The Supply of Tethers at 27 November 2017 is $675M
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Re: The Supply of Tethers at 27 November 2017 is $675M
#2And the guy who runs tether is the chair of the bitcoin foundation. That position may be cursed.
Re: The Supply of Tethers at 27 November 2017 is $675M
#3The fatal flaw in Tether is that you have to trust the company behind it. The whole point of cryptocurrency is you shouldn't have to trust anyone. And the company itself is so opaque it should send you running to the hills.
I've been working on a new cryptocurrency pegged to the dollar. It's implemented as a smart contract on the Ethereum blockchain, so you can audit it's reserves yourself, at any time, instantly. You can also audit the source code to see that there's no way for me, or anyone else, to withdraw from the reserves. You can buy and sell the currency, Unum, for Ether or a few other cryptocurrencies. Buying and selling occurs directly on the blockchain.
If anyone's interested in checking it out, it's on the Ethereum Ropsten testnet now.
Re: The Supply of Tethers at 27 November 2017 is $675M
#4The fatal flaw in Tether is that you have to trust the company behind it. The whole point of cryptocurrency is you shouldn't have to trust anyone. And the company itself is so opaque it should send you running to the hills. I've been working on a new cryptocurrency pegged to the dollar. It's implemented as a smart contract on the Ethereum blockchain, so you can audit it's reserves yourself, at any time, instantly. Yo…
What do you mean with auditing the reserves yourself? Can I check your bank account to see if the amount is equal to the price*qty of your token?
Regarding the auditing, not anyone, indeed very few, has the capability to audit an smart contract. Was your smart contract, oracle, and software in general audited by a recognized and third party entity?
I am not saying that your approach is not correct but you need a lot of transparency measures beyond the technical solution implemented.
Re: The Supply of Tethers at 27 November 2017 is $675M
#5The fatal flaw in Tether is that you have to trust the company behind it. The whole point of cryptocurrency is you shouldn't have to trust anyone. And the company itself is so opaque it should send you running to the hills. I've been working on a new cryptocurrency pegged to the dollar. It's implemented as a smart contract on the Ethereum blockchain, so you can audit it's reserves yourself, at any time, instantly. Yo…
What do you mean with auditing the reserves yourself? Can I check your bank account to see if the amount is equal to the price*qty of your token? Regarding the auditing, not anyone, indeed very few, has the capability to audit an smart contract. Was your smart contract, oracle, and software in general audited by a recognized and third party entity? I am not saying that your approach is not correct but you need a lot…
There is no bank account, just the smart contract. It holds the Ether, OMG, or whatever other cryptocurrency you send to it when you buy Unum. There's a function on the contract to return the total reserve in USD, or you can check the actual values of the variables being used. Anything on a smart contract is public.
You're right that relatively few people have the technical skills to query a smart contract, but that relative few is still a LOT of people who can verify the reserves independently. Versus the almost 0 people who can audit Tether.
If you're interested in interacting with the smart contract (or any smart contract), you may want to install Mist. It's non-trivial to get started, I admit, and the tooling around smart contract is incredibly immature, but..man it's cool ;)
Re: The Supply of Tethers at 27 November 2017 is $675M
#6Earlier quoted context omitted.
What do you mean with auditing the reserves yourself? Can I check your bank account to see if the amount is equal to the price*qty of your token? Regarding the auditing, not anyone, indeed very few, has the capability to audit an smart contract. Was your smart contract, oracle, and software in general audited by a recognized and third party entity? I am not saying that your approach is not correct but you need a lot…
There is no bank account, just the smart contract. It holds the Ether, OMG, or whatever other cryptocurrency you send to it when you buy Unum. There's a function on the contract to return the total reserve in USD, or you can check the actual values of the variables being used. Anything on a smart contract is public. You're right that relatively few people have the technical skills to query a smart contract, but that…
It seems to me that your currency loses its peg the minute that the cryptocurrency price collapses.
Re: The Supply of Tethers at 27 November 2017 is $675M
#7Earlier quoted context omitted.
What do you mean with auditing the reserves yourself? Can I check your bank account to see if the amount is equal to the price*qty of your token? Regarding the auditing, not anyone, indeed very few, has the capability to audit an smart contract. Was your smart contract, oracle, and software in general audited by a recognized and third party entity? I am not saying that your approach is not correct but you need a lot…
There is no bank account, just the smart contract. It holds the Ether, OMG, or whatever other cryptocurrency you send to it when you buy Unum. There's a function on the contract to return the total reserve in USD, or you can check the actual values of the variables being used. Anything on a smart contract is public. You're right that relatively few people have the technical skills to query a smart contract, but that…
Stupid question - how do you peg your currency to the dollar if you're holding ETH, etc?
Re: The Supply of Tethers at 27 November 2017 is $675M
#8Earlier quoted context omitted.
There is no bank account, just the smart contract. It holds the Ether, OMG, or whatever other cryptocurrency you send to it when you buy Unum. There's a function on the contract to return the total reserve in USD, or you can check the actual values of the variables being used. Anything on a smart contract is public. You're right that relatively few people have the technical skills to query a smart contract, but that…
Stupid question - how do you peg your currency to the dollar if you're holding ETH, etc?
When you buy Unum, the smart contract looks up the price of ETH and gives you a dollar equivalent of Unum. So if you send in $400 worth of ETH, you get 400 Unum.
Then, a month from now, if you want to sell Unum and get ETH, maybe the price of ETH is $500. So you send in your 400 Unum, and get .8 ETH.
Re: The Supply of Tethers at 27 November 2017 is $675M
#9The fatal flaw in Tether is that you have to trust the company behind it. The whole point of cryptocurrency is you shouldn't have to trust anyone. And the company itself is so opaque it should send you running to the hills. I've been working on a new cryptocurrency pegged to the dollar. It's implemented as a smart contract on the Ethereum blockchain, so you can audit it's reserves yourself, at any time, instantly. Yo…
What do you mean with auditing the reserves yourself? Can I check your bank account to see if the amount is equal to the price*qty of your token? Regarding the auditing, not anyone, indeed very few, has the capability to audit an smart contract. Was your smart contract, oracle, and software in general audited by a recognized and third party entity? I am not saying that your approach is not correct but you need a lot…
> Can I check your bank account to see if the amount is equal to the price*qty of your token?
People deposit BTC and ETH and other cryptos, and the smart contract uses the conversion rate between these and USD in order to gauge its reserve in USD.
Sounds risky but definitely sounds useful and like a step in the right direction!
Re: The Supply of Tethers at 27 November 2017 is $675M
#10Earlier quoted context omitted.
There is no bank account, just the smart contract. It holds the Ether, OMG, or whatever other cryptocurrency you send to it when you buy Unum. There's a function on the contract to return the total reserve in USD, or you can check the actual values of the variables being used. Anything on a smart contract is public. You're right that relatively few people have the technical skills to query a smart contract, but that…
It seems to me that your currency loses its peg the minute that the cryptocurrency price collapses.
The parent comment (empath75) sounds correct to me. If people deposit a bunch of cryptos, but cryptos are highly correlated in downward movement, and the general crypto market suffers, then this new crypto is no longer pegged to USD.
EDIT: looks like this is covered under "Reserve Deficit Sell Penalty". I don't really understand this part but regardless this won't be pegged to the dollar.