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Messages - Cryptick1

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General Discussion / Re: What will be Black swan incident for bts and btc
« on: December 28, 2019, 11:33:39 am »
There are ways to quantum proof a blockchain. It would take a rebuild of the blockchain and the encryption protocol. So one needs to take a step back and look at the underlying encryption. Once that is fixed. One can move on to making new chains. BTS faces a lot of challenges. Quantum is not going to be the thing that sinks BTS.

There are multiple ways to attack a problem. In World War Two, lots of people looked at "Who had the best tank." And the best tank was defined as "the biggest gun, the thickest armour, and the best speed." Generally, the germans did. However, the war was won by who had the biggest economic production, who had the fuel, who had the most people, who had the economic power and who could deliver the sweeping blow. Good tanks, didn't do any good, if you couldn't get them to site. (this is why Germany didn't invade England, they didn't have a way to get tanks across the english channel.) And the Russians had pure mass production of a good tank, and lots of people to get into them. And then there was the whole strategy thing. (Don't fight two super powers.)

So the black swan incident for BTS has been global settlements. It wasn't really intended to happen. BTC's problem is more than one of security. It needs usability, marketing and more. It is not always the big things that kill a crypto currencies. sometimes it is all the little things.

Wow pleasantly surprised to see some new proposals come forward.

Can you tell us where your team is located?  What nationality, and country of residence are they in?  Is this team all remote, or do they have an office somewhere?


Thanks for taking the lead on this. I feel it is going to take some serious rounds of meetings among the participants on the BitShares exchanges in order to pull us together. There is a wide range of issues we need to deal and we need to pull people together. Currently, BTS is a toxic environment and it is unlikely that it can succeed and effectively compete in this space without pulling people together on a common set of vision and goals. A round of talks is something that can help do that. I don't know what the outcome of it will all be; there is much discussion to be had, but without pulling people together and creating a better environment this project is unlikely to fulfill out visions of greatness.

General Discussion / What is the CN-Vote Vision?
« on: September 16, 2019, 01:38:39 pm »
Hello, I have some questions for you.

How long do you anticipate keeping the refund 400K proposal voted to the top?
Do you expect to allow funding for the existing workers? if so when?  At What time?

Can you tell me about your vision for BitShares?  Can you give me a mission statement?  What are your goals for BitShares?

What brings value to BitShares?

How do you count and measure value?

What metrics do you look at?

What is the most effective method to build value at Bitshares?

Where do you see BitShares going in the Future?

What type of workers do you want to see more of?

What type of projects do you dislike or hate?

Marketing, advertising
What strategy should BitShares be using for marketing?
What strategy should BitShares be using to get more people to BitShares?

What strategy should BitShares be using to improve liquidity?
How should BitShares get more people to trade at the DEX?

How do we get more people to invest in BitShares?
What new areas of expansion offer the most hope for profits in the future?

To help companies make a vision there is a process that is done. In Business it is common to look at a Strengths, Weaknesses, Opportunities and Threats. This is part of business planning. I do not know the name for this in Chinese, but there is probably a similar process. It is very common in Business. This looks at the good and the bad in BTS, and then it looks at the good and the bad outside the BTS community.

Can you tell us what you think BitShares Biggest Strengths Are?
How should these be used?

Can you tell us what you think BitShares Biggest Weaknesses are?
What do we need to do to fix these?

Can you tell us what you think BitShares biggest Opportunities are?
What do we need to do to take advantage of these?

Can you tell us what you think BitShares biggest Threats are?
How do we need to avoid them?

What are the Biggest Problems BitShares faces in the Long Term?

What are the Biggest Problems BitShares faces in the Short Term?

What solutions to these problems do you think the BitShares Team needs to work on?

I know this is a lot of questions. I hope you can answer a few.  I also know there can be multiple answers and multiple opinions. As a union of Chinese voters, understanding the goals can help the community to work better. 


Stakeholder Proposals / Re: Proxy: bitshares-vision
« on: August 30, 2019, 04:34:01 am »
Hello, I would like to thank @ioBanker very much for raising this matter and everybody who contributes to the discussion!

Athough I share most of the ideas highlighted by @ioBanker above, I am more crytical towards current situation of the community and do believe Bitshares are in deep crysis that may easily finish with the ecosystem's marginalization and stagnation, moving price of the core currency down.
IMHO the root cause of the problem is lack of leadership and vision. The founder has left the project in the early stage and there is noone who effectively replace him. Decentralized governance so far is not being effective enough to cope with the current challenges and drive the DAC towards success and mass adoption. The original idea and vision has never neen revised and most likely are not shared by most of the stakeholders at the moment. The fact that several people are expressing similar opinions at the same time, and major stakeholders undertake immediate and rough actions to change the trend, shows that it is time for major actions to address system issue that we have. I strongly believe this is not a subject for just, minor correction.

I would like to put here a copy of my post in the other thread, I do believe it is totally relevant for this discussion. Sorry for the long read.

Let me express my humble opinion on the current Bitshares status and possible future development, based on my deep understanding of Bitshares as well as common business rules, marketing and analisys of other blockchain ecosystem. I may be missing some parts of the full picture because I'm not involved in some of the core activities and not being part of the governance team, however I believe I express more or less independent opinion and can think out of the box.

In few words, there is no difference between DAC and a typical company (there are some slight ones, but generally those are not game changers), and therefore a DAC MUST follow same rules to win the business and increale its value, namely:
1. Have a clear governance and ownership structure, with effective internal communication and decision making means.
2. Have a clear mission and values adopted by the management. Those to be put as corner stones under the marketing and business strategy.
3. Have a clear marketing and business strategy - what is the business, its short and long term goals, who are the target customers, what is the value proposition, how do we position our company on the market and compete with other companies - etc, etc.
4. Have a clear legal structure and follow the regulation of the operating markets.
5. Have a clear and effective financial managment, to control revenues, costs and investments.
6. Have all resources (financial, human, material) that are required to implement the business plan.
7. Have a clear and effective organizational structure so that company management and emplyees could collaborate effectively and know who is responsible for what.
8. Have a clear communication strategy to integrate the efforts and report on results.

This is the basis and 99% of you know this is a paramount for any successfull business.


Let's look at the points above in more details.

1. Governance and ownership structure: although this is the backbone of DPOS consensus, it definitely could be better. Generally, we have 4 levels of governance:
- investors (aka BTS holders). Many of those have no idea how Bitshares is governed, to whom they proxy their voting power and don't participate the DAC governance in any way.
- proxys, actually key decision makers in the ecosystem. Most likely do not share any common vision, often acting only in own interest and are not actively supported by investors (e.g. historically have many stakes from referrals or hold a CEX account).
- committee. Although being publicly elected and are in control of key network settings, they have low power when it comes to business decisions, again not sharing same vision and in many cases care more about their own business (although inmany cases aligned with the DAC).
- witnesses, mostly providing technical resources for the network to operate, but sometimes can implement some power, i.e. when it comes to price feeds. Probably the best part of the governance model, working as  it should be.
2. Mission and values adopted by the management. As mentioned before, there are different opinions on that matter, and this is OK. However, the government MUST work out some statements supported by the majority and use those to define the strategy. Othervise the backbone is missing and the body is vulnerable and weak.
3. Marketing and business strategy - again, no consensus on that matter. Many people express their opinions because they have their vision and care but nothing formulated and agreed upon by the majority. Having weak plan is better than having no plan, but we don't have even a weak one. Key questions - what is the value Bithsares brings, is it for individuals or businesses, how do we reach them, what is the message we send.
4. Legal structure - although BBF is a good step, it is definitely not enough. Legal status and regulations applied are not defined. This prevents business from adoption and buy-in and makes Bitshares a very risky investment.
5. Financial managment - there is some form of it, but having every single penny recorded in the ledger, must be more formal and detaled, also support the business strategy. Noone is in charge of the DAC profitability at the moment, many take it as endless gold cart.
6. Financial, human and material resources - most likely present, but most likely not effectively managed and spend with huge overheads. Also with no business plan you never know how the resources must be spent and managed.
7. Organizational structure - there is some form of it and sometimes works well, but definitely could be better.
8. Communication strategy - presents in form of this forum and several TG chats, but maybe cumbersome and ineffective in many cases. Internal and external PR looks weak and ineffective w/o the strategy and proper governance.

With the above being said (although again, I may miss many points or misintepret those), here are some actions I would recommend to re-start the the business at the new level:
1. Put major proxies and investors into public negotiation to define DAC's basis - mission, values and business strategy.
2. Use all means to involve end users and BTS holders so that their support is based on their decision, and is not by default or as void.
3. Make key proxys to publicly announce their position towards DAC's mission and strategy, along with their personal and business information. This is not mandatory for sure, but those who are open and transparent may gain more support.
4. Spend particular resources (via a worker) to develop a straightforward business and marketing plan. Make sure it is based on proper market and competitors evaluation. Ensure support by the majority.
5. Allocate resources to implement the plan, control and elaborate it, report on the progress. Apart from promotion approach and business model this also shall also include efforts for users/clients onboarding and support. 
6. Ensure proper financial control by designated authorized parties, along with timely and clear reporting to the government and the community.
7. Ensure effective resource spending, avoid spare funding overheads. Think ROI.

This is to start from. I trully understand that this approach may be not supported or adopted by the majority of the players (gateways and other businesses on top of Bitshares), many of those are looking for short term benefit and does not care about the ecosystem development. It is most likely not something what most of dev team would appreciate, because this would mean costs cutting for sure. However, all of them could definitely benefit from strong and powerfull Bitshares in the future.

I call to the investors, it is time for you to shout!

Thanks for reading to this point :D

GREAT POST!  I would echo those ideas!  I too feel as though BitShares needs to be run like a business. We need quarterly meetings, monthly meetings, committees, all jobs in a typical business (accounting, Human resources, sales reporting) need to get done. I too have written extensively on the need for a realistic pricing model.

I hope that the team will pull together and get their act in order. I know many people in the community are tired of the excessive talk and no action. Part of the problem we face is boring tasks don't get done, and getting a worker proposal approved takes so much effort (I estimate about 160 man hours) that it is not worth doing for small tasks.

There are many ways to do things, and if we won't do them right our competitors will!

Stakeholder Proposals / Re: Proxy: bitshares-vision
« on: August 27, 2019, 05:54:43 pm »
I have enjoyed chatting with you in the HTLC room; I look forward to seeing your ideas of moving HTLC (Hashed Time Locked Contracts…aka atomic swaps) forward on Bitshares. It is great to see more people set themselves as proxies. Being a proxy requires being involved in numerous aspects of projects and governance it can be complicated navigating the politics of BitShares. I love the idea of bringing more business analytics into BitShares. Generally, more business analytics will make everyone better informed and will cause better decisions to be made.   Cryptick1

General Discussion / Re: New Prediction Market - CALLUSD31MAR2019
« on: January 07, 2019, 07:23:35 am »
Are you in any way affiliated with the other option -the one that came out on CNY- last week?

We are always taking ideas for the features people want. If enough people are interested, we could take a look at the a bit asset borrowing bot idea. That said, I know the people creating bitAssets is a small group, compared to all BitShares traders. The best place to discuss this idea is on the DexBot Telegram room.

We do recommend that each bot run on a separate account. Because accounts are free, and money management is very important, this was an easy way to avoid troubles.  (In the past, I actually ran multiple bots on one account and had very bad side effects. All the money got transferred over into one asset. To avoid that we decided a one bot one account was a much better way to run. It greatly simplifies order management and risk.) 

Digital Lucifer
Thanks for the great response to Thule3

Let me add a couple of clarifying thoughts.

Time is money and most of us who have been working with guiding and helping the DexBot project have been doing so for free. As Marco is transitioning out of the role, Permie wan't to take on a more active Full time role. We believe that liquidity is crucial to the success of the BitShares, and the DEXbot is a great tool to expand and ensure that liquidity.

As far as online DexBot PR -We have realized that part of the success of any project is awareness and marketing, while our first year was spent building out the bot and features, we now realize more marketing it required. We think this will help facilitate that.

As far Financial Services Networking. We need to take these tools into other organizations and show them the value. This is generally called business development and marketing. We feel there is a need to do this to attract more business and activity onto the blockchain.

Everyone: For any other questions we have not answered please drop by the telegram room. We are much active over there.


General Discussion / Re: Options and Futures contracts
« on: December 27, 2018, 11:29:47 pm »
Yes and No.

My understanding of the prediction market it that they generally have a payout from 0.0 to 1.0. And that one can short and they can settle anywhere between that point. So if it were 50/50 the price would be 0.50, if it were 60/40 it would .6 or .4 ect. Options in the traditional sense (as in stock options) have a very specific payout based on a formula. This varies as expiration arrives and then the final settlement price is reached. I think we are close, and it may be possible with currently, but I need a little expert advise on helping in that reguard.

General Discussion / Re: Options and Futures contracts
« on: December 20, 2018, 09:57:59 pm »
I like the idea of call options.

I have been thinking about call options of various coins. I think there could be a great market for these as it would allow people to hedge risks in a variety of ways, take on leverage, and provide an alternative form or interest and or lending all safe and secure through smart contracts on the blockchain.

I know one can create a custom smart coin. I know it is possible to provide a feed price to that coin. (This could be done at expiration if needed.) It would surely be more preferable to have the price calculated in contract, although I admit I would need help implementing this.

A simple call contract would be a great way to start. Say BTS is at 5 cents. I could sell the right for you to buy BTS at 5 cents for the next two months. In order to generate the option I lock up my BTS into the blockchain (just like we do when implementing bitUSD now.) I would only need to lock up one BTS to issue one BTS option. That options could have a strike of 5 cents and expiration in a standard end of month time frame. (Following Stock option and future markets expiration dates to keep things simple.) Once the collateral is locked up the system can generate the Call Option contract asset. (like BitUSD is now generated) At that point the contacts could trade freely back and forth on the market, until expiration day. I would expect this options to be pricing. (for example if BTS is at 5 cents I think the contracts would trade for 1 to 2 cents). All cryptos are HIGHLY volatile. If I did my Black Scholes calculations correctly the other day I got a 0.56 cents for the BTS call option at 5 cents based on recently volatility. Black Scholes though has limits.

I think an option market would be able to help people hedge risk, and I think it would stabilize the market some. I also think it would be interesting as the contract could be written on any coin. Open.LTC; Bridge.BTC; Open.eos... (I know portal assets have risk or portal defaulting, not really different than a company going bankrupt.)

While options are truly investing this would attract the gambling crowd.

I also think options would allow people to "stake" their coins. And "earn income."

I also think it could become a kind of "peer to peer loan" market.

This would allow those that want to take on more risk to do so. It would also allow those who want to earn income on the side to do so.

Options Markets are diverse powerful financial instruments and offering them could set BitShares apart from other exchanges, especially if it can offer a secure peer to peer trading in a decentralized way without risk of counter party default.

I believe we could do american or European style options. What ever is easier to implement.

I also like cash settled options.

It would be great to have a universal automatic settlement at the end of the options contract. Normally though money has to change hands. (If I have a BTS call option at 5 cents when settled I have to give you 5 cents to get the underlying BTS.) That said, I could see where some accounts might not have the money. Requiring the buyer to put up the entire strike in collateral sorta defeats the purpose.

If BTS is at 8 cents. One might settle via giving 3/8 of the BTS position to the call holders.  This would sort of be like a instant cash settlement of value of the BTS.  (BTS call option with strike of 5 expires at 8 cents.) (A normal cash settlement would pay the call owner 3 cents (8-5=3) A physical settlement would require the call owner to transfer 5 cents to the call seller and the call seller gives the call buyer the the underyling BTS, which was locked into the blockchain.

 Settling (in a case where one account -like the buyer- might not have the money to deliver gets complicated.)  ( In the regular stock options markets, brokers allow accounts to go short and then buy or sell as needed to balance everything out. That could get complicated, and sense everything needs to be done in a fair way without risk it is more complicated. )

So since both the call buyer and the call seller might not have the needed money at settlement. And since we could divide the underlying coins into fractions, One can calculate out the cash values both positions should have, then divide the underlying contracts as appropriate.  I think this would be a "financial innovation." I think this would be "fair." Please tell me if it is not.  I think this would allow us to have an options market. I think this is simply enough to do.

I think this would allow both parties to have a secure crypto option contact on the blockchain free from in a trustless way free from counter party risk.

Is this doable with existing smart coins?

Can a universal settlement be done at expiration (or even several days after. This could allow time for manual feed prices to be put in if needed.)?

Weekly options have proven very popular among stock investors and if weekly and monthly secure crypto options became available, that could generate some real excitement, and a lot of hedging of coins. This would bring volume and crypto-investors to the exchange.


Stakeholder Proposals / DEXbot
« on: December 16, 2018, 06:46:51 am »
On behalf of the DEXbot Cabinet (Permie, Gabe, Kevin Messerly, CryptoKong, and Cryptick) we would like to ask for your support for the "DEXBot WP2 Liquidity for the DEX" Worker Proposal. We feel as though we have made great progress, and everyone at BitShares will benefit as continue that work, bringing greater liquidity and trading volume to the DEX.

The Proposal is live on the Blockchain.


So we have put this worker proposal on the block chain.

Full Text of the Worker...

Directions (For a beginner) on how to cast a vote on BitShares...


Yeah, there is a very active community over in the DEXBot channel. And there is a lot of work that has been going on behind the scenes. We all know some people hang out in Telegram more so than here, but we also want everyone involved in and supporting this proposal. DEXBot has been working on solving the liquidity problem, and so continuing support for this proposal is the right thing to do.

I believe we have effectively brought in all the community feedback. We are about to go on chain with the proposal.

(Note: Just to avoid any confusion, I actually authored most of the above copy, Kimchi-King copy and pasted from official reports.)

General Discussion / Re: Investigating the reasons for BitUSD GS
« on: December 10, 2018, 03:17:08 am »
In my opinion, the the Global Settlement on BitUSD was unavoidable. It was mainly (more than 50%) the direct result of the major drop in BitCoin. Global Settlement in BitUSD was collateral damage. (Note: Bitcoin fell from near $20,000 in January to $3,500, this is a fall of more than 85%. There are not many systems that can handle such a fall.)

For perspective, most Wall Street, traditional banks, and other such financial infrastructure would also collapse if put under those kinds of stresses. In part, it is sort of amazing the system was as dynamic as it was and lasted as long as it did, under those circumstances.

A lot of the other comments here are from some very knowledgeable people.

Opinion…take with extra salt...
I would also like to add that there are certain, “games that were played” with magins. Many of these were about maxing out margins. I understand why some of the actions were taken, but -particularly from an academic point- I do not think there were necessarily good or beneficial to the system as a whole. To start off with many big players maxed out magin to the absolute max -particularly on the way up. So people would create USD, then buy BTS with it, then use that BTS to create more bitUSD and repeat the cycle.  (This is sort of like borrowing money on your credit cards to buy a house and then mortgaging the house.)  While we have a official 1.75 asset requirement, borrowed assets allowed one to effectively get greater leverage than the system was originally intended for because borrowed money was used as collateral. When there was a turn in the market, it was not long before these highly leveraged individuals were suddenly being called. They did not have much protection.

I think there were also games played were money was moved between accounts. (I am not trying to blame people here, there is no problem with managing money in different accounts.) That said, it can be smart, and beneficial, but can also hide certain actions.

I think many that played the game, may be less likely to fully explain it public. They do no want their strategies understood. I think there are some aspects to what happens they would prefer to keep secret.

 That said, as markets enter a long downtrend, there was an advantage to exit certain positions sooner rather than later. A margined position, can be used like a stop loss order, where a margined position will absorb market liquidity. If you had an account, that was getting margin called you could absorb all available liquidity. Taking this liquidity to exit positions while prices was high, was more advantageous than holding onto said positions until they fell. By exiting quickly, one could save profits to buy back in later at a lower price. Many people did not like this constantly margin call walls this activity put up.

With everyone margining on the way up, prices could rise very quickly in a feedback loop. With potentially less than completely liquid markets, and markets rising, and people that constantly margined accounts to the max could push huge upswings in the BTS price very quickly. This though could result in the last person to buy, -taking on too much margin- and losing his position. Whales, would then eat up the small fish. It was a cycle that seemed to happen again and again. It is dangerous if one did not know what they were doing.

Being an open blockchain, it could then add a completely new level of game, where people can see each other’s positions and purposefully squeeze them. All evidence of past transactions is recorded in the blockchain. I think it would provide on interesting research project for some student at some time.

Playing with margin can be very dangerous. Some things are going to happen. There are lots of levels to the activity that takes place. 

General Discussion / Shining Light Crypto Survey
« on: November 30, 2018, 02:17:23 pm »
Looking for a few people to take a crypto survey.

It only takes 5 minutes...

about it..
Doing research takes times and I get the feeling there is a general feeling of confusion about all the various projects in the crypto space. I put together the survey, to see if it is possible to extract meaningful data and publish a consensus of thought about various projects. By increasing transparency, and decreasing Fear Uncertainty and Doubt the cryptospace, particularly around BitShares , I think it can benefit. Basically, I am just looking for some smart crypto people to take a 5 minute survey, then a week later we can publish results and see what people think. There is a numerical theory that when you take ask a large number of people any question, then average their responses, the the group answer can become very close to the truth.  Will it work? Lets find out..
Thanks for the Help,

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