l0k1 Witness Update March 29 2017

in #witness-category7 years ago

Today


has been a big day for all the Witnesses with the upcoming HF17/18 tomorrow, and I have been very busy not just getting my servers upgraded, but also finishing off my compleat witness management system. It has helped me get the process finished quicker although testing some of the parts of the scripts caused unwanted repeated replays.

My witness servers

My primary node is now up and running and activated, the feed setter is running but the secondary is finishing a replay and after that I will activate the failover script and be able to put it to bed, just check up on it daily to make sure nothing has gone amiss, or the failover has activate requiring me to restart and possibly replay the primary, which is a big relief.

The Forkening

I am very pleased that the hardfork has been amended to the satisfaction of the rest of the witnesses, because now we will see how this new 7 day payout period works out, and many useful features including assigning rewards for posts to other accounts, creating accounts by irrevocably delegating SP (this will make it a lot easier for me to implement the Sybil Workshop when I get it going) and because I have now got a nice neat system to manage my servers, I can devote more energy and time towards my witness services.

My Witness fiscal policy

As always, I set my SBD interest rate at zero, because I don't think we need any more SBD than we have until at least the price of Steem goes up a lot higher, and the pegging algorithm still makes too much in my opinion.

I am also converting every bit of SBD that I win in rewards to help keep the debt load down, as I think that it's costing us all about 13% per year, which is way too much.

My price feed is set on a roughly hourly basis, and I think I can say that after this evening my infrastructure is ready for top 19 service so if you have been holding back from voting for my Witness because up to now I have been in a process of fiddling, fixing and breaking it, that is more or less now finished.

What's next?

I will be taking a little bit of well-earned rest for the next couple of days, and within the next two weeks I will be in my own apartment, hopefully, probably after next Monday when my next power down payment comes through.

I am not powering down because I want to get my money out of Steem, but rather, because I wanted to get out of Amsterdam where I was unable to maintain good workflow and my progress was very slow.

Because I need the money to get set up here, as soon as I have a surplus I will be stopping this, because Steem Power is a very good investment and I would like to ultimately be able to more or less cover my base costs with it, which means I need to try and keep it increasing, ideally to the point where a single power down pays all my bills for a month if I need to.

Self-assigned tasks

Of course, relaxing isn't gonna keep me happy for log, so in the next day or two I will resume developing my website and as a matter of priority, get the Sybil Workshop operational and accepting and processing orders. After that is done I am not sure what I will be doing next.

I want to make a payments tumbler system, though my initial concept of managing them directly myself as a service, I am leaning more towards writing instead a peer to peer tumbling system that will allow a larger number of nodes in the mesh, each one directly being paid for running the service as they bounce the payments around (which is going to be an interesting puzzle how to secure it against bad behaviour).

New partnership in developing blockchain applications/systems

Outside of that, I am now working closely with @faddat to develop a blockchain system he has been working on, and, importantly, learning how to program network servers in the Go language, which is highly optimised for this type of application. As things happen with that, I will be writing reports from time to time what we are doing.

Note that this blockchain system is going to be promiscuous, and is intended to act mainly as an intermediary system to link many blockchains together, and a core element of the project is building a simple piece of hardware that @faddat is in the process of procuring production partners to build the hardware, so that people can buy these devices and start earning tokens on the network by providing services within it.

I don't know in much depth yet what the system involves because since being inducted into the project I have been very busy getting my management system and servers ready for the fork.

I have some big ideas of my own about a blockchain system, and perhaps after I have got up to speed with Go and @faddat's system, I may start working on a blockchain based replacement for Tor in which you can get paid for hiding other people's traffic from large scale surveillance systems, which is just the beginning of a full dark chain that will incorporate and monetise anti-espionage services and protect private commerce from potential criminal and/or government (ah, but I repeat myself) interference.

😎


We can't code here! This is Whale country!

Vote #1 l0k1

Go to steemit.com/~witnesses to cast your vote by typing l0k1 into the text entry at the bottom of the leaderboard.

(note, my username is spelled El Zero Kay One or Lima Zero Kilo One, all lower case)

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How do you feel about the price of SBD spiking? Clearly there is some demand for it.

Really, SBD is a redemption certificate. To be redeemable, there has to be some guarantee that it can be redeemed (converting is redemption, basically).

It doesn't matter how much people want them, or want to get rid of them, the price cannot widely diverge from USD. The difference between the two is paid for by every holder of steem because when SBD goes up, steem supply has to be increased, which devalues the Steem (demand high). When the demand for SBD is too low, it's not such a bad thing - this causes contraction of Steem supply - but this can have a downside too because it reduces the amount of Steem that can be paid in post/curation rewards, in the short term.

Thus, the more SBD there is, the more likely the supply of Steem is going to rapidly change, and this leads to a situation where the supply of Steem has to be continuously increased over time to hold the peg. This causes an asymmetric pressure on the Steem price, specifically, downwards. If the SBD goes down in value, steem supply has to be contracted, and if this were to go on for a long time it would reduce the amount of steem distributed to post rewards (and possibly witness payments too), though the contraction of supply would then cause a bounce in the price, which would then drive up the SBD.

The big spike in SBD was caused by this, I believe. Have a look at the chart to see when the steem price went up to nearly $0.40, and then a delay, and SBD went up in value sharply. I am not sure exactly what the delay was but I suspect it was almost exactly a week, or two weeks, which is a period during which supply parameters for both are calculated.

Also, regarding interest paid on SBD, I think this is wrong. Interest payments are supposed to be the compensation for not being able to spend it today. You can spend this asset. Although banks do issue somewhere around 1-2% interest on cash deposits, this can only be sustained in a bull market. If these interest payments on spendable liquid assets rise, while the economy shrinks, everyone is heading for the poor house. Being paid to spend money is getting your cake and eating it.

There is so many proverbs about this, that I am amazed anyone thinks it is ok to pay interest on liquid assets. Just because they do it in the banking system does not validate it.

A bird in the hand is worth two in the bush

You can't have your cake and eat it too

If I lend you money, I should get more money back in return, because I was unable to spend it during that time. This interest rate is supposed to be regulated by how much money is being held off the market. Lots of savings means low interest rates because the supply of lendable money is high. When nobody is saving, the interest rate has to go up because otherwise people will consume more they would, consumption is the destruction of wealth.

Sounds like you have many cool projects in your mind. I think that during your well earned rest, your subconscious will continue working on them, and things will flow when you get back to work.

The project with @faddat sounds interesting. I'll be looking for more information about that. Best wishes on all you do!

Most informative, thanks for posting. I like your posts and follow you.
I fail to innerstand the tech talk on witness servers (no worries, relatively new but intuitative ; ) ).
I enjoy hearing what's happening in you life and the other points
are spot on amazing :
blockchain, promiscuous, earn tokens hardware, oh my!
A blockchain based replacement for Tor, My intuition says amazing!
I attempted voting for you but owner pass word failed and beyond my knowledge at this time.

Thank you :)

Perhaps you could use some technical support... I help you vote for me, but also probably help you with your ability to use the platform, fair trade, I think? If you want to ask directly for assistance message me in https://steemit.chat

I should add a note to my post template footer that I will provide assistance directly to anyone who is having difficulty voting for me :)

I gladly accept your generous offer, Thanks.
For me life is full, many irons in the fire, so it may be a little time before I am able to engage on steemit chat, which is also another mysterious doorway, : )
Steem on bro

Congratulations friend, I want to see you rich :D

Thank you for posting Loki.

Congratulations on getting set up successfully.

Yes...a Tor on Grapheme Blockchain sounds like an idea whose time has come.

Wishing you all the best. Cheers.

Definitely not building on graphene, though it is pretty awesome. I came up with the idea of using some kind of blockchain/distributed system to compensate people providing routing services like Tor (the reason Tor doesn't have them is the lack of a scheme that decorrelates the payment and the traffic), back in about June 2013.

I didn't really understand how blockchain mining systems are a random distribution of new tokens that well back then, but steem made it blindingly obvious. I have many variations of schemes to allow the anonymisation of the payment for this traffic, though I need to get back to working on it and actually implement it.

Hopefully soon. And since I got my witnesses sorted, maybe I should sit down and redo the Go tutorials and learn how to program in that language.

I have just voted for you. I agree with your fiscal policy and your reasoning for it.

exciting... i'm also waiting the H/F....^^

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