Author Topic: bitcoin->bitBTC gateway needs testers!  (Read 9713 times)

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Offline fundomatic

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Moved BTC into the BitShares blockchain and back, no funds lost :)

However,
it seems like a similar(same) issue https://bitsharestalk.org/index.php?topic=12381.msg163754#msg163754
is still there in the core "client_version": "v0.5.0" build and running on linux debian, namely:

>>> wallet_account_balance receiving_account_name

Shows the correct balance (with the received bitBTC), whereas

>>> wallet_account_transaction_history receiving_account_name

does not show the record of the transaction or the correct balance.

I didn't try it in the GUI clients.


Offline islandking

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What about creating a user issued asset on BTS for investing in this? That way you can raise start up capital for the gateway.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. - Satoshi

Offline xeroc

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Hu .. didnt know shentist is part of same gang ... having a clarification from bafin would be awesome ... also when considering legal issues for delegates in germany ..

Offline fluxer555

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Thinking about this... it seems you will need to hold 2x the value of the volume at any point in time in order to remain both instant and 100% solvent at all times. If somebody sends you 1BTC, then you purchase 1 BitBTC with your own funds, and hold the 1BTC. You need to hold on to that 1 BTC, so that when they cash out from BitBTC to BTC, you have the funds readily available to send them instantly.

If you go the route of only holding 1x funds, then first of all there will be a delay between when you send BTC and receive BitBTC (receive BTC > centralized exchange > buy BTS > send to wallet > buyBitBTC > send to customer) and a delay from withdrawals (receive BitBTC > sell for BTS > centralized exchange > buy BTC > send to customer). Secondly, you are exposed to volatility in that time frame. Thirdly, you will often be <100% solvent in the middle of these trades.

Thoughts?

Offline Shentist

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Quote
What jurisdiction are you based in?

UK / Germany

In Germany you most likely need permission from the BAFin for such a gateway. I can only recommend *not* running that service from here, you may get into serious trouble.



In the future we hope to provide a FIAT gateway,  for this we need a permission. We are fully aware of this.

« Last Edit: January 19, 2015, 06:21:00 pm by Shentist »

Offline pc

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Quote
What jurisdiction are you based in?

UK / Germany

In Germany you most likely need permission from the BAFin for such a gateway. I can only recommend *not* running that service from here, you may get into serious trouble.
Bitcoin - Perspektive oder Risiko? ISBN 978-3-8442-6568-2 http://bitcoin.quisquis.de

Offline bitmarket

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wow. wow. and wow.  this is huge.   Most exciting development for bitshares in months.   can't wait for the non-private-key version.  when do  you think?

If I were running a bounty delegate I would send you  bitUSD2,000 right now

Host of BitShares.TV and Author of BitShares 101

Offline monsterer

Thanks for setting up a gateway!

I want to exchange BTC for BitBTC. Let's assume I trust your centralized gateway not to just keep my BTC after I send first.

How many BitBTC are available?
Which exchange will you be passing larger orders through on when you run out?
What is the expected time after you receive BTC (0-confirmations) before you send BitBTC?
What security measures have you implemented? Is this an auto-exchange with your private keys held online? Do you have a small hot wallet and keep most funds in cold storage?
What is your business model to assure us you will remain profitable and keep the service running?
What jurisdiction are you based in?
If this business grows, will you plan to seek licensing?

Are you aware of the problems that will arise when trying to implement a service that "sends funds to the address they came from?"  To name one: if you send from any third-party service, such as an exchange, you will typically not control the address the bitcoins appear to come from, so any payment back to that address (on another blockchain in this case) will be sent to the third-party service, who will not likely be easily able to link them to your account (especially since they almost certainly do not have their BTC private keys imported into a BTS wallet).  It is highly recommended to implement the service properly, by requiring the user to specify the receiving address for BitBTC (TITAN name, preferably).  Also a refund address in case you need to cancel their order for any reason.  I recognize the simplicity of using the same privkey for 2 networks, but for usability it's probably a non-starter.  You should also generate a new BTC address on your side for each transaction.

Good questions!

Quote
How many BitBTC are available?

Right now this gateway is beta mode for testing purposes, as such only 0.5BTC on each side are available and the maximum transaction size is 0.01BTC. This is because we are in public test mode and will change when we are fully operational.

Quote
Which exchange will you be passing larger orders through on when you run out?

This has not been decided yet, we have a number of things to consider before we can finalise.

Quote
What is the expected time after you receive BTC (0-confirmations) before you send BitBTC?

1 confirmation

Quote
What security measures have you implemented? Is this an auto-exchange with your private keys held online? Do you have a small hot wallet and keep most funds in cold storage?

As we are in test mode we don't have hot/cold wallet arrangement, but we will move to such a set up in production mode.

Quote
What is your business model to assure us you will remain profitable and keep the service running?

We have a couple of options here, again not totally finalised. One is to implement a spread on the buy/sell prices, another is to keep BTC/bitBTC spread and charge free and implement charges on other features in the pipeline, such as different markets.

Quote
What jurisdiction are you based in?

UK / Germany

Quote
If this business grows, will you plan to seek licensing?

We would like to acquire the relevant licences for a fiat gateway in the future.

Quote
Are you aware of the problems that will arise when trying to implement a service that "sends funds to the address they came from?"

Indeed - the production version of our gateway will remove the need for this concession.

Cheers, Paul.
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline bitfayre

Thanks for setting up a gateway!

I want to exchange BTC for BitBTC. Let's assume I trust your centralized gateway not to just keep my BTC after I send first.

How many BitBTC are available?
Which exchange will you be passing larger orders through on when you run out?
What is the expected time after you receive BTC (0-confirmations) before you send BitBTC?
What security measures have you implemented? Is this an auto-exchange with your private keys held online? Do you have a small hot wallet and keep most funds in cold storage?
What is your business model to assure us you will remain profitable and keep the service running?
What jurisdiction are you based in?
If this business grows, will you plan to seek licensing?

Are you aware of the problems that will arise when trying to implement a service that "sends funds to the address they came from?"  To name one: if you send from any third-party service, such as an exchange, you will typically not control the address the bitcoins appear to come from, so any payment back to that address (on another blockchain in this case) will be sent to the third-party service, who will not likely be easily able to link them to your account (especially since they almost certainly do not have their BTC private keys imported into a BTS wallet).  It is highly recommended to implement the service properly, by requiring the user to specify the receiving address for BitBTC (TITAN name, preferably).  Also a refund address in case you need to cancel their order for any reason.  I recognize the simplicity of using the same privkey for 2 networks, but for usability it's probably a non-starter.  You should also generate a new BTC address on your side for each transaction.

Offline fluxer555

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What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

Importing private keys is necessary in this very early version so that we know where to send bitcoins after we receive bitAssets from you - the public key is accessible via the transaction, and since this public key is the same as you have in your bitcoin wallet, we can send bitcoins to the address which corresponds to it.

Future versions, coming soon will use a website and this will not be necessary.

It should support both options, for people who want more privacy and/or to disassociate themselves from as much centralization as possible.

This gateway will have the least amount of exposure to counterparty risk of any exchange currently accessible with bitcoin, especially with provable solvency set up. I think this advancement is bigger than a lot of people realize.
« Last Edit: January 19, 2015, 04:53:27 pm by fluxer555 »

Offline monsterer

What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

Importing private keys is necessary in this very early version so that we know where to send bitcoins after we receive bitAssets from you - the public key is accessible via the transaction, and since this public key is the same as you have in your bitcoin wallet, we can send bitcoins to the address which corresponds to it.

Future versions, coming soon will use a website and this will not be necessary.
My opinions do not represent those of metaexchange unless explicitly stated.
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Offline Riverhead


Always nice to see these services come on line! I'll send some today.

Is this a similar service to ShapeShift?

Offline speedy

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What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

The gateway uses the sending BTC address as the recipient address for BitBTC. Therefore importing the BTC address into your BTS wallet will let it know when BitBTC is received.

I think.

Offline joele

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What is the reason why it need to import the bitcoin private key?
If you import your bitcoin private key to bitshares wallet can it display your bitcoin balance and can it send to bitcoin address?
Please clarify?

Offline monsterer

Yes that's right, its not IOUs, its bitBTC for bitcoins :)

* edit: I should mention the gateway code supports both types, so anyone who forks our codebase can still use it to issue their own gateway IOUs if their use-case requires it.
« Last Edit: January 19, 2015, 01:04:18 pm by monsterer »
My opinions do not represent those of metaexchange unless explicitly stated.
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