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Messages - zack

General / Re: How can I get some truthcoin?
April 28, 2016, 11:39:08 PM
For bitcoin hivemind:

Cashcoin IS bitcoin. Since there are 21 million bitcoin, if we moved all the bitcoin onto truthcoin, then there would be 21 million cashcoin.
If you have 1 bitcoin, you could move it from the bitcoin blockchain to the truthcoin blockchain, and it transforms into a cashcoin. So you no longer have any bitcoins, but you have 1 cashcoin. Then when you are done on truthcoin, you can move your cashcoins back to the bitcoin blockchain, and they become bitcoins again.

Truthcoin is going to be merge mined, similar to how namecoins works.
So it is being secured by the same hash power that secures the bitcoin blockchain.

A big limitation of merge mining is that if you have less than 1/2 the total mining hashpower supporting you, it is cheap to cause forks on your blockchain. Miners are paid to support you, but it wasn't enough for namecoin.

It isn't clear if namecoin is successful at merge mining. Their difficulty is 26 billion vs bitcoins difficulty of 179 billion, about 15% of the bitcoin miners are merge mined with truthcoin.

namecoin is securing domain names. Do you trust the bitcoin miners not to collude to hold your domain name for ransom?

truthcoin is securing the outcomes of predictions that people are betting large amounts of money on. Do you trust the bitcoin miners not to collude to hold the money in your prediction market for ransom?

Look at page 28 of the white paper near the bottom:

For Augur: ether are the cashcoin.
Currently it is secured by POW, but they are planning to move to POS.

For Flying Fox: flying foxes are the cashcoin. It has a new distribution method.
Flying Fox is secured by a PoS consensus I invented that is based around the idea of payment channels.
Off Topic / Re: I am selling Augur REP
April 26, 2016, 01:51:59 AM
Joey agreed to help me sell my rep, so we dont have to use an escrow.
The only rule is that you can't re-sell the rep until after the distribution of rep to everyone.
Outside Work / Re: SVD alternatives
April 20, 2016, 03:00:04 PM
I wrote my alternative to SVD in the scripting language of flying fox.

This way we can update it later, to make it more like SVD perhaps.
Outside Work / SVD alternatives
April 16, 2016, 06:06:07 PM
I heard that Augur was using some other algrithm instead of SVD.

making SVD deterministic, and having it be a part of an erlang release for flying fox is very difficult.
Existing SVD algorithms use mutable lists, which erlang does not have.
The C version isn't deterministic.

So I rolled something similar to SVD that is easy to write in erlang.

I let oracle participants choose between 4 things. true/false/need more time/bad question.

I use the weighted mode to decide which of the 4 is correct.

Next I calculate new weightings for each oracle participant. Every question they got wrong lowers their power to 9/25ths what it was before.
Unless they choose "need more time" and the outcome was true/false, or if they choose true/false, and the outcome was "need more time". In those cases their power only lowers to 3/5ths what it was before.

I use the new weightings to re-calculate the outcomes of each decision.
This is the final outcome.

Is this a reasonable alternative to SVD? Are there any negative repercussions to doing this?
Should I have the constant 3/5ths be a variable based upon the number of things they are betting on or the number of oracle participants?
The mechanism I posted before I only capable of measuring when the price goes down.
We need a separate one to measure the price going up.

Mining should be split into 2 transactions. The first transaction is an auction, only a finite number of people can mine a finite amount of coins. The second transaction is where they provide the work they signed up to provide.

90% of the time we sell coins at the current price.
The last 10% we sell variable numbers of coins for very short periods of time at slightly below the current price.
We look at how much of a fee the miners are willing to pay for the privilege of mining these more affordable coins. Based on this fee, we can see how the price of the coin would change in response to changing the rate of production. It is the supply/demand curve.

Once the curve is measured, we can choose the next price to sell coins at. Optimizing for the two goals of increasing the market cap, and increasing the price per share.
Outside Work / Reputation value
March 13, 2016, 10:45:33 PM
The validators need to be over-paid.
So about how much should the market cap of reputation be?

For Augur, the market cap is around $40 million right now.

What volumes of trading are we expecting on the prediction markets? What is the market price for making a trade? 1%? 0.1%?
Outside Work / Lightning Network
March 13, 2016, 03:20:52 AM
The Lightning Network is implemented in the development branch of Flying Fox.

Here is a passing test-case that proves it.
A blockchain has a mechanism for distributing coins. All existing distribution mechanisms fail in one of two ways:

1) They grow too slowly. They don't dilute shares when new investment happens. For example, in NXT, the only way to get coins is if you buy them from someone who already has some. You can't do work to create new coins.
2) They grow too fast. Miners are able to create coins at too low of a price. The excessive selling pressure from miners continuously lowers the value of shares. It is the cryptocurrency version of hyperinflation.

All existing blockchains distribute coins poorly because they tie the coin creation mechanism to the consensus mechanism.

Flying Fox fixes this. The consensus mechanism is disconnected from coin creation mechanism. The rate of coin creation adjusts so that it is never too slow or too fast.
Electricity is a terrible way to store your wealth. Batteries cost more than the energy they can hold.
Converting your value into cryptocurrency lets you store it for the future.

Bitcoin miners also operate on the threshhold of profitability. They burn as much electricity as they get paid in bitcoins.
So I could ask the same of bitcoin: /why/ does anyone mine bitcoin? They don't seem to get anything out of doing so.

If it is true that miners need to make a sliver of profit, we could charge slightly less to produce coins. So 999 meals worth of electricity turns into 1000 meals worth of cryptocurrency.
If a miner manages to double the value of the system as measure in meals, then paying him a mere 0.05% of everything is a small cost.
Because of network effects, the coins probably increased in value (as measured in meals of food) by more than 0.05%

There are also arguments for why we should charge 1001 meals of electricity to create 1000 coins. Like the stuff Paul Graham said in his essay
I summarize his advise: Only dilute the shares if they are willing to buy in at a high enough price that the part of the company you own afterwards is worth more than what you owned before.

Maybe we need to do experiments to find the best price for producing coins.
Or we could use a prediction market to adjust the price over time. The prediction market could be maximizing market cap measured in meals, or value of a coin measured in meals, or some combination of those 2.
Or we could let the validators vote on how the price should change. Under Flying Fox consensus the distribution of validators is almost the same as the distribution of coin holders, so their incentive would be to choose the price that maximizes the value of the current coins as measured in meals.
Quote from: psztorc on March 07, 2016, 03:55:46 PM
How, exactly, is the new system worth 40,000 meals of food (10K more), when nothing of interest seems to have happened?

Its worth 40k because D used POW to invest 10k into it to get control of 25% of the coins.
If 25% is worth 10k, then 100% must be worth 40k.

Quote from: psztorc on March 07, 2016, 03:55:46 PM
Could the value have increased from 30,000 to 40,000 *without* D's contribution?

Advertising is another way to increase the value of a blockchain.

Quoting you from your essay "Nothing is Cheaper than Proof of Work":

So-called "alternatives" to Proof-of-Work "waste" just as much "work".

This "marginal cost" = "marginal revenue" concept actually applies to every transaction in the entire world, including all future blockchain tech.
Before dilution:
A owns 33% of the coins.
B owns 33% of the coins.
C owns 33% of the coins.
33% of the coins is worth about the same as 10,000 meals of food.

The investment that dilutes is:
D burns electricity worth about 10,000 meals of food in POW.

After dilution:
A owns 25%
B owns 25%
C owns 25%
D owns 25%
25% of the coins is worth the same as about 10,000 meals of food.

Maybe we should charge D a couple percentage higher or lower than that, I am not sure.
Sorry for using the wrong words again. Since you are such a good word-ist, why don't you tell me which words are right?
I have explained it enough times that you know what concept I am getting at.

The same way a startup is willing to increase the number of shares when a new investor gives investment that prices the startup at a higher valuation.

A blockchain should be willing to increase the number of coins when a miner gives enough POW to give the blockchain a higher valuation.
Off Topic / I am selling Augur REP
March 03, 2016, 01:57:38 PM
I was involved in augur's development, and will own some of the REP when it launches.
I want to sell it for bitcoin now.
We can use a 2 of 3 multisig like Hedgy as our escrow, so you don't have to trust me. I am willing to lock up some of my bitcoins too, to show you I am not wasting your time.

We could use the price off gatecoin:
Oh, you think that bitcoin's reward schedule results in the largest market cap.

Could you explain why diluting the shares in exchange for investment at a higher valuation would lower the market cap?
Market cap = price of a share * number of shares.
If we increase the price of a share at the same time we increase the number of shares, it seems like the market cap would have to increase.
Yes, that is what I think too.

How would you change bitcoin's reward schedule to allow for a faster growing market cap?
(Where market cap is means how many meals you could buy if you could sell all the coins at the current price)