Daology.org article: NuBits cost API

Originally written by @CoinGame .

Very interesting because it could increase drastically Nu profits.

Right now liquidity provision is still not profitable.
The users for this service are traders that have access to our peg almost for free. Hopefully it would change with the parametric order book.
If liquidity provision reveal itself to be a profitabe biz for providers, then it will encourage more providers to participate, thus increasing demand for nubits, which eventually means more sales for Nu.
But this service is aiming at traders.
Cryptocurrency users are not only traders.
This NuBits cost API would make pay users when they use a Web service beyond a certain free limit.
This would be a huge opportunity to diversify and expand our services.
We can speculate that the market for such users is much bigger than the mere market for traders.
Therefore we can speculate that cost api provision would bring us more sales than liquidity provision.
Of course things are more complex.
Such cost API would work only if NuBit peg is well kept, which assumes thay Nu has a decent liquidity.

1 Like

Note that this is in a draft state. I wasn’t going to share this yet, but it’s not a hidden secret either. Still some sections I want to expand, and others that need to be cleaned up. If you find any errors please let me know.

Oh sorry. I can remove it if you think it s preferrable. Let me know.

No no, it’s fine. I would love to hear more criticisms of the idea. It’s not a new concept. It has been discussed in limited conversations for almost a year now.

Ok cool. I think i saw a conversation between you and @crypto_coiner in gitter a few months back.

Yes, but I first saw the idea presented here on the bitcoin subreddit. As I mentioned in my article it’s quite a common mechanism, but cryptocurrencies seem to be a perfect match for automating cost barriers.

Very interesting.

Another API could be collateral, which allows A to spend and assign B the power to do only one thing – let the spent fund return to A, minus tx. B never owns the fund.

Usecase: Email service that let users only receives emails with 1 NBT collateral. If an email is read and does not ends up in the spam folder within a day, the collateral is returned.