to speculate on the value of bitAssets by ‘buying long’ or ‘short selling’ the assets.How are these bitAssets (such as bitUSD) created?(Short selling is a complex trading mechanism which allows people to burrow and sell assets in order to make money if the asset drops in value).
Lets say Stacy believes the value of USD is going to drop and wishes to short sell bitUSD. She will need to put down collateral in order to burrow bitUSD (which are lent into existence). BitsharesX shares are used as collateral. Once Stacy has burrowed some bitUSD she can sell it to another user, lets say Ben.
In this way bitUSD were lent into existence by BitShares BEX using Stacy’s collateral. And Ben could now purchase bitUSD and use them to store his value, speculate on USD value, save the money for a rainy day etc.
Why would someone short bitUSD?Sticking with the example used above:
Stacy has shorted bitUSD hoping that it will go down in value and she will be able to buy it back from Ben at a cheaper price.
If the price of USD drops, Ben may decide he no longer wants to own bitUSD and may sell it back to Stay at the lower price.
Stacy can then return the bitUSD she lent from BitShares BEX. She can return the bitUSD at a lower price than she bought it and can pocket the difference!
When Stacy returns the bitUSD to BitShares BEX the bitUSD is destroyed removing it from existence.
How will the value of bitUSD track the value of real world USD?The price of bitUSD is pegged to the price of USD by the same principles that peg a prediction market. A number of people will take long and short positions on bitUSD until a consensus is reached and spread is reduced to around the value that the market believes bitUSD should be priced at.
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It simply wouldn’t make sense to buy bitUSD for 5USD. And it wouldn’t make sense to short bitUSD at a value too low under the current USD value. As people continue to take up positions the market will price bitUSD at a the price they believe it is worth.Sounds good, how do I obtain some BEX?When BEX launches you should be able to purchase shares through crypto-currency exchanges.
Before the 28th of February 2014 it was possible to obtain shares in BitsharesX through owning BitsharesPTS and/or BitsharesAGS.
On the 28th of February the snapshot for honouring addresses with shares in BitsharesX was taken so everyone owning BitsharesPTS and/or BitsharesAGS will be able to claim a stake in BitsharesX.
Why are we doing this/how is BitsharesX good for society?It will provide an alternative banking and trading platform that is extremely cheap for users. Millions of people who could previously not afford banking services can now hold their value in stable, virtual asset classes.
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BEX allows for the creation of virtual assets (e.g bitUSD) which can be transferred quickly, globally and cheaply (like bitcoin). bitUSD will hold a relatively stable value as its value will be pegged to USD, thus resolving issues around price volatility in the cryptocurrency space.
Many banks claim this but BEX will be the first bank that was created by the people, for the people.FAQ Angel shares (BitsharesAGS)What are BitsharesAGS?BitsharesAGS provide a way for I3 to crowd fund the development of new DACs and the development of tools that will allow others to create new DACs. Just like with BitsharesPTS, BitsharesAGS functions as a social contract between I3 and the donors. I3 will honour BitsharesAGS holders with at least 10% of the shares in new DACs created by I3.
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While DACs may function without the need of humans, large amounts of human power and funding is needed to get them coded and running.
The BitsharesAGS crowd funding platform was launched on the 1st of January 2014 and is scheduled to run for 200 days. Here 100% of the funds raised from BitsharesAGS will be used to help grow the DAC industry.
Check out www1.agsexplorer.com view stats on BitsharesAGS and view details on how BitsharesAGS funding is being spent.How does BitsharesAGS work and how can I obtain them?I3 You can obtain BitsharesAGS by donating either bitcoin or BitsharesPTS to the bitcoin or BitsharesPTS angel addresses.
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Each day a total of 10 000 BitsharesAGS will be given out to the supporters who donated that day. 5000 BitsharesAGS will be divided among persons who donated bitcoin to the bitcoin angel address. And 5000 will be divided among persons who donated BitsharesPTS to the BitsharesPTS angel address.
Each day the BitsharesAGS will be divided among the donating addresses according to the amounts each address donated.
You can obtain BitsharesAGS by donating BitsharesPTS to this address: PaNGELmZgzRQCKeEKM6ifgTqNkC4ceiAWw
Or by donating bitcoin to this address:
1ANGELwQwWxMmbdaSWhWLqBEtPTkWb8uDc
BitsharesAGS honour the address from which the donation was sent. Thus you should never send donations from an address which you don’t own the private key to!
Topic: 150PTS - Comprehensive FAQ for new site [CLOSED] (Read 14665 times)
