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Author Topic: My Vision on a true coin  (Read 491 times)
Bru
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April 22, 2014, 01:55:33 PM
 #1

I'll give you my vision on a coin I would like to exist. Tell me if you like it, or is a fcking retarded idea.
I am thinking of a coin that would start centralized, and then decentralize over time. A coin that is stable, safe and simple.
I`m no dev and i don't know if the things i talk about are possible from a technical point of view.
 Here are the problems of today's coins, even bitcoin.
1. Price Volatility
  All medium-big bussineses that accepts bitcoin imediatly exchange it for fiat. Becouse bitcoin's price can drop hugely at any time.And it's a risk a big company with a lot of expenses in fiat could not take.
2. Low user adoption ( bitcoin represents <0.01% of world's money )
3. Requires more and more hashpower, meaning MASIVE power consumption, the need constantly invest in new hardware that would be thrown out. Or the use of GPU, that were designed for something else, so they aren't efficient in mining. And this doesn't even eliminate a 51% atack. Someone rich could pull it of with a few hundred mil. $ Think about a bank, or a government

So I think about a coin that would be backed by something stable. Gold maybe ? not really. I though about coin names and I would call mine
ssswisss coin. (sss = stable, safe and simple). And it doesn't have anything to do with the country Switzerland, but everything to do about it's currency.
I would back this coin with fiat, and a good historical stable fiat would be the CHF. Of course this would work with any stable currency.. yens, singap $, euro , etc.

This can only work if it's made by a serious, totally transparent and trustworthy company/entity. This said company would premine 100% of coins.
The coin (lets call it ..hmm SWS), would have an 'official' reference price, a sell price and a buy price.
Starting reference price would be 1 sws = 1 chf. But also there's gonna be a sell price and a buy price (lets say 3% is the fee).
SO the coin would be sold for 1.03 and bough at 0.97. When a coin is sold, at 1.03, 1CHF would be put in a transparent account, and would just be used to buy back coins.
But wait, there's more. The reference price, will increase slow and steady, lets say every 1 month, with 1%.
If some1 would buy 1 SWS with 1.03CHF, in 7 months he could sell it for 1.04CHF. Maybe every 1 month is too quick donno..

This is of course completely centralized .

Mining :
  Why the hell would someone mine this ? Transaction fees of course.
  I would make it that the accepted hashrate from one miner would be limited, let's say 20 khs scrypt. The difficulty would be small.
And the total amount of miners would be limited to 100 at first, accepted on the FCFS basis. If this coin is widely adopted, miner's
revenue would skyrocket and the number of miners would increase, to 1000 , 10 000, 1 mil etc.
This will protect the coin from a 51% attack, because it wouldn't accept more hashrate quickly. Correct me if i`m wrong.
Also this wouldn't require huge power consumption, I envision than anyone could mine this with 5-10% of his CPU power.

How this will decentralize
  The company makes it's profit with the 3% fee it gets when someone buys or sells a coin. This fee is normal, you pay 3% to pools, and you pay most service companies a lot more than that.
  But, on other exchanges, people will start trading SWS in the -3% -> +3% area. This would be common, and also beneficial - it would decentralize the coin.


To RECAP :
   - Coin made by a REAL entity, registered, regulated, transparent, with real people behind it. Maybe a small state would do this ?
   - 100% premined coin
   - backed by stable fiat
   - Company would sell the coin at 103% price, buy at 0.97%. When some1 buys, 100% goes to transparent account and will only be used to buy coins back from sellers
   - Price of coin would start at 1 fiat (ex. 1 CHF), and will grow slowly over time.
   - Limited accepted hashrate that grows slowly over time, limited number of miners, accepted on FCFS basis
   - Miners will mine for transaction fees, the more is the coin adopted, the larger the revenue of the fees and the number of miners will increase
   - Miners will use little energy, maybe 10% of CPU each.

This is what Nakamoto dreamt about.
Just imagine the world where a cryptocoin with no price volatility would exist.


Like this idea? Or is it shit? Support this by making a small BTC donation. Ty
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April 22, 2014, 02:15:55 PM
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Trading does nothing about decentralized anything. If your hypothetical currency is issued by a central "authority" and pegged to a fiat then it's just yet another fiat.
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April 22, 2014, 02:29:30 PM
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Trading does nothing about decentralized anything. If your hypothetical currency is issued by a central "authority" and pegged to a fiat then it's just yet another fiat.

Hmm yeah i guess you have a point. But it will be fiat with bitcoin properties (low transaction fees/times, anonymity, etc).
But how else you could fix it's price ? If you don't premine them, you can't possibly agree to buy and sell at a fixed price it would require billions on your behalf.

And about the pegged to fiat thing, if, hypothetically , the coin would get widely used, more then fiat, you could at that time untie it from that fiat, it wouldn't change its value if it would be that big.

Anyways , there's no solution to make a coin tied to a fiat, that is also decentralized ? Wouldn't such a coin be just awesome to exist ?
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April 22, 2014, 03:07:39 PM
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Hmm yeah i guess you have a point. But it will be fiat with bitcoin properties (low transaction fees/times, anonymity, etc).
But how else you could fix it's price ? If you don't premine them, you can't possibly agree to buy and sell at a fixed price it would require billions on your behalf.

And about the pegged to fiat thing, if, hypothetically , the coin would get widely used, more then fiat, you could at that time untie it from that fiat, it wouldn't change its value if it would be that big.

Anyways , there's no solution to make a coin tied to a fiat, that is also decentralized ? Wouldn't such a coin be just awesome to exist ?

I think you need a strong background infrastructure at first, such as payment gateways for let's say BTC and USD, a regulatory apparatus (RA for short. This apparatus can be a part of the distributed client), a target value for BTC/yourcoin and USD/yourcoin rates, some premine plus some BTC and fiat as reserve. Then the RA can keep an eye on the payment gateways (exchanges) and it can intervene if the exchange rates shifted too much for a predefined time period. If the prices are rising too high then the mining rewards can be increased and/or the RA can automatically sell some coins from the reserve. If the price drops then the opposite will happen.

Maybe you should take a look at eMunie as it trying to achieve the same goals. (Currently in beta.)
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April 22, 2014, 05:06:32 PM
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I think you need a strong background infrastructure at first, such as payment gateways for let's say BTC and USD, a regulatory apparatus (RA for short. This apparatus can be a part of the distributed client), a target value for BTC/yourcoin and USD/yourcoin rates, some premine plus some BTC and fiat as reserve. Then the RA can keep an eye on the payment gateways (exchanges) and it can intervene if the exchange rates shifted too much for a predefined time period. If the prices are rising too high then the mining rewards can be increased and/or the RA can automatically sell some coins from the reserve. If the price drops then the opposite will happen.

Maybe you should take a look at eMunie as it trying to achieve the same goals. (Currently in beta.)

Awesome, thanks for your input. Didn't knew about eMunie, gonna check it out.
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