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Aha. When I was thinking of how to set up a distributed marketplace, I came up with Proof of Burn myself. The idea would be that you want sellers to pay somet
by sillysaurus3 9y ago
Aha.
When I was thinking of how to set up a distributed marketplace, I came up with Proof of Burn myself.
The idea would be that you want sellers to pay something to participate in the market, but it's not fair for them to pay it to a central authority. So the solution is to burn some coins.
I should really put together the rest of the ideas into a whitepaper or something... There's a way to do a distributed marketplace in a fair and reliable way. There are a few people trying to do that currently, but most of them seem hung up on some weird design decisions.
Mainly you want to be able to see how many orders a seller has "in flight" at any given time. If 30 orders are placed, and the seller hasn't processed any of them, it's a good sign they're going to welch with the coins. The fact that certain currencies are publicly viewable (BTC for example) allows buyers to have those insights into sellers' activities in a distributed fashion.
- contrarian_ 9y ago> The idea would be that you want sellers to pay something to participate in the market What? Why would you want to do that beyond covering expenses for scam prevention?
- Tepix 9y agoSpam prevention.
- sillysaurus3 9y agoTrust level. If you see a seller advertise 1 teddybear for sale, and you know they burned 3 teddybears worth of coins just to offer you that first teddybear, you can be pretty certain they're not going to run off with your money. On the other hand, if a new seller didn't spend anything, they could run off with your coins on the first transaction. This isn't just theoretical; it's the central problem in most darknet markets.
- lifeisstillgood 9y agoAnd if they are participating just to build a sufficient level of trust before doing a runner, then you are saying there must be a ratio of "trust to stake" - maybe 1:1 at first maybe increasing - it would be interesting to know what market makers in stock exchanges run at - 1:10 or more?
- wastewaste 9y agoabsolute non sequitur. I'd just think burning the stuff was mad destructive.
- miguelrochefort 9y agoI also came up with the idea of Proof of Burn last week. This would be the ideal one-way upgrade path to a better crypto-currency, without the implications of a coin split (Bitcoin Gold, Bitcoin Cash, Bitcoin Diamond, etc).