The Benefits of Proof of Work [BLOG POST]

[chryspano]

it is bad to hear that bm start to post blog   ,:)

Those who complain that we are good at technology but bad at marketing should make up their minds.  One BM blog article draws more attention to BitShares that almost anything else I can think of.

that's true . every chat group in China is now discussing BM has another big idea on dilution again . Mission achieved .   

It seems that "every chat group in China" missed that point....





Did you missed that too?

[FreeTrade]

That said, I do like the idea of fixed-deposit interest payments in the blockchain. Are there any altcoins that implement this yet?

If not, I think a simple altcoin with interest payments would be easy for people to understand and exciting to both investors and speculators.

welcome back .. long time no see .. how it's going ?

Pretty good. I had to take some time out to save the world from destruction by a criminal mastermind, but all that is sorted now.

[cass]

That said, I do like the idea of fixed-deposit interest payments in the blockchain. Are there any altcoins that implement this yet?

If not, I think a simple altcoin with interest payments would be easy for people to understand and exciting to both investors and speculators.

welcome back .. long time no see .. how it's going ?

[bitacer]

it is bad to hear that bm start to post blog   ,:)

Those who complain that we are good at technology but bad at marketing should make up their minds.  One BM blog article draws more attention to BitShares that almost anything else I can think of.

Good to see Dan blogging. The most effective thing he could do is learn to write well and explain BitShares to the general Bitcoin user/investor. I think there is a temptation for a developer to think that if he adds just one more killer feature, it'll be the one where everyone finally recognizes how good the product is and investors will pile in. I think the opposite. BitShares is too much of a moving target for investors. Stop innovating, tidy up the loose ends, call it finished, and explain what the heck it is.

  Well stated.

[Empirical1.2]

What would be the drawbacks of allowing people to only vote with the stale they locked up .. proportionally to the time its locked up (capped by 10x)?

BTS is already perceived as being centralized around BM+CNX. They are the strongest group of committed & active shareholders & would probably be the ones willing to lockup their stake longest for increased voting rights.

This would further centralize the DAC in the eyes of the market & significantly reduce BTS value.

The market will probably see it as a power grab by CNX who are in addition to further securing their voting monopoly also diluting other shareholders by up to 15% to pay themselves.

Whereas a reward for holding longer & actively voting would mainly get stake off the exchanges, off the open market & increase the percentage of shareholders voting, thereby decentralising BTS and increasing value, depending on whether the market felt BTS could afford the dilution

At the same time BTS is still so centralized around CNX you may argue that currently only they can have maximum 1 yr+ confidence in BTS based on whether they plan to focus on supporting BTS at a reasonable price. For example they could say to themselves 'if BTS is below $10 million this time next year we'll move on to something else completely' and then proceed to collect their rewards for lock up and sell onto the market while many other shareholders would be stuck. So regular shareholders are taking a much greater risk locking up shares for an extended period than BM & CNX at this stage imo.

[FreeTrade]

That said, I do like the idea of fixed-deposit interest payments in the blockchain. Are there any altcoins that implement this yet?

If not, I think a simple altcoin with interest payments would be easy for people to understand and exciting to both investors and speculators.

[FreeTrade]

it is bad to hear that bm start to post blog   ,:)

Those who complain that we are good at technology but bad at marketing should make up their minds.  One BM blog article draws more attention to BitShares that almost anything else I can think of.

Good to see Dan blogging. The most effective thing he could do is learn to write well and explain BitShares to the general Bitcoin user/investor. I think there is a temptation for a developer to think that if he adds just one more killer feature, it'll be the one where everyone finally recognizes how good the product is and investors will pile in. I think the opposite. BitShares is too much of a moving target for investors. Stop innovating, tidy up the loose ends, call it finished, and explain what the heck it is.

[xeroc]

What would be the drawbacks of allowing people to only vote with the stale they locked up .. proportionally to the time its locked up (capped by 10x)?

[lovejoy]

Congratulations, you managed to implode my brain upon itself yet again.

Sometimes you make way too much sense... I have to think about this one for a while.

Good call on the "Mandatory Disclaimer" LOL!  Really tho... blockchain time and BitShares forums are wising you up.

[cass]

fyi social media buttons on the blog, at least Twitter, is not working

works for me

hmmm .. comes up for me with no link just text

you are right

[bitcrab]

it's interesting idea, but:
1. I am against to make more dilution to do this, if divide some BTS from the reserve pool/income then should be ok.
2.stake should be the only measure for voting weight, "coindays" or "committed stake" can only be used to measure work quantity, but should not be used to determine voting weight.

and I don't think there are exchange risk, if exchange participate vote, then they play a role similar to the mining pools play in bitcoin ecosystem.
if we invite exchange to vote, then can solve the voter apathy problem.

[btswildpig]

it is bad to hear that bm start to post blog   ,:)

Those who complain that we are good at technology but bad at marketing should make up their minds.  One BM blog article draws more attention to BitShares that almost anything else I can think of.

that's true . every chat group in China is now discussing BM has another big idea on dilution again . Mission achieved .   

[Stan]

it is bad to hear that bm start to post blog   ,:)

Those who complain that we are good at technology but bad at marketing should make up their minds.  One BM blog article draws more attention to BitShares that almost anything else I can think of.

[btswildpig]

The effect of dilution in a ill-liquid market is not linear . Dilution at the scale of 15% does not mean only 15% value drop .
Diluting 15% of the shares to sell on the market could cost 100% or more price drop . And the chain reaction begins , where more people will sell after trigger a certain point of stop-loss .

Even only 1 million BTS sell pressure at 0.08 CNY could directly responsible for BTS to drop to 0.03 CNY if we use the theory in the stock market . Anyone decent trader who can read a candle chart could tell you that .

I'm surprised you have not figure this out yet , not even one year after the merger.

15% may be too high.  But it would be delayed I believe as in you may be required to lock up your stake for a year.

So for the next 12 months BTS would be removed from circulation without any additional dilution hitting the market.
Reducing supply would be price positive during that time, it would also increase value by decreasing the huge amount of stake centralized exchanges control and getting more stake to vote, thereby decentralizing the DAC and increasing the amount of stake an attacker would need. If in 2016 BTS continues adding value to the DEX at a reasonable cost, by way of additional features then combined it could be a very good move.

Agree 80%.  First of all, the speculator often gets a bad wrap, but she plays a vital role in bootstrapping these systems.  Investors are really just long-term speculators.  I believe in fact that successful speculators, the 5% that succeed (95% of traders fail), have the best understanding of money, markets, and finance than any other demographic and are an excellent group to bring to the table.

I like the idea of incentivizing stake-locked voting and I also think it could possibly be taken a step further.  Bts is a digital commodity with uses other than just currency or as a share in a company or blockchain.  For instance, a user could lock up some bts for 1 year but also create bitassets out of that locked bts to be traded on the dex for that period of 1 year.  A margin call would cancel this contract.  Perhaps users who do this could be paid more.  This would give the network the full benefit of those bts by also providing liquidity to the dex.

Using the locked up stake to somehow increase BitAsset CAP, use and liquidity would be great. Perhaps the reward could be paid out in BitAssets too.

Knowing what I know about BTS , nothing is "could be ".
Example : When the 2.0 announcement came out , it says "the new dilution workers' stake will be vested in years " It's also the main reason that I waited for 2.0 .

And just only after what , half a year .......

[BTSdac]

it is bad to hear that bm start to post blog   ,:)