[Concept] SatoshiCoin...Bring Micropayments Back to Bitcoin!

[QBcrusher]

The Problem

As our beloved Bitcoin increases in popularity and value, we find ourselves in a situation where block sizes seem to be too small, transactions too expensive, and confirmation times too slow. These symptoms have essentially destroyed the ability to send a Bitcoin micropayment. Sure, there are other alt-coins you can use to send a smaller amount, but you are always subjected to their volatility.

What if there was an alt-coin that is directly tied to the price of BTC, but completely removed transaction fees? How would you be able to maintain it's value? Could this be done without a fork of Bitcoin itself?

This is what SatoshiCoin will (hopefully) be built to do.


The Mindset

I have had numerous people try to accuse me of attempting to scam people (how can this even be possible when this is simply a concept design?).

Frankly, I understand why people would be skeptical of the idea. I am not asking you to put your trust in me, I am simply pitching an idea. If it manifests, it is up to YOU to audit the code to ensure it is legitimate before using it. If it is created like I intend, it's reputation and adaptability, along with numerous code audits will speak for itself. You won't have to trust me, just like you don't have to trust Satoshi Nakamoto to trust the Bitcoin network.  

Anyway, I will try to break this down as simply as I possibly can. Think of the SatoshiCoin network in terms of traditional gold banking. People bring their gold to the bank to deposit into the vault, and in exchange they get a gold certificate that is more flexible, and easier to break down into smaller denominations. The gold certificate has value because anyone who has it knows they can go back to the bank and exchange it 1:1 for actual gold. This is EXACTLY what the SatoshiCoin network will be aimed to do, only more decentralized.

Instead of the owner of the bank having the key to the vault, the network would be designed so that NOBODY has access to the vault (even the developers). The only way to take BTC out of the vault would be to exchange your SatoshiCoin (BTC certificates) in for an equal amount of BTC.

Also, with traditional banking there is always the risk that the bank prints up more certificates than gold held in reserve. The network will also be designed to eliminate this possible point of failure, because the USER will create the certificates when they deposit their BTC, as well as destroy them when they withdraw.  

I do believe that this modernized method of traditional banking can be the way to add new features to Bitcoin, without actually creating a competing alt-coin that is subjected to its own volatility, or forking the original blockchain. Adoption of this theoretical SatoshiCoin will actually aid in the growth of BTC, not try to get people use an alternative (because SatoshiCoin is by nature, a representation of BTC).
 
How Will It Function?

The SatoshiCoin network will be built to focus on transactions. Nodes will play the most important role in the network as they will collectively pass along every transaction for free. Since there are no transaction fees or mining blocks, transactions won't be passed along based on the size of the fee, but the order they are created. This will also solve the problem of trying to send payments that are smaller than the fee itself.

Of course, there will always have to be an incentive to run a node or nobody would do it. I will discuss the withdraw fee and how nodes get paid further down.


How are SatoshiCoins Created?

First off, SatoshiCoins are not mined, nor are they purchased on an exchange (they CAN be, but the amount of SatoshiCoins in existence is fixed to the amount of BTC in reserve).

To obtain SatoshiCoins natively, you will import the private keys of your BTC wallet into your SatoshiCoin wallet (THIS IS A CONCEPT! IF THERE IS A MORE SECURE WAY TO DO THIS, I AM OPEN TO IT!!!). Depending on how much BTC you import, is the amount of SatoshiCoin that will be created. 1 BTC = 100,000,000 SatoshiCoin (1 satoshi = 1 SatoshiCoin). Once your BTC keys are imported to SatoshiCoin wallet, they will be unusable.  The Bitcoin you imported will be taken out of circulation and put into the vault, and you will have instant access to an equal amount of SatoshiCoins.

The minimum amount of BTC you can import/export will be .001 BTC (100,000 satoshi/SatoshiCoin). Once your SatoshiCoin is available, you can send them to other SatoshiCoin addresses with no transaction fee. This will allow users to finally send true micro BTC payments once again. You will also be able to divide a SatoshiCoin down to .00000001 of a Satoshi (which seems useless now, but as Bitcoin increases in value in the future it might be meaningful).

The same way SatoshiCoins are created, they can also be destroyed. Once someone obtains 100,000 SatoshiCoin, they will be able to export their private keys from their SatoshiCoin wallet and access their BTC once again. Once they do this, the SatoshiCoin associated with their BTC is destroyed. This will maintain the 1:1 satoshi to SatoshiCoin ratio. The important thing to remember is there will NEVER be more or less SatoshiCoin in the network than the amount of BTC imported. It will be written into the code this way so that every SatoshiCoin is always backed, and there could never be a theoretical "run on the bank". Every single BTC can theoretically be taken out of the network and leave a SatoshiCoin volume of 0. This would not effect the network in any way, it will continue to function as normal until somebody decided to deposit more BTC into the vault, in which more SatoshiCoin would be created.

What Incentives Are There to Run a Node?

Since there is no mining/transaction fees, full nodes will be the most important part of the network to ensure transactions are pushed through quickly. Every time someone decides to cash out their SatoshiCoin back into BTC, they will be charged a tiny withdraw fee (probably .1% of the total withdraw amount). This fee will be automatically distributed to the nodes (and an even smaller % of that distributed to developers).

This will also ensure that more BTC is imported into the network than exported, thus protecting the integrity and strength of the network over time.

Also, there could be the possibility for nodes that pass along X transactions to get the status of uber-node (or master-node, or something similar) and they gain the ability to skip the withdraw fee.

What is the theoretical maximum amount of SatoshiCoin?

Bitcoin was designed to utilize small numbers so that humans can actually comprehend them. The theoretical maximum amount of satoshi on the Bitcoin blockchain is 21,000,000,000,000,000 or 21 Quadrillion. This would also be the theoretical maximum amount of SatoshiCoins, but that would mean that all 21 million Bitcoins were imported into the SatoshiCoin network.

It would get some time getting used to the values, but this would be a great math lesson for a lot of people, as well as get more people used to calculating the value of Bitcoin.

The MINIMUM amount of SatoshiCoin someone can have would be .00000001 SatoshiCoin. This would translate to 1, ten-quadrillioth of a Bitcoin (please correct me if my math is off).


Why Would I Want to Trade in BTC for a BTC Certificate?

As stated above, the reason anybody would want a representation of an asset instead of the actual asset itself is for flexibility, and the adoption of new features.

• Transactions with no fees
• The ability to send BTC micro-payments (without fees)
• The ability to break BTC down smaller than 1 satoshi (the current smallest denomination of a BTC)
• Possibly base it off Monero code so that you can anonymize your BTC transactions?
• The ability to earn a small amount of BTC for running a node, rather than mining.
• An alt-coin/micro-transaction that is guaranteed to be backed by real BTC, not just the market value at the time.

This Sounds Great, So What's Next?

Well, as stated in the title, this is just a concept right now. I truly believe it can be something great that will aid Bitcoin over time, rather than compete with it. Of course, it's not just another fiat alt-coin, the network itself actually holds Bitcoin in reserve to maintain a 1 satoshi to 1 SatoshiCoin ratio. And because the node would also act as an exchange, it will eliminate the accessibility factor that would create an artificial markup that every exchange generally has.

I am looking for a trustworthy and experienced programmer who wants to work with me to manifest this vision. If executed properly, it could be the next step in the Bitcoin Revolution. It could make Bitcoin accessible to people who never had access to it before, bring true micro-payments back to BTC, and compensate all the development team in a transparent way for their efforts in the process. If you have any questions or are interested in jumping on board, contact me.

Oh also, the name is not set in stone. I just used "SatoshiCoin" for an explanation because I thought it was appropriate since the base value of the coin = 1 satoshi.

[QBcrusher]

reserved

[QBcrusher]

reserved

[franky1]

P.S

now i read you scamcoin proposition. all i see is a way for you to grab peoples private keys¹. so while they are holding a bag of your worthless scamcoins² that cannot be spent on 250,000 merchants. cant even be traded on an exchange³ YOU then have their private key to steal their bitcoin⁴.
¹

To obtain SatoshiCoins, you will import the private keys of your BTC wallet into your SatoshiCoin wallet.

²

and you will have instant access to an equal amount of SatoshiCoins.

³

nor are they purchased on an exchange.

⁴

Once your BTC keys are imported to SatoshiCoin wallet, they will be unusable.
The Bitcoin you imported will be added to the SatoshiCoin network,

The Bitcoin you imported will be added to the SatoshiCoin network,
translation. you spend the bitcoin out of peoples private keys and put them into a  bitcoin address owned by "SatoshiCoin network" AKA you!

well played. but you lost

game over, moving on

[QBcrusher]

game over, moving on

You are free to move on all you want. But to anyone who has actual intentions of working on this project, I will elaborate further. (these are quotes from https://bitcointalk.org/index.php?topic=1634423, having the same conversation with the same guy on 2 threads lulz)

And no, that's not how this would work. As I said, the technology is not there yet, that's why I need programmers. The idea would be to completely decentralize the keys so that NOBODY has access to them, not even the developers. Being an open source project to allow audits would be a must, of course.

And again, this is a new concept. Perhaps private key import would not be necessary. If there is another way to render the BTC unusable until cashed out, I would be open to hearing it. This is why I need others to critique and come up with with a better way to do it.

Don't focus too much on small details, they are subject to change. Instead of accusing me of being a scammer, try to look at the big picture I am attempting to paint and help me come up with a more secure way to manifest it.

[franky1]

Don't focus too much on small details, they are subject to change. Instead of accusing me of being a scammer, try to look at the big picture I am attempting to paint and help me come up with a more secure way to manifest it.

its obvious of your plan. because you have not even mentioned the features of the coin.. just mentioned how to grab bitcoin from people.
i am not going to tell you ways to secure bitcoin, because i dont want you spinning it into your elaborate scheme.

if someone genuinely wanted to fix bitcoin problems, they would talk about the new coins features that fix the problem. and not even concentrate on the bitcoin grabbing aspect.
all i see is that its not useable(cant trade on exchanges) and then the flim flam of how many scamcoins you are capping and how you are getting their private keys.

[QBcrusher]

Don't focus too much on small details, they are subject to change. Instead of accusing me of being a scammer, try to look at the big picture I am attempting to paint and help me come up with a more secure way to manifest it.

its obvious of your plan. because you have not even mentioned the features of the coin.. just mentioned how to grab bitcoin from people.
i am not going to tell you ways to secure bitcoin, because i dont want you spinning it into your elaborate scheme.

if someone genuinely wanted to fix bitcoin problems, they would talk about the new coins features that fix the problem. and not even concentrate on the bitcoin grabbing aspect.
all i see is that its not useable(cant trade on exchanges) and then the flim flam of how many scamcoins you are capping and how you are getting their private keys.

I literally mentioned the defining feature in the title. The whole point of the project is to bring fee-less micropayments back to Bitcoin without needing to create an actual fork and increase block sizes.

I came up with an idea for an alt-coin that is is unlike other alt-coins. It would be an alt coin that is backed 1:1 with Bitcoin (and can be exchanged for BTC at any time). I need someone to work with me to make this happen. If it is something you seem interested in, refer to my other thread. Thanks

https://bitcointalk.org/index.php?topic=1634159.0

good idea , but here according to your plan it seams that you are going to make an altcoin which is like bitcoin . but i think you can't because of its cost equally will be like bitcoin . and it is very very hard to invest that much money for such type of altcoin .

That's the nice thing about it. Theoretically, it could be started up with 1 BTC initial investment of my own funds. Initially, I would import 1 BTC of my own funds for 100,000,000 SatoshiCoin. I would split this up into X amount of wallets and then distribute the wallets & keys to different people as a reward for starting up a full node. They would not be able to withdraw the SatoshiCoin into BTC until they accumulate 100,000 SatoshiCoin (.001 BTC). I would intentionally give a smaller amount than what is needed to withdraw in hopes that more people put BTC into the network, thus increasing the amount of SatoshiCoin into existence.

The important thing to remember is that it will be built natively into a full node to be able to exchange 100,000 SatoshiCoin into .001 BTC instantly, and that the BTC on reserve is held by the network as a whole, and completely inaccessible to the developers. That's the part I need a programmer for, I don't think that technology exists yet. 

[franky1]

I literally mentioned the defining feature in the title. The whole point of the project is to bring fee-less micropayments back to Bitcoin

you don't realise why after 7 years of using bitcoin that the fee exists. and im not talking about the post 2140 scenario. but the utility of fee's today
you don't realise why after 7 years of using bitcoin why microtransactions have issues.

also why have no tx fee if the scam coin has no utility. again highlighting it cant be used on exchanges, etc

again you have not thought about the problem. you are just using an issue you dont understand to then concentrate on grabbing peoples bitcoin keys.

without needing to create an actual fork and increase block sizes.

an intentional fork(creating an alt) you pretend to avoid.. is solved by.. creating an alt..
come on. even u must see the irony

[QBcrusher]

That's the nice thing about it. Theoretically, it could be started up with 1 BTC initial investment of my own funds. Initially, I would import 1 BTC of my own funds for 100,000,000 SatoshiCoin. I would split this up into X amount of wallets and then distribute the wallets & keys to different people as a reward for starting up a full node. They would not be able to withdraw the SatoshiCoin into BTC until they accumulate 100,000 SatoshiCoin (.001 BTC). I would intentionally give a smaller amount than what is needed to withdraw in hopes that more people put BTC into the network, thus increasing the amount of SatoshiCoin into existence.

LOL now you want to hand out many many thousands of wallets as the tempter, in the hopes people then hand you their bitcoin keys.

keep going. dig your hole deeper.

The important thing to remember is that it will be built natively into a full node to be able to exchange 100,000 SatoshiCoin into .001 BTC instantly, and that the BTC on reserve is held by the network as a whole, and completely inaccessible to the developers. That's the part I need a programmer for, I don't think that technology exists yet. 

nah, it does exist. but i dont think that your intentions are honourable. your more emotionally invested in getting people to hold a bag of scamcoins then you are in explaining the problem your pretending to solve.

My intentions not being honorable is complete speculation. You are free to hold that view, but at the end of the day you have no proof. Claiming that you have proof would be a lie, because you don't.

you don't realise why after 7 years of using bitcoin that the fee exists. and im not talking about the post 2140 scenario. but the utility of fee's today
you don't realise why after 7 years of using bitcoin why microtransactions have issues.

also why have no tx fee if the scam coin has no utility. again highlighting it cant be used on exchanges, etc

again you have not thought about the problem. you are just using an issue you dont understand to then concentrate on grabbing peoples bitcoin keys.

You still have no proof that I plan to grab people's keys. I said that if the process could be done without utilizing private keys, that would be preferable. You also have not even provided a theory as to HOW I would steal peoples BTC. Once I find a developer than can help me, you will be free to audit the code and try to figure that out (in fact, I will highly encourage it) but you will not find anything unless I find a dishonest programmer.

I have made my intentions on how I will profit very clear. I will get a portion of the developer cut of the withdraw fee. I have no intention of stealing people's BTC because I will make more money over time by providing a fair, functioning platform.

[QBcrusher]

Look, I am trying to create a concept design for a very transparent platform that is backed by Bitcoin. If you don't like it, don't use it. Once (if) I can get a prototype made, you can look through the code and try to find something incriminating.

If you have no intention of doing anything other than call me a scammer and troll, I ask nicely that you move along so I can discuss the concept with other people.

[franky1]

You still have no proof that I plan to grab people's keys.
..
You also have not even provided a theory as to HOW I would steal peoples BTC.

Once your BTC keys are imported to SatoshiCoin wallet, they will be unusable.
The Bitcoin you imported will be added to the SatoshiCoin network,

The Bitcoin you imported will be added to the SatoshiCoin network,
translation. you spend the bitcoin out of peoples private keys and put them into a  bitcoin address owned by "SatoshiCoin network" AKA you!

I said that if the process could be done without utilizing private keys, that would be preferable.

you only changed tact, AFTER i called you out. which is the usual tactic scammers do. twist what they said to then dig themselves deeper to try keeping their scam alive

i am not going to tell you ways to secure bitcoin, because i dont want you spinning it into your elaborate scheme.

the issue is you are talking about an alt.. just like 1000's of other alts. but your mindset is still concentrating on the bitcoin grab. and lacks the other part of the conversation which would show you understand the problem your are pretending to solve

[QBcrusher]

I suggested that maybe there could be a way to do it without private keys when you voiced concern that it could be a scam. It would be totally up to the programmer. I have not edited my posts, you have no proof that I am trying to be dishonest.

the issue is you are talking about an alt.. just like 1000's of other alts. but your mindset is still concentrating on the bitcoin grab. and lacks the other part of the conversation which would show you understand the problem your are pretending to solve

I have suggested how to solve the problem. The suggestion is to incentivize running nodes by distributing the withdraw fee amongst them. Nodes would be who passes along the transactions. Once again, the coin is not mined into existence. 1 unit of SatoshiCoin can only exist with 1 satoshi in reserves.

This is an idea that has been around for centuries, and USDT is even an example of it being done with USD. I just want to expand this idea to BTC and decentralize the reserves.  

[QBcrusher]

BTW, when I said it wouldn't be sold on exchanges, doesn't mean that it COULDN'T be sold on exchanges. Theoretically, you could do it but the value wouldn't ever change, much like how USDT is never under or over $1, because it is tied to reserves.

Plus, 1 unit would = .00000001 BTC so it would be difficult to trade, although possible to sell for more there would be no point when there is no problem with accessibility and anybody can fire up a node and obtain it.

[daneranon89]

I like the idea of bringing micro payments back to bitcoins,  but creating this so called satoshicoin and taking others private keys doesn't sound good and people can stamp this entire project as a scam. Try to fix this, maybe the user who wants to do the micro payments can send bitcoin directly to his satochicoin wallet.

This will make satoshi coin look like another altcoin. Why don't you go ahead and show a working prototype although I am not positive on this project of yours.

[daneranon89]

And people can always use other altcoins like dogecoin or litecoin or even ether to do a micro payment if they feel bitcoin is expensive. Volatility is unavoidable, it's something everyone has to learn to handle.

[QBcrusher]

I like the idea of bringing micro payments back to bitcoins,  but creating this so called satoshicoin and taking others private keys doesn't sound good and people can stamp this entire project as a scam. Try to fix this, maybe the user who wants to do the micro payments can send bitcoin directly to his satochicoin wallet.

This will make satoshi coin look like another altcoin. Why don't you go ahead and show a working prototype although I am not positive on this project of yours.

How would sending the coins, rather than sweeping the keys be any different? Regardless, you still lose access to the BTC, which is the entire point. They have to be taken out of circulation to make SatoshiCoin something of value, and not another backless fiat.

Also, if you send the BTC (rather than sweeping the keys) you will have to pay a transaction fee, and that removes the possibility of guaranteeing a 1:1 exchange ratio. In the end, it is up to the USER to protect their BTC. If you don't trust it, don't import the keys to a wallet with 10BTC sitting in it. The minimum deposit will be .001 BTC. That should be small enough for people to feel comfortable trying out the concept with little to no risk.

I am here to seek out a programmer to try to get a working prototype. How can you claim the idea is not mine when I am the first one to post it and nobody has written a program that functions in this way yet?

And people can always use other altcoins like dogecoin or litecoin or even ether to do a micro payment if they feel bitcoin is expensive. Volatility is unavoidable, it's something everyone has to learn to handle.

I don't think you are fully understanding the concept still. Yes, volatility is unavoidable because BTC itself is volatile. But the idea is to avoid a SECOND layer of volatility and make the coin directly backed by BTC on reserves. How could it have it's own volatility if it is backed 1:1 with satoshi?

[QBcrusher]

It's funny how my entire proposal is to create an asset backed by funds held in decentralized reserves, but I'm STILL being accused of being a scam artist.

The entire point of proposing a new way of doing it is so that you CAN'T be scammed, but you people are too narrow minded to see that.

It's fine, I'll keep looking to find someone who shares the same vision of myself. Surely there is someone else out there who sees what I am trying to do and wants to do it right.

[QBcrusher]

Constantly updating the OP to reflect change in ideas and try to explain the vision better. I have no doubt in my mind people will keep mindlessly accusing me of trying to create a scam (when no program is even written yet) but if any real programmers with a high regard for security see this, I would really appreciate your help