Life, ETH & CARDANO wrap-up

cardano

  • Life & Blockchain
  • Cardano (The final set to wrap it up)
  • Ethereum and the big reparation debate
  • The story of all these losses.

 

Cardano is striving to change the way crypto currencies are made and also design a system that will integrate with legacy systems, or simply work in their stead in places without enough money to make them work.  This project is a collaboration of the brightest minds and best ideas, the leading one for me at the moment is the ability to rate interactions.  After a friend taking me to an art exhibit and activist rally in support of Black Hawaiians establishing a unique identity, I REALLY want to leave a rating for the money we gave them. Ethereum is debating heavily to make reparations for lost and stolen crypto, but how dangerous are the impacts of that decision?  If you think we’re seeing massive losses in the market now, wait and see what happens if they make the ETH blockchain changeable.

Life & Blockchain

If wasn’t a lot, but that $20 donation would make me feel much better if it came w/ some easily viewable comments.  Something along the lines of don’t be such a racist dick in the establishment of your identity.  I don’t thin they realize that they’re making their identity dependent on me, a white guy being an oppressor.  Sure, I may be a little salty, but not as much as my friend who lost an opportunity for bringing a white devil in.  Yes, I may be making it out to be a little more, but that is what it really boiled down to.  All that being said, my friend had NO IDEA that some people who were so intelligent and open minded could possibly be so equally racist.  I’ve seen very few people to have lacked that experience and understanding since leaving the somewhat sheltered enclave I came from in PA.

Cardano wrap-up

Daedalus, the Electron fork creates a world of possibility with Cardano.  This will begin with an HD (hierarchical deterministic) wallet and software maintained on the web like the Chrome Plugin store.  This method will allow programmers to code in JavaScript, HTML5, and CSS, which makes that beautiful web interface we all love and know.  It is adequately clear that government is incompetent, ineffective and generally inefficient at applying policy to protect citizen’s right.  For this reason, Cardano has decided to leave privacy with the user.  This leads regulation rather than allowing policy makers to create another broken system that only benefits the super wealthy and powerful.  The information these regulators are looking for is being put into the hands of the user to decide what they want to share.  Regulators will certainly make it beneficial for users to share, but Cardano is ensuring they have the option.  All of the data will be posted, but won’t be shared in any attributable manner without user consent.  Taking it one step further, all this data will be structured and labeled, allowing users to share only certain pieces.  To top it all off, this data will be encrypted.  Smart contracts are being actively integrated to this system, allowing regulators in as the contract writer permits, but also allows consumer protections and significantly more robust support for user applications that we have yet seen in 2017 or early 2018.  With all that being said, nothing will happen without agreement and it could all go sideways if the wrong people are able to centralize power in miners, as we’ve seen with Bitcoin in China.  Cardano is making strides to mitigate this centralization, but only time will tell how their plan works out.

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CARDANO

cardano

Cardano is striving to change the way crypto currencies are made and also design a system that will integrate with legacy systems, or simply work in their stead in places without enough money to make them work.  This project is a collaboration of the brightest minds from across the world, not claiming to be the best or the answer, but a best effort to provide a single, good answer.  This second part of the Cardano review will go deeper into the core components as identified by the Cardano team.

Cardano Science & Engineering

Focus on continuous change, Cardano has made it clear that a rigid plan is the road to failure.  They refuse to be bound by a white paper, but also see the clear need for documentation, peer review and the ability to constantly improve and upgrade the system toward betterment.  Their first step in building a foundation was to utilize Ourboros Proof of Stake algorithm as it has been tested rigorously and designed with security as the primary objective.  This is vita moving forward as most protocols are designed for speed first, then see security added later, in a far less effective manner.  The energy consumption has also been a huge elephant in the room when it comes to Bitcoin.  It is estimated that nearly 4 US households can be powered for an entire day just by the energy used to verify a single BTC transaction.  That is hugely unsustainable and generally inefficient, which is not something we want for a financial system.  Efficiency reduces friction and cost, which is vital for making this system available to developing nations and the world as a whole in our preparation for the impacts of automation.  With Ourboros and generally Proof of Stake (PoS) algorithms, you must hold a considerable amount of the token to gain trust.  Your stake is equivalent to how much of the currency you own AND stake.  That is to say, you have promised to have and to hold, in sickness and in health, this crypto.  You’re not spending it or trading the currency, but you’re staking it in a safety deposit box and are risking your stake by doing anything illegitimate as a master node or Slot Leader in the case of Ourboros.  This creates the trust relationship for the protocol to successfully run.  This does present a major concern for the future as cryptos become bigger, at what point will we see governments or powerful organizations spend the money to run a couple master nodes just for the purpose of crashing the system in favor of a competitor?  That being said, this is still the best system we have to date.  New Slot Leaders or Master Nodes are elected by stake holders for each time slot, with those having more stake having a higher chance of being elected.  This also helps mitigate a bad actor as mentioned in case of a rogue nation seeking to destroy the system.

Haskell was chosen as the core language, a fork of Electron, Daedalus, was chosen for the interface.  Web architecture was chosen as much as possible and a key-value paradigm with RocksDB was used for the database.  All of these decisions were great for there history and robust infrastructure and community support.  We’re seeing the greatness made possible through Open-source projects.  The modularity, robust fault tolerance and recent shift toward web app development support, Haskell became a front runner.  This language was also chosen because of the dev pool consisting of a great deal of people within academia.  Academia is usually not the best place to find experience for a decentralized project, in my experience however, Cardano seems to be proving me wrong.  They may have gone so far as to focus too much on the methodology and details of their implementation.  A majority of the documentation is discussion of what not to do and why they made their choices.  Get down to brass tacks folks.

 

 

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CARDANO

cardano

Cardano is one of the most complex, well thought out, and usable cryptos to enter the space.  It was started in 2015 with the stated objective of changing how crypto was developed.  There was no white paper because the team was focused on being agile instead of sticking to a rigid plan.

Their plan involved:

Creating a new stack (best compared to TCP/IP)
Separate accounting and computation from transactions
Make everything modular – good coding practice
Apply security practices at start – like BTC and several other cryptos
Plan for upgrades
Decentralized funding for future dev – FINALLY
Planning for phones – About time!
Multi-chain accounting
Cross chain comparability
Build standard protocol from Internet engineering task force
Allow for regulators to oversee, but maintain some anonymity like BTC

Some highlights of the team

This is an important one; they seem actually to understand economics.  They also recognize that every crypto can’t be in the fast lane or it stops being fast, just like the highways where people aren’t ticketed for cruising in the passing lane(s).  Use efficiency instead of novelty, enough doing crap just because you can.  Don’t build it unless there is an apparent and rational reason.  Updates shouldn’t require a hard fork, allow room for patches instead of chain splits, they devalue the currency.  Improve the process for social consensus to avoid future BTCs splitting 1K times.  Regulators want in and need in if we’re going to integrate old systems like ACH and SWIFT.  Include optional fields for things like name and reason for tx, metadata, etc.

New Cardano Protocol Stack

They are developing a two-layer protocol stack to include:
CSL – Cardano Settlement Layer
CCL – Cardano Computation Layer

We’ll see Delegated Proof of Stake from Ourboros, which allows additional protocols due to modularity.  It’s the most secure as of yet.  They’ve got the foresight to engage the community in development, and allow voting for priority development tasks.  This will mitigate the politics and antagonistic parties, like bCash and BTCGold where new chains were created for no apparent reason except politics.  (Yes I realize that block size was hotly debated, but it was only a band-aid on a gushing wound.)

 

Cardano Settlement Layer (CSL)

User layer (application) to be built on top of CSL
– will contain the values of transactions
– 2 scripting languages / 1 to move value / 1 to support applications
– support side-chains to integrate with other ledgers
– support for more signatures, including quantum resistant
– support user issued assets
– separated tx data from computational data

Funding the future

A decentralized trust to fund development from Monotonically decreasing inflationary tx fees.  This is their fancy way of saying that they’ll control inflation to ensure they keep enough money to pay for future development.  This creates a decentralized system where anyone can request funding, but all stakeholders get a vote in whether or not to pay the person.  This requires you bring some legitimate value to the table, or you ain’t gett’n paid.

 

 

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HIVE

This is an intro to an immensely successful, professional, and in business terms, a valuable company that I initially invested in at ICO time, HIVE.  I didn’t invest a significant amount of money but still asked an excellent whale friend what he thought first.  He told me how stupid it was and how they would fall apart.  I explained how this business model and the case is already in use, but lacks an adequate creditworthiness tracker and also doesn’t have the flexibility.  He told me to go ahead if I didn’t mind throwing away the money.  A little beaten down that I would fall for such a bad idea.  Well, I did it anyway, and I couldn’t be happier.

HIVEWhy HIVE?

You may be wondering what prompted me to disregard the advice of a long-time friend and individual who made millions from their intellect in crypto.  I followed the rules.

#1 Never expect to make money when using emotion.

#2 If the White Paper explains mid-level technical details and is well written, look deeper.

#3 Do the admins respond to questions on their chat channel? (Telegram, Slack, etc.)

#4 Is there an existing Business use or a solid case for them to work?

#5 Is the team real? (Check their LinkedIn profiles, are they real people?)

#6 Is their project achievable? (I don’t care what you’ll get done in 10 years, businesses need a profit now, not when we’re all half android.)

#7 Can I keep the token in a real wallet, or does it require some unique, potentially non-secure custom wallet?)

 

Following my first rule, I threw all that emotion out the window and moved with a project that I saw legitimate value to the retail business community in Invoice Financing.  I analyzed the White Paper; seeing all the technical material in there and understanding about half, I felt pretty good and was able to read it.  Readability is essential as it goes to show the project owners dedication.  The admins were incredible when I reached out on Telegram and Slack.  International credit for retail outlets is routine business.  As a sporting goods store needs to get its winter line-up of gear and clothing, they have 3-4 months to pay for that equipment from a factory, probably in China.  This payment must be made as companies aren’t in the business of loaning their product, they need to buy more materials and pay their employees.  There are times when the factory needs the money faster, 3-4 months on a significant order just isn’t going to cut it.  Now, they can sell that invoice, get paid right now, in exchange for a little bit of interest, and the invoice buyer then makes a profit when the retailer pays.  With HIVE, now anyone can lend that money, and the store’s credit is easily tracked with all previous transactions, payments or missed payments included.  This all goes into a credit score, which isn’t so easily manipulated like typical businesses.  Now the people behind the companies are tracked as well.  No more changing names behind a failing business, the world is watching.

So what is HIVE made of?

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Unusual Movements in the Business Market with BlockChain

 

We’re finally seeing what the hopeful few have been talking about for years, business adoption of crypto.  An ICO I thankfully invested in early in 2017, HIVE is doing incredible.  Now my wife asked I look into something called Banana Coin.  If you’re at all like me, you immediately assume this is another trash token made as a joke by someone to see how much money they can get from morons.  It turns out; this is in my mother-in-law’s home province.  A company has been growing bananas in Vientiane, Laos for approximately three years now since early 2015 and they want to expand.  I don’t know much, anything, about commodity stocks, but this token seems to have a legitimate purpose very similar to the conventional investment arena.  Their ICO is ongoing and from my perspective is a community service with potential for profit.banana coin

 

Banana Coin

This is by far the most straightforward token I’ve ever had to explain.  One token represents 1 Kilogram of bananas from the company.  Seriously, that’s it.  Their primary export market is China, which we all know is economically growing at near the speed of the U.S. during the 1950’s.  The token can be exchanged for bananas on site, but also allows for trade just like the wheat or oil market.  It is important to note that commodity markets can be extremely volatile.  For instance, if China decides to place an embargo on Laos, there is nothing we can do but cry.  As the primary market, the company would likely fail, and this token would become worthless.  If China puts some economic help in place to encourage more importation of bananas from Laos, we may see a massive spike in price.  The only reason to hold this token is in hopes of a big price spike.  There is also no guarantee that it isn’t a scam.  Just because they say they will accept the token for bananas doesn’t mean the company will after they get enough money to buy the land they want.

Bottom line, if you have the money, want to take the gamble of potentially doubling it, and want to support a growing 3rd world economy, throw some money at it.  If that isn’t you, then I’d advise staying clear.  Until I see some more documentation and communications from the company, this remains at a C, invest at your own risk.  I threw in .5 ETH, but only because I can afford to lose it, not because I NEED the potential double or triple profits.

My referral link if you want to invest AND support the show: https://bananacoin.io/referral/eba97f855693a5d1ed81a584b3489552

Business is shifting

You might be wondering why I’m talking to you about a commodity token, and especially bananas.  This goes to show the ever-shifting crypto market and the adaption of business to it.  We’re starting to see the international market adopt crypto.  This brings me to our next spotlight, HIVE.  They have done for companies the other side of what PROOF has done.  As a business, PROOF allows you to tokenize and ensure your business with ease.  HIVE, on the other hand, will enable you to get a loan, give credit, or accept loaned crypto in exchange for retail products.  After the transaction complete, you are rated.  This process, without the rating, is incredibly typical in the retail industry, but HIVE has taken it a step farther.

 

 

 

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CENTRA Tech

Centra, a credit card, cryptocurrency, wallet, blockchain, network, merchant services provider, and currency exchange.  If this sounds like too much to be real, you’d be wrong.  This company started selling tokens at $.50 each and their value has soared as they have developed an incredible platform, app, and credit card to make spending your crypto easy.  They did things the right way and managed to avoid the hazards of the Waves network shutdown, making them the only game in town for a period of time.

CENTRA services

Centra Card was the core product to bring the company to market in late 2017.  They designed a currency exchange platform to easily spend Bitcoin, Ethereum, Centra Token (CTR), Ripple, DASH, Litecoin, Zcash, & Monero.  They’ve also got plans to add 12 more crypto-currencies in 2018.  All these tokens come together for easy spending in the Centra wallet.  This is a solid business plan with some serious security concerns due to the centralization, however, effectiveness is paramount in such an instance.  We’ve also not seen any attacks yet, so big thumbs up to Centra.

centra

 

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ICO Season January 2018

We all love ICOs and I’ve got a couple good ones.

Latium – https://latium.org/welcome/joshBCTpodcast

John Mcaffee is on this one, that’s it.  They offer the same service as Boon Tech and EthLance, but neither of those have Mcaffee.

Boon Tech – https://boon.vc/registration/?refid=01201802033304

I heard about these guys from the Bad Crypto Podcast, some amazing folks over there.  The Boon Tech team is incredibly intelligent and certainly a team & project worth putting money behind.  There is some ID verification, so don’t wait.  I lost track of time this weekend and missed the 20% bonus and only got a 10%.  Get in there now before you miss out.

EtherDelta – https://crowdsale.etherdelta.com/

They are a pain to work with, but you can’t beat the ability to trade ANY ERC-20 token you want.  Their addition of a mobile app and adding BTC will be a real game changer.

Ignite Ratings – https://igniteratings.com/tokensale/  (Yoshertarian)

 

Rate the show, get free tokens: iTunes – https://itunes.apple.com/us/podcast/buildingcryptotodays-podcast/id1320553209?mt=2

FaceBook Group – https://www.facebook.com/groups/buildingcrypto/

 

Interested in getting started with Bitcoin or Crypto in general?

Looking to learn more about starting in crypto, check out the ultimate beginner’s guide.

Listen to the Building Crypto Podcast & connect with us at:

www.BuildingCrypto.Today / iTunes / Stitcher / Facebook Page / Facebook Group / Busy / SteemIt / D Tube / Twitter / D Sound

Free Crypto For You

Who wants free Crypto?  It’s a giveaway and you can get in on it.kin

First 50 people can get up to 300 Kin each.

+100 KIN – Rate the Building Crypto Today podcast on iTunes.

+100 KIN – Subscribe on your favorite podcast app.

+10 KIN/per friend(up to 100 KIN) – Share the podcast with a friend interested in crypto. (Screenshot the message so we can know who to expect)

       “Hey, I found the Building Crypto Today podcast geared toward helping new people get into crypto.  Check it out and you can get some free crypto. www.BuildingCrypto.Today/FreeCrypto-1-18”

How to claim your free crypto

  1. Post that screenshot to the comments section of the post on BuildingCrypto.Today/FreeCrypto-1-18, OR on the post in the FaceBook Group, OR email it to Josh at BuildingCrypto.Today
  2. Must include your ETH address, because I can’t email you crypto.
    1. First to post the comment or email me gets the crypto.  This is to avoid someone claiming your work.

iTunes – https://itunes.apple.com/us/podcast/buildingcryptotodays-podcast/id1320553209?mt=2

FaceBook Group – https://www.facebook.com/groups/buildingcrypto/

 

Interested in getting started with Bitcoin or Crypto in general?

Looking to learn more about starting in crypto, check out the ultimate beginner’s guide.

Listen to the Building Crypto Podcast & connect with us at:

www.BuildingCrypto.Today / iTunes / Stitcher / Facebook Page / Facebook Group / Busy / SteemIt / D Tube / Twitter / D Sound

 


SteemIt The Blockchain & Next Gen Facebook

If you’re like most people, you share your life and cool things from other’s lives on the regular over FaceBook & YouTube.  This doesn’t do much for you beyond waste time and generate revenue for the news/social media giants.  This causes some hard feelings for a lot of people. We share things we might want others to see and FaceBook or even YouTube then decides to take it down because some snowflake got their feelz hurt.  Even better is when you’ve built a business and life on one of these platforms and they decide overnight to completely change the business model and cut you off.  That garbage ruins lives!  This is why I laugh when I hear Mark Suckerburg talking about decentralization, he doesn’t want that anymore than a government.  Al decentralization means is a way for central authorities to cease to be of value or use.  No, he’s not serious about it anymore than wanting to boost stock prices and launch a token to make more money.  It will continue to be centrally controlled and funnel all value into their company and away from the real value producers, us.

 

A better solution to FaceBook and Youtube, Steemit

SteemIt isn’t quite like Facebook and DTube is remarkably similar to YouTube, but neither is ready for showtime.  They are getting closer by the day.  D.Tube is opening up the gates for video producers and viewers.  SteemIt is the platform both use, but the awesome part about blockchain is that they allow for various interfaces to the exact same data.  D.Tube, SteemIt, and D.Sound allow anyone to post content, no big deal though, right?  For every like your post gets, you get crypto, just a little bit, but you get some.  If you post the greatest meme of the week, you make a couple hundred $$$ worth of Steem.  Steem isn’t a company, but a community, so there is no benefit to making anyone rich without making everyone rich.  You’re finally paid what you’re worth for the content you create.  You can also check out cool info on different interfaces like Busy.org and Chainbb.com, it’s too cool!  You can even get paid for liking and sharing quality content.

Don’t get too worked up, you’re not going to get rich for nothing or overnight.  There is a great deal of competition on SteemIt and you’ll have to earn your rewards.  Get some STEEM ($40 worth?), power up your Steem Power and start creating and curating content.  What that means for you if you’re brand new, post, like, and Share stuff, then you get some money.  Now, let’s get into some of the more technical & ugly details.

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Proof & Assurance Market Protocol (AMP)

If you’re wondering what Proof or an Assurance Market Protocol is, you’re in the right place.  Even after a look at the whitepaper, you can be a bit confused.  As the crypto market evolves we see a growing number of trash coins, scams, duplicates, copies, and generally useless trash.  Occasionally we see a solid coin with a quality team actually tackling a real market problem.  Proof is one of those very few quality projects.  I have yet to go a day without getting some sort of feedback from them.  These are incredibly smart people who need a little help in the marketing department, but have the know-how to make this complex project happen.  Mike is a BOSS and the team is equally high caliber.

 

—-BOTTOM LINE—-

  1. Proof is a utility token hosted on the Ethereum Block Chain.
  2. Now anyone can tokenize an asset. (Shipment, company, warehouse, conference tickets, etc.)
  3. Tokenized assets can be insured with the Assurance Market Protocol (AMP).
  4. Regular people can make money by doing exactly what multi-billion dollar banks currently do, researching and hedging their bets for or against the success of an insured asset.
  5. The fluctuations of the crypto market are hedged by placing real $money$ into an escrow account.
  6. The opportunity to make real profits and spur on innovation through crowd-based venture capital is awe inspiring.

My vision for a possibility of this platform is a van I bought coffee at recently, Drive Through Joe.  I know, it sounds a bit sketch, buying coffee from a van, but it was really good coffee and I DON’T buy coffee from shops.  Since they had been show such innovation by setting up as a StarBucks was being renovated, I wanted to support their ingenuity in timing.  Let’s say they incorporate their LLC in New Jersey, they can tokenize the vision they hold for this coffee van.  I buy $5K of the total $20K of tokens from this van operation and in exchange they agree to pay me 20% of *profits*.  They also agree to pay insurers $500/mo in event they get a fine, robbed (not by the government), make someone sick, drive over a kid, or their van dies on them.  That’s potentially a lot of insurance to pay-out so there is a lot staked that they will fail.  I have faith that this idea will be a success because I see a real market need for them.  They start accepting crypto and are therefore able to easily pay their monthly premium in ETH.  They’re also able to share profits and pay their employees and get a rating commensurate with their worthiness to pay on their promises.  Best part, we all made money by helping a small business succeed without any government protecting anyone from their own investment strategy.

proof

Proof Solves Tokenization during a transition to crypto

Problem #1: What company understands tokenization?

Proof, while not the first, is the easiest to make a token.  Just like shares of a company, you too can now tokenize anything without all the burdensome regulations imposed by governments.  In the Proof Dashboard anyone can create a token of multiple classes, dictating the total number and price in several currencies.  You have the ability to choose to make it private, exchangeable, connected to a smart contract, a legal contract, and you can market it with your own pictures.  Everything you need for a successful ICO or tokenization.  Put it on the blockchain that best fits your project, Proof for testing, Bitcoin, Ethereum, or HyperLedger Fabric.  Oh an yes, that’s right, you read correctly you’ve got the ability to create an ICO landing page, hosted by Proof and can use their user interface (UI) to create a smart contract.  Nowhere else on the internets can you find a company willing to take time from their day to not only host for you, but, create a platform to launch a token, help you troubleshoot, but guess what else.  Failure protection.  Don’t worry, it’s not some whack job socialist ponzi scheme, read on.

Blockchain_options Asset_Type2 Asset_type1

Problem #2: Mitigating the impact of frauds and failures

Here is the big solution, Assurance Market Protocol (AMP).  Imagine buying the tokens of a startup yoga studio smoothie bar, what’s the chance you’re putting a dime anywhere near something like that.  A bit difficult, right?  How about this, you, like me are sure this will fail in an epic way, so we do research on the company.  We then stake money against the asset otherwise to be looked at as in favor of its failure.  Now there are 200K people who like us have done research on the people, project, vision, etc, and they believe it will succeed, so they want to support it.  The asset holder (some people who put their money in to own tokens) want the project insured against fraud, failure, fire, a dead yoga student and a number of other catastrophes.  Much like existing insurance products, Proof’s AMP platform creates an environment for just that to happen.  Insurers can stake money in favor of the success of the token succeeding.  Each month the company pays a what is equivalent to an insurance premium to the insurers.  This is ALL written out in the token contract created at the time of creation.

What if Yoga Smoothies actually succeeds?

Now let’s be optimistic and say Yoga Smoothies is a huge hit and everyone loves it.  They’re making record profits and are paying their premium on-time, every month to the people insuring their company (Jim LLC).  Their pre-determined measures of success are met, now those of us who were wrong in our research and staked in favor of its EPIC FAILURE, lose our stake.  That stake is split 47.5% to token holders/ YogaSmoothies because they succeeded in fulfilling their end of the contract.  Another 47.5% goes to the insurers (Jim LLC) and lucky us, Proof Token holders get 5% of the awesomeness.  This is however, quite unlucky for us who staked against Yoga Smoothies success, we lose all of our stake.  With great reward comes great risk.

What happens when Yoga Smoothies fails?

Yoga Smoothies didn’t meet the pre-defined requirements for success.  Now the people (Jim LLC) insuring this yoga studio got a monthly premium paid to them for 15 months and month 16 was the deadline.  The deadline has passed and Jim LLC loses their stake which equated to 90% of the companies value.  The insurers lose all their money with 47.5% going to the asset holder, Yoga Smootie or their token holders. If you’re with me and think Yoga Smoothies is stupid, then we just made 47.5% of the insured value because we did our research and successfully predicted the company’s failure.  A fair bit of risk is socialized, but so is the gain, unless you’re a Proof token holder, then you win no matter what, with the missing 5% paid to you every time a payout is made.

Ways to support the Show and get a top notch product:

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Securely store your crypto with a Ledger Nano S

Need to do a crypto exchange

A VPN is surprisingly important, support the show and start surfing securely.

Check out Binance, one of the most diverse exchanges on the market.

 

Other Cool Points of Proof

       Project Investment Curation Process – When an asset is valued at over $100K USD AND is insured for more than 60% of that value, it is featured on the front page of Proof.  This will be a centralized process conducted by Proof until the AMP platform is complete and able to complete the process based upon crowd knowledge.  Buyers (Jill) need not worry about uncertainty when buying a tokenized asset.  On the asset page, AMP integration allows the potential investor/buyer (Jill) to see how much of their investment is insured so as to make the most educated decision.  The investor/buyer (Jill) is also able to review the insurance terms (are we insuring for earthquake damage in Southern California, or nuclear damage near Fukushima, Japan) as well as insurance payout triggers (insurance paid on failure to pay rent due to returns after Christmas returns, in January, fire, or robbery).  All parties are able to see how much is staked for/against the asset as well.  Best yet, a current, averaged rate of return is also posted along with the asset holder/token issuer’s rating combined with all the details of that rating.

Credit Worthiness & Reputation Ledger – Upon creation, Proof’s reputation system would average all token buyer ratings 1-5 Stars, then weight each rating based on the buyer’s holdings.  If Bill Gates swoops in and buys $3M of an asset, he’ll get significantly more weight to his 4 Star rating than Bubbles from the trailer park who gave it a 1 Star review for his $20 worth of asset tokens.  This all goes in to make a combined issuer rating.  Now you can see a credible ranking of Yoga Smoothies based upon their previous business ventures and weed out scammers or the extremely high risk, brand new investments.  It’s all stored on the Ethereum Blockchain, so no worries of it being manipulated after the fact.

 Safe Holding of Fiat & Crypto – Proof users can use a credit card to buy crypto & sell it, initially, for USD or EUR credits.  Proof is required to maintain money in a bank, though this bank has not yet been identified, which has both positives and negatives.  In order to avoid being such an apparent scam like Tether, Proof created the Crypto Fiat smart contracts.  This Crypto Fiat pegs Ether to EUR or USD in an Ethereum Wallet.  This opens up a price prediction market, which leaves some obvious concern for market manipulation, but from my perspective, this is an acceptable level of risk due to the vast number of users and platforms on the ETH blockchain.  The Crypto Fiat is designed to increase the ETH pool from commissions, which in my opinion will lead to potential failure or solvency problems at a minimum, due to speed of growth.  This successfully mitigates exposure to theft, account freezing and flippant regulators thanks to the crypto being held by a smart contract.

Crypto – Fiat conversion – By allowing Proof users to switch from Crypto-USD (C-USD) and Crypto-Euro (C-EUR), any government censorship or arbitrary regulation is mitigated as well as small currency price fluctuations.  I have great concern regarding the stability of this currency peg due to market laws.  I simply fail to see a way to guarantee that a currency is always pegged to another, unless you run a large enough exchange, like Bitfinex, which would allow you to undermine any real market movements.  Time will tell on this one.

       Event Validation & Settlement Smart Contract (EVS) – It is long and sounds extremely complicated and it is, but this is the core of the platform.  The EVS needs to ensure the contracts, both smart and written are compliant with the AMP platform, which is done in combination with prediction markets.  EVS needs to read/write to control credit/reputation scores, read from the prediction market to reconcile with the token smart contracts and ensure control of the payout mechanisms, making it the most attacked and depended on protocol on the platform.  It really is the proverbial keys to the kingdom.  All the while, all money is locked up and controlled by this centerpiece.

       Problem Mitigation (AKA Foresight) – This highlights just one reason I love Proof.  They have incredible foresight.  They’ve really taken the time to think through problems and are very honest about not having the answers to everything.  They still provide their best answer, but recognize that significantly more work is needed to make the crypto space stable enough for mainstream adoption.

  1. Smart Contracts are seeded with a TON of ETH as a reserve.
  2. They want everyone to have the ability to buy fiat pegged tokens which contributes to the reserve.
  3. .5% of every fiat pegged token purchase gets tossed into the original reserve contract.
  4. 1% of each fiat pegged token purchase is a fee that mitigate price fluctuation.
  5. An ETH price prediction market is being created, which sounds very similar to futures trading, to put money into a big pot to actually support the pegged assets, unlike that scam garbage Tether.

Price Prediction Market – This generally utilizes Proof Token holders as backers of its value.  If you didn’t realize that some of the ETH you contributed to the project was going towards backing a pegged asset, you should have read a little better.  What that means is, if ETH price dumps in half today and $2M of C-USD is sold for USD on Proof, your money/seed funding is going to support that discrepancy.  You also stand to gain based upon the exact same principle.  Keep in mind, Proof token holders still benefit from all transactions.  Members in the prediction market stake their ETH price predictions and win ETH based on those predictions.  10% of each stake is taken as a commission and put into a reserve fund.  Reserve funds maintain 20% more ETH than the current market rate.  This becomes incredibly difficult in markets like that of December 2017 where everything nearly doubled in 3 weeks.  30% of all commissions is given to Proof Token Holders (MORE MONEY) and 70% is put into the buffer fund.  At present, the best plan to identify market movement and crypto price is through creation of an “Oracle”.

       Oracle – This is just a fancy way of saying a running average of 20 of the highest volume exchanges to be sourced.  This also removes outliers, but is still in need of some improvement in the future, which is conveyed in the whitepaper.

       Safety – If you’re an early investor like me, this might make you cry inside, but it speaks volumes to the long-term stability of the company and platform.  50% of all proceeds were dedicated to the C-USD/C-EUR funds.  Why might you cry?  At time of the Pre-sale, ETH went from a peak to an ugly dip.  The middle had the required 10 ETH minimum at around $2K.  As of 29 Dec 2017, that’s $12K.  You would have done way better in an ETH hodl than buying Proof, but that being said, we took a gamble to make this happen.  Take the smart route and buy as much as you can on EtherDelta now that it’s basically free because the future is looking incredible.

      Support the cause – 15% of all revenue Proof has promised to the Ethereum Foundation because they want to be a part of the solution rather than the problem.  The ETH Blockchain has seen some incredible difficulties and Proof is stepping up, volunteering time to help better prepare it for coming change.

If this sort of thing interests you, I HIGHLY encourage you to check out Proof’s white paper, which I sourced all of this information from at, proofsuite.com/media/whitepaper.pdf

**That being said, they need to update their Apache and get some better site security to show a different error page, it’s vulnerable to a ton of different exploits.**

 

 

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