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Offline celticwarrior72

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New to BitsharesX - some questions
« on: August 22, 2014, 04:22:50 AM »

I'm new to BitsharesX, but have a really good understanding of other 2.0 projects like Ripple, Nxt, Counterparty, etc.  I have a few questions about BTSX:

1) What is the transaction speed?
2) How many BitAssets will a single blockchain be expected to support?
3) Who decides which BitAssets are issued on which blockchain?
4) Will all BitAssets be collateralized by BTSX?  If so, what is the mechanism that keeps the price tracking the underlying asset?

A good (and simple) FAQ would be very helpful as a lot of the existing documentation is quite dense to read.  If you want noobs to jump on board, make it easy for them.

Offline xeroc

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Re: New to BitsharesX - some questions
« Reply #1 on: August 22, 2014, 07:45:33 AM »
I'm new to BitsharesX, but have a really good understanding of other 2.0
projects like Ripple, Nxt, Counterparty, etc.  I have a few questions about
BTSX:
Welcome on board .. enjoy the ride

1) What is the transaction speed?
block time is 10 secs ... confirmation time is also 10 secs. No real need to wait for more blocks to 'confirm'.
Need to search the post of the devs about that .. Bytemaster had an easy description for that
To be more precise, transaction takes 5 secs on average to be confirmed as blocks are created EXACTLY every 10 sec.

2) How many BitAssets will a single blockchain be expected to support?
there are user assets and bit assets on the chain ... currently you can have
about 24 bitassets on the chain and alot more user assets. The bit assets are
marketpeg to something physical while the user assets are for IPOs and similar
actions.

3) Who decides which BitAssets are issued on which blockchain?
The create and maintainer of the blockchain .. want to be one? you can start
your own .. software is open source. that is also a competitive market.

4) Will all BitAssets be collateralized by BTSX?  If so, what is the mechanism that keeps the price tracking the underlying asset?
Go to wiki.bitshares.org and search for "market peg" .. its on the front page.

A good (and simple) FAQ would be very helpful as a lot of the existing
documentation is quite dense to read.  If you want noobs to jump on board, make
it easy for them.
May I kindly direct you again towards the wiki.bitshares.org .. there are FAQs
for the software and for BitSharesX in general


If you have any more more specific questions just post them.
« Last Edit: August 24, 2014, 09:47:36 AM by xeroc »
Give BitShares a try! Use the http://testnet.bitshares.eu provided by http://bitshares.eu powered by ChainSquad GmbH

Offline 麥可貓

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Re: New to BitsharesX - some questions
« Reply #2 on: August 22, 2014, 07:58:29 AM »
I'm new to BitsharesX, but have a really good understanding of other 2.0 projects like Ripple, Nxt, Counterparty, etc.  I have a few questions about BTSX:

1) What is the transaction speed?
2) How many BitAssets will a single blockchain be expected to support?
3) Who decides which BitAssets are issued on which blockchain?
4) Will all BitAssets be collateralized by BTSX?  If so, what is the mechanism that keeps the price tracking the underlying asset?

A good (and simple) FAQ would be very helpful as a lot of the existing documentation is quite dense to read.  If you want noobs to jump on board, make it easy for them.

If you are familiar with other 2.0 coins, here is a summary table to compare bitsharesx to other 2.0 coins (in the "summary" section):
https://o.info/index.php/How_to_issue_a_cryptosecurity
PTS: PmRVDPymZqSAZEXauHZSewrUrE66af7epT
BTSX: michaelcat
Delegate Team: x1.sun  x2.sun

Offline celticwarrior72

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Re: New to BitsharesX - some questions
« Reply #3 on: August 23, 2014, 03:41:42 AM »
Further questions:

1) So issuance of any BitAsset is collateralized by some quantity of BTSX?
2) What is the mechanism by which that BTSX will be marked to market to that there is always sufficient collateral to support the asset?
3) Why not use the real-world asset as collateral and negate the mark-to-market problem? (this is what Ripple gateways do)

Offline bytemaster

Re: New to BitsharesX - some questions
« Reply #4 on: August 23, 2014, 04:38:24 AM »
1) So issuance of any BitAsset is collateralized by some quantity of BTSX?
   Initial collateral requirement is 2x the value of the BitAsset. 

2) What is the mechanism by which that BTSX will be marked to market to that there is always sufficient collateral to support the asset?
   There is a live market (bid/ask) that continuously determines the price and settlement.  The average price is used to trigger margin calls while while there is still 150% backing.

3) Why not use the real-world asset as collateral and negate the mark-to-market problem? (this is what Ripple gateways do)

Because someone has to hold the real world asset and that involves trust, is a regulatory nightmare, and there is no mark-to-market problem.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline celticwarrior72

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Re: New to BitsharesX - some questions
« Reply #5 on: August 23, 2014, 04:50:12 AM »

2) What is the mechanism by which that BTSX will be marked to market to that there is always sufficient collateral to support the asset?
   There is a live market (bid/ask) that continuously determines the price and settlement.  The average price is used to trigger margin calls while while there is still 150% backing.

Two more questions:

1) Where does that 'live market' come from?  Is it purely from bids and offers from market participants, or will the blockchain have some integrated bot to provide continuous liquidity of some sort?
2) Say I'm the holder of 1000 BitUSD that has been collateralized by 100,000 BTSX, can you describe what happens if the price of BTSX drops from 100:1 to 1000:1?

Offline bytemaster

Re: New to BitsharesX - some questions
« Reply #6 on: August 23, 2014, 04:53:20 AM »

2) What is the mechanism by which that BTSX will be marked to market to that there is always sufficient collateral to support the asset?
   There is a live market (bid/ask) that continuously determines the price and settlement.  The average price is used to trigger margin calls while while there is still 150% backing.

Two more questions:

1) Where does that 'live market' come from?  Is it purely from bids and offers from market participants, or will the blockchain have some integrated bot to provide continuous liquidity of some sort?
2) Say I'm the holder of 1000 BitUSD that has been collateralized by 100,000 BTSX, can you describe what happens if the price of BTSX drops from 100:1 to 1000:1?

Bids and asks purely from market participants.   Many participants will run bots serving as a market maker. 
If the price falls by 90% over a week then the market should clear slowly as margin calls are gradually executed and people cover.   A short squeeze is possible. 
If there is insufficient collateral, then fees collected by the network prior to the crash will cover any losses.... if prior fees are not enough, then future fees will be used and the BitUSD will only be partially backed.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline celticwarrior72

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Re: New to BitsharesX - some questions
« Reply #7 on: August 23, 2014, 05:03:24 AM »

2) What is the mechanism by which that BTSX will be marked to market to that there is always sufficient collateral to support the asset?
   There is a live market (bid/ask) that continuously determines the price and settlement.  The average price is used to trigger margin calls while while there is still 150% backing.

Two more questions:

1) Where does that 'live market' come from?  Is it purely from bids and offers from market participants, or will the blockchain have some integrated bot to provide continuous liquidity of some sort?
2) Say I'm the holder of 1000 BitUSD that has been collateralized by 100,000 BTSX, can you describe what happens if the price of BTSX drops from 100:1 to 1000:1?

Bids and asks purely from market participants.   Many participants will run bots serving as a market maker. 
If the price falls by 90% over a week then the market should clear slowly as margin calls are gradually executed and people cover.   A short squeeze is possible. 
If there is insufficient collateral, then fees collected by the network prior to the crash will cover any losses.... if prior fees are not enough, then future fees will be used and the BitUSD will only be partially backed.

So the holder of a particular BitAsset may be left with uncollateralized assets during periods of high volatility.  They can then hope that collateral is recovered over time through network fees.

Can anyone sell these standardized BitAssets and will they be considered fungible regardless of the issuer?

Offline bytemaster

Re: New to BitsharesX - some questions
« Reply #8 on: August 23, 2014, 05:06:08 AM »

2) What is the mechanism by which that BTSX will be marked to market to that there is always sufficient collateral to support the asset?
   There is a live market (bid/ask) that continuously determines the price and settlement.  The average price is used to trigger margin calls while while there is still 150% backing.

Two more questions:

1) Where does that 'live market' come from?  Is it purely from bids and offers from market participants, or will the blockchain have some integrated bot to provide continuous liquidity of some sort?
2) Say I'm the holder of 1000 BitUSD that has been collateralized by 100,000 BTSX, can you describe what happens if the price of BTSX drops from 100:1 to 1000:1?

Bids and asks purely from market participants.   Many participants will run bots serving as a market maker. 
If the price falls by 90% over a week then the market should clear slowly as margin calls are gradually executed and people cover.   A short squeeze is possible. 
If there is insufficient collateral, then fees collected by the network prior to the crash will cover any losses.... if prior fees are not enough, then future fees will be used and the BitUSD will only be partially backed.

So the holder of a particular BitAsset may be left with uncollateralized assets during periods of high volatility.  They can then hope that collateral is recovered over time through network fees.

Can anyone sell these standardized BitAssets and will they be considered fungible regardless of the issuer?

There is no "issuer" other than the "network" and yes all BitUSD is fungible.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline lucky331

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Re: New to BitsharesX - some questions
« Reply #9 on: August 23, 2014, 05:11:47 AM »
learned a lot from this exchange.  thanks bm and celtic. 

Offline celticwarrior72

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Re: New to BitsharesX - some questions
« Reply #10 on: August 23, 2014, 05:18:23 AM »
There is no "issuer" other than the "network" and yes all BitUSD is fungible.

OK.  So right now, funds flow into and out of the blockchain via some bitcoin broker/exchange in a relatively cumbersome manner as follows: Fiat->BTC->BTSX->BitUSD.  In an ideal world there would be a simpler process of Fiat->BitUSD.  Have you given any thoughts to how this simpler process might get implemented?

Offline bytemaster

Re: New to BitsharesX - some questions
« Reply #11 on: August 23, 2014, 05:19:41 AM »
There is no "issuer" other than the "network" and yes all BitUSD is fungible.

OK.  So right now, funds flow into and out of the blockchain via some bitcoin broker/exchange in a relatively cumbersome manner as follows: Fiat->BTC->BTSX->BitUSD.  In an ideal world there would be a simpler process of Fiat->BitUSD.  Have you given any thoughts to how this simpler process might get implemented?

Right now localbitcoins suffers from trying to match Bid/Ask + Location... with BitUSD all you have to do is match location.   Much easier.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline celticwarrior72

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Re: New to BitsharesX - some questions
« Reply #12 on: August 23, 2014, 05:34:09 AM »
There is no "issuer" other than the "network" and yes all BitUSD is fungible.

OK.  So right now, funds flow into and out of the blockchain via some bitcoin broker/exchange in a relatively cumbersome manner as follows: Fiat->BTC->BTSX->BitUSD.  In an ideal world there would be a simpler process of Fiat->BitUSD.  Have you given any thoughts to how this simpler process might get implemented?

Right now localbitcoins suffers from trying to match Bid/Ask + Location... with BitUSD all you have to do is match location.   Much easier.

The BitUSD seller will still charge a 'commission' which could be construed as a bid or ask, but I get your point.  Of course bank->BitUSD would be the most efficient, but there'll be a ton of KYC and AML compliance issues to overcome first.

Thanks for taking the time to answer my questions.

Online yellowecho

Re: New to BitsharesX - some questions
« Reply #13 on: August 23, 2014, 02:42:24 PM »
OK.  So right now, funds flow into and out of the blockchain via some bitcoin broker/exchange in a relatively cumbersome manner as follows: Fiat->BTC->BTSX->BitUSD.  In an ideal world there would be a simpler process of Fiat->BitUSD.  Have you given any thoughts to how this simpler process might get implemented?

Several companies have already taken interest in doing Fiat>BitUSD.  For instance, I recently read a post that our friends at AltQuick.co will be selling bitUSD when it hits the market via cash deposit and I'm sure many more will as well.
696c6f766562726f776e696573

Offline liondani

Re: New to BitsharesX - some questions
« Reply #14 on: August 23, 2014, 05:59:05 PM »



   There is a live market (bid/ask) that continuously determines the price and settlement.  The average price is used to trigger margin calls while while there is still 150% backing.

on a flash crash I suppose the margin call would not be activated because the average prize would not have the time to follow the actual prize? Would it be not better to use the actual prize for margin calls? I know you are worried for attacks but the solution to this is to let the "shorters" use more collateral manualy (minimum= 2x, max = unlimited )... So only individuals could be attacked and not all the network!  Am I missing something?


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