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As BTS price began its evil and unholy decent below 1 cent, this question of ' are bitshares functional shares in BTS' caused me some agony. And I am still not sure.

This is what ripple says on XRP, which strikes me as very modest, but perhaps also concerning to anyone that would invest in XRP. Maybe if Bitshares can make (or has) a better argument, it would bring additional confidence to the market?


XRP: Math Based Currency

   A math-based currency, also referred to as a cryptocurrency, is a digital asset with verifiable mathematical properties, similar to how we can reliably verify gold as a substance made of atoms with 79 protons. Math-based currencies exist as digital assets in their own right and can be transferred directly between users (as fiat cash can be) without relying on a centralized protocol operator. XRP exists as a math-based currency on the Ripple protocol.

   The supply of a math-based currency is governed by mathematics. There is no human intervention after the creation & implementation of the protocol rules. This is in contrast to the many “virtual currencies” that can be issued without restriction by companies and people (such as airline miles, reward points, etc.). In this example, XRP cannot be ‘devalued’ by the creation of additional XRP.

   Bitcoin was the first example of a math-based currency. Bitcoin exists natively as a digital asset. On the network, it is not a balance that is redeemable at a central point of failure, and does not carry risk from a counterparty as “digital fiat” currencies do (as with an online balance from a bank that is not FDIC insured). You could hand someone a thumb drive with Bitcoin on it, and in doing so, you are transferring the asset itself, like handing over cash, as opposed to transferring an IOU or someone’s promise to pay. It does not require trust in any third party.

   XRP exists natively within the Ripple protocol as a counterparty-free currency, as Bitcoin does on the Blockchain. Because XRP is an asset, as opposed to a redeemable balance, it does not require that users trust any specific financial institution to trade or exchange it. All other currencies on Ripple do require some amount of trust, as they each have an issuer, from whom that currency can be redeemed (this includes BTC on the Ripple network).

   Users of the Ripple protocol are not required to use XRP as a medium of exchange or as a store of value. The Ripple protocol is currency agnostic. Users can use their preferred currency, whether that’s USD, BTC, XRP, or any other currency. Similarly, users may freely choose to trust any issuers they find reliable; this includes the trust implied by users trading in an issued non-XRP currency.

XRP for abuse protection:
   The primary function of XRP is to protect the Ripple protocol against denial-of-service (DoS) spam attacks. Since the Ripple protocol is based around a shared ledger of accounts, a malicious attacker could create large amounts of “ledger spam” (such as fake accounts) and “transaction spam” (such as fake transactions) in an attempt to overload the protocol. This could cause the size of the ledger to become unmanageable and interfere with the protocol’s ability to quickly settle legitimate transactions.

   To protect the protocol from abusive creation of excess ledger entries, each Ripple account is required to have a small reserve of XRP to create ledger entries. This requirement is intended to be a negligible amount for normal users, while preventing a potential attacker from amassing a large number of fraudulent accounts to “spam” the protocol.

   As a second line of defense, with each transaction that is processed, 0.00001 XRP is destroyed. This is not a fee that is collected by any one — the XRP is destroyed and ceases to exist. This transaction fee is also designed to be negligible for users. However, when the protocol is under heavy load, such as when it is attacked, this fee rapidly rises.

   The goal of this design is to quickly bankrupt attackers and keep the protocol functioning smoothly. Attacking the Ripple protocol can get very expensive very quickly for a malicious user, but for regular users, the cost effectively remains nearly free. In this context, XRP can be thought of as a postage stamp for transactions.

Demand for XRP will naturally result as a byproduct of this design. To access the protocol, users will need some, albeit a tiny amount, of XRP. As the protocol grows, this demand will have to grow with it. However, if the price of XRP were to appreciate significantly to the point where sending transactions becomes a non-negligible cost for normal users, there is a mechanism in place to lower (or raise) transaction fees by a super-majority vote of server operators.

XRP as Bridge Currency

   In traditional financial markets, the role of bridge currency has been played by USD. However, within the Ripple protocol, the following functional reasons for using XRP exist:

   XRP has great value as a bridge currency. Because each gateway’s balances trade as distinct assets within Ripple, the number of potential currency pairings can become quite large. Instead of quoting every possible currency/gateway combination, XRP can serve as a useful bridge currency to enable these transfers. This is possible because if every currency is liquid to XRP, then every currency is liquid to every other currency:
XRP has no counterparty risk. It is the only currency native to the Ripple protocol and thus requires no trust relationship with any gateway or third party.
   XRP has low friction. It can be sent directly to any account with no transfer fees.
   XRP cannot be debased — a finite amount exists. 100 billion XRP was “minted” with the creation of the protocol, and by definition, no more will ever be created.

   It is important to note that bridging quotes with XRP is not a requirement; it is just a useful feature. Market makers can directly quote any currency pair, should they choose. There is no requirement that Ripple users hold or exchange XRP, aside from the negligible reserve amount. Ripple is currency agnostic. Merchants do not need to accept XRP to use Ripple. Both buyers and sellers can continue to use their preferred currencies."


I had not heard of Qiwi. I just searched google news and got this surprising result. Bolded the bitshares mention... not sure if they consulted? but this sounds really cool. they actually mention  "bitruble" (creating one?)

A leading Russian payment services provider is developing the country's first virtual currency — the bitruble.

If the company, Qiwi, can overcome resistance from Russia's financial authorities — which fear that cryptocurrencies could be used to launder money and finance terrorism — it will launch the new digital ruble next year, chief executive Sergei Solonin told the Kommersant newspaper. Qiwi is investing several hundred million rubles in the project, Solonin said.

Virtual currencies, which exist outside the mastery of national central banks and allow anonymous user-to-user transactions, have unsettled financial regulators since the most famous — Bitcoin — appeared in 2009. Many countries including the U.S. have allowed their use. In Russia they occupy a gray zone: Some Russian authorities have said they are illegal, but no specific legislation against them has been passed.

News of Qiwi's bitruble plans provoked an immediate reaction when it emerged on Wednesday. Pavel Medvedev, Russia's financial ombudsman, branded it “hooliganism” in an interview with radio station Govorit Moskva. “This kind of outrage bears criminal responsibility,” he said.

Deputy Finance Minister Alexei Moiseyev said a virtual currency was “a plaything that can carry serious risks of money laundering and tax evasion,” according to the Interfax news agency.

But the bitruble also has defenders. The company's director of communications, Konstantin Koltsov, told The Moscow Times on Thursday that Solonin had discussed the new virtual currency with the head of the Central Bank — which would have to approve the bitruble before it could be launched legally in Russia — and the head of the country's biggest lender, Sberbank.

Both people argued for digital money on Thursday. Governor Elvira Nabiullina said the Central Bank would find a solution to enable its use, though she acknowledged the risks of illegal financial operations in virtual currencies, according to news agency Interfax.

Sberbank's German Gref told Interfax that he own Bitcoins — though he did not say how many — and said digital money should be worked with, not banned.

Banks and other financial institutions around the world are examining using technologies pioneered by virtual currencies to decrease costs and increase the efficiency of transactions. The value of circulating Bitcoin — which can be bought with traditional money or earned within the currency's system — at the start of 2014 was more than $10 billion, according to

However, Deputy Minister Moiseyev said on Wednesday the government was discussing a bill that would severely tighten the responsibility for the issue and circulation of alternative currencies in Russia.

The Finance Ministry in October last year proposed to introduce penalties for their use and distribution in Russia from 5,000 to 50,000 rubles ($77-$770) for individuals and from 0.5 to 1 million rubles ($7,700-$15,400) for legal entities. The bill was criticized by the Economic Development Ministry, which said it was so broad it would affect money substitutes including bonus points and gift cards. The ministry submitted a new version with revisions and smaller fines, which has not yet been passed.

As a result, the legal status of virtual currencies remains foggy. A regional court in January banned five Bitcoin-related websites, but the ruling was later overturned.

The Russian public is also suspicious. A survey by ProResearch and the National Agency for Financial Studies published in May found that only 20 percent of Russians knew what Bitcoin was, but that twice that number — 40 percent — thought it should be banned if it could be used to buy illegal goods. Only one-quarter of respondents said Bitcoin should be legal.

Qiwi's new currency will employ either the blockchain technology used by Bitcoin or BitShares, a virtual exchange platform, both of which are being tested and modified by Qiwi to fit them to Russian legislation, according to the Kommersant report.

Koltsov said the company would continue to develop the bitruble, but market players were divided on the the currency's likely fate. Vladimir Malyugin, head of online payment system PayPal in Russia, said cryptocurrencies had huge prospects in the country. But a representative of Yandex.Money, another payment provider, said that until Russian regulation embraced virtual currencies, a bitruble would struggle to find users.

General Discussion / How I use the bitshares wallet painlessly.
« on: April 01, 2015, 12:51:45 am »
I pay $15 a month for a double-core, 2gb ram, 40gb SSD, machine/instance. I make a 4gb swap file on the SSD. On that I run the bitshares daemon, and the nodejs web wallet. Then in my web browser I could use the client at ${machine_ip}:8000. I actually block port 8000 out of caution ( I couldn't figure out how to have the web socket bind to localhost ) and then I forward the port to my laptop over an ssh session I initiate with the machine. But this shouldn't be necessary since the web socket has authentication.

This is great for me, because running the daemon on my laptop is a disaster. I've had the setup for many months.

Follow My Vote / who to lobby VOTE to (suggestion)
« on: March 24, 2015, 08:41:41 pm »
The EU is drafting e-voting standards. I haven't checked out what the EU is doing exactly, but that may be interesting. link:

Importantly, member states will need to comply.

Estonia doesn't want to.
Estonia's internet voting system should not be used for the European elections in May because its security vulnerabilities could lead to faked votes or totals, say independent researchers.

The flaws were discovered by a team who were accredited to observe the October 2013 municipal elections. They said they observed election officials downloading key software over insecure internet connections, typing PINs and passwords in view of cameras, and preparing election software on insecure PCs. They have reported their findings to the Estonian government, but had had no response by Monday.

Lithuania seems more enthused. MEP for Lithuania meets with director of the World Wide Web Consortium

Meta / chat 'forum' vs post forum
« on: February 03, 2015, 09:57:46 pm »
Is there a place for Forum members have a place to chat/discuss in real-time?

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