Bitsharesx is an eco system... that allows you to create assets, some are backed by a peg and some are not.. freely traded. The ones backed by a peg (costing about 300k btsx right now)
what do you mean by this? is this a 1x fee or something?
are meant to be tracked via a feed fed in through the delegates, which gets itself around security issues of POS (Delegate-POS is the algo name). Which Larimer/Buterin seem to agree is the best one moving forward away from POW.
still amazing to me Buterin raised all that BTC yet doesn't even have this fundamental strategy resolved yet
Anyways one of these assets backed by pegs is the bitUSD which is meant to track USD so a price feed is fed in(how many USD each BTSX is worth on an average of exchange price feeds) so to keep bitUSD trading at roughly $1, and thus people can trade btsx for bitUSD and vice versa knowing that they are essentially going to and from USD because you will be able to trade bitUSD back to USD at some time (for legal reasons this was left out until third parties come along and offer this service which are regulated as money transmitters).
you hope they come along
Another one is bitBTC which tracks BTC... so you can go to and from BTC to BTSX.. same way as going from USD to BTSX and back.. however BTC <--> BTSX. The idea is that many businesses can use bitUSD to offer services to customers and be able to transfer these bitUSD across the chain quickly and efficiently without having to pay fees , and use the built-in bitshares privacy features for annonymous transactions etc etc you get the picture...
There are 101 oracles (and more lining up as backups incase of some going down) doing this feeding and yet it is a more decentralized model than bitcoin (in the way of large concentrated mining pools).
i'll disagree with this. just b/c there might be larger #'s of delegates doesn't mean they're more decentralized. many could be owned by same individual. i don't believe voting necessarily solves this either b/c it sounds like that could be gamed.
These oracles or delegates get paid to sign blocks as a job. Because of this there is incentive to provide this service.. as it is profitable to do so at these prices.
of course there is incentive. no work needs to be done. just get the votes from either your buddies or already vested interests in the POS system then get paid to simply sign blocks. sounds like centralization to me even worse than Bitcoin mining. btw, i think there's a chance we've seen the last time a miner gets to 50% of the network hashrate as we're getting commoditization of hardware with 10x lower prices to the small miner. this is good and could reverse the swing of the pendulum back towards increasing decentralization as a result. the other evidence this is happening is the hashrate is leveling off and we could be stuck at 14nm ASICS for a few years. that's a good thing.
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this is an insider club from the outset In order to become a delegate you must set up a delegate as yourself and get voted to become an official bitshares delegate.. people have to beleive in you and there is an in-chain voting mechanism used to figure out who are qualified to become delegates based on popularity of votes (there are obvious safe-gaurds to avoid people from getting them selves voted in easier).
so how can this be successful in the long run? there is a tremendous incentive to own several delegate nodes. insider club=ponzi scheme.
It is meant to work in conjuction of a currency as bitUSD is doing.. and bitBTC... it is not meant to work as a currency itself as the chain is used for mor ethan just a tx ledger for payments (breaking satoshi's golden rule)... however if thought about in another way that it works in partership with bit coin.. in that bitcoin may be used as a currency and bitshares may be used to issue assets/stocks/companies that operate within clearly defined rules without corruption then it makes sense on where to draw lines between bitcoin and bitshares... and IMO it is aptly named in that regard.. bitshares for share issuance and bitcoin for coin transactions and spending.
can u explain how the btcx interface with the BTC blockchain? is it using the 40 byte op_return and for what purpose?
You might ask why would I transfer my BTC to bitBTC? Well the incentive is that you get paid interest by holding, through a decentralized solution. If you hold atleast a few months then it is in the range of 10-15% per year right now.. better than any bank.
since eventually the original BTC needs to be paid back
along with BTC interest, how does the system continue long term as BTC doesn't inflate?
It is the only true form of interest payment for bitcoins because you hold your keys.. while all other solutions cause you to send BTC to someone else thus the keys controlling your coins change... in this method you hold your bitBTC keys the same way you hold your BTC keys and essentially earn interest over time... the interest is accumulated fees that people who "short" bitUSD and other assets pay.. you can go long and short bitUSD and other assets just like any other market... market makers and arb bots do this to make money off the spreads and liquidity.. and the holders of the assets win by collecting fees.
holding bitBTC privkeys is not the same as holding BTC privkeys. be careful.
Other fees that are paid are used to burn coins to reduce the total overall supply so anyone holding anything in btsx will become more valuable over time.
at the very best then it sounds like someone would just want to hold btsx as its supply will be decreasing. the whole thing sounds dicey to me. none of these overlays will take off until Bitcoin itself is solidified and accepted as a bonafide currency/money.
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