UPDATE: The client will be released some time next week (the exact date to be announced soon). It is ready and currently going through the testing phase to ensure that it is bug free.

The forum as well as the official page will be soon online as well.

Thanks to all for your support!

Thank you for your guidance.

Actually we have a team (lawyer, consultant etc.) that is working on this so i guess they will look into it as deep as it needs to go. I am no expert in this so i am just pointing out the steps we are taking or will take in the future by regularly updating the thread with our moves.

What you mention above is definitely going to be the case within the exchange. I actually pointed our team to Mt.Gox and the AML regulations they follow. They are also looking at other similar services and taking advice from much more experienced lawyers in this area.

I meant they cannot be tracked in terms of the KYC procedure. We know as you correctly point out the amount and the addresses involved but not the actual sender/receiver which is what the authorities want to know...

To make sure that our business is 100% legitimate, together with our planned incorporation in the US we will also register as an MSB and follow all guidelines by the respective authorities.

As for transactions happening within the blockchain and outside the exchange, it is pretty much understood that they cannot be tracked and we cannot do anything about it.

First of all, we would like to openly thank both SgtSpike and viperjbm for their contribution in the final version of RLC. (for those who are not aware of their contribution you can check the first version of RLC to see their suggestions and ideas)

Secondly, we would like to thank both of them as well as some others for their replies and support in this thread.

Important: They have no financial interest in this project and their contribution was out of interest and with the intention to help create something different than just another Bitcoin clone. As you can see their help was priceless since RLC has the potential to become a PP alternative.

@SgtSpike: Actually you have replied to questions far better than i would have and thats why i let you and some others continue replying since you know most parts of this project and your replies are correct. So feel free to keep posting.

@DeathAndTaxes: We cannot guarantee a specific date that we will switch off central approval of blocks and let RLC run completely decentralized for one and only one reason. We dont know for sure when an attack could be non profitable for an attacker. We also believe that it is in our best interest to make RLC as decentralized as possible for the advantages posted above by SgtSpike. We would also appreciate any help from you as an experienced member of BTCtalk (and an experienced miner) to figure out the numbers behind mining and the point where we should switch off the central approval.

Now people wonder why would we want as a business to decentralize rather than keep all power in our hands. Well you can look at it this way: IMO there is a point where decentralizing could give a lot more power to RLCXE as a business rather than keeping it centralized.

Why? Because IF RLC becomes successful it will be target for a lot of people. This means that security measures around a central server would have to be huge and this means a lot of expenses.

Also think about government interference. I think they can easily attack a central server if they want to and burn everything to the ground in a matter of minutes.

Going decentralized from the beginning is not an option for obvious reasons.

Thus central approval at the beginning will help RLC avoid the early dangers and going decentralized at a later date will hopefully help RLC to stay in business for years to come if it turns out to be as good as we think it is.

Important: For some weird reason i get the feeling that some people in here have taken the part around mining and central approval a bit wrong. The central approval measure will be just a security measure against people trying to harm RLC. IF you are a miner willing to do good and power up the network then you shouldnt be worried about mining blocks because all your blocks will pass the approval. I think that you are overreacting when you hear the word "central". We are not gonna reject any blocks coming from honest nodes. We just want to have an added measure in case someone tries to harm RLC. If this happens we will be able to stop him before he does a lot of damage. As soon as it is deemed safe to switch off central approval then we will be more than happy to do so.

UPDATE: There was a bug found yesterday in the code and the developers are fixing it. We want to launch with a 100% secure and functional client and therefore we will have to postpone tomorrow's launch for a couple more days. As soon as i have news from the developers, i ll post a specific date.

Competitive in terms of fees.

As you are probably aware there are fees associated with each exchange. For an exchange it is vital to make some profit to keep the business running. In our case there are very limited avenues to making profit and it is 100% sure that in the beginning there will be a loss till there is interest in RLC.

Now any exchange can buy RLC directly from regular users and sell it back to other users with a fee included.

First of all, i would like to state that RLC will work as a community. Therefore, ideas like the one you posted could come to life since we are looking at creating an appealing e-commerce platform.

Secondly, forgive me if i didnt really got your idea, but how could you track people and their balances especially when they take their money out of the exchange and into client and reward them with dividends? Please dont be harsh if i am missing something here. I am learning more and more about the BTC platform day by day. Your idea sounds interesting so please post some more details if possible about the way you think it could work. I ll pass the details to the others and it might get adopted as i explained above.

Thanx

Excuse me but I cannot fully understand your question. Could you please explain what you mean by physical security of the central node?

There will be speculation before the reserve has been exhausted. We are already discussing potential investments with our bank (HSBC) in HK and the first milestone level to be hit for an investment to be made is around $200,000.

This means that as soon as we reach this amount, we will make it available to our bank for investment thus slowly increasing the price of RLC.

Our plan is to start building multiple services around the network.

Examples of such services found in the BTC network are BitPay and SpendBitcoins as well as others.

EDIT: We are also looking at attracting BTC businesses that would like to be part of the RLC network as well and will closely work with them to create a strong network offering multiple services.

The exchange has been developed by the developers of Intersango so you can expect the same level of security. As you probably already know, Intersango has never had a single incident with their website and thats the goal of RLCXE as well.

The servers for the exchange and the block validation are entirely different and they will be closely monitored 24/7 by the developers and admins since they will be local servers and not leased from an online host.

We cannot trust online hosts with such important matters and that's why we have our own servers.

There has been a problem with the host from yesterday. They are having a network routing problem and neither my websites nor the host's website is working normally.

We have contacted them twice and they said that they are working on it and soon will be up and running again.

Their service has been excellent so far and this is the very first problem we have encountered with them.

The release of RLC is scheduled for February 10. If there are still problems with the host, we ll probably move to another host.

UPDATE #2: The release date for both the client and the exchange has been scheduled for February 10.

The plan is to go decentralized in the near future.

The added layer of security (e.g. the central node approving/rejecting blocks) will be soon removed to create a fully decentralized e-commerce platform.

Also, we do NOT disapprove the creation of other exchanges around RLC. We want a competitive market because it is in the best interest of all.

Lastly, as stated before, we plan to become a PayPal alternative and not a competing cryptocurrency. The reason behind this, is that there is a need for a really low cost global payment gateway without foolish restrictions, frozen accounts, difficult procedures and the Bitcoin platform serves as the perfect foundation for such a service.

On a side note, we will gear towards being 100% legal (following all AML/KYC procedures) as far as the exchange goes. Now the RLC network is a different story and soon it will be fully decentralized thus having all the benefits that a p2p platform offers.

UPDATE #1: We have switched from a fixed 1% fee to a minimum 0.1% fee with the option for the user to set a higher fee from within the client.

Mining will also be enabled within the official client.

We will work closely with both miners and users to find the best possible fee structure for the future.

This is a little harsh to say since miners do a specific job.

We cant expect regular users to fill in for miners.

Therefore, a solution has to be found for a fee structure that is good for both miners and users.

Thanks for giving the opportunity to post the following.

This is one of the things we were looking for when i first posted the thread!

The only thing left for RLC is to figure out a good Tx Fee %. The 1% was just a random number selected (of course it was selected as it is a lot lower than what the other payment gateways offer) and we are looking at discussing this part in more detail with all members of BTCtalk to figure out the best possible solution to have both happy miners and happy users.

Therefore, i invite everyone that posted above as well as reputable miners of this community to openly discuss the best formula for the transaction fees.

Feel free to post your opinion on what the fees should be or how they should be calculated.

As viperjbm and SgtSpike correctly stated, this is meant to be a PP competitor and therefore a business rather than a BTC competitor.

A business needs some kind of protection in order to stay alive and thus it needs to avoid people seeking to harm it. This centralization thing has been discussed many times around here but you are missing the point here:

Scenario #1: A new cryptocurrency (lets say FantasyCoin) is created from a group of people within the BTC community with the goal to get rich and they impose some kind of centralization when it comes to mining. This is definitely bad since their interest is to control miners.

Scenario #2: A new financial business (like RealCoin) is created from a group of investors that were not members of the BTC community with the goal to create a PP alternative. In this case, it is in the best interest of the business to protect its assets and therefore some kind of control has to be imposed ONLY to keep things rolling and to be able to offer a 100% safe service to the users avoiding bad miners.

As i have posted numerous times, although we believe that mining is an integral part of the system, i myself am not into mining (although i have educated myself over the past two months i still dont understand some parts of mining) and i can assure you that none of the investors is into mining as this is just not the point we are focusing on.

Therefore, we welcome the BTC community and its miners to earn tx fees in return for securing the network and helping with transactions from users.

The plan is to be fair to all miners. If you are a good helping miner then you dont have to worry about anything. This is just an extra layer of protection for the business nothing more than that and as said in the future it could be removed allowing for a completely decentralized service.