BitShares Forum
Main => General Discussion => Topic started by: kosh on March 14, 2015, 03:02:26 pm
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Hi,
One of the things that I find most attractive about bitshares is the ability to buy market pegged assets. So, silver, gold, national currency, etc. My question is: how is this any different from an end-user perspective than Coinapult-style bitcoin locks?
For those of you who aren't familiar, see: https://coinapult.com/locks/info (https://coinapult.com/locks/info)
Also, it should be noted that Mycelium (the popular Android wallet) is working on a Coinapult locks implementation: http://www.reddit.com/r/Bitcoin/comments/2yxid5/chainalasys_vs_mycelium_the_full_story/ (http://www.reddit.com/r/Bitcoin/comments/2yxid5/chainalasys_vs_mycelium_the_full_story/). (See the 3rd paragraph down from the top.)
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Never heard of coinapult locks before but it looks like a completely centralized solution. You have to trust them with your funds in order to use their service.
With BTS you don't have that counterparty risk. You are in complete control of your assets and private keys. That is the big difference imo, besides the other features we offer like UIAs.
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Coinapult locks, bitreserve and circle let you peg your bitcoins, but you have to give away your personal information to register. At BitShares it's more like 'cloud-banking' where you stay in the cryptosphere.
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Also, with Bitshares market pegged assets, you can directly transfer the asset without having to convert to bitcoin. This has the potential to save steps (and fees) in the payment process if the recipient is also interested in holding the same stable asset.
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I gotcha. Ok, thanks!
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I've been In contact with Rassah from mycelium, and it seems that the reason they went with coinapult is because most people outside the Bitshares ecosystem think that the market pegged assets are debt based...
The other point of contention for Rassah was that bitUSD pays interest - this was a warning flag to him.
Not sure why this is the case but its interesting to note, I wonder where this information came from? It seems to me that there's value in collaborating with companies already entrenched in the bitcoin space and making them aware of how Bitshares works first. Ride the coat tails of bitcoin's success to increased liquidity for the market pegs and a better system...
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I've been In contact with Rassah from mycelium, and it seems that the reason they went with coinapult is because most people outside the Bitshares ecosystem think that the market pegged assets are debt based...
The other point of contention for Rassah was that bitUSD pays interest - this was a warning flag to him.
Not sure why this is the case but its interesting to note, I wonder where this information came from? It seems to me that there's value in collaborating with companies already entrenched in the bitcoin space and making them aware of how Bitshares works first. Ride the coat tails of bitcoin's success to increased liquidity for the market pegs and a better system...
Wow ignorance. (not you).
I mean, coinapult uses a short/long hedge, surely. Exactly the same mechanism as bitshares, but probably employing less collateral (albeit perhaps more liquid).
All back-end depositors involved in making coinapult possible are raking interest. The only difference being bitshares reduces counterparty risk.
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Yeah, I was surprised to say the least. I mentioned the collateral, and explained how it worked, but I don't know him that well and i'm not a prominent figure in the space so my words probably didn't carry much weight.
No one can lock a price to an asset without hedging if they want to manage risk... Not sure why they chose to go with coinapult after all, might be that Rassah and Eric Voorhees are mates?
edit: Changed Roger to Eric :P
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This cant happen with BitShares market pegged assets:
https://www.reddit.com/r/Bitcoin/comments/2zf11j/coinapult_150_btc_hack_report/
https://coinreport.net/coinapult-loses-43k-hot-wallet-compromise/
With BitAssets you hold your private keys 100% of the time, and the assets are collateralized by the blockchain so it cant be hacked.
But of course if you asked Eric Voorhees he would say "ill lock your money for you, BitShares is just an altcoin"
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In theory, if the bitcoin price gaps hard and fast enough, coinapult customers will find their 'locks' are indeed breakable, precisely because they are debt based.