About useful Proof Of Work

About the rise of Proof of Stake, we could well see the rise of what I call useful Proof of Work in 2018....

With the huge increase of transactions fees of Bitcoin (between 15 and 30 usd according to https://bitcoinfees.info/ now, can you believe it?!), we really need to do something about the huge waste of money when it comes to verifying the blocks.

Though proof of works has its utility because it enables a solid security and though I do not think it will fade away, there must be much cheaper ways 1) of securing the blockchain or less wasteful ways 2).

1) is being tackled by proof of stake and I think it is a question of time before we see it recognized generally by the crypto communities as a legitimate way of securing the blockchain.

Most of the new kids on the block are proof of stake based crypto assets and I believe we will see a huge boom of proof of stake in 2018 as I talked about, in my previous post, (http://nuventures.org/news/archives/28) ,


2) is being tackled by useful proof of work like Primecoin (http://primecoin.io/) for example or Filecoin (https://filecoin.io/) .

Primecoin aims at finding chains of certain types of prime numbers in its algorithm: miners are incentivized to try to come up with more efficient/fastest ways to find these chains. So while you contribute to the security of the network, you contribute to mathematics.

In the case of Filecoin, you need to output a proof of providing some space for storage in order to be rewarded by the network which corresponds to contributing to the security of the network. So you provide a useful work besides securing the network.


I believe we will see, right after the rise of Proof of Stake the rise of useful Proof of Work, possibly in 2018.

And then we will see the rise of decentralized autonomous organizations or corporations after these 2 types of consensus will have gone mainstream and it could be very quick.

And merry X’Mas!


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blog   2017/12/25   uploada

The future is PoS

The rise of Proof of Stake in 2018 with Peercoin

We are seeing the beginning of the end for the paper-based FIAT money.

Crypto-currencies are growing in terms of total market cap every day.

However, as Cliff High says, it is not that they have an intrinsic value per se but rather than their value is derived relatively to FIAT money which is losing value everyday by hyperinflation that has been put in place to keep the system afloat after the subprime mortgage market collapsed in 2008.

Interestingly enough, Bitcoin was released right after, in January 2009.

Next year in 2018, that will be 10 years since the era of hyperinflation began and that will be the end of the cycle.

However most the market cap (around 85~90%) is still generated by Proof of Work assets.

Proof of Work needs you to have a lot of computing power in order to be able to participate into the network.

The learning curve is very high. Only the nerds do mining.

In order to democratize nodes verification which is the basis in a blockchain to get rewarded by coins, we need other types of consensus.

Here comes PoS or Proof of Stake.

In PoS, which could be regarded as virtual mining, you are eligible for block verification based on the stake of the network you own.

This idea was first introduced by Peercoin which has been running since 2012 without any issues . However most people have been ignoring it because of the nothing at stake issue, which can be regarded as a false problem.

Several solutions have been proposed, including the double minting detection mechanism by Peercoin or Casper in Ethereum.

Interestingly enough, most of the new kids on the block, Cardano, NEO, EOS have a consensus mechanism based on proof of stake.

Also, Ethereum is scheduled to shift to Proof of Stake in June 2018.

Also, Tezos is a pure Proof of Stake.

Let us not forget NEM, which is running on Proof of Importance, a derivative of PoS.

That means something for the significance of PoS.

Needless to say that I have been a huge proponent of Peershares and Nushares which are based on Peercoin source code, though they have yet to get off the ground but recently NuShares has been seeing a rapid increase of price and NuBits, the pegged crypto issued by Nu, the Decentralized Autonomous Organization that is controlled by shareholders who hold NuShares, has seen a significant adoption increase.

After 2 years of being absent from the peercoin community, I am back after having seen the significant achievement of the community in between.

I have the feeling that PoS will be instrumental in democratizing cryptos for the masses, though Proof of Work will coexist together with it.

However I predict PoS will be even more important that PoW and we will see a huge competition from PoS to PoW starting in 2018, and I believe Peercoin, being the first proof of stake crypto asset with a growing momentum, a community and a perfect history with no hack or issues could be instrumental in promoting Proof of Stake for the masses.


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blog   2017/12/07   uploada

Golden Age and blockchain

Two of the sources that I follow for predicting what will happen in the Golden Age, David Wilcock and Benjamin Fulford, are telling us the following.

1- bitcoin (blockchain) was created by the good guys inside the NSA to create an alternative financial system to the one provided by the FEDs.

2- the good guys have been trying to get back control over the global collateral accounts to get back control over the printing of money but it is taking too much time. Therefore now they are considering using assets backed by crypto-currencies .


In either case, the goal seems to be the same. Giving Humanity the ability to have control over the creation of money, in a very transparent fashion.



1- https://www.youtube.com/watch?v=IWHyrvFODb8 from 38:30 mark.


   - http://www.stillnessinthestorm.com/2017/07/benjamin-fulford-july-6th-2017-sounds-like-american-lawyer-and-david-crayford-have-provided-a-missing-link-for-me-in-this-article.html

   - https://kauilapele.wordpress.com/2017/07/03/benjamin-fulford-7-4-17-clean-up-of-khazarian-filth-continues-in-us-japan-and-elsewhere/

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blog   2017/07/10   uploada
タグ:golden age

Proof of the Stake is the next standard?

A very short speculation on PoS being the next standard for blockchain's verification

With Ethereum scheduled to shift from PoW to PoS around 2018' s June,

and with the rise of NEM that uses a protocol close to PoS (Proof of Importance) over the past few months,

and with the recent rise of Bitshares that uses something derived from PoS (Delegated Proof of Stake) over the past few months,

and with the very recent successful ICO of EOS, the next project of Larimer, that uses again Delegated Proof of Stake,

and finally with the very promising Tezos' release over the next few months (currently doing its ICO) that is based on a pure PoS,

can't we speculate that the next standard for blockchain's security is PoS ?


I do.

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blog   2017/07/10   uploada

Why NuBits peg dropped and how it got fixed

1) What happened in May and June:

Just after the large NuBit sale by a single holder on May 27th, the peg was immediately lowered to 0.95. That is the cause of the failure of the liquidity engine. Period.

Then NuShareholders and the Liquidity team focused on:

- Focus on nsr buy back which lead to fund depletion  and complete halt of funds in tier 4, 5 and 6.
The result was: US-NBT went straight from $1.00 to under $0.20 while NSR went from 500 satoshis to 70 satoshis. 

Between June 2016 and September 2016, about 700 million NSR were spent repairing the damage from the reckless and unauthorized "experiment" 


We dont know where the attack came from --
It could have come from a nushareholder


2) What we have learned:

Directing liquidity operations effectively and efficiently requires expertise very few have. 
Liquidity operation needs to be centralized for now and decentralizing liquidity operations again is a long way down the priority list.
BUT the decentralized nature of the NuBits network remains unchanged. None of the changes NuShareholders have instituted in liquidity operations requires a protocol change. The basic deal and mode of the network remains unchanged. Transaction processing, voting of all kinds and most importantly, the allocation of custodial grants remains completely decentralized and unchanged from how it worked in 2015.

We have a chief liquidity officer: Phonenix (probably the second name of Jordan Lee, the founder of NuBits) -- He raised $300,000 in the two and a half months he has been CLO

NuShareholder must prevent a loss of peg on nubits, because it will be reflected back immediately on nushare

To sum up, NuShareholders would like decentralized liquidity. However, reliable and cost effective liquidity is a much, much higher priority.

3) A lot of debate is going on about:
- whether we should have a business model
- to which extent we should back up US-NBT in reserve.

However Phonenix (not supporting any business model and any model) has earned the consensus by voting (64% of support)
His popularity is growing
Minting is picking up
He is getting paid for his role.

4) Asset price:

We have boosted the asset price without parking, without reserve
400% in 70 days

5) What we are doing now:

We have resumed the selling of US-NBT since the peg was abandoned in late May. When we sell US-NBT from liquidity operations, the funds become part of our reserve and are used to place US-NBT buy orders at $0.995. 

The US-NBT price on Poloniex has stayed within the $0.995 to $1.005 range for all of the last 24 hours. There are $5600 in buy orders at or above $0.995 and an impressive $39,000 in buy orders above $0.975. That is probably more than 13% of all the US-NBT in circulation.

6) The future:

Launching CN-NBT and EU-NBT 

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blog   2016/10/07   gbboy

My predictions for 2016

Bitcoin's block reward halving, financial crisis, NuBits' liquidity and B&C decentralized exchange.

Very quickly:

- I do not believe that Bitcoin price will sky rocket despite the coming halving in July this year. Litecoin's halving last year did not have much effect on its price. Back in 2012, when Bitcoin block reward halved from 50 to 25 bitcoins, it is true that the price ramped up over the weeks that followed the halving. History might be the best indicator of future performances but it is never for sure. I feel the price of one bitcoin will not go beyond 1000 usd and will stay between 500 and 1000 usd after the halving. However I feel it will increase from its current price (around 450 usd on 12JAN16)

- The possibility of a financial global crisis is more and more probable for 2016. Negative interest rates and capital controls as well as some currency devaluations will make cryptos more relevant and more important for the average Joe.

- People will realize that the blockchain technology is not that efficient in reducing costs and improving performance. On the contrary, it would decrease performance. However, the current buzz on the blockchain will benefit crypto-currencies in general this year.

- People will realize that the real innovation brought by the blockchain tech is the ability to create decentralized organizations over the Internet with the ability to distribute shares and votes. This will be the start of the Golden Age for Peershares-like decentralized autonomous organizations, starting from NuBits .

- NuBits will gain traction and momentum with more liquidity and an even stronger peg. Startups will start using NuBits in their products and services (ex: remittances). Besides, people will start using NuBits as a way to store value in a secure digital wallet.

- The coming release of B&C Exchange, the first true decentralized exchange will help drastically NuBits get a high and secure liquidity, which is its blood.

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blog   2016/01/12   uploada

CATO Institute discusses NuBits

NuBits is the only serious contender to displace Bitcoin as the number one crypto-currency

On the 29th of December, 2015,  William J. Luther, scholar at the CATO Institute, published an article entitled "Theoretical Fedcoin, Meet Operational NuBits".

In this articile, Luther describes NuBits as the first decentralized crypto-currency to maintain a perfect peg to the US dollar.

In this sense, he concludes that NuBits is accomplishing the role of a Fedcoin.

At the end, he however states that NuBits is not perfect.

Nontheless, he acknowledges that NuBits solves the biggest problem of Bitcoin: its volatility.

I do think that the world is starting to realize the huge benefits of NuBits over Bitcoin.

It is time to realize that NuBits is far superior than Bitcoin as a currency.

One might remember what Hanke and Dowd that wrote "New private monies" said about Bitcoin's volatility at the end of 2014.

“Though the supply of Bitcoin is limited, the demand is very variable; this variability has made its price very uncertain and created a bubble-bust cycle in the Bitcoin market. Perhaps the safest prediction is that Bitcoin will eventually be displaced by alternative cryptocurrencies with superior features.”

To me this is clear. Bitcoin will be eventually displaced at the crypto-currency with the most liquidity and NuBits is the only serious contender right now.

2016 is likely to be a very interesting year for NuBits!

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blog   2015/12/31   uploada

NuBits and the decentralization of finance

Nu is welcoming anybody that wants to contribute to the decentralization of finance.

Nu is welcoming anybody that wants to become a shareholder of Nu, the first decentralized central bank in the world.

If you would like to become a shareholder of Nu, you will need to acquire NuShares, the assets that back the peg of NuBits to one dollar.

NuBits is free of any counterparty-risk. It is not reserve-backed.

The peg is kept solely by buy/sell side liquidity walls around 1NBT = 1USD across several exchanges.

The liquidity is provided by liquidity providers that can contribute in stand-alone mode or via decentralized liquidity pools.

Right now, there are roughly 500k NBT in existence, the buy side liquidity is around 90k NBT and the sell side liquidity around 110k NBT.

The peg has been kept perfectly since NuBits' inception in Sep 2014. Nu has more and more liquidity, with more and more exchanges trading NuBits.


But perhaps the biggest thing on the horizon is a totally decentralized exchange called B&C Exchange which would guarantee a very secure and cheap NuBits liquidity for Nu Shareholders.

That exchange which will be released in a few months will be using NuBits as a synthetic dollar to get in and out of the exchange.

In that sense, NuBits is a crypto-FIAT (crypto-dollar), or a crypto-currency pegged to FIAT money (dollar).


You have the following links at your disposal, if you would like to get more information.

- www.nubits.com: official web site

- www.discuss.nubits.com: official forum

- https://docs.nubits.com/history : the origin and the beginnings of NuBits.


NuBits combines the best of both worlds:

- the convenience and stability of FIAT currencies

- the decentralization of Bitcoin


Nu is welcoming anybody that wants to contribute to the decentralization of finance!

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blog   2015/10/12   uploada

NuShares, Bitcoin and Peercoin

About why Nu has the right economics while having a good intrinsic decentralization.

Economically, from a production cost perspective, bitcoin works well, peercoin does not.

Technologically, from a decentralization perspective, it is the opposite.

Nu combines the best of both worlds: you hold nushares, which decentralizes the network because you expect it would bring you dividends.

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blog   2015/10/10   uploada

About the need for synthetic FIAT currencies or FIAT-pegged crypto-currencies

Nu, the decentralized central bank that is behind NuBits, the most successful USD-pegged crypto-currency is in fact offering the world, synthetic FIAT currencies, currencies that exist in the Internet, pegged to FIAT money but over which the FEDs have no say. Such synthetic FIAT currencies cannot be illegal since they are fundamentally crypto-currencies, which are regarded as commodities by the FEDs.

And such synthetic FIAT currencies are much in need...right now!

I predict that over the next months (from Oct 2015 ~ Dec 2016), FIAT currencies will undergo the following:


1- devaluation: for example, the USD is likely to be devalued compared to the Yuan because the Yuan will get the status of reseve currency by being included into the SDRs, which will rebalance the current financial chess board in which the USD is King.

2- confiscation: central banks will adopt negative interests because they cannot increase them (increasing them would increase exponentially the national debts, which would make economies collapse immediately), which means that you will be losing money just by holding deposits into a bank account.

3- liquidity loss: cash (physical cash that you can hold into your hands in bills and coins) is getting rarer and rarer because economies have been more and more relying on credit and debt.


Because of these 3 things, the global economy risks getting stuck for a while and the world cannot afford that.

However, do not except the central banks or goverments to help you because central agencies will be losing their relevance.

This is why, we (individuals) need to create synthetic FIAT currencies that are controlled by decentralized entities so that they are out of reach of centralized corrupt agencies.

FIAT money's stability is obviously a good thing. No one can argue against that.  However, the bad thing about FIAT money is the centralized aspect of the decision-making process of monetary policies because the people have no control over them.

What NuBits is doing right now is what I call synthetic FIAT currencies or FIAT-pegged crypto-currencies. These are crypto-currencies whose monetary policies are made by a decentralized agency (Nu) in order to make the system very robust, very agile and entirely democratic and which enjoy a price stability similar to FIAT money.

Therefore, you have the best of both worlds:

- stability of FIAT

- decentralization of Bitcoin

to put it simple.


Right now, NuBits has only one peg, the USD-pegged NuBits, but other pegs such as the Yuan-pegged NuBits, the Euro-pegged NuBits and the SDR-pegged NuBits are in the works according to this.


How exciting!

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blog   2015/10/09   uploada
タグ:FIAT money

NuBits, the potential to be the basis for a cost API

Provided a sufficiently solidly written motion that is passed by Nushareholders, NuBits could go beyond the function of issuing a stable currency.
What about providing a cost API?

"Proof of burn is a suitable means of applying cost to actions that don't need to be a revenue stream. Any time a company or service accepts money it has to be accounted for. This can complicate things, but applying costs to an action can prevent abuse. This is the fundamental purpose for the transaction fee in Nu network. Now, let us imagine a company or service wants to apply a cost to an action, but does not want to deal with the overhead of having to account for receiving that value? Require a NBT burn instead. Have the user submit a transaction ID for the NBT burn. Now that Nubits has the burn RPC command implemented, it's very easy for anyone to burn NBT or NSR. A service can verify burn transaction ID to process an action on their service without having to account for receiving any value. It could be worthwhile for Nu to become a cost API of some kind. That would require to make the client flexible enough for others to utilize it within their services. Proof-of-burn or proof-of-park are two ways that other services could utilize Nu blockchain for applying costs to services. We should make it easy for them to use those features. We should explore all potential uses for NBT outside of just a transactional currency. Being able to manage the supply to maintain a stable value gives us a huge advantage in offering these types of services. Creating consistant demand for NBT while simultaniously removing NBT from the available supply will create a healthy stream of profit to the network. Being a cost API is probably the most decentralized approach to building profit for Nu, because anyone could utiltize those services without needing to be voted in, or any action from shareholders. But the protocol must allow for it, and the client must make it easy to use."

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blog   2015/10/07   gbboy

About the need of creating a SDR-pegged NuBits.

Does the fact that NuBits is currently pegged to the USD make NuBits vulnerable to the FED?

Would it be better to have a financial system backed entirely by gold (or bitcoin, its crypto counterpart?)




Someone can argue that NuBits being pegged to the US dollar is useless because it defeats the very purpose of crypto-currencies, that is being independent from dangerous monetary policies that the people have no control over. 

Well, when we look at NuBits, what we find is dependent right now on the FED is just the purchasing power of 1 NBT.

If the USD is devalued down to 50% one day (which could happen very soon actually), automatically the very next day, NBT is only able to buy half of what it used to.

But imagine the FED stops printing USDs (in fact it seems now that there is a USD liquidity crisis in the US. Cash is getting rarer and rarer...I hope you guys have withdrawn some physical cash. Strong negative interests are right around the corner...), would that stop Nu from printing NuBits? Absolutely not.

More over, Nu can and will introduce new pegs, most likely.

The only thing we need to make sure is that the purchasing power of the peg is stable. Right now NuBits is pegged to the USD because the purchasing power of the USD is still relatively stable and that has been good enough.

If that stability vanishes, Nu can find new pegs. In fact this is what is likely to be implemented via [DRAFT] Motion to introduce new NuBits products and I think this is coming at the right timing.

With the Yuan mostly likely to get the status of one of the world reserve currencies, it will be included in the SDRs, strengthening a lot its role.

So I would argue that the dependency of Nu upon the FED is superficial or weak because Nu's monetary policies are basically independent from the FED's ones.

How does NuBits stand compared to Bitcoin which can be viewed as the crypto-gold? Would it be better to use Bitcoin (that is totally independent from the FED's monetary policies, while its unit price is not stable) rather than NuBits? I do not think so because as the real gold, we can speculate that somehow the price of Bitcoin is more or less controlled by centralized agencies (the exchanges and miners). It is no secret that the mining of Bitcoin is centralized.

You might think that the price of gold is naturally set according to its scarcity and it is somehow naturally determined. Well, the price of gold is controlled by the same centralized agencies that have control over the USD.

That is why you see the price of gold (and silver) declining while the inventories are vanishing... One of the goals of WW2 by the cabal was to plunder all the gold from the world's populations (the Nazis in Europe, the FED in the USA (well it started 10 years prior to WW2), and of course the Japanese in Asia, in order to prevent anybody from starting a currency backed by Gold.

Moreover, Gold is easily controlled since you need a lot of resources to extract it.

Last but not least, gold is rather scarce so backing a currency entirely by gold makes the currency scarce which is not good if you want to grow an economy...

So my point is that backing a monetary system on Gold or Bitcoin entirely is not desirable. What seems is going to happen is that the world economy (world's currency if you will) will be backed by a basket of reserve currencies + gold.

This would constitute the new SDRs system that could be released as soon as 01JAN16 according to Cobra, one of the leaders of the Resistance movement, a source I have been following for a few years now. It is heavily connected to the shadow financial system but the reality is that the current system is very shadowy. :wink:

Which makes a SDR-pegged NuBits even more desirable and relevant. And it is in the works. :)

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blog   2015/10/07   uploada

Nu is a Decentralized Reserve Bank backing up the value of its Currency in a Decentralized and Distributed Way.

Nu has taken the model of a corp. or org. financed by shareholders , producing a service, that service being ensuring a peg for its token 1NBT = 1USD by providing buy and sell liquidity on NBT/USD/crypto markets.

When demand is decreasing, shareholders decide to invest more money (diluting their share) in their venture to burn NBT.
When demand is increasing, shareholders vote for more NBT issuing and receive dividends (direct = dividend from LPC activity or indirect = share buy back)

But NBT value needs to be backed, constantly and here at Nu, it is backed by a collateral, but not externally, internally, by Nushares value.

"In the beginning Nu's capabilities have been somewhat limited, but the NSR developers, holders and the Nu community evolved the Nu network formidably.
With 2.0 and NSR grants one can truly say that the NBT value is effectively backed by the value of NSR.

If NBT get sold from the Nu network to the market, share buy backs or dividends incorporate or distribute, respectively, the value of the sold NBT to those with a financial stake in the Nu network: the NSR holders.

A share buy back is expected to increase the price per share leading to a higher market value. The difference between the increased market value and the market value before should ideally be close to the value of the NBT that was meant to be incorporated into Nu.

With distributing dividends the value is leaving the Nu network if you look at it on a blockchain level, but economically it's still in the Nu network: in the pockets of NSR holders.

Share buy backs intend to increase the value of NSR, distributing dividends might increase the value pf NSR as well, but in the first place aim to distribute the value equivalent of the sold NBT to NSR holders.

If NBT need to be bought back by Nu, because NBT demand on the market is very low, NSR will be issued and sold.
This will have an effect on the NSR price, it will be pushed down.
But NSR holders have been rewarded for that way earlier with share buy backs or with dividends.
They are incentivized to agree with issuing NSR and selling them, because if they don't, they risk the peg and endanger all their stake in the Nu network."

"The peg is guaranteed by the Nu network. As long as the market value of the Nu network is sufficient, the peg is safe.
There's a layered liquidity model and one layer deals with selling NSR (NuShares, the shares of the "Nu network" corporation) to buy back NBT and burn them. Payouts from liquidity pools are just one of the expenses of Nu. "

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blog   2015/09/26   gbboy

Nu and B&C: Synergy between 2 Independent DAC

"The combined value of Nu and B&C Exchange is greater than a single blockchain embodying both functions. This is due to better scalability, independent release paths, greater simplicity and branding advantages."

1) Powerful synergies and mutual interests:

"There will be a powerful synergy between the Nu network and B&C Exchange, with Nu bringing liquidity to B&C and B&C lowering costs for Nu."

"B&C Exchange will be a powerful tool for significantly lowering NuBit liquidity costs because the risk of exchange default and theft will be much lower than it is with centralized exchanges.

NuShare holders will have a powerful interest in providing a great deal of NuBit liquidity on B&C because of its low cost and the broad overlap in ownership between the two networks. "


Nu will be supplying the liquidity on B&C so trades can happen sooner rather than later.
Without a stable cryptocurrency that is liquid, traders have nothing to hedge volatility. For an exchange to be a success, it needs liquidity.
BCE has a vital interest to support NBT trading pairs. If that requires free/cheap access to the blockchain for Nu to allow NBT liquidity providing it's a small enough price to pay for BCE.

 2)  There are at least two ways B&C Exchange will benefit NuShare holders.

"First, NuBits will be used as the denominator on many if not most trading pairs. The exchange will feature a BTC/NBT pair, LTC/NBT pair, PPC/NBT pair, etc. This is expected to increase the number of NuBits held, which is likely to result in dividends to NuShare holders, NuShare buy backs and burns, or both.

The second way B&C Exchange will benefit NuShare holders is by offering a NSR/NBT trading pair that will increase NuShare liquidity, which makes it a more attractive investment."


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blog   2015/09/04   gbboy

Venture Capital with the Peershares template

We have the tools necessary to build an entire crypto-ecosystem on top of the Peershares platform in a similar fashion to other crypto 2.0 platforms.

We are envisioning each DAC with its own customized Peershares implementation.

Nu is particular because it will act as the central bank of the economy, albeit it goes without saying now decentralized and distributed and flattened out.

What is next? Hopefully an ever increasing supply of DAOs, each offering its own novel business model.

Also, sometimes funding can actually come from a pre-existing DAO. (BCEX was partially funded with Nu)

We are discovering a new type of venture capitalist here: the DAO.


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blog   2015/09/03   gbboy

Why does Nu have the right approach to distributed reserve banking?

Nu has the right approach - namely: the currency price is that of the market(s) and stability is reached when demand and supply sides are balanced, elastically so that the price is constantly maintained to its stable value.

Now, how do we elastically, dynamically control the buy/sell sides on market?
By having intelligent shareholders that monitor in real time the network, that have an incentive that the peg is not broken.
How is that possible? every nushareholder is smart, has a direct voting influence, and the more nubits spread, the more there are nuclear shareholders that monitor Nu in real time and providing new motions, making it more robust.

Whereas the FED will sell its currency to banks that will resell them to end users into loans,
(in a pyramid structure) Nu will ask reputable liquidity custodians (local banks?) to resell NBT for a fee so that the peg is maintained.

Nu is a currency supplying reserve bank that is co-owned, and flattened out - that is distributed among as many shareholders as possible and pyramid-scheme-proof.
It appears that the satoshi blockchain thought form is perfect for that task - to distribute shares and make decisions based on a consensus among an indefinite number of people scattered on the web that do not need to know each other.

Nusharesholders cast vote because they have an absolute direct business incentive (they have nobody above, nobody below to oversee or check out, no intermediary to pass the money onto) to do so - so that the peg is maintained

The bottom line: "to have a stable price, you must be able to expand or contract either the supply or demand for the currency. Thanks to the peershares template, shareholders can expand the supply by voting to create it in the hands of particular entities and also support the price by increasing demand for the currency by paying interest on NuBits when necessary."

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blog   2015/09/02   gbboy

Inflation adjusted NuBits

Just pegging NBT to the USD is not good enough for people who are worried about the Dollar inflation.
The good news is that Nubits can be more stable than USD, by adjusting its value in real time vs inflation.

But this is not a priority right now and will be implemented in second step.

This is how we would implement an inflation adjusted currency:

"Someone would advance a motion proposing the character and code we will use to define the currency, as well as its marketing name. They will also propose the use of a particular source and methodology for measuring inflation/deflation.
If passed, the dev team would need to make some minor changes to the code to include the currency.
Supply would be introduced the same way as NuBits, and on a monthly basis custodians would adjust the peg by configuring NuBot with the adjustment indicated by the economic data source chosen by shareholders in the original motion. This could be a downward adjustment in the unusual case of deflation."

"We anticipate that shareholders will begin using a data feed of their choice to configure their vote rather than manually configuring it as they do today. This will be particularly important with multiple currencies because each currency will require a different management of currency supply to match the demand of the currency in question. Because the management of multiple currencies through manual shareholder configuration of voting is impractical, I strongly support waiting to create additional currencies until there is a diversity of stable data feeds offering voting guidance to shareholders."


"NuBits is intended to the the first implementation of a currency deployed on the Nu block chain. The white paper discusses the idea of an inflation adaptive currency that could also be developed. There's a discussion that has been going on over at the Nu forums that starts to dig into what it could mean and the economic theories that support its creation:"


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blog   2015/09/02   gbboy

NuBits can solve 2 problems at the same time

This is possible because NBT price is controlled in real time by Liquidity Provider Custodians.

Problem 1: cryptocurrency volatility, short-term fluctuation, the reason why cryptos cannot called money
Problem 2: FIAT inflation, long-term fluctuation, the reason why FIAT is called "bad money".

"In the first step, we'll manage to eliminate the crypto volatility and in the second step (perhaps one year later), we will resolve the FIAT bad money issue."


≫ 続きを読む

blog   2015/09/02   gbboy