ROUND 2: B&C Advertising on Reddit - Threads Now LIVE!

NuShares
#1

Ok guys, I’m going to advertise for B&C on Reddit again and I’ll need your help. Like before, if you can write up a supportive comment and post it to the Reddit threads I post, that will be great! I’ll edit this post with the links once the threads have been posted. Below are the current title and body I will use. @BCExchange if fundraising totals have changed since yesterday then please let me know so I can update the numbers, thanks! Let’s bring in some more funding for B&C! :smile:

EDIT: Threads now LIVE!

Title:

Blocks & Chains Decentralized Exchange Achieves Commitments for 73% of its Total Funding Goal ($200k) - Development Will Begin Shortly

Body:

UPDATE: The Blocks & Chains Decentralized Exchange project has announced that a small group of venture capitalists have provided a seed fund of $80,000 in order to jumpstart development of the exchange. Jordan Lee announced that development will begin after Nu v2.0 is finished and released, which should be shortly. In addition to the $80,000 seed fund, $67,643 has been pledged (but not yet collected). This accounts for a total commitment so far of $147,643, which is 73% of the target goal for funding ($200k). The project currently needs $52,357 more to be pledged before the minimum fundraising goal is reached. Only after reaching the required $200k will currently pledged funds be collected from investors. If you would like to find out more information and pledge to purchase equity in the exchange, please visit the following link…

Main Thread: https://bitcointalk.org/index.php?topic=1033773.0

For those who are unfamiliar with B&C Decentralized Exchange, this project is being developed by the same experienced team who developed the Peerunity client for Peercoin, the Peershares template for DAOs & DACs and NuBits, the stable value cryptocurrency.

B&C Exchange will be an open-source decentralized exchange that completes cryptocurrency trades between users by utilizing multisig signers that compete for blockchain rewards based on their effectiveness and honesty. Trades will occur using real cryptocurrencies such as Bitcoin and NuBits, as opposed to artificial proxy cryptoassets.

A web based interface that will be familiar to users of centralized cryptoasset exchanges will be offered. Unlike centralized exchange websites, exchange operators will have zero access to funds and zero responsibility for customer account information. If an exchange website disappears suddenly, a user can simply go to another site that uses the same open source exchange software, or use another application that supports B&C Exchange and continue using the same account without interruption. This is because all account information will be stored on the blockchain, as the attached design document will explain.

Equity ownership in B&C Exchange will be held by users who own “BlockShares (BKS)”. Users will pay transaction fees on the exchange with “BlockCredits (BKC)”. You will not need to own BlockShares to use BlockCredits, and vice versa. Profits from the sale of BlockCredits will be returned to BlockShares holders through a Bitcoin dividend mechanism in the protocol.

B&C Exchange will be fully controlled by everyone who owns ​BlockShares. For example, BlockShares holders can set the transaction fee cost (in BlockCredits) of using B&C Exchange, the number of multi-sig signers required to successfully conduct a trade (such as 7 out of 11 or 8 out of 15), and much more. It is expected that if B&C Exchange is successful, many BlockCredits will be purchased to transact on the exchange, and thus many Bitcoin dividends would be returned to BlockShares holders as a reward for operating a safe and convenient exchange.

In contrast to centralized exchanges, B&C Exchange will have:

  • Significantly less counterparty and theft risk because of the multi-sig capabilities of its design.

  • Far fewer operating expenses due to the absence of costs like employee salaries, supplies, and rent.

  • Lower trading fees for users if BlockShares holders choose to vote for competitive low transaction fees.

  • The ability to distribute Bitcoin dividends to all BlockShares holders from profits earned, using an existing dividend protocol mechanism present in the code of NuBits and NuShares.

B&C Exchange will also use NuBits to solve a major problem faced by decentralized exchanges – the inability to use stable fiat money. NuBits have closely held a 1.00 USD peg since September of 2014 and will be offered on B&C Exchange trading pairs as a synthetic substitute for US dollars. Because NuBits is a fork of Bitcoin and Peercoin, using NuBits will be a familiar experience for Bitcoin users. Substantial liquidity will be brought to the exchange through NuBit liquidity operations that have already been established.

If you have any further question please ask in our main thread. Plenty of questions on the design have already been answered by our lead developer Jordan Lee. You can also find contact details to purchase BlockShares…

Contact Details for Share Purchase:
https://bitcointalk.org/index.php?topic=1033773.0

Profit Model for BlockShareholders:

For those questioning how profit is made by holding BlockShares, I have written something on this subject previously and will share it here: BlockShareholders will select one or more trustworthy custodians and vote to supply them with a grant of BlockCredits. The custodian will then place a sell wall at $1 on any approved exchange. The non-Bitcoin proceeds from selling these credits will be used to purchase Bitcoin. The Bitcoin will then be distributed back to shareholders as payment for providing this exchange network service.

These Blockcredits are the only way to actually use the decentralized exchange. If you don’t purchase credits then you can’t trade. So let’s say somebody purchases credits from a custodian. They place trades on B&C until they run out of credits and need to purchase more. In the act of trading on B&C, these BlockCredits are actually consumed or destroyed by the network, so that they no longer exist and cannot be used again. This means that as long as customers are using the B&C exchange, there will always be a constantly dwindling supply of BlockCredits. If no more BlockCredits were created by shareholders, the supply would eventually run to zero, as they’re all used up trading.

If the market ever got too flooded with BlockCredits, which caused the price of the credits to drop below $1, the custodians would just need to wait and keep their sell wall in place. Everyone buying BlockCredits under $1 would be getting a great deal. Eventually though, as long as the custodian waited long enough, the BlockCredit supply would start getting lower and lower as people buy them to use on the exchange (thus getting destroyed in the process). The supply would get low enough that the price would start rising back to $1, but it would never be able to surpass it because of the sell wall in place. The shareholders would need to constantly resupply the custodians as credits are consumed in the system and the supply runs lower.

So as more and more people from around the crypto community start using B&C, they will need to purchase more and more BlockCredits from custodians to actually trade, thus guaranteeing shareholders consistent profit. Shareholders will even have the ability to vote to raise or lower the current BlockCredit transaction fee.

Again, if you’d like to learn more, the lead developer Jordan Lee has been answering lots of questions in his main thread on bitcointalk. You can find contact details to purchase BlockShares there as well, thanks!

https://bitcointalk.org/index.php?topic=1033773.0

5 Likes
#2

About 3 hours now.

#3

2.5 hours.

I’d feel better if some people posted letting me know that they’ll join in.

#4

Thank you for your initiative!
I will likely not be available at the beginning of the advertisement, but I think I can join later.

Here my quick feedback for the prepared post

I feel “shortly” is overused.

Motions can do a lot, but my understanding regarding the numbers “n” and “m” of the used n-of-m-multisignature transactions is that the customer can select the level of security based on the need for security (=amount of traded coins).
The rest looks very well written!

#5

Thanks for catching that. I’ll fix it in a sec. As for the second part, I’ve copied that from the first post of the main thread, so I assume it’s correct.

Edit: 2 hours now.

#6

Less than 45 minutes.

#7

Total funds committed have reached $147,643 including seed funds. We are now 73% of the way to our goal of $200,000.

Thank you for creating the thread!

4 Likes
#8

I’ll make a post as soon as the thread is live too.

#9

Thanks, I’ve updated the totals.

#10

Is the type of actually used multisig (e.g. 2-of-3, 4-of-9,6-of-11,8-of-15) really determined by motions?
You are right. The second part is in the initial post of the B&C Exchange thread.
I’m just curious about the meaning.
I can imagine that motions define what portfolio of different choices is offered by the exchange.
But I understand it like the cost increases by using more signatures; the choice is up to the user.

  • more signatures increase the size of a tx (providing more security)
  • tx generate costs (to be paid in BlockCredits)
  • the more signatures you want, the more you have to pay

Just in case there’s discussion about that topic it would be good to know the meaning.
Maybe I understand it wrongly.q

#11

Threads now LIVE!

2 Likes
#12

Thanks everyone for all the comments so far. let’s keep it up! For once I’d love to see the Bitcoin community embrace this. I imagine the association with NuBits and proof-of-stake prevents them from doing so though.

#13

don’t worry about r/bitcoin. They’re not going to upvote a post they know came from someone in the community because they think it means shill. The funniest part about that is that Nu is decentralized, so by their definition it’s basically impossible to talk genuinely about Nubits without being a shill. Anyway, we got a good thing going in r/cryptocurrency, thank you for waiting to post there until we actually had some news.

2 Likes
#14

It won’t be determined by motion, but by voting similar to how NuShare holders vote for park rates. No vote at all will be interpreted as a vote for the current setting.

#15

Ah, so there will at each time only one type of multisignature transactions be available (except for the tx that have already been placed before an adjustment of the type)?
It is not up to the user to define how much security he feels necessary for a particular transaction?
If the current voting is for 6-of-11 a user can chose 6-of-11 or nothing?

#16

Great news, will try to support you on Reddit. Good luck!

#17

Letting the user choose is a security vulnerability. Playing the role of a hacker, I want the other party’s funds transferred but not my own. One way to do that is to try things like using 15 of 15 signers in hopes that enough signatures can’t be had (there are other protocol rules that prevent this) or using 1 of 15 and try and corrupt your signer into not signing.

#18

I understand.
But that’s not what I was trying to say.
Maybe I chose the wrong words. Let me try again.
I didn’t think of a user’s choice of multisig type (e.g. 1-of-15) of all the types that can be thought of and that are technically possible.
I rather thought that a user may choose from types that are offered, because they have been elected (through voting by BKS holders) to be available (e.g. 2-of-3, 4-of-9,6-of-11,8-of-15).
And from those available types a user may choose the one which suits the needs: 2-of-3 for small amounts to be transacted, 8-of-15 for big amounts.

1 Like
#19

bitcointalk down again.

#20

Back up again for me