Bitcoin Forum

Ducat Exchange Coin (DUX)

I am attempting to raise the funds necessary to design and implement a coin that will serve as a vehicle for trading cryptocurrencies.  

The meteoric rise of BTC has spawned tens (hundreds?) of altcoins and those altcoins have become the subject of much speculative trading.  The success and sheer volume of trade w.r.t BTC and its altcoin brethren, have severely taxed the existing exchange infrastructure.  Many altcoin exchanges are buggy; laggy; and have deposit, login, withdrawal, and trading issues.

I therefore propose DUX as the solution to the aforementioned issues.  What follows below is a tentative sketch of the existing idea and may (will) be subject to further refinement and improvement as development proceeds.

What is DUX?

(1)  DUX is both a trading platform and a cryptocurrency.

DUX is a meta-level coin in the sense that it's designed to augment, enhance, and supplement existing cryptocurrencies and their respective trading networks.  It is meta in the sense that it comes "after" and "above" existing cryptocurrencies.  It's "after" in the sense that it's dependent on them for its survival and it's "above" them in the sense that it enables trading between many different coins thereby unifying them into one decentralized, efficient, and profitable exchange/trade system.

The idea is that miners will "mine" DUX transactions (which are entirely trades) being rewarded .2% of all coins made in those transactions (more competitive than Cryptsy which has .2% buying fee and .3% selling fee and Bitstamp which has at most .2% trading fee when your trade volume is $150K or more) while receiving DUX coins for their work.  I see DUX coins acting as a sort of Cryptsy Point or as an item of index that has worth only in virtue of all the other cryptocurrencies/cryptocommodities and their volume of exchange.

Unlike so many other cryptocurrencies, DUX would provide a demonstrably useful and significant service to the cryptocurrency community.

(2) Client?

Users will download the DUX client and will generate a DUX address.  Each DUX address is partitioned into several sub-addresses each of which will uniquely support an existing altcoin.  Users then send their altcoins to their respective DUX subaddresses using the existing altcoin clients.

Transactions to and from subaddresses to altcoin wallets will be handled by the existing altcoin networks.  

Users may then trade any coins held within their DUX address for any coins held in other users' DUX addresses.  All of these transactions are to be handled using the DUX network.
It is my hope to design a new client (and not just take the existing BTC client and change it around a little like everyone else does).  The client should be able to support buy/sell options and list current exchange rates.  Longterm development will hopefully enable us to implement automated trading and various technical indicators (RSI, StochRSI, etc.).

(3) Mining?

Transactions (and their confirmations) comprise the entirety of the DUX network.  I'm still working out the details about how this should be handled.  The idea though is that miners will compete to transact a "block" and whoever wins that block will receive a variable number of DUX coins along with .2% of all coins transacted in that block.  Ideally, miners would receive 25 DUX coins per block starting out.

At the present, I believe that we will be using SHA-256 in order to tap into the BTC network (many of the existing machines will be obsolete and will need a way to turn profits - why not have them be put to work supporting the trade infrastructure?).

There really won't be "difficulty" (at least as presently envisioned), but the number of DUX coins received will decrease over time either due to one or more of the following (1) the proportion of DUX coins already mined (hard cap limit), (2) the number of transactions or volume of altcoins being exchanged, or (3) more DUX coins awarded when the network rate is too slow and less DUX coins when there is an excess network rate.

The idea is to harness the machines and hard-work of our miners for a demonstrably practical purpose that supports and strengthens the entire cryptocurrency network while rewarding them for their work and producing a more efficient and profitable trading system over the existing fragmented and poorly designed mess.

(4) Premine?

Small premine to support bounty and support.  I'm thinking 2,000 coins but this is TBD.  I want DUX coins to be "rare" so the total number (max cap) should be no more than 30 million (ideally less but no less than 18 million).

Funding

My target goal is 5 BTC to support the development of DUX.  There are certain software and programming issues that I'm ill prepared to handle on my own.

Every donation is greatly appreciated.  

If you send in more than .001 BTC, you'll receive positive karma, my deep gratitude, and thanks.

If you send in more than .5 BTC, you'll receive early access to the software.

If you send in more than 1 BTC, you'll receive a portion of the premine.  What you'll receive will be calculated by the following equation:

Let X be the total amount of your donation where X is greater than 1.  

Let Y be the total amount of all such donations.

Let Z be the total number of premined DUX coins.

You receive (X/Y)(1/2)(Z)

I've tentatively set aside half of all premined DUX coins for supporters.  You will never receive less than that amount though depending on our development costs, I might very will increase that number.

In the event that DUX fails to come to fruition, I will gladly return all remaining BTC (less transaction fees) in a manner directly proportional to your contribution.

Details

PM me if you'd like to support the project by programming.  We can discuss payment options at that time.

See: https://bitcoinstarter.com/projects/414 to support financially.

Mad duckets yo.

Sounds interesting.

I wish it was a Scrypt based coin, but I like the idea of this. Best of luck to you.

SHA-256 based is a good choice.

Thanks for the support!  I really want this to come to fruition.  So pissed at Cryptsy right now.  I lost a lot of money last night because I couldn't log in.  I also just really want to see cryptocurrencies succeed.  Making it easy to speculate will drive the price up in the longterm.  Thanks again!

really like the idea behind this one

Interesting concept. Any more on your background seeing as a newish account on here?

PS - I'm new, you're newer!

I do not think you should make only 2000 coin and premine. That sets off a very bad vibe. the idea is interesting though. Think of more like 20-40 million range. Then premine sounds better. Also, I would like to invest.

Interesting idea, if this idea forms in a body with a successfuly coding and design, it will amaze.

Any reason the project on Bitcoinstarter you linked to is not publicly viewable?

Wow, the response is much greater than I anticipated.  Sorry about the slow replies, I'm having issues with the post interval limits here. I'll try to address each question/issue below.


I'm not sure I understand what you're saying here?  If you are saying that 2000 total coins (max cap) + a premine is undesirable, I firmly agree with you.  If I was unclear about what I'd like to do above, let me be clear here.  I'd like to have a small premine (to reward supporters and to support development only) which would be a small amount (about 2000 coins).  I'd like the max cap (upper limit) on total coins that can ever be mined to be between 18-30 million (ideally somewhat mirroring BTC).  Thus, the total fraction of premined coins would be negligible.  The aim is not to pump and dump (nor do we want to acquire that rep) but to establish a beneficial, useful, system to ease cryptocurrency trading.


Hello fellow (though more senior) newbie =).  Yes, I recently created a Bitcointalk account (I think on the 18th or 19th) to address an issue with QT-Bitcoin Trader.  I've been a long-time lurker on these forums but I understand that that hardly cultivates confidence.  There is a lot of trust involved in these sorts of opportunities and that's a risk I suppose you'll have to take.  To all major supporters, I'll provide you with my personal information (mainly to facilitate communication) but also to provide you some reassurance that I'm not just going to run away with your money.  Furthermore, if you'd like to get something in writing, I'm more than willing to do that (I come from a family of lawyers and am something of a contractarian).

As far as my background goes, my previous profession was in academic analytic philosophy (specializing in what other fields call "computational semantics" and "mathematical logic").  I have supplemented my professional career with IT consulting and computer hardware work though admittedly my coding abilities are not fully developed.  I've recently decided to switch gears back to my real passion which is in the non-profit world.


Yes, that is a total coincidence.  I was unware that you had a nascent, somewhat similar, though seemingly less worked-out idea.  One interesting observation is that we've both, independently, decided that we've had enough of the altcoin exchanges and that the solution is to be found within the distributed system used by or akin to various cryptocurrencies.  That signals to me that this is an idea ready for fruition.  That being said, I'd like to invite you to be a part of this development and perhaps, if you do have more details about your system, we can team up to produce a superior service.  This is not some attempt to money-grub but to produce a superior service for use by the cryptocurrency community at large.  


Yes, sorry about that.  Two errors on my part.  First, I thought they'd be quicker with their verification process.  Second, I wasn't expecting this quick of a response.  It should be up in a day or two.  Alternatively, you can support this project directly.  PM me for details.

Interesting idea. For that to work, the DUX client would have to be part of (or have access to) all possible blockchains so that transactions e.g. of a BTC wallet to a DUX subaddress will actually "arrive". Right?
If that is correct, how can e.g. new currencies that seem to be launched every day be included easily?

watching

whyy?

waiting for the launch of dux.

Have you set up any sort of development/launch timeframe?  Are you the dev?

Interesting and grand idea but zero information on how you would actually implement said interesting and grand idea nor specification of your unique ability to achieve said Interesting and grand idea. 5BTC will hardly fund a project of this scale.

One specific question:
How do you plan to handle deposits & withdrawals of other cryptocurrencies into the DUX transaction network in a trustworthy and decentralized way?

I've been asking around for someone to work with on this same concept.

It's basically a wallet that has it's own blockchain, but is also a client of multiple existing chains. It's own chain would simply serve as the ledger of the distributed exchange.

But as a client of multiple exchanges how are funds escrowed until successful transaction in a provably safe and decentralized way?

The problem with altcoin exchanges is trust

make a pool real quick

Seems promising because everybody is fed up of all these amateur platforms. We need something simple, if possible, which works quickly and which is always up.

Group coin please

Hi Facewreck, I've been thinking about exactly the same thing so I'm keen to get involved as some level, including financial investment. I also have web design/development experience for setting up a website and assisting with social media or other digital marketing and branding around the coin and the launch.

Personally I'd find a scrypt coin more appealing - and probably many in this community/ecosystem would too because Bitcoin mining has basically become an industrial process out of reach of individuals now.

I've got a number of ideas relating to implementation which may be of interest to you.

PM me for more details.

I may be wrong, but I believe MasterCoin is working on P2P exchange since September '13. Idea is freaking brilliant.
I don't think it is possible to make such a coin for 5BTC. There are some simple questions:
-How does one place an order?
-How does one cancel/modify an order?
-Do you check balances before you make a transaction?
-How do you charge ones altcoin balance?

Ripple is a working exchange.  :)

As a meta-level handling finances of many many chains, obviously its hash-power needs to be more than half as much as the total hash-power of all the chains that it serves combined, so that it would take at least a quarter of all the hashing power of all the chains that it purports to be "meta" to aka "above" to PWN it.

However, at the same time, if its hash power is more than half the hash power of any one of the chains that it deals with, then its miners could be tempted to PWN that other chain instead of mining this one.

So it also needs to not be less than half as much hashing power as any one of the chains that it serves.

So basically it seems to need to be merged mined alongside all of the chains that it serves, so that the same hashing power can secure all of them all at once...

Which is awesome because it provides all the chains of its hashing-type that have not yet enabled the ability to be merged mined as a secondary chain to do so - their incentive being that if they do, then they can participate in this distributed exchange...

However that is kinf of wishful thinking, since actually all the chaisn of its hashing-type are potential attackers whether they participate in the distributed exchange or not.

So really it does not merely need at least enough hashing power that all chains it serves cannot gang up to PWN it, it needs enough hashing power that all the hashing power of all the chains of its hashing-type, whether they participate in the exchange or not, cannot PWN it...

It is very sensible not to have it be an scrypt coin because already there are far too many scrypt coins for any but one single one of them to be able to have more than half the total scrypt hashing power that exists, thus already all, or possibly maybe all but one, of the scrypt coins already have less than half of the scrypt hashing power so all of them or possibly, maybe, there might be or might someday come to be one among them all that is not already less than 50% of the scrypt hashing power.

So basically all, or maybe if we are lucky or someday in the future all but one, of the scrypt coins are already way the heck too insecure to be trusted for any serious use...

 -MarkM-

Sweet. We have needed this for a long time.

We also need to be able to secure it though otherwise the great chain robbery has also been waiting for enough loot to be foolishly tied up in to make it worth PWNing.

-MarkM-

Interesting

this is interesting

Seems like this coin is dead

Sad because the author seemed to know his stuff, I see I'm the only one to funded his project on BitcoinStarter and anyway we have no answer or precisions or what is going on with the project. :-[

Maybe he realized there are at least 5 coins that plan to do something similar?

Nxt
Mastercoin
Bitshares
eMunie
Colored Coins