NuBits: a Peershares implementation coming soon

Projects
61

NuBits is starting to captivate my imagination.

I imagine that NuBits is a decentralized, trustless ledger, based on satoshi’s seminal idea of the blockchain, that enforces “rules” by PoS, based on Sunny King’s seminal idea of a stake. The “rules” are rules that control the trading bots or other mechanisms which take a bitcoin and create a bitcoin derivative whose price is set to a certain amount, in effect canceling its volatility. That bitcoin can be in fact substituted by any cryptocurrency or cryptoasset, for example peercoin.

Anyone with the same imaginative interpretation?

62

So, you suggest NuBits could be a decentralised derivatives market, the same way bitcoin is a decentralised currency, and peershares a decentralised stock exchange?

63

when i said “derivative” i envisioned a tradeable object different from the coin itself because if it is the coin itself how can you set its price in stone and at the same time keep its exchangeability?
it seems that there are services such as coinapult in which you lock the price in…but i do not think it can work out well because i imagine basically that you are stuck with the set price without being able to cash out until you find a buyer at that set price…
so locking in the price does not solve the volatility issue well, i imagine.

it does not seem that nubits would be locking in prices.
that is why i am imagining (it is only me) that nubits would create buy/sell options (what they call call/put options) of underlying assets such as peercoin, bitcoin…

but then why would you need trading bots?
trading bots stabilizing the prices of the derivatives…themselves
?
I am confused and at the same time intrigued in the positive meaning…

64

…I am very curious too to see what strategy they have adopted to solve the volatily issue…several other solutions are around already but the adoption si quite limited at the moment and does not solve globally within a cryptocurrency the problem of volatility.

Hopefully NuBits could solve an entire cryptocurrency volatility and not just for adopters of the system, the major issue here would be price fixing and again this is a long old story in any currency that cryptocurrency is actually trying to get rid of…

I trust the team working in NuBits really had a genial idea and we will see something that we have never seen before

But my question is how close is NuBits to be released? is it in weeks, months?

I believe wouldn’t hurt having a target date if the project is close enough, it might actually help to create momentum for marketing purposes

65

[quote=“GLock, post:64, topic:2476”]But my question is how close is NuBits to be released? is it in weeks, months?

I believe wouldn’t hurt having a target date if the project is close enough, it might actually help to create momentum for marketing purposes[/quote]

I think it was said that when they have a firm release date the hashing at nubits.com will become a release countdown. I would expect a venture like this has an entire marketing plan ready.

66

Also I sense that the whole “negative” volatility issue that we can encounter with currencies or stocks is caused (the trading bots at gox manipulating the prices apparently,are a good example) by information asymmetry, manipulation, you name it.

Manipulation is another word for centralization…

As manipulation cannot exist in a decentralized, trust-less world, I believe “negative” volatility can be solved by the implementation of the idea of the “blockchain”.

So what if the “bots” implied in nubits work in a decentralized trustless fashion?
Those “bots” belonging to the “exchange” would make the exchange itself decentralized, trustless…

As someone said, it is very odd that we buy/sell cryptos (entities that are managed by a blockchain) in an exchange which is centralized.
Is there any decentralized, trustless exchanges out there?
I believe the answer is none.

Now I see Nubits as the first decentralized, trustless exchange ever.
I imagine it would erase the market manipulation by the exchange itself, not the manipulation by bad external actors but that in itself would be already huge.

Your thoughts?

PS: By the way, recently someone hinted at the possibility of the manipulation of peercoin’s price by BTC-E when it started to go down drastically. This would be another example of negative volatility caused by an internal force at the exchange…

67

I will confirm what has been hinted at for some time that the NuBits project solves the problem of volatility. On a time scale beyond several days, our solution to volatility is completely independent of our trading bot operating on exchanges. However, on a time scale less than several days, operating our trading bot on exchanges is needed.

We have the option of releasing with minimal exchange operations while presenting the short term stabilization mechanism as not properly scaled on the day of release. This would provide people with the knowledge they need to feel comfortable getting involved, which would scale up our short term stabilization mechanism.

It is better, but not necessary, to have our solution working optimally from day 1.

To those considering offering funds for exchange operations, I wish to point out that we will pay whatever compensation the market demands. If that is a 50% annualized return on funds placed on an exchange, we will pay that. So, send me a message if you are interested.[/quote]

-solves the problem of volatility

-on a time scale beyond several days, our solution to volatility is completely independent of our trading bot operating on exchanges

-on a time scale less than several days, operating our trading bot on exchanges is needed

-can release with minimal exchange operations while presenting the short term stabilization mechanism as not properly scaled on the day of release

-this would provide people with the knowledge they need to feel comfortable getting involved, which would scale up our short term stabilization mechanism

Those are my takeaways from your earlier statement, with one more day to go all the speculation will be soon over :slight_smile: From my perspective, your solution is going to try and grab the market participants, as you say the newcomers will scale up the ability of your solution to provide short term stabilization. A virus-like mechanism, contagious :wink: One more thing, if you were offering a 50% annualized return for funds placed on the exchange, you must be expecting a fat payoff yourselves :slight_smile: which is nothing wrong from my perspective.

My question is, which route will you then take, did you find the wealthy teem member, or will you start with minimal exchange operations?

BTW, you’re launching one day off my Birthday, so I’ll assume Nubits as a Birthday gift :wink:

68
From my perspective, your solution is going to try and grab the market participants, as you say the newcomers will scale up the ability of your solution to provide short term stabilization.

do you imply that any holder of peercoin (or any other form of currency) whatever the amount can help alleviate the volatility by participating into nubits?

69

[quote=“cryptog1, post:68, topic:2476”]

From my perspective, your solution is going to try and grab the market participants, as you say the newcomers will scale up the ability of your solution to provide short term stabilization.

do you imply that any holder of peercoin (or any other form of currency) whatever the amount can help alleviate the volatility by participating into nubits?[/quote]

Yes, this is what comes to my mind, it’s stated by Jordan:

"This would provide people with the knowledge they need to feel comfortable getting involved, which would scale up our short term stabilization mechanism. "

but it’s probable that Jordan is talking about USD holders, not Peercoin holders- they initially needed a fiat investor.

The mechanism should go along these lines more or less:

USD->NUBITS->PEERCOIN/CRYPTOCURRENCY

NUBITS need to use USD capital in order to exchange USD for PEERCOIN (let’s stick to this one), buy, sell, actively operate to mitigate the volatility. This is why the trading bot is needed, but there must be another mechanism in place. I guess they found a solution that works on a time scale beyond several days, but to make the system complete, they needed a short-term mechanism, the bot.

I really didn’t want to speculate too much, but now I understand you guys, your posts from the last months, this sort of speculation is fun:) And we have one more present to unwrap:

[quote=“mhps”]Let’s play a guessing game. I am not sure the Jordan likes our doing this in public at this point. So I wrote down my guess of the nature of nubits and why such team members are needed, signed it with my ID, and hashed the guess text at SHA-256 hash calculator | Xorbin

This is the ourput 86dcf8ee866dca8c34284048a0f6de3ede274f46e4d9f4fe88a61b6ad79ae7c3.

When nubits is public I will reveal the guess. Everyone can check if the revealed contents is what I hashed today.

Anyone else wants to play? ;D[/quote]

70

You guys are probably aware, but whitepaper link is 404 on the new website. some other links I believe as well.

71

Thank you guys, especially FuzzyBear, for acting on BTC-e, their chat was full of confusion with the empty webpage content, as soon as they understood that it’s not a scam, PPC regained ground:)

72

Any press releases anywhere?

73

From the limited information that I’ve been able to read so far, it appears to be a crypto central bank of sorts, with a money printing press that can be used by NuShareHolders (Custodians specifically) to issue new Nubits to counter demand and thus keep the peg at $1.00. If demand decreases, they can “park” Nubits by offering interest payments to Nubit holders who chose to freeze their funds for a given period of time.

The big unanswered question so far is who are the initial NuShareHolders, and will it ever be possible to buy some? As a custodian you would literally be printing money, seems too good to be true (or legal)…

74

I am not interested in nubit itself since it always worth 1usd.
I want to buy nushares…

75

“The critical flaw is that Peercoin and Bitcoin use the same fungible unit for share and currency functions. Shares must have the capacity to appreciate and reflect changes in the perceived value of the network while currency must remain stable regardless to be effective. It is impossible to accommodate these diverse pricing needs in a single unit.”
–>separation of the notion of currency from shares —> this is huge.

76

[quote=“svk, post:73, topic:2476”]From the limited information that I’ve been able to read so far, it appears to be a crypto central bank of sorts, with a money printing press that can be used by NuShareHolders (Custodians specifically) to issue new Nubits to counter demand and thus keep the peg at $1.00. If demand decreases, they can “park” Nubits by offering interest payments to Nubit holders who chose to freeze their funds for a given period of time.

The big unanswered question so far is who are the initial NuShareHolders, and will it ever be possible to buy some? As a custodian you would literally be printing money, seems too good to be true (or legal)…[/quote]

That’s a great comment, crypto central bank with a money printing press :slight_smile:

77

Decentralized FED for the win!

78

Well said.

79

http://thecoinfront.com/an-interview-with-nubits-head-developer-jordan-lee/

“It’s probably not a good idea to have a large percentage of the control of a network in one entity’s hands. That why we are planning to quickly decentralize the possession of NuShares by selling them for a low price.”

80

Hi Peercoiners,

From the BitShares community, welcome to the wonderful new world of decentralized market-pegged assets! It was getting lonely here, glad to have some competition, and extremely glad that the Nu approach is so dramatically different from BitSharesX. I’m working on buying some NBT now, and I’m excited to see how the system works up close and personal.

Sincerely,
BioPhil