What is the scale-ability of Bitbay and Blackcoin?? How many transactions can be handled per minute?
What happens to the dollar peg if the dollar hyper-inflates and the new global trade settlement standard becomes gold?? I expect this by 2020 and Probably a lot sooner. do you have time frame for when your are going to attempt a dollar peg?
The peg might not be hard set at a dollar because that (might) require freezing a good deal of coins, we will roll the peg upwards to that target and see when the volume increases and choose the target price by voting. Of course we could set it to a dollar but that might impact volume if the price gets too high we can inflate again. So we should release it and roll it up to the target gradually. The coin itself will be the market maker. It will certainly be much higher than this price though. The only challenge will be making sure the exchange doesnt oversell and runs our API. So the API will return two classes of funds: Frozen and Liquid. (or maybe BitBay and BitBayReserve not sure of the name yet)
Those two classes of funds mind you are on the exact same blockchain, its just that the exchanges need to tell you if funds freeze while on the exchange. It wont impact withdraws since I'm adding an exception to allow transfers of frozen funds with a 3 month time lock.
Blackcoin and Bitbay have similar limits to Bitcoin as the block size i think is the same. However UNLIKE the stubborn Bitcoin foundation we can do whatever the heck we want. So if we need to allow bigger blocks, then we will. If we decide on a lightning network, we will. Lukcily, we dont have to worry yet.
Bitcoin of course has a serious scalability problem. And I'm thinking the lightning network certainly helps take the load off it. Because you can link IOUS through a payment network. It (could) works like this:
My version of the lightning network is a bit different from the Bitcoin foundations... but the theory is the same.
Lets say there are only 5 people in the economy. Bob, Alice, John, Joe and Sara
Bob and Alice set up an account with each other
Sara sets up an account with Bob
John sets up an account with Sara
And Joe sets up an account with John
NOW when you want to make a payment you route an IOU. If Bob owes Joe money, he tells Sara who tells John who tells Joe and they each carry the debt to their neighbor. And this can be done using micropayments.
They do it using locktimes, each settlement clearing every month or so. But they RENEW those debts monthly.
If they dont renew the debt, they report it to the blockchain.
Thus the blockchain is only used to report errors. Accounts are set up so early withdraw is allowed but debts were written to replace old transactions.
Servers can hold on to copies, so can peers. In any case, they might only care about what is relevant to them. They would want to know, how much everyone has and check those balances with their peers.
In the end, the blockchain is only used to report errors and early withdraws or transactions made outside the lightning network. This was one interesting solution to bloat that I've seen. Of course the blockchain can still get bloated but mostly it would get larger to due notary.
Multisignature might get more complicated on a lightning network though. Im sure the theory is the same though since only debts are routed, there is no reason we cant build on it in the same way, multisignature accounts are still just accounts. Each time an account is made, you only need to find a person to pair with. If you are stuck not finding a pair then just do the transaction on the blockchain which would be a last resort.
In multisignature, can a 3 of 3 or 10 of 10 account find itself in default if an angry partner broadcasts early thus allowing their pair to interfere and withdraw? And what if they collude with the pair? So there are legitimate questions about the limits of lightning network. And one might just be certain types of multisignature and notary exchange.
Now with freezing and unfreezing on top of lightning networks things might get really complex. Most likely withdraw transactions will need to have copies that bypass the freeze with 3 month locks for the maximum inflation or deflation predicted in the month.
Bitcoin foundation had the idea of lightning network where everyone shares with a central hub that routes payments. But that solution is pseudocentralized since if the hub goes down everyone needs to withdraw. Whereas in my example, only the effected parties withdraw. And its more decentralized.
Technically the lightning network works because of locktimes. You set a locktime for a payment with a temporary private key and to replace the payment you make another transaction where the lock is sooner so if they try to spend the incorrect one, the key is revealed and you can take their money since you hold a version of the transaction with an earlier lock! Its pretty cool stuff.