Obyte: Totally new consensus algorithm + private untraceable payments

[SatoNatomato]

If I didn't know better if swear you read my comments about my concerns of post distribution adoption, I LOVE this idea.

Slowing the holder distributions will provide a greater runway to final distro, and incentives to create real world adoption is EXACTLY what's needed when the full million is in circulation.

Excellent work!

Excellent indeed!

[flippener]

I went through the process and the chatbot said I was entitled to receive some bytes, but nothing has appeared yet. Here's hoping.

[BeggarInCryptos]

After August 7 we'll reach more than 50% distributed coins and will start a new phase of our distribution.

It was stated from day one that the purpose of this distribution is to get this coin into the hands of as many people as possible.  Both coins (bytes and blackbytes) are meant to be used as currencies, and this is only possible when there are many users and apps to interact with.  We already have a sizable community, a number of unique apps, and we are the only crypto project to have an app distribution platform (the Bot Store), but there is still a lot of room to grow in terms of user count, number of apps, and willingness of users to use these apps.

Up until now, we were distributing only to holders of BTC and Bytes, i.e. we were rewarding holding.  Now we are adding actual users into the mix, i.e. we are going to reward transactions.

To get you an idea of how we are going to do it, we are going to partner with several categories of companies:
- merchants
- payment processors
- "Bitcoin debit card" companies
and offer 10% cashback, paid in Bytes, for all qualifying purchases (no matter how the purchases are paid).  The cashback will be funded from the undistributed pool.  For example, a customer who bought for $100 receives $10 cashback in Bytes, paid to his Byteball address, at the current exchange rate.  For merchants, this is something that would drive sales and they would put effort into promoting the offer.  In competitive industries, a 10% cashback is a very powerful tool to lure customers.  For customers, this is a 10% discount (which matters a lot in some industries).  For Byteball, it is new users who will have to get involved into the system in order to receive the cashback.

A few companies have already expressed interest (not disclosing the names while it is a work in progress).

A few extensions of this offer:
- 20% cashback if the purchase is paid in bytes or blackbytes.  This would incentivize merchants to start accepting bytes and blackbytes, and the infrastructure will stay after the distribution ends.
- merchants can offer additional cashback to their customers.  Merchants fund it themselves by buying bytes from the market, and for every 1% funded by the merchant we add 1% more from the undistributed pool.

If you see similarity with existing loyalty points schemes, it is similar indeed.

At a minimum, we receive many new users who learn about Byteball from their merchants, plus working payment integrations.  And the users are not just crypto fans, it may be their first crypto coin for many users.  With the most user friendly wallet in the industry, we are in the best position to expand beyond the crypto village.

We can continue adding 10-20% to existing byte balances to incentivize keeping the received bytes before more infrastructure is built, rather than cashing out immediately.  

Two negative sides:
- the scheme is less transparent than plain adding on top of existing balances, and some share of fraud is inevitable.  Merchants might try to deceive us to receive coins for themselves by reporting nonexistent sales or selling to themselves.  This is mitigated by good choice of trustworthy merchants and our ability to disconnect any merchant at any time on suspicion of fraud.  Their customers can also try to find ways to abuse the system, again we'll require the merchants to prevent that by excluding some types of purchases, monitoring customers, enforcing caps, etc.  Additionally, if the merchant funds part of the cashback himself, he has skin in the game to counter the customer fraud.
- these new users are not holders for the most part, they are more likely to sell.  Not a big problem, the point is they already know about Byteball and it's easy for them to get back.  The new users are new to crypto, many of them won't use exchanges, and somebody will have to create new easier-to-use channels to fiat, which is positive for liquidity.  Also, 10%-20% monthly distributions discourage fast selling while the distribution is ongoing.  And lastly, the merchants who fund 50% of the cashback would partially balance the markets by buying coins.

On balance, I'm sure that these negatives are tolerable when we are going to achieve a vast expansion of our user base and acceptance at merchants.

For the current distribution round, nothing changes.

For the next distribution on September 6, we are changing the ratios in favor of Byte holders and slowing down the distribution to have more time to build out the cashback program:

BTC to Bytes: every 160 BTC gives you 1 GB from the distribution (or 0.00625 GB per BTC).
Bytes to Bytes: every 10 GB of existing balance gives you additional 1 GB from the distribution (in other words, +10% to existing balances).

Similar ratios for blackbytes.

For those who receive their first bytes from cashbacks, Sep 6 will be the first distribution when they receive +10%.

I'll make announcements as we add merchants in the cashback program.

very nice changes tony, this model is much better for the long run, keep up the good work

OMG this is such a good news! I was terrorised by the idea of airdrops to whales concentrating all coins in a few hands, which is against the purposes of the airdrop. Sheers speculators are now dumping the coin but a better and more sustainable community will grow around this project which I consider one of the truly best around.

[Cryptian]

I've just noticed that my GB adress I have now is also different from the one I linked last month with the bot. 
Hope I still get my GB from the airdrop? Is it even necessary to link BTC adress when your holding GB in your Byteball wallet?

the bot is sleeping again right?

[dr blowfin]

I like the sound of the 90% reduction of airdrops to BTC holders against the only 50% reduction to Byteball holders.
Should mean more holding and less dumping.

[Savior]

I've just noticed that my GB adress I have now is also different from the one I linked last month with the bot. 
Hope I still get my GB from the airdrop? Is it even necessary to link BTC adress when your holding GB in your Byteball wallet?

the bot is sleeping again right?

If you have Gbyte you will always get your share of gbyte, but if your not linked you don't get blackbytes.

[exalterego]

What you do with giga-blackbytes? Sorry for the question, I tried to find out, read last 15 pages and googled but still I am a little bit confused.

[hannusolo]

Anything like you do with other cryptocurrencies. You can pay with them, they just are anonymous, but to such an extent that it's not possible to trade them on an exchange.. Instead you can use smart contracts as far as I know

[relm9]

Is the page at http://transition.byteball.org/ current?

I linked my address, and the transition bot said I was all setup, but it doesn't show there.

[Gaman]

i haven't received my gbyte yet, did you guys receive it?

[fudge]

Distibution will start in the next few hours

[exalterego]

Anything like you do with other cryptocurrencies. You can pay with them, they just are anonymous, but to such an extent that it's not possible to trade them on an exchange.. Instead you can use smart contracts as far as I know

Thank you for the answer! And how do you figure out the price for them if they are not listed on exchange?

[smrp]

Anything like you do with other cryptocurrencies. You can pay with them, they just are anonymous, but to such an extent that it's not possible to trade them on an exchange.. Instead you can use smart contracts as far as I know

Thank you for the answer! And how do you figure out the price for them if they are not listed on exchange?

Great question

[sirazimuth]

so being a long time crypto fanatic i've started participating in all these so called
"air drops" ( i missed the decred one dammit!) jeezus, this is getting quite lucrative!!
so far...
xlm (1st one ...hadda glitch but all sorted)
bitsend (not to shabby)
bitcore (meh...)
Bitcoin Cash  (amazingly lucrative)
Helium (coming soon to all Speadcoiners!)
Byteball...AWESOME!!

Byteball is by far the best!
WOO HOO ...bytes just arrived! Thank you Tony, you are the best!!

 It just baffles me that this "free money" is seemingly created outta thin air!
well whatever man ...i'm not complaining!! gotta love crypto!

(might hafta do the onion thing)

[rty]

i haven't received my gbyte yet, did you guys receive it?

Yes already received
  We buy gigabytes on the exchange in addition at a good price
http://Https://bittrex.com/Market/Index?MarketName=BTC-GBYTE

[European Central Bank]

I received my Gbytes for my linked BTC addresses but haven't received them for the Gbyte I had at 18:10 yet. I sold them about 2 hours later. Is this normal?

yep me too. give it some time first. maybe they're different processes.

[sirazimuth]

I received my Gbytes for my linked BTC addresses but haven't received them for the Gbyte I had at 18:10 yet. I sold them about 2 hours later. Is this normal?

yep me too. give it some time first. maybe they're different processes.

ditto that...

[European Central Bank]

the extra just arrived for me.

[sirazimuth]

the extra just arrived for me.

ditto that too!  

and now as expected ...cheap Byteball folks....what a surprise ...  easy money!

[cryptosun]

the extra just arrived for me.

Just grabbed some yummy cheap Byteball what is the expected price to reach? i have been following it since 0.36 btc and why is it falling? and i love the coin as it has low supply and good team hoping for .18 soon