We'd need a higher-level accounting system to control and track which output the "colour" of the coin follows, but upon first glance I think this is all doable.
There are color enabled clients that read the metadata and trace the coins automatically. They still need a lot more development. |
|
|
|
He's talking about colored coins that only use bitcoin micro-transactions to secure them. For instance, if a bitAmero were created, it might only cost one Satoshi to generate, but be worth thousands of times more. To spend them, you would still need a Bitcoin client. What it does to the price of Bitcoin itself is anyone's guess.
I hadn't given coloured coins much thought till just now. I suppose a coloured coin is a sort of a bearer bond, kind of an IOU payable by some third-party upon demand. A regular bitcoin has a value equal to its trading value, while a coloured coin has a value equal to its bitcoin value + the market value of the implied IOU. It seems that coloured coins could be used to create decentralized exchanges (emulate the only useful feature of ripple while avoiding all the ripple trolls  ). BitStamp, BTC-e, BTCChina, Kraken, etc could all create "coloured USD". We'd have StampBucks, BTCeBucks, etc. We could probably trade StampBucks for regular coins in a decentralized and trustless way using coinjoin 1 transactions. In fact, StampBucks could trade directly against BTCeBucks and deviations away from 1:1 may be indicative of solvency problems. This would eliminate all counter-party risk against the BTC side of your trade and this would allow you to trade with anyone in a peer-to-peer fashion. Your only risk when using the decentralized trading system is the credit worthiness of the issuers of the coloured coins. The exchanges then simply become "gateways" in the Ripple sense. I may deposit a 0.1 BTC coloured coin at BitStamp that had an implied IOU value of $5,000 USD. The exchange would give me back a regular 0.1 BTC and then perhaps wire my personal bank account $5,000 upon my instructions. So this is bitcoin + ripple but entirely within bitcoin and without counter-party risk against bitcoin assets (unlike ripple where bitcoin assets are IOUs). 1We'd need a higher-level accounting system to control and track which output the "colour" of the coin follows, but upon first glance I think this is all doable.EDIT: this might make 3rd party audits of the exchange/gateway easier too. The auditor can inspect to the blockchain to determine the number of outstanding StampBucks, for instance. All it needs to do is verify that the exchange/gateway actually has this much US dollars in reserve. I think it becomes difficult to hide the amount of IOUs issued...Those are only a small start to what can be created by coloring coins. While they do incur counterparty risk, they also make any financial instrument and contract available online with maximum security. Colored coins can create decentralized stock exchanges, derivatives, rental agreements, leases, or almost anything you can think of. |
|
|
|
I read it as C) the currency dies in its current form but the algorithm/concept lives on in the form of other alts - not necessarily in existence yet.
So C) also means you lose your investment  He's talking about colored coins that only use bitcoin micro-transactions to secure them. For instance, if a bitAmero were created, it might only cost one Satoshi to generate, but be worth thousands of times more. To spend them, you would still need a Bitcoin client. What it does to the price of Bitcoin itself is anyone's guess. |
|
|
|
Only in Amerika. Besides, they can rent anonymously using Bitcoin. |
|
|
|
You can even murder anyone and walkout by just paying the blood-money. The harsh punishments are reserved for the South Asian and Filipino slave labor, and not for the Europeans and the Arabs.
I've heard the same things. In fact, I've never heard of anything good contributed from the region for the last thousand years. I cringe when my Filipino friends go there to work. |
|
|
|
Walmart cards are no longer available. |
|
|
|
I'm sure the person who thought up bitcion is very smart and has considered things like this. Now I wonder when the OP of this thread will post their credentials on cryptography for us?
To start with, I read Satoshi's White Paper. Where did it say anything about what you claim? It's one thing to presume that the military does it's job to look for any combat vector to keep the nation safe. It's not unreasonable to assume what you claim. So why the hostility? Did you come here from 4chan? BTW, thanks krodmandoon. If I offended you I do apologize that was just a joke and I agree a bit childish. You did seem a git aggressive in you previous posts so I assumed you could take a joke. Okay, now you're just handling me. No worries. This beast takes it all in stride. |
|
|
|
|
There will be a boom of gambling and porn sites no doubt.
|
|
|
|
What are you talking about "they will never allow themselves to be discovered"? I can assure you, they will be discovered once they start reversing transactions. The identity doesn't matter. This particular crypto-currency will crash and burn over night, the attackers will be only hurting themselves since they hold over 51% of the currency.
On the other hand, attacking a PoW currency only need about 10% of the marketcap in cost. How does "hash rate is known" make it any harder to attack?? I don't understand, I would think it only makes it easier to plan the attack. In a PoS currency, the "unknown" part is really a safety mechanism, since the attacker can't easily figure out if he could ever obtain 51%, because he don't know who's holding what, and 51% may never be achieved simply because they are not available for sale.
I don't think you will even get PoS supporters to back you up here. All currencies (including crypto) have weaknesses. If you claim that someone reversed your PoS transaction, how would you prove it? Everyone would call you a scammer. At least with PoW you can see orphaned blocks on hundreds if not thousands of nodes to show what happened. You may or may not get the network to help you, but at least they will watch for bad agents. In fact, major nodes are working diligently to prevent these types of problems. |
|
|
|
|
I agree with the OP as far as long bullishness. The smell of fear from China even cuts through their smog filled skies. Apparently bulls have a better sense of smell than bears.
|
|
|
|
And what I have learned from BTC, everything on BTC works just twice. Then things change or whales change their tactics...
Really they only work once after discovering them. Then the Borg adapt. |
|
|
|
|
The only denomination of bitcoins that is backed by anything relevant is the minimum dust transaction backed by the cost of electricity used to produce it.
|
|
|
|
The seas have been calm lately. Too calm. I feel thar be whale nearby.
Nar thar be buried treasure in them there seas we need to chart our ol ye ways to the upswing .....  The other kind of whale. The mighty beast that eats sell orders in one great gulp. |
|
|
|
|
I never could get them to run.
|
|
|
|
|
The seas have been calm lately. Too calm. I feel thar be whale nearby.
|
|
|
|
|
They should be loaded on a free Trezor.
|
|
|
|
|
I disagree with the OP. Bitcoins will not be widely adopted as currency, ever. So there is no need to worry about it. The only quantity of bitcoins we need to be concerned about naming are the minimum dust size amounts, which is currently BTC0.00054. We should have a name for that. That quantity will be the transaction unit for Mastercoin, Colored Coin, and other derivative coins that meet the formal definitions of currency. Then these Bitcoin derivatives will be adopted and drag the value of Bitcoin up. The minimum dust size will float, so it can't be locked to a specific amount. Future derivative coins will be based on smaller dust transactions. This trend will continue all the way down to the Satoshi level, but the derivative coins will be worth much more.
|
|
|
|
|
If I were an MIT student, I would be looking for the weak hands right away.
|
|
|
|
So, apart from the guys shouting "rich will get richer"
It's not that. It's the rich will have untouchable anonymous power. There is no way to stop a cabal of people from taking permanent control and reversing transactions discretely. But with PoS they need 51% of the entire wealth of the currency, to do so, and at that point why would they do it? they will only undermine themselves when discovered because the value of the currency will plummet. They would never allow themselves to be discovered. There is no method of tracing controlling shares to individuals. Everything would be done in secrecy using TOR or other darknets and disinformation campaigns would be waged. With PoW, they only need about 10% of the wealth to overwhelm the mining hashrate, because the current Bitcoin mining operations are worth about 10% of the Bitcoin marketcap.
There are many countermeasures against PoW attacks precisely because the hashrates are known. There are still vulnerabilities with Bitcoin, but because the transactions are more transparent, there will be better engineering solutions. |
|
|
|
They will all hodl. They need a smarter distribution system such as discounting books bought with Bitcoin or even tuition. There would still need to be a cap per student. |
|
|
|
|
Show Posts
