Migrating Bitcoin onto the BTS DEX via UIA snapshot/sharedrop?

in bitshares •  last year

Migrating BTC onto the BTS DEX via an UIA sharedrop?!

With the 1st August deadline looming in the near future there seems to be multiple blockchain splits due to the scaling problem that's plagued BTC for years with no solution.

BTC Is going to split into multiple tokens?

Yes! At least one group has stated that they intend to split into their own chain regardless of network consensus for the other solutions, it's worth some further research:

If there are going to be 2-3 splits from BTC, then let's throw in a 4th!

Today in the Bitshares Telegram group, several users including myself discussed the potential of providing BTC holders a third/fourth BTC split option - an UIA on the BTS DEX, distributed via a snapshot of the BTC blockchain prior to 1st Aug deadline & distributed via sharedrop (claimable via import of private key at a later date).

BTC Split comparison (WIP)

Bitcoin (Current)Segwit2xBitcoinCash (BCC)Bitshares UIA
Block Size1mb2mb?8mb128KB
TPS*6-712?5610,000+
Block timing10m10m10m3s
Avg fee$1.35$1.35/2?$1.35/8 ?$0.027
Consensus mechanismPOWPOWPOWDPOS
Inbuilt DEX*
Energy Efficient
Inbuilt StealthSoon!
Inflationary
  • TPS = Transactions Per Second
  • DEX = Decentralized Exchange
    Note: Guessed the Segwit2x & BCC fees, not accurate!

Advantages of a Bitshares BTC UIA:

  • Far greater capacity, scalability and speed than the 3 forks of Bitcoin combined! (7-30 TPS vs 10k+ TPS & 10m block times vs 3 sec block times!)
  • If we do not issue the tokens remaining to be mined (21m total planned) then the BTC UIA would not be inflationary in comparison to the 3 forks, better for existing holders.
  • Far reduced network consensus environmental pollution/harm - DPOS vs POW.
  • Running a Bitshares web wallet or light client does not require downloading the entire blockchain.
  • BTC services which integrate Bitshares will have access to not just the BTC UIA but to the entire BTS DEX (increased usage of MPAs).
  • Ability to trade the BTC token in a decentralized manner within the client against any other token with no middlemen (besides potentially gateways).
  • Users with holdings in addresses smaller than the current average network transfer fee on the bitcoin network will be able to move these funds once imported on the BTS DEX, as network fees are very small!
  • Providing this option to all BTC holders will potentially recruit a significant number of users to the BTS DEX.
  • No need for further BTC development nor network maintenance, no need to worry about centralized POW risks in the future.

Disadvantage of a BTS BTC UIA:

  • Existing Bitcoin services will need to integrate the Bitshares DEX instead of a Bitcoin based client which may pose a temporary development roadblock (slight learning curve).
  • No mining (bad if you've invested heavily in mining), however I've seen several rumours that one of the BTC splits may change POW mechanism.
  • Can you think of any? I can't..

How?

  • Step 1: Perform snapshot of BTC distribution prior to Aug 1st deadline.
  • Step 2: Include BTC snapshot genesis data, so as to enable claiming of balances once an user imports their BTC private keys.

Further research is required for step 2, there will likely however be bounties and or worker proposals for this work if interested!

Thoughts?

What do you think?

Would you use a supercharged BTC UIA on the BTS DEX over the several upcoming BTC splits?

Should the total planned BTC supply (~21m) be issued proportionally to current BTC holders, or should they simply cease to exist & the current BTC distribution will become the final supply (zero inflation compared to other BTC splits).

Relevant reading

Bitsharestalk thread


Best regards,
@cm-steem

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Nice writeup. We are serious about this... unless someone can talk us out of it in the next 24 hours the PR team will be unleashed.

Anyone with solid information about how the other altBTCs will perform in transaction time, transactions per second, governance, and other features please educate us here. I want to make a comparison table.

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Updated the post to be more accurate & included a brief feature/spec comparison table.

I think that if possible, it's a great idea! If we can improve documentation and procedures for performing this snapshot/sharedrop for an UIA we'll likely begin a trend of cryptocurrencies upgrading their technology in this same manner!

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Awesome work! What a way to dramatize the differences!

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Yes, and assuming that Bitshares 3.0 will run on EOS, each migrated project will benefit from parallel processing and unlimited TX/sec.

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Exactly my thoughts. EOS tech brings value to Steem and Bitshares. In Dan's talk about EOS he talked about needing to increase the tx per second into the millions range.

I think Bitshares might be the most undervalued crypto on the market right now.

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@cm-steem - @stan and I are ALL over this.

This is the best thing that could happen to Bitcoin and crypto. Solves all scaling, centralization and useability issues instantly. Please, please do this!

If you haven't used Bitshares or the DEX yet I can tell you that if Bitcoin worked like Bitshares it would increase the adoption rate 1000000000% practically overnight. You could send/confirm Bitcoin in three (3) seconds and it would be a very useable currency.

Bitcoin could do 10,000 transactions per second right now, scale to 100,000 TPS in a matter of days if needed and then, when Bitshares migrates to EOS, scale indefinitely.

And then there's the exchange. Never again would anyone be Goxed, no Polo random disabling of token withdrawals. You can keep your coins in your wallet, which is the same as the exchange. It is what crypto is meant to be.

Bitcoin currently wastes millions if not billions of dollars worth of electricity to provide security via POW mining, which is completely unnecessary. A few years ago it was unknown whether DPOS was viable, but at 800,000 operations/transactions per day DPOS is working much, much better than POW. This would allows us to stop polluting and wasting electricity and get rid of the mining cartel!

Instead of wasting billions on electricity, Bitshares collects transaction revenue in a reserve pool and uses it to pay for maintenance and development. This would allow the Bitcoin core developers to be paid a fair wage for their work, directly from the reserve pool (currently worth tens of millions of dollars!). Bitshares would convert Bitcoin's mining waste into productive wages for the community.

And finally, buying HEROs (Honest Economics Reclaiming Our Sovereignty) on the DEX gives you a built in 5% savings account. Just deposit by buying HERO with BTC and your value is safe (no dumping!) and grows at 5%.

Just... yes!

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What's the best case scenario for this to happen? What is the least harmful way for us to get away from the present bitcoin situation without getting massacred by the kamikaze's and jihadis running the show with bitcoin right now?

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How does one get private keys for individual assets and in this case bitcoin from bts dex? And when it said snapshot in the post above, does it mean like a prtscreen or snippet from my own PC?

I think the idea is fantastic, especially switching from POW to DPOS as it provides a much more fair governance system that can't be controlled with excessive hardware. Better for the planet too!

Would you plan to issue entirely new coins in no way connected to the original chain to prevent replay attacks? If so, scaling to the intended 21 million would be increasingly meaningless as a good proportion of those coins are likely to be lost and there is no tie back to the originals anyway.

The other argument against scaling to 21 million would be the infaltion you mentioned. If people are looking for stability and perceived value in the various post-split chains, this would give the DEX BTC an edge.

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I think the idea is fantastic, especially switching from POW to DPOS as it provides a much more fair governance system that can't be controlled with excessive hardware.

Indeed, no more centralized dev/mining groups limiting the token.

Better for the planet too!

Yep, a massive reduction in energy footprint (less deaths caused by pollution than traditional BTC).

Would you plan to issue entirely new coins in no way connected to the original chain to prevent replay attacks?

Yeah the idea would be to import your private keys which wouldn't be different between the BTC forks.

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Sounds like we should be buying up BTS while it's cheap before things really take off!

Very Interesting and informative. All of it points to a huge setback for mainstream adoption, there are some of us who are already convinced that alt coins will remain a dark web techie nerdy thing and this type of situations is the cause of it. I honestly believe that this is Bitcoins last chance, if they screw this up they will be totally replaced. The fact that there is a consensus mechanism and such weight exerted by those who are heavily invested in mining brings us back to some of the problems we want to avoid with Fiat!!

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I honestly believe that this is Bitcoins last chance, if they screw this up they will be totally replaced.

It's only a matter of time before Bitcoin is replaced by a superior cryptocurrency at the #1 marketcap spot. Once it loses its #1 place, I don't doubt that there would be an exodus of users to 'alternative' cryptocurrencies, away from BTC.

The fact that there is a consensus mechanism and such weight exerted by those who are heavily invested in mining brings us back to some of the problems we want to avoid with Fiat!!

Indeed, mining is massively centralized now.

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But that's my main concern, Bitcoin has come to represent BlockChain technology. Most people don't even know what blockchain is they just know Bitcoin or have heard of it, this is the reason why I'm dumbfounded by the idiocy of this community at times. It seems like they are willing to loose the whole war in attempt to win an impossible skirmish, are we truly at their mercy? with mining centralized there really isn't much from keeping a "government" entity to exert pressure on a specific mining group that controls x percentage of the block's traffic...

I love it! And think I like the idea of issuing the planned supply. Keep us informed on progress!

Amazing! So in the end the BTC fork will have a great outcome, BTC processed with BTS speed not bad!!

It's a great idea, but find a way without a hardfork.

would be cool if there was a wizard bot setup, like byteball, that let's you setup an account and you can link btc addresses via signed message.

this would be more centralized, however, Assets need more functions anyways. such as "lock max amount".

here's how I imagine Bot contact:

Hi

Hello

Register

One second...
Here's your BitShares Account: Acc - Password
LINKS TO WALLET
Make sure to backup your credentials
Just paste your Bitcoin Address to link

BTC ADR

Please sign a message: kgjltzjhelhi

Signed

Thanks! 5 BTC linked, you received 5 BTCINSTA (BTCi)

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It's a great idea, but find a way without a hardfork.

Graphene based cryptos are far more capable of implementing hardfork/mandatory changes than BTC is, we already have several other hardfork worthy changes in BTS' roadmap, we could throw in the change during one of these upgrade periods.

Take Steem for example, they've performed 19 HFs successfully thus far!

would be cool if there was a wizard bot setup, like byteball, that let's you setup an account and you can link btc addresses via signed message.
this would be more centralized, however, Assets need more functions anyways. such as "lock max amount".

This would be centralized though with a counterparty/middleman risk & we would need to monitor signed transactions on one or many Bitcoin split blockchains for a long period of time (unless there was a limited period of time to claim the tokens?).

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Graphene based cryptos are far more capable of implementing hardfork/mandatory changes than BTC

With the exception that you need stakeholder approval, after that you need witnesses and proxies to play along, if witnesses do not play with you, they need to be changed.

to make it short: I can barely see this passing stakeholder voting stage.

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Why do you believe this kind of a change (enabling the snapshot/sharedrop of an UIA against an external crypto) would not pass the stakeholder voting stage?

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FractalNode FractalNode tweeted @ 21 Jul 2017 - 01:14 UTC

#Bitcoin United Offers 3 Second Confirmations & 10,000 Transactions Per Second On August 1

huffingtonpost.com/entry/bitcoin-…

#Bitshares $CNY $USD

Disclaimer: I am just a bot trying to be helpful.

So if one had bitcoin on bitshares dev august one, will he get original bitcoin, bitcoin cash and bitcoin uia?

and if one has his bitcoin on bts dex before august 1, is it automatic to get some bts or will he need to go through the tech steps that you enlisted?

This article ranked on google for; what will happen to bitcoin of bts dex in the event of a split. Like first page but result number 6 or 7

Anyway we can get rid of all the miners and electric waste I'm down. Besides I'm the type of person who wants my money quickly, I don't like to make games out of checking account balances everyday to see what's still pending. Props to the bitshares team

I am so glad to be a part of Bitshares. Great people and leading edge technology.

Isn't the issuer of the UIA a central authority? Can't the issuer issue new tokens as they will?

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Once fully configured, the issuer could transfer ownership of the UIA to either the committee or to null, so as to prevent centralized authority risk.

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Yes, it is, central authority.

Congratulations @cm-steem!
Your post was mentioned in my hit parade in the following category:

  • Pending payout - Ranked 6 with $ 291,14

it would sound a bit cynical but it's the true of life - free money is always welcome :)
So come on, do it

but Bitcoin is like the Highlander - There can be only one :)

In the foreseeable future it will be the same coin based on Nakamoto code, so do not waste time & money as no one outside BitShares community would support it.

PS
Useful discussion/thread about handling the possible splits and forks on BitcoinTalk, started by Theymos

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but Bitcoin is like the Highlander - There can be only one :)

So we don't name it after Bitcoin, we rebrand the token yet keep the BTC distribution.

In the foreseeable future it will be the same coin based on Nakamoto code, so do not waste time & money as no one outside BitShares community would support it.

No it wouldn't, it'd be an User Issued Asset, none of the BTC code/functionality/blockchain/mechanisms would be carried over, simply the current asset distribution. There would be very little support required for the UIA once issued, users could import their keys to claim years later without issue.

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@cm-steem

Hi, I'm talking about actual Bitcoin, not your UIA :)
tl;dr
I see no point in issuing an asset with little to no support among current Bitcoin users, but airdrop hunters :)

PS
the use case is the key, what would be the use case for the proposed "Bitcoin" UIA?
BitShares now has a huge challenging project, HERO, better stick with it, I think

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I see no point in issuing an asset with little to no support among current Bitcoin users, but airdrop hunters :)

Considering we've only begun talking about the idea in the last two days & not seriously attempted to reach out to BTC users yet, I think it's premature to assume that this kind of an UIA wouldn't have any kind of support.

The use case is the key, what would be the use case for the proposed "Bitcoin" UIA?

Primarily as a method of drawing Bitcoin users to the BTS DEX & proving the technological superiority of BTS over BTC.

BitShares now has a huge challenging project, HERO, better stick with it, I think

Considering there are thousands of assets issued on the BTS DEX, we shouldn't as a community focus on only one token.

Thank you for the information you provided.
I am a newcomer to the bitcoin world.
I just 6 months to know what is bitcoin.
This information is very useful for me.
So I am not wrong in making decisions going forward.
My @aroyl will always wait for the latest information about bitcoin from you.

thanks for that info... im actually wondering whats with aug 1.,

and that explains it all... im still learning so eveytime im confused im looking for answer and explanation.... and you help me with this aug 1 issue....

deffinitely follow you... i know i can find answer on your posts.... thanks

good post

Very interesting brother

"claimable via import of private key at a later date"

Uh, no thanks. Claimable via signature signing would be safer.

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Then you introduce a middleman to the balance claiming procedure though.. If you're concerned you could simply transfer your tokens out of the addresses prior to the private key import.

If BTC UIA is not mineable I see no need to increase volume over time. Set at 21 million, inflation out the door and a educate the people.

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Yes, great idea!

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Why advance forwards to the 21m instead of simply taking the current coinsupply as the fixed max coinsupply for a new UIA though?

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That's what we did.

Thanks for the information!

follow for follow @dkinx

thanks for the information

Very Interesting and informative!!! :D

Very interesting post.. I like it.

this post is very informative. I find it valuable when I see a post with important info about changing alt coin values and whatnot. I'll be following and upvoting!

😊☺

I think may be the idea iz fantastic, especially switching from P.O.W to D.P.O.S

There is already a btc uia. It mimics the name of openBTC. And is most probably worthless. No trade for months.

Do not buy uia assets unless you know what they are. 99% of them are shit.

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Was this btc Uia you mention distributed against bitcoin holders? If not its not really comparable to this idea..

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Since it probably is worthless, it doesn't matter how it got distributed. I have dirty laundry? Interested? Dustballs? Get some!

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Technically it will be far superior to the current bitcoin alternatives in terms of security, energy efficiency, maintainability, fees, etc.

If you believe it'll be worthless then please do dump it when it's sharedropped, I'll look forwards to cheap coins! ;D

thank you share information @cm-steem
follow me @hattaarshavin

Seriously speaking BTC split is not a joke , it will give big confusion to the people , but if that happen bitcoin drops its popularity at the same time drops its value.

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It's already splitting into at least Bitcoin & Bitcoin Cash, so why not provide a third supercharged option?