Re: cvTokens - Stable currency without trust

Quote from: Croesus on May 08, 2013, 12:16:10 PM

Quote from: edmundedgar on May 08, 2013, 10:53:01 AM

Looks interesting. I'm not sure that I followed it all - if you're trying to peg to (say) AUD don't you have the same problem I mentioned up-thread of needing to trust somebody to provide external information about the exchange rate of your currency to AUD? You say,

Quote from: Croesus on May 07, 2013, 11:14:29 AM

The escrow is aware of the rough market valuation for a cvToken by means of a distributed auction (which is not intended to serve as a primary exchange, those will be developed elsewhere if the cvToken is marketed successfully). It uses this information to enforce rules for issuance and cash-outs of tokens.

But how does that work? The problem everyone has been bumping their heads against with the p2p concept is that nobody has a good way to know what's going on at the fiat end of any given transaction.

each cvToken runs a 3-way distributed auction where:

Sellers of the cvToken post offers to sell for BTC
Buyers of the cvToken post offers to buy and/or create cvTokens for BTC
Backers of the cvToken bid to collateralise any above-market price demand and to help new backers enter the cvToken

OK, that's the kind of thing I was imagining to make a decentralized market between crypto-currencies, and get transparent, hard-to-game price discovery there. But the AussieCoin guy on the other thread wanted to peg to Australian Dollars. That's the bit I thought would need some kind of trusted authority (albeit a list of independent authorities, so you'd need a quorum of them to make a decision and you could kick them off if they misbehaved).

Am I right in thinking that you're not actually trying to achieve stability in relation to anything beyond another crypto-currency, like prices or a regular currency?