What are peershares?

sorry, i am a little confused, could someone explain in a really concise and clear way? i would really appreciate it, have tried reading around but am a bit confused. doesn’t really help that i have no financial background and don’t completely understand shares in the first place… but if someone could help me out that would be great…

Peershares are an inexpensive and decentralized ledger to be used by businesses for tracking share ownership and distributing dividends in an automated fashion. Shares can be transferred and held just like Peercoins. Each business using Peershares will have their own blockchain that is independent of all others. Blockchains can be secured cheaply and easily using Proof of Stake. Using Peershares, a tiny business could raise funding through an IPO without depending on a third party such as a stock exchange. While trading shares through exchanges will be useful to provide liquidity, Peershares can be traded on any number of exchanges just as Peercoins can. A share issuer is not vulnerable to the failure of single stock exchange such as BTC Trading or Litecoin Global. Issuers can distribute dividends as Peercoins.

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@Jordan Lee

thanks for your reply… let’s say i am really good at cooking meals and I start a business, LocalFood, which delivers freshly cooked meals locally to people who don’t have time to cook a health meal. the business really takes off so i want to invest in more space, ovens, staff etc… at the same time people locally are really enthusiastic about my services and want to invest, as they see great potential, but neither i or them are sure about how to go about this. what would be the next step, in really simple terms, to be able to make the next step happen using Peershares? thank you for your time.

[quote=“r00tsical, post:3, topic:2022”]@Jordan Lee

thanks for your reply… let’s say i am really good at cooking meals and I start a business, LocalFood, which delivers freshly cooked meals locally to people who don’t have time to cook a health meal. the business really takes off so i want to invest in more space, ovens, staff etc… at the same time people locally are really enthusiastic about my services and want to invest, as they see great potential, but neither i or them are sure about how to go about this. what would be the next step, in really simple terms, to be able to make the next step happen using Peershares? thank you for your time.[/quote]

First, LocalFood must decide what they are promising share ownership entitles share owners to. This could be 50% of revenues, 40% of profits, or whatever makes sense for their situation. Then they hire a technician to start their blockchain using the free, open source Peershares software. This might cost a few hundred dollars at first but will become much cheaper if Peershares become popular. Let’s say they asked the technician to create a million shares and they promised to have an IPO of 200.000 shares at 1 USD per share while holding the remaining 800.000 to sell at a later date for additional funding and to hold as an owner’s share. They can sell the 200.000 IPO shares directly to interested investors or they can arrange to have the shares exchanged at one or more exchanges in which case launching the IPO is as simple as depositing the 200.000 shares in an exchange and placing a sell order at their IPO price.

The only IT infrastructure they need to support this consists of simply running the LocalFood Peershares client at all times from a single ordinary server. If their shares become dispersed widely enough then shareholders will do the transaction processing themselves, and it becomes unnecessary to maintain any IT infrastructure at all in that scenario.

When they are ready to distribute dividends, the owner simply opens his Peercoin and LocalFood Peershares clients, enters the total number of Peercoins to distribute in the LocalFood Peershares client, and the dividends are sent from his Peercoin wallet to Peercoin addresses accessible by LocalFood Peershares share holders. Shareholders would access their Peercoin dividends by opening their LocalFood Peershares client and their Peercoin client and then exporting the Peercoin addresses from the LocalFood Peershares client simply by clicking a menu option. Then they will see their dividends in their Peercoin wallet, ready for spending.

thank you so much for your reply, i have so many more questions spinning around my head now about this… but for now, i just want to say, wow, this is amazing - i think i have grasped the basics and the potential seems huge. thanks again for taking time to simplify this for me…

It seems to me that for shareholders, the prospect of running multiple clients/wallets for each company a person owns shares in plus running the peercoin wallet, is prohibitive. Don’t you think? Anyway to create a wallet software that holds all shares and all peercoin??

Ideally, yes, once the protocol has been sufficiently implemented.

When I proposed an integrated wallet in my original whitepaper back in September, Sunny King suggested it would be much easier to implement separated wallets, which is true. So, I chose the quick and low risk path of separated wallets initially. You can see here that integration of the wallets has been scheduled for phase 5 and 6 since October: Cryptoblog - notícias sobre bitcoin e criptomoedas! We have just finished coding phase 2. We will get there, but it won’t be in the version that is initially released at the conclusion of phase 3.

Amazing. Thanks Jordan. So great to see you quietly forge on with an attainable goal while the devs on other projects brag about questionable goals!

When I proposed an integrated wallet in my original whitepaper back in September, Sunny King suggested it would be much easier to implement separated wallets, which is true. So, I chose the quick and low risk path of separated wallets initially. You can see here that integration of the wallets has been scheduled for phase 5 and 6 since October: Cryptoblog - notícias sobre bitcoin e criptomoedas! We have just finished coding phase 2. We will get there, but it won’t be in the version that is initially released at the conclusion of phase 3.[/quote]

I’m a big supporter of peershares and Peercoins.
I am also involved in marketing for Mastercoins too and hope to see higher prices for PPC coming soon.

What type of business do you think would realistically use Peershares and in what timeframe from now? In other words, who is the target audience?

It is likely that our team will produce the first implementation of Peershares. At this time we are not saying much about the nature of our venture. Beyond this, I expect small start ups within the cryptoeconomy will be the first adopters. I can’t say when this will occur, but I can say we are wrapping up phase two of development and phase three is about half complete. All phases are in sore need of QA work and are not refined to any degree. When phase three is complete and has been refined by QA, the solution is ready for use and adoption even though many additional enhancements are planned for later.

So, it is possible that small start ups could adopt it then. It is also likely that the Peershares team will be the first to deliver an implementation via an extension which requires further development but which demonstrates the effectiveness of the underlying Peershares structure, thereby persuading others to adopt this free and open source solution.

How to address PPC price volatility? Let’s say my company raises enough funds to start my business, but suddenly PPC crashes 40%. As a result they cannot buy the equipment necessary for starting their business. At the same time, some shareholders might prefer their dividends in USD. I reckon this could be solved by a payment provider for Peercoin that is similar to Coinbase, and what they are doing for Overstock.com

Peershares issuers can raise funds in whatever currency they desire by selling their shares for that currency. It could be USD. If shareholders want their dividends in USD then they can sell their Peercoin dividends for USD.

I agree the price volatility of Peercoins and other cryptocommodities are a real problem. It would be really useful if someone could create a cryptocurrency that maintained the same USD value so people could have that stable value without having to return to the legacy banking system with all its high costs, frictions, over-regulation and abuses.