BitShares Forum

Main => Technical Support => Topic started by: karnal on February 25, 2015, 07:06:03 pm

Title: What are the difference(s) between "normal" assets and user assets?
Post by: karnal on February 25, 2015, 07:06:03 pm

And how can more "normal" assets be added -- am I right to assume that bitDOGE or bitDRK belong to 'normal assets' next to bitBTC, and not to user created assets?

Title: Re: What are the difference(s) between "normal" assets and user assets?
Post by: santaclause102 on February 25, 2015, 07:40:29 pm

:) Normal is about as vague as you can get :) But I am sure you read the word "normal" somewhere confuses more than it clarifies...

There are three types of tokens:

1) BTS (native currency limited in supply; like bitcoins in Bitcoin)
2) User issued assets https://www.youtube.com/watch?v=yzruOULgmng. Also known as colored coins in the wider cypto world. There is a centralized issuer that promises to guarantee the value of the user issued asset. Anyone can create a user issued asset for a little fee.
3) Bitassets = market pegged assets. http://bytemaster.bitshares.org/article/2014/12/18/What-are-BitShares-Market-Pegged-Assets/ Those have no centralized issuer. The have the form Bitxxxx.

Title: Re: What are the difference(s) between "normal" assets and user assets?
Post by: karnal on February 25, 2015, 07:44:03 pm

Quote from: delulo on February 25, 2015, 07:40:29 pm

:) Normal is about as vague as you can get :) But I am sure you read that "normal" somewhere...

There are three types of tokens:

1) BTS (native currency limited in supply; like bitcoins in Bitcoin)
2) User issued assets https://www.youtube.com/watch?v=yzruOULgmng. Also known as colored coins in the wider cypto world. There is a centralized issuer that promises to guarantee the value of the user issued asset. Anyone can create a user issued asset for a little fee.
3) Bitassets = market pegged assets. http://bytemaster.bitshares.org/article/2014/12/18/What-are-BitShares-Market-Pegged-Assets/ Those have no centralized issuer. The have the form Bitxxxx.

Yes, hence "normal" in quotes :) I'll try to remember "market pegged assets".

So, ok, there is no central issuer... but bitGOLD etc came from somewhere, can new ones be created in the same way?

Title: Re: What are the difference(s) between "normal" assets and user assets?
Post by: santaclause102 on February 25, 2015, 07:53:18 pm

Quote from: karnal on February 25, 2015, 07:44:03 pm

Quote from: delulo on February 25, 2015, 07:40:29 pm

:) Normal is about as vague as you can get :) But I am sure you read that "normal" somewhere...

There are three types of tokens:

1) BTS (native currency limited in supply; like bitcoins in Bitcoin)
2) User issued assets https://www.youtube.com/watch?v=yzruOULgmng. Also known as colored coins in the wider cypto world. There is a centralized issuer that promises to guarantee the value of the user issued asset. Anyone can create a user issued asset for a little fee.
3) Bitassets = market pegged assets. http://bytemaster.bitshares.org/article/2014/12/18/What-are-BitShares-Market-Pegged-Assets/ Those have no centralized issuer. The have the form Bitxxxx.

Yes, hence "normal" in quotes :) I'll try to remember "market pegged assets".

So, ok, there is no central issuer... but bitGOLD etc came from somewhere, can new ones be created in the same way?

You are asking good questions :) (a quality as opposed to common believe). I would really recommend to read the market pegged assets whitepaper http://bytemaster.bitshares.org/article/2014/12/18/What-are-BitShares-Market-Pegged-Assets/! You will find a detailed explanation there (short: they are shorted into existence where the short position has to put up BTS as collateral (not liquid anymore than; 300% of the value of the bitasset that is shorted into existence)).
And all BitAssets are created in the same way.

Title: Re: What are the difference(s) between "normal" assets and user assets?
Post by: karnal on February 25, 2015, 08:27:58 pm

My bad, the language I chose was ambiguous.

I meant to ask where to bitGOLD, bitSILVER etc come from, in the sense of what's stopping anyone from adding bitDRK or bitDOGE. Are bitGOLD, bitSILVER, bitBTC (and so on) built-in somehow, and can new ones be added?

I am assuming the answer (to the 2nd question) is yes -- it's the how that perplexes me!

Title: Re: What are the difference(s) between "normal" assets and user assets?
Post by: santaclause102 on February 25, 2015, 08:30:56 pm

Quote from: karnal on February 25, 2015, 08:27:58 pm

My bad, the language I chose was ambiguous.

I meant to ask where to bitGOLD, bitSILVER etc come from, in the sense of what's stopping anyone from adding bitDRK or bitDOGE. Are bitGOLD, bitSILVER, bitBTC (and so on) built-in somehow, and can new ones be added?

I am assuming the answer (to the 2nd question) is yes -- it's the how that perplexes me!

See https://bitsharestalk.org/index.php?topic=14373.msg187304#msg187304 and 2. in https://bitsharestalk.org/index.php?topic=14444.msg187867#msg187867

Nothing is fixed or built in. All Bitassets are equal structurally.
1. To open a market for a BitAsset it needs 51+ pricefeeds.
2. Then the first Bitxyz can be created by shorting it into existence.

Title: Re: What are the difference(s) between "normal" assets and user assets?
Post by: karnal on February 25, 2015, 08:36:44 pm

Most interesting! Thanks a bunch, it finally makes sense to me!

Title: Re: What are the difference(s) between "normal" assets and user assets?
Post by: santaclause102 on February 25, 2015, 08:47:35 pm

Quote from: karnal on February 25, 2015, 08:36:44 pm

Most interesting! Thanks a bunch, it finally makes sense to me!

Takes a while :) Took a ton of time without proper documentation for me to understand this.