NuShares Votes For Auction to Fund Decentralized Cryptocurrency Exchange
Image Source: NuBits.com
NuShares owners have voted to approve a proposed auction which aims to raise $200,000 USD to fund the development of a decentralized digital currency exchange.
The ‘Blocks & Chains Decentralized Exchange’ or B & C Exchange for short, will use a combination of multi-signature technology and a reputation based trust system to complete exchanges between different digital currencies without the need for central servers to store coins or complete settlements. No central service provider will be needed, but to provide a familiar experience a web interface will be provided. The software will be open source, and if this web interface where to go offline, anybody else would be able to republish a similar service elsewhere without users losing any funds (or they could access the service through other wallets or apps).
Because there is no single point of failure for hackers wishing to steal coins to target, and because a single service provider cannot access users’ funds to disappear with them in the event of failure or fraud, decentralized digital currency exchanges such as this have the potential to offer a greater degree of security to users than more traditional exchanges or other financial service providers. They would also have dramatically reduced operating costs and could potentially, therefore, prove to be both profitable and competitive in terms of pricing.
The B & C Exchange proposes a system in which multiple signatures would be needed to complete an exchange, and signers (who would also run nodes, including for all participating blockchains) would be selected based on a reputation system as an attempt to ensure honesty and integrity. This would be built using the Peershares technology stack which also runs NuShares, and would work in a way that will be familiar to anybody who has used those systems. Users will pay fees in ‘BlockCredits’ and dividends from operating profits will be paid to owners of ‘BlockShares’.
The project development will be NuShares developer Jordan Lee and his team of experienced cryptocurrency programmers.
In order to fund the development of B & C Exchange 100,000,000 new NuShares will be created, significantly inflating the supply from its current level of around 800,000,000, and auctioned off alongside 100,000,000 Blockshares. Each Blockshare purchased will in the pre-sale will therefore come with one additional NuShare. Current NuShares owners conducted a vote over the blockchain regarding this inflationary funding measure, which gained approval today with over 75% coming out in favour of the proposal.
Because NuShares holders receive dividends from NuBits — a digital currency pegged to the price of the $USD and held at that level by trading bots run by NuShares, stakeholders in that project will no doubt hope to profit from integration of NuBits into the decentralized exchange and any increased use it may gain as a result.
Additional details about the Blockshares auction, and a discussion of the B & C Exchange project, can be found on the BitcoinTalk ANN Thread here.
Originally published at cryptonewsday.com on April 28, 2015.