Author Topic: ELI5 for Bitshares X  (Read 10468 times)

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jakub

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Sounds reasonable.  I suspect we're going to change the frontpage somewhat and make it have a more unified vision but it will always be the wiki.  If you wish to be given editing permission and haven't send me a pm.  The main thing is I don't want to see good content fall through the cracks.  Thanks for your contributions.

A few days have passed and I do not think we are going to receive any more feedback regarding the wording of the text so I guess we need to assume the text is ready to become part of the wiki.

Offline eagleeye

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Now Bitshares X asks this question: can a prediction market successfully exist with no settlement date and no delivery of the underlying asset?
If the answer turns out to be "yes" - that will be a major breakthrough.
If the answer turns out to be "no" - then Bitshares X has a solid back-up plan: the use of an external feed to supply the btsx/USD rate into the blockchain. With the external feed the only risk for the system is low liquidity.
How does the price feed provice/replace a settlement date and delivery of the underlying asset?

That's a good question. This was my understanding of the discussion between bytemaster and sportscliche in this topic
https://bitsharestalk.org/index.php?topic=13.msg14#msg14

I guess the external feed does not replace a settlement date but it does replace the delivery: in my understanding the feed is the final judge who decides whether it's been better to be short bitUSD or long bitUSD.
But I would love to hear the opinion of someone wiser than me on that.

The only purpose of the feed is to initiate the market and make sure no one abuses the 'not-yet-activate-due-to-just-started' market peg.
From my understanding, the price feeds is only relevant for the first 1 hour .. after initialization .. after that 1hr-moving average will take over the price feed which limits the price for any SHORT order placed in between +-10% around the feed.

How would someone abuse the "not-yet-activate-due-to-just-started" market peg?

Offline eagleeye

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We translated the article into Chinese version. Hopefully you don't mind. :)

http://www.bts.hk/eli5-for-bitshares-x.html

Good job friend and ally.


Offline gamey

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Sounds reasonable.  I suspect we're going to change the frontpage somewhat and make it have a more unified vision but it will always be the wiki.  If you wish to be given editing permission and haven't send me a pm.  The main thing is I don't want to see good content fall through the cracks.  Thanks for your contributions.
I speak for myself and only myself.

jakub

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I am going to ask gamey to put this text on the bitshares wiki as a third section under "BitShares X - Bank and Exchange".
Before I do this - anyone would like to suggest any changes, corrections, improvements?

bitbro

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If it's so simple, isn't it about time we loaded the system up with bots?


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Offline metalallen

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We translated the article into Chinese version. Hopefully you don't mind. :)

http://www.bts.hk/eli5-for-bitshares-x.html
That's fantastic.
I don't know Chinese but I'm guessing you used the version from yesterday which used the "contract for difference" concept. Today I amended the text in Chapter 5 to make it simpler and in this new version no reference to "contract for difference" is needed.
Also I added some small changes in Chapter 8.

Oh OK, we will make it right. Thanks again for the great work. +5%
浮壹白的微博:http://weibo.com/u/2279693077
BTSX Account:metalallen

jakub

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We translated the article into Chinese version. Hopefully you don't mind. :)

http://www.bts.hk/eli5-for-bitshares-x.html
That's fantastic.
I don't know Chinese but I'm guessing you used the version from yesterday which used the "contract for difference" concept. Today I amended the text in Chapter 5 to make it simpler and in this new version no reference to "contract for difference" is needed.
Also I added some small changes in Chapter 8.

Offline metalallen

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We translated the article into Chinese version. Hopefully you don't mind. :)

http://www.bts.hk/eli5-for-bitshares-x.html
浮壹白的微博:http://weibo.com/u/2279693077
BTSX Account:metalallen

Offline tonyk

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I've improved the text by eliminating the "contract for difference" concept.
As I understand it better now, it turns out it's not needed at all, it only obscures the picture.
So chapter 5 is quite simple now, even for me.

Does it now... :)
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

jakub

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I've improved the text by eliminating the "contract for difference" concept.
As I understand it better now, it turns out it's not needed at all, it only obscures the picture.
So chapter 5 is quite simple now, even for me.

Offline gamey

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Anyone know where this should be placed ?  Wiki?  etc?  I always hear we need better explanations of Bitshares X and I agree.  Seeing efforts like this are quite inspiring.

 1 There is the problem of people understanding enough to create content.
 2 People have to create content.
 3 Then there has to be a place organized to put the content and/or marketing efforts use it.

In this case we have 1 and 2 but not sure about 3. ?
I speak for myself and only myself.

jakub

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Quote
Now Bitshares X asks this question: can a prediction market successfully exist with no settlement date and no delivery of the underlying asset?
If the answer turns out to be "yes" - that will be a major breakthrough.
If the answer turns out to be "no" - then Bitshares X has a solid back-up plan: the use of an external feed to supply the btsx/USD rate into the blockchain. With the external feed the only risk for the system is low liquidity.
How does the price feed provice/replace a settlement date and delivery of the underlying asset?

That's a good question. This was my understanding of the discussion between bytemaster and sportscliche in this topic
https://bitsharestalk.org/index.php?topic=13.msg14#msg14

I guess the external feed does not replace a settlement date but it does replace the delivery: in my understanding the feed is the final judge who decides whether it's been better to be short bitUSD or long bitUSD.
But I would love to hear the opinion of someone wiser than me on that.

The only purpose of the feed is to initiate the market and make sure no one abuses the 'not-yet-activate-due-to-just-started' market peg.
From my understanding, the price feeds is only relevant for the first 1 hour .. after initialization .. after that 1hr-moving average will take over the price feed which limits the price for any SHORT order placed in between +-10% around the feed.

I agree with that and there is no confusion about that. This is how the system works right now.

But the question is: in case it turns out the market peg does not hold and we need to keep the feed at all times will this make this statement true:
"Bitshares X is a prediction market where users bet on the future btsx/USD rate and the external feed is the final judge"

In my opinion this is the case.

Offline xeroc

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Quote
Now Bitshares X asks this question: can a prediction market successfully exist with no settlement date and no delivery of the underlying asset?
If the answer turns out to be "yes" - that will be a major breakthrough.
If the answer turns out to be "no" - then Bitshares X has a solid back-up plan: the use of an external feed to supply the btsx/USD rate into the blockchain. With the external feed the only risk for the system is low liquidity.
How does the price feed provice/replace a settlement date and delivery of the underlying asset?

That's a good question. This was my understanding of the discussion between bytemaster and sportscliche in this topic
https://bitsharestalk.org/index.php?topic=13.msg14#msg14

I guess the external feed does not replace a settlement date but it does replace the delivery: in my understanding the feed is the final judge who decides whether it's been better to be short bitUSD or long bitUSD.
But I would love to hear the opinion of someone wiser than me on that.

The only purpose of the feed is to initiate the market and make sure no one abuses the 'not-yet-activate-due-to-just-started' market peg.
From my understanding, the price feeds is only relevant for the first 1 hour .. after initialization .. after that 1hr-moving average will take over the price feed which limits the price for any SHORT order placed in between +-10% around the feed.