Re: [ANN][XCP] Counterparty Protocol, Client and Coin (built on Bitcoin)

Product and Service Updates March 27, 2014

Introduction:
We at BitcoinTangibleTrust are happy that to launch a public, trustless trial of BitcoinTangible Trust's gold asset purchase, custody, and issuance on the Counterparty Platform. The players in this public purchase will be:

Global_trade_repo(Counterparty Forums) also known as led_cd(BitcoinTalk Forums)
BitcoinTangibleTrust (Counterpart Forums) also known as BitcoinTangibleTrust(BitcoinTalk Forums)
Agora Commodities
DiamondState Depository

Objective:
Our objective is to open up the BitcoinTangibleTrust process to the community in order to build trust from with our process and to validate that there is a value proposition we can continue to scale with more customers and further sales.

Our Process:
Walk with led_cd through the purchase of approximately 1 BTC of gold for custody and DEX trading through BitcoinTangible Trust process. led_cd will provide his public feedback on the purchase, custody, and trading process to the community. We welcome a very public exercise. We will not charge any fees to led_cd/Global_Trade_repo outside the fees from either gold sellers or our custodian partners.

The first step will be for led_cd to fill out our Order form online and inform us of his desire to make a purchase of 1 BTC of gold here: http://bitcointangibletrust.com/buy-gold/

Our Ask:
We look to you, the community to share any thoughts on the process and how we might improve by quoting us in the feedback we will share during the entire process. Will you help us?

Thank you Counterparty Devs and the Counterparty Community,
Bitcoin Tangible Trust Team
Cross Posted to Counterparty Forums:
https://forums.counterparty.co/index.php/topic,203.0.html

In simple word. Does it work in one of these ways:
(1) I send you BTC -> you send me Gold via post mail?
(2) I send you BTC -> you owe me Gold worth of the amount of BTC i sent you (for ex.: I send you 3.2 BTC which gives me 1 oz of Gold atm. In half a year i will egt a different amount of BTC and UDS compared to now, and I can cash out in BTC or USD at the respective daily rate). And then I can request that you pay me back in BTC (or USD? or Gold?) whenever I choose to?

#2.

But the cool thing is that you can trade your 1 oz gold IOU on the exchange. So, you buy 1 oz of gold from BTT for 3.2 BTC. You hold it in an XCP asset. Price of gold goes up relative to BTC, I pay you 3.5 BTC for that asset on the exchange. Now you hold 3.5 BTC and I hold the 1 oz of gold asset. Now price of BTC rises or price of gold goes down. You buy back the 1 oz asset from me for 3.0 BTC. Through this trading, you now have an XCP asset holding 1 oz of gold, and 0.5 BTC in profit.

EDIT: So nobody ever cashes out through Bitcoin Tangible Trust. (Although I suppose it's possible, they will try to avoid it as it costs a lot of money to ship gold, and they would rather keep the assets in the marketplace.) The assets remain in the market. If you want to cash out, you sell it on the exchange for the going rate in BTC, and then cash out your BTC, and somebody else holds the IOU from Bitcoin Tangible Trust.

Thanks for the excellent review baddw!

Answering #1: We do not send our customers gold. It's easier to do that directly. We are focused on digitizing the physical gold asset into an XCP IOU. We're a digital custodian for these assets.

Adding to #2 answer above: Customers CAN cash out into the physical gold with BitcoinTangible Trust. The unique structure of our custodian agreement allows for our customers to redeem their gold at anytime, less any outstanding custodian fees and subject to private key signature verification. Otherwise, our goal is that you can trade the asset as long as you need and it proves useful to you.

I hope that was helpful. Thank you for the excellent questions!
BTT

So you would send me the Gold via post mail. Did I get that right?
How do I know that you have the gold?
And you also provide a BTC/1ozGold price feed? What data is that feed based on exactly?