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...
Regarding pegs, I'd like to bring the following analysis on the subjet from the "nubits" experience. I jope it is useful for Bitbay:
...
Conclusion
In short, NuBits uses increases in its total supply (through various ways) and thus inflation as the only method to combat both an increasing and decreasing price. This might be able to hold for a while, but leaves nothing but a time bomb waiting to go off. The developers might have created NuBits with the best intentions, but until any adjustments have been made it is advised to avoid from this digital currency. A discussion on the discussed problem and possible improvements can be joined on the NuBits forum
here.
source:
Details and Shortcomings of NuBitsYeah I'm aware of this, however the pegging proposal here is a decentralized fractional system.
So coins are tagged as to how they freeze and unfreeze.
Example, lets say the deflation rate is 50%
And someone had coins that he never spent since it was 100% inflated (0% deflated)
Then he tries to spend.
Miners force him to send 50% back to himself tagged as frozen 100-50 which is basically his coins divisible in 50 parts.
Then the remainder he wants to send is now liquid 50-0 which is liquid coins set to deflate in at least 50 parts.
If the currency inflates again the user can spend some of his frozen coins.
Lets say it inflates 5%
Then he can unfreeze 5/50ths of his frozen coins and tag them a liquid divisible in 5 parts over 5 points.
Merchants will always require good quality coins and this is all going to be done under the hood.
Frozen coins can be transferred when totally frozen under one condition: That you put at least a 3 month time lock on it. At least im leaning towards a 3 month exemption but it should be in the range of 1-6 months.
This is superior to NuBits because its totally decentralized. There is no custodial addresses, there is no sustainability problem, there is no voluntary parking. Nubits suffers from major front running/inflation/centralization problems all of which are solved here.
This creates a series of asset classes based on how much liquidity your coins have. It also allows us to roll prices up and down by controlling the supply. AND it doesnt favor the rich, anyone who held coins that froze will benefit by having them released later.
And also it creates some really interesting possibilities for transfers of liquidity for frozen coins. Similar to loans, trustless bonds and futures, etc.
Thats the core idea, I've been in discussions about how to make it user friendly which is the first priority. This is the basic core principals and we can build on it from there.
Deflation/Inflation per day will probably be 1-2% and might follow a sort of linear curve where that is more of a target rate. Although im still deciding over the minor details.
This seems like a pretty good way of doing it. Takes a lot to fully understand how it works tho, toke me a few reads and im still sure i didnt fully get it lol. The main thing is that it happens under the hood and the user does not need to worry about it. The best way is the trustless part, makes everything so much better. And yes, it has to be user friendly to gain mass adoption because that is the only real way to go, to reach out to people outside of cyrpto also.