Quote from: girlfawkesy on October 09, 2013, 12:20:50 PM

I have an idea but I"m not sure if its a good one. I woke up with it. Sometimes those are bad. I've been reading a lot of suggestions on various sites and this is sort of my amalgam of a lot of other people's ideas.

Why not have ken create an altcoin "Activeminingcoin" that he sets the parameters for. 25 million coins generated on the genesis block (like the initial shares).

Then, after that, only transaction fees per block (which are set to be very low). The coin can be a simple sha256 and set so that blocktimes are every 2 minutes or so. It wouldn't matter if people mined it as long as someone did (probably ken).

Everyone with ActM stock tenders the stock to ken. They download the client, and set up a wallet. Ken transfers coins to those people based on how much stock they've tendered 1:1

Then, ken sets up a website where people can register their addresses. You make a signed message with both your BTC address and also your ActM coin address. This proves you own both.

When it comes to dividends a simple scrypt can be run to check the balance of any ActM coin address and send the corresponding amount to the registered BTC address.

Want to sell your stock? No problem. I would wager money Big Vern would put it on cryptsy as this is a "coin" and not a stock and exchange operators would gradually accrue these coins through fees. If I ran cryptsy I'd put every shitcoin on there that had sufficient volume to make it worth the bandwidth cost. Why not add stock coins? This allows liquidity in the stock and people to sell and buy shares as they see fit. If a major exchange goes down, who cares, you withdraw your coins and can trade directly on bitcointalk or reddit or any other means.

Thoughts?

I love it.

What about creating an exchange that uses this method? In order to list you have to either IPO with the exchange, creating your new altcoin or convert your current public offering into the appropriate altcoin. Would this completely mitigate the SEC's ability to intervene? Companies would be offering cryptocoins, not shares, but those coins would be tied to company profits as well...

Also, what are the technical details of this scenario? This sounds like it would take a highly modified protocol to accomplish. It would be ideal to have a template protocol in place for each security that would want to convert to this method. Interesting thoughts, fawkesy.

Edit:

Quote from: Sou on October 09, 2013, 12:31:12 PM

@girlfawkesy

First problem: how do you avoid a 51% attack?

I think this is where something like colored coins shows it's value - using the strength of the already well established Bitcoin network.

I don't think this coin would be able be mined. I'm not sure how exactly that works out, but it obviously couldn't allow users to effectively mine shares.

I'm told that what we're describing is colored coins. I need to look into that concept more.

Edit 2:

Yup. Colored Coins is our solution: http://vimeo.com/71507400