Kim Dotcom: Bitcache Will Be ‘Off Chain Due to Limitations’

[Posternut]

Kim Dotcom has told the public many times that Bitcoin will be an integral part of Mega Upload 2 and Bitcache. Now, with the help from BnkToTheFuture, Dotcom is raising funds to scale the project. According to Max Keiser, the project is nearing 50 percent of its $1 million minimum goal.

https://news.bitcoin.com/kim-dotcom-bitcache-limitations/

[Milkduds]

Been reading stuff about this topic and always leave the article feeling like its a ponzi or I am missing something. The fact that we will be dealing with microtransactions does not change the issue of vulnerability in the wallet. That seems a bit odd to say if he is hoping to build such a large platform with many users.

[mobnepal]

Been reading stuff about this topic and always leave the article feeling like its a ponzi or I am missing something. The fact that we will be dealing with microtransactions does not change the issue of vulnerability in the wallet. That seems a bit odd to say if he is hoping to build such a large platform with many users.

As he have been behind megaupload before and that platform was really number 1 in cloud storage in past. So i believe in him but lots of details are still missing for his bitcache project and hard to know what will be benifits for early investors in this crowdfunding. But many investors are interested in this one because it is linked to kim dotcom (really serious guy with lots of guts). Hope he will deliver what he have promised to community.

[MartinL]

As he have been behind megaupload before and that platform was really number 1 in cloud storage in past. So i believe in him but lots of details are still missing for his bitcache project and hard to know what will be benifits for early investors in this crowdfunding. But many investors are interested in this one because it is linked to kim dotcom (really serious guy with lots of guts). Hope he will deliver what he have promised to community.

In the past Kim Dotcom has been convicted of insider trading and embezzlement. He also has a history of making grand promises he cannot keep. I remain skeptical and I certainly would not trust him with any money.

[coins101]

I don't get it. ELI5

[AGD]

Well, this sounds like a filesharing site with an internal accounting system called Bitcache, where you can buy credits with Bitcoin and FIAT and then you are able to download (mostly illegal) files. Uploaders will earn credits by providing these (mostly illegal) files and they will be able to cashout in Bitcoins.

I guess it will be closing very quick and all the money will be lost.

[calkob]

I hope it is a sucessfull as he thinks it will be and drags bitcoin to $2000 would be nice.  but after listening to dotcom discribe bitcache the other day, it sounds like nothing more than a centralised bitcoin datebase that settles on chain daily or weekly or whatever,  this brings with it all the problems that a centralised server has, being shut down, hacked etc. 

i hope i am missing something and it is great tho   

[SmartIphone]

Kim Dotcom has told the public many times that Bitcoin will be an integral part of Mega Upload 2 and Bitcache. Now, with the help from BnkToTheFuture, Dotcom is raising funds to scale the project. According to Max Keiser, the project is nearing 50 percent of its $1 million minimum goal.

https://news.bitcoin.com/kim-dotcom-bitcache-limitations/

What I understand from this article is that Kim Dotcom is inventing a new coin that will be used to be sent between the users inside their platform.
So this is like the exchange when you send 1BTC and you play with those money inside the exchange until you decide to withdraw.

[unamis76]

Still no one knows what will this be about as nobody explained anything about what Bitcache is... As far as I'm concerned, investors are in it for Megaupload2, otherwise they're betting on vaporware that has been poorly explained and that nobody knows what it will really do.

Innovation would precisely be having the system run on chain, they've got priorities switched up or are trying to fool people. We already have centralized ledgers such as exchanges, which is what this will probably be (although it won't necessarily allow a BTC/Fiat exchange).

If Developers Fixed Scaling Limitations, Bitcache Would Love to Operate On-Chain

Developers are actively "fixing scaling limitations", we'll see if they keep their word once "scaling limitations" are "fixed".

[Carlton Banks]

Still no one knows what will this be about as nobody explained anything about what Bitcache is...

[snip]

If Developers Fixed Scaling Limitations, Bitcache Would Love to Operate On-Chain

Developers are actively "fixing scaling limitations", we'll see if they keep their word once "scaling limitations" are "fixed".

Bitcache is just a proprietary off-chain transaction system for MegaUpload, that's it. So the Mega devs solution is the same approach for Bitcache as it is for the Bitcoin devs, really. If it's leveraging any of the same protocol features that Lightning does, then Kim is being pretty ignorant claiming the developers are slacking, and he's away off in Bitcoin Unlimited Imaginationland if he thinks micro-transactions can ever be individually recorded on-chain, that's Star Trek stuff.

[Winner]

Kim Dot Com is a multi-millionaire asking for $1 million in fundraising.

He is just laughing as he gets closer to his bank.

[Kakmakr]

I can see why he opt for off-chain transactions. If I download something, I want instant confirmations for my transactions, both in rewards and for seeding. Bitcoin <Blockchain> has been known for instances, where tx's can take up to 4 hours to confirm.

The off-chain tx's will also be cheaper, as we have seen with Xapo. ^smile^

[ObscureBean]

As he have been behind megaupload before and that platform was really number 1 in cloud storage in past. So i believe in him but lots of details are still missing for his bitcache project and hard to know what will be benifits for early investors in this crowdfunding. But many investors are interested in this one because it is linked to kim dotcom (really serious guy with lots of guts). Hope he will deliver what he have promised to community.

In the past Kim Dotcom has been convicted of insider trading and embezzlement. He also has a history of making grand promises he cannot keep. I remain skeptical and I certainly would not trust him with any money.

Yea I would tend to agree with you on that one. The insider trading scam was hilarious, he hyped and then sneakily cashed out after everyone had pumped the price with their investments  Megaupload was a stroke of genius though so it's entirely possible that he's worked this one out carefully and has a masterpiece in store for us 

[2dogs]

Max talks to Kim Dotcom about Bitcache, a company for whom he is an evangelist. They discuss bitcoin, bittorrents and copyright cartels - starts at 13:24:

https://www.youtube.com/watch?v=QFPTwAV4P0A

[Herbert2020]

i feel like Kim Dotcom has been mostly hyping his project to come down to this fund raising, especially with one of his first tweets where he speculated bitcoin price to go up to $2000 when his project is released!

[MartinL]

Kim Dot Com is a multi-millionaire asking for $1 million in fundraising.

He is just laughing as he gets closer to his bank.

i feel like Kim Dotcom has been mostly hyping his project to come down to this fund raising, especially with one of his first tweets where he speculated bitcoin price to go up to $2000 when his project is released!

Maybe he's running out of funds for his legal fees.

[eternalgloom]

“Right now we just can’t do it because our expectations are that we will have millions and millions of users from the get-go. Providing critical mass to the service and we don’t want a limiting factor to be the blockchain,” he said.

I mean, how could he possibly know that there will be millions of users from the start, especially after so many people lost their data with the Megaupload shutdown.

It's not like his name is all that trusted.

[franky1]

remove all the bells and whistles and buzzwords and you come to the simple scenario of:

deposit funds into a bitcoin address that has some form of signature authorisation by kimdotcom(and hopefully the customer equally), and then all payments for content are then done without a blockchain, without validation by thousands of nodes, without secure data locks of millions of asics. on a system owned by kimdotcom.
with the end hope that there have been no arguments or blackmail, ransom, abuse on that system. to have an honourable onchain transaction, when withdrawing.. that has fairly and ethically audited who deserves what, by signing the initial deposited funds out to whoever deserves it.

lets hope when offering 'offchain' solutions the difference between those solutions and other existing payment services. is that LN (and hopefully megaupload) have the sender and receiver required to BOTH sign funds to agree to a payment for content. rather than just the sender pushing or the receiver pulling.

if there is no dual signing involved in each payment then its no different than:
depositing funds on an exchange to then play around on the mysql database where the exchange controls what 'balance' the customer deserves or claim "hack and run".(pulling)
depositing funds into a bank to then play around with their database where the banks decides if the customer deserves the funds or freeze account
(pulling and pushing)

in short the risks of offchain are:
after depositing funds, one party in control of the funds can hold the funds to ransom by refusing signing unless terms are met.

this is a flaw all offchain concepts have yet to resolve. the only way to ensure ethical payments off chain. is if its always dual signed and both sides have value(collateral) to lose. that way it resolves the one sidedness aspect that can be abused

[Carlton Banks]

in short the risks of offchain are:
after depositing funds, one party in control of the funds can hold the funds to ransom by refusing signing unless terms are met.

this is a flaw all offchain concepts have yet to resolve. the only way to ensure ethical payments off chain. is if its always dual signed and both sides have value(collateral) to lose. that way it resolves the one sidedness aspect that can be abused

The user can close Lightning payment channels themselves, sending the BTC to their ultimate destination. They might forgo cheaper fees if they'd used the channel further, but it's not like the picture you paint, where the funds can be effectively confiscated by the Hub. You might want to do a little more of that researching you claim to be so on top of, or maybe just come up with a lie that's not so simply refuted. What Bitcache will be designed like, I don't know, but using it as a propaganda platform to disparage Lightning isn't going to fly. Lightning does what it does, no amount of weirdo explanations can change it.

[coins101]

No different to the way any exchange works.  Internal ledger.

The actual storage service itself is interesting.