Version 4.0.1 (Mandatory Upgrade)
Note that trading is disabled until the full B&C Exchange client is released
, short for Blocks & Chains Decentralized Exchange, aims to be the Reddit of cryptoasset exchanges – simple, reputation-based, and easily accessible to everyone regardless of geographic location.
It will be developed by the same established team that has directed Peercoin and NuBits development, a group that includes well-known cryptocurrency experts such as Jordan Lee, sigmike and eramospunk. The experienced team of over ten contributors has successfully led three prior projects (Peercoin, NuBits, NuShares) into the top twenty-five assets by market cap on coinmarketcap.com
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 like those found in Nxt or BitShares.
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 explains.
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.
More detailed use cases are provided in the attached design document above.
The sale of undistributed BlockShares held in our possession has ended. The final total funds raised are $320,764
The total number of BlockShares on the blockchain and in circulation is 184,765.96 as of the end of fundraising on August 31, 2015. This amount can only be changed by the 0.01 BKS minting block reward, the variable reputed signer block reward we will soon add, and BKS grants approved directly by shareholders. We do not have the ability to create any additional BKS without shareholder consensus in the protocol.
We expect the funds received will provide funding for the core implementation as well as a number of extra features or even products. While the extra features implemented should probably be decided by shareholders when the core implementation is closer to being complete, implementation of CHECKTIMELOCKVERIFY in Nu and B&C as well a utilization of it in B&C for any chains that support it, escrow capabilities and an Android app that combines a multi coin wallet with full support for B&C Exchange are likely features/products the extra funds will be dedicated to.
We expect there will be many questions about the technical details, the proposed funding model, and our team’s prior experience. We will do our best to answer any question asked to the best of our abilities. Lead architect Jordan Lee will also be active in this thread to answer questions as they arise.
We believe the design of B&C Exchange will allow users to safely control - and earn dividends from - their own cryptoasset trades. It is the beginning of a future without centralized exchanges.