[NXT] Decentralized Asset Exchange Discussion Thread

[Anon136]

The title pretty much sums it up. This thread is for discussing any aspect of or related to the NXT decentralized asset exchange.

TestNXT instructions:
1. See CfB's post here.
2. Create testNXT account here: https://holms.cloudapp.net:6875
3. DO NOT use your main password account; create an account by using a new, unique passphrase.
4. You can download fmiboy's AE-enabled client here: https://bitcointalk.org/index.php?topic=345619.msg5084677#msg5084677
5. Ask for testNXT in main thread or here; include your testNXT account number.
6. HAVE FUN!

Some links:
http://www.nxtcrypto.org/nxt-asset-exchange
https://bitcointalk.org/index.php?topic=345619.msg5054385#msg5054385
http://wiki.nxtcrypto.org/wiki/Nxt_API#Asset_exchange_operations

A brief explanation of decentralized exchange:
Exchanges like nxt, ripple, and mastercoin work with an idea called colored coins. So with a bitcoin any one bitcoin is the same as any other bitcoin. They are what we call fungible. Colored coins are intentionally not fungible. They are intentionally distinct and different from one another. Colored coins have a value attached to them. So for example, speaking in abstractions here, a colored nxt may have the value attached to it of "Nxtsky promises to pay 1 btc to who ever sends him this token, signed nxtsky". Now that token can be traded on a market.

Lets say betty wants to trade litecoin for bitcoin. She sends litecoin to "hanks litecoin gateway" with a message attached "bettys nxt address:blablabla". Hank will issue "X hankLTCTokens" and sends them to bettys nxt address. Betty uses these to fill the highest bid for on their orderbook thus gaining nxt. Next betty uses her nxt to fill the lowest ask on the orderbook for nxtskysXCPTokens. She sends her nxtskysXCPTokens to nxtskys nxt address with a message attached "bettys xcp address:blablabla". Betty waits for the xcp to arrive.

its obvious to most at first the disadvantages of what i just described. Its very complex compared to sending your coins to cryptsy but this is the cost of decentralization and decentralization comes with its own rewards. at some point in the future you will not just be buying any old random token. You will buy the ones issued by the guy who lives down the street so you can go there and pick them up in person.

[1715301631]

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[1715301631]

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[MiningCamp]

Could you please add some links with info about this NXT feature ?

[Anon136]

Could you please add some links with info about this NXT feature ?

Sure ill try to dig some stuff up.

[CIYAM]

Is there a wiki (or just a webpage) that covers the basic functionality (that might be helpful to newcomers)?

[Come-from-Beyond]

Is there a wiki (or just a webpage) that covers the basic functionality (that might be helpful to newcomers)?

Well, newcoming programmers could read http://wiki.nxtcrypto.org/wiki/Nxt_API#Asset_exchange_operations, should be enough for them...

[CIYAM]

Well, newcoming programmers could read http://wiki.nxtcrypto.org/wiki/Nxt_API#Asset_exchange_operations, should be enough for them...

Nice - perhaps we also need something for specific clients (but of course that is up to the creators of those clients to create).

[Anon136]

Is there a wiki (or just a webpage) that covers the basic functionality (that might be helpful to newcomers)?

Well, newcoming programmers could read http://wiki.nxtcrypto.org/wiki/Nxt_API#Asset_exchange_operations, should be enough for them...

Any plan to add some of the core functionality of crowd funding? Ill give an example of what i mean.

Say my wife wants to start a bakery. So she issues tokens representing loaves of bread. She calculates that a loaf of bread is worth about 2 dollars and that she needs about 100,000 usd to start her bakery. So she takes 100,000 and divides it by 2 and issues 50,000 bread colored nxt tokens. She now wants to go out into the market to sell her tokens inorder to raise the money to start her bakery but she runs into a problem.

If wife only manages to sell say half of her tokens than 50,000 usd is not enough to start a bakery. She can not simply sell half a loaf of bread for each token instead of a whole loaf because half a bakery is enough to produce a single loaf. Rational investors realize this risk and so no one is willing to make the first leap. The project doesn't get funded even though there is willingness in the community.

Crowdfunding solves this by having a central authority collect promises to pay and refrains from charge anyone anything UNLESS the total amount of funding required to fund the project is raised.

The importance of this sort of functionality can not be overstated and it could definitely be built in to the protocol if it isnt already.

[VanBreuk]

For test purposes, besides API, the 0.0.5 clieNxt client can be used:

https://bitcointalk.org/index.php?topic=345619.msg5054385#msg5054385

Also nxtFreeRider, tool in python I haven't tried yet - https://bitcointalk.org/index.php?topic=345619.msg5080052#msg5080052 . Unsure if it can hook to the testnet.

[swartzfeger]

Any plan to add some of the core functionality of crowd funding? Ill give an example of what i mean.

Say my wife wants to start a bakery. So she issues tokens representing loaves of bread. She calculates that a loaf of bread is worth about 2 dollars and that she needs about 100,000 usd to start her bakery. So she takes 100,000 and divides it by 2 and issues 50,000 bread colored nxt tokens. She now wants to go out into the market to sell her tokens inorder to raise the money to start her bakery but she runs into a problem.

If wife only manages to sell say half of her tokens than 50,000 usd is not enough to start a bakery. She can not simply sell half a loaf of bread for each token instead of a whole loaf because half a bakery is enough to produce a single loaf. Rational investors realize this risk and so no one is willing to make the first leap. The project doesn't get funded even though there is willingness in the community.

Crowdfunding solves this by having a central authority collect promises to pay and refrains from charge anyone anything UNLESS the total amount of funding required to fund the project is raised.

The importance of this sort of functionality can not be overstated and it could definitely be built in to the protocol if it isnt already.

There was a similar thread for crowdfunding in bitcoin:

https://bitcointalk.org/index.php?topic=200952.0

crowdfunding functionality would be HUGE and can't be underestimated!

[utopianfuture]

Can we do anything else in the testnet except issuing assets ? ( i know it is the client functionality issue ). I used fmiboy's client.

[Anon136]

WTS RandomBux for testNXT. Its the most valuable thing in the universe so dont miss this once in a life time opportunity!

[gobpaul]

Very good news.

[Come-from-Beyond]

The importance of this sort of functionality can not be overstated and it could definitely be built in to the protocol if it isnt already.

We could add some kind of "startIPO" transaction.

[swartzfeger]

WTS RandomBux for testNXT. Its the most valuable thing in the universe so dont miss this once in a life time opportunity!

What's your test address, Anon? I still have over 100k left.

[Anon136]

WTS RandomBux for testNXT. Its the most valuable thing in the universe so dont miss this once in a life time opportunity!

What's your test address, Anon? I still have over 100k left.

17567379695603145590 and where do i send the RandomBux?

[halabibk]

how to get a testNXT account???

[swartzfeger]

WTS RandomBux for testNXT. Its the most valuable thing in the universe so dont miss this once in a life time opportunity!

What's your test address, Anon? I still have over 100k left.

17567379695603145590 and where do i send the RandomBux?

Nowhere. Donation. We need you testing, not monkeys like me.

[halabibk]

Can I have some here NXT 4136941322087455927

[swartzfeger]

Can I have some here NXT 4136941322087455927

10k sent.

[halabibk]

Thanks...