Its time to start the discussion on how to make NuBits useful from day one. So useful that people wants to buy them. Let’s analize some possible use cases of NuBits from day one. On the long term I assume we aim to make them widely accepted. But for now we need some strategies to build early aopters. BitUSD, has pretty much failed in finding a use for them. I think it is also due to their lack of a bitusd wallet that people can use to transfer assets easily.
Why would anybody want some NuBits?
Keeping profits from trades without having to go into fiat. NBTs are a valid mean for this scope.
People that wants to park them. I personally say that @pennybreaker idea of having an high interest on day one can be beneficial ( link )
Use the parking feature to replace all the current “proof-of-burn” applications. Its much easier to proof that something has been parked for 1000 years than burned.
Use the parking feature to prevent spam. Spam in public polls, spam in email, spam in transactions, spam in submissions . Let honest people “park” a small sum before submitting a proposal / vote / poll / email . Discourage dishonest people from submitting millions items.
Merchants that do not want to keep their revenue in BTC but also don’t want to necessarily having to convert them in fiat. NBT will make the case.
Store of value for Crowdfunding campaign in BTC. Campaign makers and backers would probably benefit from having their initial offer pegged to usd for the period of the campaign .
International remittance requirement
Loans for businesses
Companies that already pay their employees in Bitcoin, would be attracted by offering NuBits salaries
please add a case scenario here
By reading this thread on reddit I just realized how important and unique the parking feature actually is. I have to admit I undervalued its applications. We are the first to bring to market the idea of locking an amount and we have the implementation working from day 1.
For the start, we need to introduce the concept of a FrozenCoin. FrozenCoin is simply a bitcoin which cannot be spent before a certain moment in future, i.e. a time-locked, frozen bitcoin.
E.g. one could time-lock 1 bitcoin for 1 year to create a FrozenCoin. This can be done using nLockTime property of a Bitcoin transaction, but we would need an oracle (e.g. a trusted third party) to prove that a coin can’t be spent before the specified time.
The discussion received much feedback in short time. This is something people need and we have a way to make NBT valuable from launch day.
Please correct me if I’m wrong ( I tend to get too excited about things ) . Or, if I am right , help me in find new industries to disrupt
I also would like to hear your opinion about 2) : having high parking rates on nunet from start.
How would a person prove it is themselves that parked coins? I supposed they could say “I will park X coins for X duration at X time” and it could be verified through the blockchain. I agree that parking could offer numerous opportunities other than interest on purchased nubits.
From your link:
A trivial way to make cheating in an online poll costly is to require a certain sum of money for each vote. E.g. if one vote costs $1, the attacker would need 1 million dollars to cast 1 million votes. (Of course, Bitcoin could be used as a payment system here…) But the problem with it is that normal people will be reluctant to vote if it costs money. Also, poll operator will get a lot of money, does he deserve it?
FrozenCoin to the rescue! Instead of requiring $1 payment, we will require $1 to be frozen. I.e. anybody who owns at least $1 worth of FrozenCoins can vote. (E.g. by signing a message with a private key corresponding to public key which owns FrozenCoins.) FrozenCoins are not lost in process, they can be used in many different polls, and eventually they’ll thaw and become spendable. Thus, for normal voters costs are negligible, but an attacker will have a problem with obtaining 1 million worth of FrozenCoins to win in this contest. (Unless he happens to be a very rich man…)
FrozenCoins can also be used instead of CAPTCHA to prevent mass-sending, spam and other kinds of abuse of automatic systems.
lots of interesting applications to use parking as a token system - making it very expensive or cumbersome for people to abuse putting no real cost to an individual. You’re getting me excited too.
I really, really, really (did I mention how much?) I like this idea. It got me thinking about a possible variation of this. Parking (the concept), not parking (to generate interest) is the key point. Writing an API that integrates the forums with the block chain using RPC is probably non-trivial, but certainly something that can be done. Tying that functionality to a generic “parking” action, that could have a variable “proof of park” based on the activity that you were trying to actively prevent abuse of would be awesome.
Here’s a very simple example that (probably assumes too much) :
Alice wants to propose a motion for something that would affect the network.
She visits discuss.nubits.com (or the more specific site, https://motions.nu), where she is instructed to park 25 NBT using a specialized duration called “proof of park, 3 months”.
From her Nu wallet client, Alice parks her 25 NBT and then returns to the motions site where she is able to sign a message with the private key tied to the address that contains the parked coins.
The motions site API validates that the “proof of park” obligation has been met, and unlocks a unique web form that Alice is able to fill out with her motion information.
Once Alice fills out the form, she can publish it and it will then appear on the forums. She can “claim” the motion with her forum user account to tie it back to her community reputation.
The motion can be discussed by the Community and if enough of the shareholders are interested in the proposal, they can vote for it using their clients. (In the future, they may be able to click on a link on the forums and actually launch their wallet client with the pre-populated motion vote ready to be cast…but that’s a topic for another conversation).
It needs work, and I think I make a couple of assumptions about how it could operate that may not be in line with how the protocol is currently working, but I think it’s a starting point.
I see another use case for nubits which is very similar to 1).
But instead of traders, I see merchants. They also do not want to risk the whole revenue by keeping them in BTC. I had this dilemma myself with bitpay and I heard other merchants do have the same. Let’s use bitpay as an example, but the same apply with coinbase, coinpayments, etc. When you accept bitcoin for a product/service, at the end of the day you have a BTC balance. Bitpay lets you select a % to convert to fiat and put that into your bank.
See where I’m going?
I would love to have another simple option : convert to NBTs instead.
This will put huge buy pressure, especially if we can convince bitpay / coinbase and similar that this is a good idea .
The recent launch of lighthouse for BTC crowdfunding campaigns, just gave another user case for NuBits
Store of value for Crowdfunding campaign. Campaign makers and backers would probably benefit from having their initial offer pegged to usd for the period of the campaign .
I can build one quite easily. I’d have preferred to add support for multiple currencies in peer4commit, but that would take more time. So it depends how quickly you want it.
Hard to tell regarding funding and priority, as I don’t have an overview of the priorities. I hope @JordanLee can provide some clarity on this. My opinion is that it is a one of the ways to potentially create some buying pressure from projects who want to set bounties, or projects looking for donations/crowd-funding for the period of the campaign.
And having ability to transfer a custodial grant directly into Nu4commit project adds to transparency and visibility of projects underway.
I’m about to open discussions - once we go live - with Alec Hahn from Bitcoin42.com. They’ve launched a line of ATMs and are starting in Mexico.
We’ve been talking about a Peershares offering that they want to launch, but we’ve been delayed a couple of times due to different projects we’ve each been working on.
Nice guy and really looking for ways to make people’s lives better with crypto.
I’d like to suggest that we go ahead and vote on rate increase. 3% for 3 months, 5% for 6 months, 8% for 1 year, and 11% for 2 years, is about what I had in mind. Lets keep this thread active, though, because depending on demand, we may need to drop those rates fast.
This is a very good use case. We now for a fact that Eutherium for instance, has a whole lot of BTC and that they came out and said they would liquidate some of that to protect against volatility.
As a trader I constantly have to battle my fear of having USD on an exchange (and loose those money, should the exchange gox me) and having no-money available to take advantage of drop in the price. I’ve been using coinapults Lock feature to diversify some of this risk and have multiple trading accounts on multiple exchanges to further mitigate this risk. As a trader I would very much like to use NuBits so that I can park some of those on the short end of the yield curve and be liquid should the price of the coin I want to trade go down.
It would be nice if I didn’t have to switch between a whole range of apps to do this. I just want a widget or something on the exchange, where I can lock some of my coins as NuBits.
