sorry for the late reply... i still dont understand what exactly we are holding with these shares. If lets say the US gov wants to use this system for general elections so every citizen in the country would then be "distributed" a single "vote" is that the same as the shares that we are holding? I cant imagine thats the case, otherwise then lets say american idol wanted to use the dac as well, they would then just "generate" couple hundred million new "vote shares" overnight? it seems more like this is like a bitsharesME type thing. Basically a "stock" in this dac but one that appears to be only related by a social contract at best. IDK, im very confused about this one. im trying to understand how this business model provides value to the shareholders.

i actually came here searching for "sidechain" because i was hoping for a comment from daniel about this... People are saying this makes 2.0 protocols like ethereum and master obsolete, but im not sure how it relates to bitshares as it appears most of these projects are going to be POS.  But id love to hear from u byte... thoughts?

well im no cryptography expert, but everything i have studied about it so far has lead me to believe that this shouldn't be complicated at all. It is the same principle as generating a public key from a private one through a one way function (granted you are going from public to private in this sense). I think this could be very important in the future if keyhotee really catches on. Imagine if websites use keyhotee reputation (or any other attributes, like number of times flagged, or places banned, etc) as a spam deterrent, and began weighting comments based on better user reputation, likes, etc.  In a situation like that it would immensely important to give users the ability to post anonymously but not be crippled (have their post buried at the bottom of long threads) for choosing to do so.