MasterCoin: New Protocol Layer Starting From “The Exodus Address”

[grazcoin]

1) The total number of Mastercoins is 619478.593384398.

Again accuracy minor issue:
We have 8 digits after the decimal point, so the number is 619478.59338440

[zathras]

OK fixed, I was being a little strict with my block time verification.

Please to say my code is now calculating a total equal to the implementations from others

Take care - I think you missed 2 dacoins, probably rounding 18 dacoins to 20.
With currency systems, accuracy is very important, and in our case it is 8 places after the decimal point.

Thanks. Yep 8 decimal places is what I'm working with - the actual figure is 563,162.35762208 which is != 563,162.35762218 so there is still a slight discrepancy I'll need to trace.

EDIT: Transactions are written to the database to 8 decimal digits but I'm using raw values from the bonus calcs in the total calculation which may explain the slight skew, will look into it further.

Quick update on the above - when I query the database directly (select sum) I get the correct number of dacoins - 563,162.35762218.  The skew was introduced by my using an array which held my raw (>8 decimal places) instead of my processed (8 decimal place) values.

[zathras]

1) The total number of Mastercoins is 619478.593384398.

Again accuracy minor issue:
We have 8 digits after the decimal point, so the number is 619478.59338440

That'll teach me for using 'calc' at work

This transaction has 4 outputs of 0.0006 - how did you consider destination vs change address?
https://blockchain.info/tx/2d69ad4c5ec9380b2da89c06ef9fd263755d70f9fe7fe0774fe8c8a2494938ee

EDIT: Answered my own question I think, loop through ambiguous address sequence numbers checking for first data packet sequence number-1.

[dacoinminster]

1) The total number of Mastercoins is 619478.593384398.

Again accuracy minor issue:
We have 8 digits after the decimal point, so the number is 619478.59338440

That'll teach me for using 'calc' at work

This transaction has 4 outputs of 0.0006 - how did you consider destination vs change address?
https://blockchain.info/tx/2d69ad4c5ec9380b2da89c06ef9fd263755d70f9fe7fe0774fe8c8a2494938ee

EDIT: Answered my own question I think, loop through ambiguous address sequence numbers checking for first data packet sequence number-1.

I think somebody created that on purpose just for testing

I'm a little worried about corner cases here. Let's see if I can define some rules for processing:

• All protocol transactions should have the same output amount. If one output is different, that is the change address.
• If all outputs are the same, then look at sequence numbers:
  • If there is a broken sequence (i.e. 3,4,8), then the odd-man-out is the change address (8 in this example)
  • If there is an ambiguous sequence (i.e. 3,4,4), then the transaction is invalid!
  • If there is a perfect sequence (i.e. 3,4,5), then the transaction is invalid!
    • The first version of this post had some additional rules for perfect sequences, due to the possibility of two data addresses, but then I realized that there will NEVER be two data addresses, because data addresses are only used by standard bitcoin clients for simple sends, which only have one data address. Advanced features will only run on MasterCoin clients, which can avoid ambiguity explicitly by making sure that either there is no change or that the change address has a different output than the other addresses.

I'll put those rules into the next rev of the spec.

If somebody wants to try their hand at getting some test cases like the above into the block chain, we can make sure that all clients handle them the same.

[ripper234]

Does this calculation include the amount of reward mastercoins?
I added an entry to the FAQ.

[dacoinminster]

Does this calculation include the amount of reward mastercoins?
I added an entry to the FAQ.

Yup! (I updated the FAQ)

[zathras]

1) The total number of Mastercoins is 619478.593384398.

Again accuracy minor issue:
We have 8 digits after the decimal point, so the number is 619478.59338440

That'll teach me for using 'calc' at work

This transaction has 4 outputs of 0.0006 - how did you consider destination vs change address?
https://blockchain.info/tx/2d69ad4c5ec9380b2da89c06ef9fd263755d70f9fe7fe0774fe8c8a2494938ee

EDIT: Answered my own question I think, loop through ambiguous address sequence numbers checking for first data packet sequence number-1.

I think somebody created that on purpose just for testing

I'm a little worried about corner cases here. Let's see if I can define some rules for processing:

• All protocol transactions should have the same output amount. If one output is different, that is the change address.
• If all outputs are the same, then look at sequence numbers:
  • If there is a broken sequence (i.e. 3,4,8), then the odd-man-out is the change address (8 in this example)
  • If there is an ambiguous sequence (i.e. 3,4,4), then the transaction is invalid!
  • If there is a perfect sequence (i.e. 3,4,5), then the transaction is invalid!
    • The first version of this post had some additional rules for perfect sequences, due to the possibility of two data addresses, but then I realized that there will NEVER be two data addresses, because data addresses are only used by standard bitcoin clients for simple sends, which only have one data address. Advanced features will only run on MasterCoin clients, which can avoid ambiguity explicitly by making sure that either there is no change or that the change address has a different output than the other addresses.

I'll put those rules into the next rev of the spec.

If somebody wants to try their hand at getting some test cases like the above into the block chain, we can make sure that all clients handle them the same.

Quite a test, if I'm decoding correctly 250 Mastercoins were sent in that transaction!

Thanks for detailing some fringe cases, as you say I think it's a good idea to get it into the spec.  I was thinking that it's possible for the change address to have the same seq number as the reference or data address but it looks like you've cleared that up above as an invalid transaction

[ASICSRUS]

I am VERY excited to announce that I now have a complete specification for building a protocol layer on top of bitcoin (like how HTTP runs on top of TCP/IP).

The coins of the new layer have

• Additional security features to make your money much harder to steal
• Built-in support for a distributed currency exchange
• Built-in support for distributed betting (no need to trust a website to coordinate bets)
• Built-in support for "smart property" which can be used to create and transfer property such as titles, deeds, or stock in a company
• Capability to hold a stable user-defined value, such as an ounce of gold or U.S. Dollar, with no need to trust a person promising to back up that value

This is a significant improvement over anything we've had before, including colored coins. This protocol has been my life's work for over two years now, and you can finally get a piece of it today!

The name of the new protocol layer is “MasterCoin” (a name I invented and published long before the alt-coin of the same name), and it is 100% message-based, meaning that it encodes all its protocol data as hidden messages in the block chain which have special meanings, such as placing a bet, or transferring MasterCoins to another address.

Once you own MasterCoins, you have the building blocks for creating GoldCoin, USDCoin, EuroCoin, and any other real-world asset you can imagine! These child currencies will then be “meta stable” (holding their values as long as they remain sufficiently backed by MasterCoins held in escrow). Their target values are maintained by protocol actions which control the available supply.

Want more details?

• Download the complete MasterCoin specification here: https://sites.google.com/site/2ndbtcwpaper/ (first link is latest version of the spec)
• Watch this video of my explaining MasterCoin to the bitangels investor group, in which I use screen-sharing to explain MasterCoin and demonstrate what it could already do at that time (we've come a long way since): https://docs.google.com/file/d/0B3nInaIJVqrtc3NqdkloLTZNOXM/edit?usp=sharing
• "Let's talk Bitcoin" has an episode in which they interview me about MasterCoin: http://letstalkbitcoin.com/e37-meeting-mastercoin/ (my segment is towards the end)
• We now have a wiki with a FAQ: http://wiki.mastercoin.org/index.php?title=FAQ

About me:

• I've been a software engineer for over 10 years. Here's my LinkedIn profile: http://www.linkedin.com/in/jrwillett (connect with me!)
• I've been pushing for new bitcoin protocol layers since 2011. Here's a video of me as an expert panelist at the Bitcoin Conference in San Jose in May, talking about this idea (I'm the second guy from the left): http://www.youtube.com/watch?v=_qdr_Z3hrqQ

MasterCoins are intended to be an investment opportunity on par with buying bitcoins when they first came out. However, as with bitcoins, there are a lot of risks too. Before you buy MasterCoins, please take a few minutes to read my summary of some of the ways this could go wrong and you could lose your money: https://sites.google.com/site/2ndbtcwpaper/MasterCoinRisks.pdf

Perhaps you have heard of the Genesis Block, from which the first bitcoins were created. MasterCoins have a similar starting point in the bitcoin block chain, called the “Exodus Address” (http://blockchain.info/address/1EXoDusjGwvnjZUyKkxZ4UHEf77z6A5S4P). MasterCoins were created by sending bitcoins to the Exodus Address during the month of August 2013. That fundraiser is now over, and anyone wishing to buy MasterCoins will have to purchase them from an early adopter.

Bitcoins raised in the fundraiser are being used to fund the development of software implementing the MasterCoin protocol. The fundraiser was structured like a kickstarter, but it is also an investment. If we're successful, the purchased MasterCoins could be worth a tremendous amount of money someday. Thanks to everyone who participated, helping us raise over half a million dollars worth of bitcoins.

Again, the fundraiser is over, and bitcoins sent to the Exodus Address do not create MasterCoins anymore. Until we get the bitcoin/MasterCoin distributed exchange set up, you can purchase MasterCoins (using a very manual process) here: https://bitcointalk.org/index.php?topic=287145.0

Do not attempt to purchase or use MasterCoins with a web wallet such as MtGox or Coinbase (YOU COULD LOSE YOUR MONEY). You must use a wallet where you can control a sending address by sending all your funds to that address first, then creating a "message" by sending funds from that address in a special format. Web wallets such as BlockChain.info will work fine, since they give you complete control over the addresses in your wallet.

Many MasterCoin functions are now available online: http://mastercoin-explorer.com (Note site disclaimers! There may still be bugs!)

We now have our own subreddit: http://www.reddit.com/r/mastercoin

We are currently running a $25000 coding contest, ending October 15th 2013. ALL serious entries win a prize. Details here: https://bitcointalk.org/index.php?topic=292628.0

Feel free to ask any questions here, although please keep a civil tongue and be aware that I will delete posts on this thread which are off-topic or impolite.

Thanks!

looking good i listened to the interview!!!!~=) very cool~blockchain dustmitecoin LOL

[ripper234]

I'm not following this thread all the time, so I missed a few discussions about whether Mastercoin should or shouldn't be an alt chain.
I just want to state that I agree with Willet 100% that it shouldn't be, and actually started another thread just about this topic:

(If you want me to see you response, try posting it on the other thread, I will be monitoring that one more frequently ... just copy-pasting here for the lazy)

There have been several well known bitcoiners that tried to convince J.R.Willet to move Mastercoin to an altchain, instead of using the bitcoin blockchain. Willet's opinion is that Mastercoin should stay on the blockchain, and I fully concur. Here is my reasoning:

It is easier to implement Mastercoin on the blockchain. The entire concept of mining "vanishes", or actually is satisfied by Bitcoin miners. This means the security of Mastercoin is on par with Bitcoin (up to potential bugs) ... there is no way to 51% attack it.

The same could be implemented using merged mining, but no matter how you look at it, merged mining is technically a more complicated solution, because it requires an entirely new blockchain one needs to reason about. You need to think about the hashrate of this separate blockchain and to encourage miners to merge-mine it, things that are just not needed when you directly encode things into the Bitcoin blockchain. As far as software development goes, I'm super lazy - I do not like to do something complicated if I can do something simple that serves the same purpose.

Now, it is true that this "burdens" the blockchain ... in the same way that Satoshi Dice does.
However, this burdening is something that Bitcoin users and developers will just have to live with. Nobody is the boss of Bitcoin, and any standard Bitcoin transaction (like Mastercoin transactions are) are legitimate transactions that Bitcoin simply has to learn to deal with. There is just no feasible way that I see that Bitcoin developers could ban such transactions (please enlighten me if I'm wrong).

Bitcoin is the future of finance, resistant to hacking, government censorship and regulation. Do you really want to base that future on asking other people to pretty please "not abuse it for you own purposes"? This is not the answer. Bitcoin has to be made scalable enough to meet its role as the one major, global, world currency.

Mastercoin developers have no intention of disrupting Bitcoin, and will gladly adapt to any friendly encoding that the brilliant minds of these forums will propose, as long as it doesn't harm Mastercoin (using non-standard transactions that are relayed more slowly is not an option at the moment). The Bitcoin blockchain must and will remain neutral, and if Willet hadn't come up with Mastercoin encoding, someone else would have created something similar sooner or later.

[dacoinminster]

I'm not following this thread all the time, so I missed a few discussions about whether Mastercoin should or shouldn't be an alt chain.
I just want to state that I agree with Willet 100% that it shouldn't be, and actually started another thread just about this topic:

(If you want me to see you response, try posting it on the other thread, I will be monitoring that one more frequently ... just copy-pasting here for the lazy)

Thanks Ron. I posted another important reason we're not moving to an alt-chain in that thread. Quoted here for the lazy:

One important reason I'm not moving to an alt-chain is the distributed exchange between bitcoin and MasterCoin, which isn't possible if we are on an alt-chain, since it requires using data from standard bitcoin transactions AND MasterCoin transactions to work.

I don't think I've mentioned that reason anywhere else, but it is probably the primary reason I'm not even willing to consider it. There are other reasons, like total cost of development, and even the dirty stink of starting yet another alt chain (For instance, bitshares is doing it "right", but they were banished to the alt section with all those scam coins, which they of course bitterly resent).

I am totally convinced that building on top of bitcoin is the right way to go, for all the reasons here and above in Ron's posts.

[ASICSRUS]

I'm not following this thread all the time, so I missed a few discussions about whether Mastercoin should or shouldn't be an alt chain.
I just want to state that I agree with Willet 100% that it shouldn't be, and actually started another thread just about this topic:

(If you want me to see you response, try posting it on the other thread, I will be monitoring that one more frequently ... just copy-pasting here for the lazy)

Thanks Ron. I posted another important reason we're not moving to an alt-chain in that thread. Quoted here for the lazy:

One important reason I'm not moving to an alt-chain is the distributed exchange between bitcoin and MasterCoin, which isn't possible if we are on an alt-chain, since it requires using data from standard bitcoin transactions AND MasterCoin transactions to work.

I don't think I've mentioned that reason anywhere else, but it is probably the primary reason I'm not even willing to consider it. There are other reasons, like total cost of development, and even the dirty stink of starting yet another alt chain (For instance, bitshares is doing it "right", but they were banished to the alt section with all those scam coins, which they of course bitterly resent).

I am totally convinced that building on top of bitcoin is the right way to go, for all the reasons here and above in Ron's posts.

~so which one is the offical MST info thread? 

[dacoinminster]

~so which one is the offical MST info thread? 

We go by MSC, not MST. This is the official thread, but it is high-volume, and can be hard to keep up with

[ASICSRUS]

~so which one is the offical MST info thread? 

We go by MSC, not MST. This is the official thread, but it is high-volume, and can be hard to keep up with

WTF!!!!====> https://www.cryptsy.com/markets/view/62
 

[Patel]

~so which one is the offical MST info thread? 

We go by MSC, not MST. This is the official thread, but it is high-volume, and can be hard to keep up with

WTF!!!!====> https://www.cryptsy.com/markets/view/62
 

You know thats a different Mastercoin right? Thats the altcoin mastercoin, and this is the bitcoin mastercoin

[ASICSRUS]

~so which one is the offical MST info thread? 

We go by MSC, not MST. This is the official thread, but it is high-volume, and can be hard to keep up with

WTF!!!!====> https://www.cryptsy.com/markets/view/62
 

You know thats a different Mastercoin right? Thats the altcoin mastercoin, and this is the bitcoin mastercoin

where is that thread? this is trippy

[Patel]

where is that thread? this is trippy

the alt coin mastercoin is at https://bitcointalk.org/index.php?topic=242406.0

Remember this thread is the new layer protocol mastercoin, and that link is the alt coin mastercoin

[dacoinminster]

Noticed of proposed expenditure of project funds:

David Johnston (angel investor and MasterCoin Foundation Board member) has filed the official paperwork to register the MasterCoin Foundation as a non-profit in the state of Delaware (for reasons outlined in his email below). I will be reimbursing the $1042 he spent on this to his bitcoin address: 1AHXnT1eLRfBv7WZXcHNzomjETBFLrw3yx

I will probably send this on Monday.

J.R.,

Good questions.

As for the reimbursement funds it would be nice to be reimbursed sooner than later.

As for Delaware it is the go to state for incorporation because of its business friendly laws, its low incorporation fees, its low annual franchise fee, (about $150 USD), and how quickly they turn around paperwork. The vast majority of the U.S. Fortune 500 are incorporated in Delaware (plus 95% of new incorporations are done) for these reasons. And as you can pick any state you want its the best choice hands down.

I paid an extra $85 to get the paperwork completed in 7 to 10 days instead of the normal 35 business days. I also signed us up for a Registered Agent in Delaware (about $150 per year).

I also filed for our Federal Tax ID number. I also filed for our Tax Exempt Status. I also signed us up for a Bank of America account for the Foundation when the incorporation is complete.

As for Treasurer, it only means what ever definition we assign to it. For the forms I had to fill out the officers of record, which can all be one person. I did myself as I had my address handy and of course we can update the President, Treasurer, and Secretary roles and what ever we want to assign to those roles by a simple Board vote when the docs come in.

Let me know if you have other questions, I've been through this about 10 times with incorporating different entities (mostly LLCs and C-Type corporations) over the years, though this is my first non-profit. The process proved exactly the same, with the addition of the Tax Exempt Application.

Talk with you soon.

Best Regards,

David A. Johnston
BitAngels.co



On Fri, Sep 20, 2013 at 3:42 PM, J.R. Willett wrote:

    Board: please be advised of David's proposed reimbursement of $1042 (see below) for incorporating the non-profit MasterCoin Foundation. If I don't hear any objections, I plan to pay this expense out of project funds the next time the Exodus Address makes a payment.

    David, do you want to get paid right away, or do you want to wait for the next payment to go out? I was going to ask Mich to wait until I paid out to the winners of the coding contest, but $1042 is a lot of money to leave hanging like that

    Also, I don't recall you saying - is there something special about incorporating in the state of Delaware? Any idea how long it will be until the paperwork is processed?

    Lastly, what does "treasurer" mean in this context? (Once we get m-of-n signing, aren't we all treasurers?)

    Thanks!

    ---------- Forwarded message ----------
    From: David Johnston
    Date: Fri, Sep 20, 2013 at 1:25 PM


    J.R.,

    I'm glad to get this all formalized and in place.

    The paperwork is now filed with Legal Zoom for our Delaware Incorporation of Mastercoin Foundation Inc.

    Filing as a Non-Profit cost a little more ($1,042) than normal because they have to do our Tax Exempt Status. But its still not bad normally a lawyer would cost $4,000 to $5,000 for the same service of doing the incorporation, getting the Federal Tax ID and filing for Tax Exempt status.

    Attached is the total. Please remit that total in BTC to this Coinbase address for the reimbursement.

    1AHXnT1eLRfBv7WZXcHNzomjETBFLrw3yx

    Thanks.

    David A. Johnston
    BitAngels.co

Probably nobody will question this expense, but he did also send me the receipt for this transaction if it somehow becomes contentious.

[RationalSpeculator]

I thought this thread would have died long ago considering the valid criticisms at the start of the thread but maybe I was too close minded.

Is someone willing to summarise why Mastercoin is a good investment? What's the potential? And why?

[ASICSRUS]

where is that thread? this is trippy

the alt coin mastercoin is at https://bitcointalk.org/index.php?topic=242406.0

Remember this thread is the new layer protocol mastercoin, and that link is the alt coin mastercoin

says who? lmao this sounds like a bigger problem imo than all this bitcoin blockchain monkeybusiness~ SOMEONE JACKED THE MASTERCOIN NAME!!!!!!

[ASICSRUS]

Noticed of proposed expenditure of project funds:

David Johnston (angel investor and MasterCoin Foundation Board member) has filed the official paperwork to register the MasterCoin Foundation as a non-profit in the state of Delaware (for reasons outlined in his email below). I will be reimbursing the $1042 he spent on this to his bitcoin address: 1AHXnT1eLRfBv7WZXcHNzomjETBFLrw3yx

I will probably send this on Monday.

J.R.,

Good questions.

As for the reimbursement funds it would be nice to be reimbursed sooner than later.

As for Delaware it is the go to state for incorporation because of its business friendly laws, its low incorporation fees, its low annual franchise fee, (about $150 USD), and how quickly they turn around paperwork. The vast majority of the U.S. Fortune 500 are incorporated in Delaware (plus 95% of new incorporations are done) for these reasons. And as you can pick any state you want its the best choice hands down.

I paid an extra $85 to get the paperwork completed in 7 to 10 days instead of the normal 35 business days. I also signed us up for a Registered Agent in Delaware (about $150 per year).

I also filed for our Federal Tax ID number. I also filed for our Tax Exempt Status. I also signed us up for a Bank of America account for the Foundation when the incorporation is complete.

As for Treasurer, it only means what ever definition we assign to it. For the forms I had to fill out the officers of record, which can all be one person. I did myself as I had my address handy and of course we can update the President, Treasurer, and Secretary roles and what ever we want to assign to those roles by a simple Board vote when the docs come in.

Let me know if you have other questions, I've been through this about 10 times with incorporating different entities (mostly LLCs and C-Type corporations) over the years, though this is my first non-profit. The process proved exactly the same, with the addition of the Tax Exempt Application.

Talk with you soon.

Best Regards,

David A. Johnston
BitAngels.co



On Fri, Sep 20, 2013 at 3:42 PM, J.R. Willett wrote:

    Board: please be advised of David's proposed reimbursement of $1042 (see below) for incorporating the non-profit MasterCoin Foundation. If I don't hear any objections, I plan to pay this expense out of project funds the next time the Exodus Address makes a payment.

    David, do you want to get paid right away, or do you want to wait for the next payment to go out? I was going to ask Mich to wait until I paid out to the winners of the coding contest, but $1042 is a lot of money to leave hanging like that

    Also, I don't recall you saying - is there something special about incorporating in the state of Delaware? Any idea how long it will be until the paperwork is processed?

    Lastly, what does "treasurer" mean in this context? (Once we get m-of-n signing, aren't we all treasurers?)

    Thanks!

    ---------- Forwarded message ----------
    From: David Johnston
    Date: Fri, Sep 20, 2013 at 1:25 PM


    J.R.,

    I'm glad to get this all formalized and in place.

    The paperwork is now filed with Legal Zoom for our Delaware Incorporation of Mastercoin Foundation Inc.

    Filing as a Non-Profit cost a little more ($1,042) than normal because they have to do our Tax Exempt Status. But its still not bad normally a lawyer would cost $4,000 to $5,000 for the same service of doing the incorporation, getting the Federal Tax ID and filing for Tax Exempt status.

    Attached is the total. Please remit that total in BTC to this Coinbase address for the reimbursement.

    1AHXnT1eLRfBv7WZXcHNzomjETBFLrw3yx

    Thanks.

    David A. Johnston
    BitAngels.co

Probably nobody will question this expense, but he did also send me the receipt for this transaction if it somehow becomes contentious.

non-profit benefiting who? also of this so call angel investor group really believes in you why is he stressing you for the bread like that?=)rant onnnn

http://en.wikipedia.org/wiki/Angel_investor