Aurum (Goldmoney blockchain) needs a two way peg with Bitcoin in 2017!

paddy10tellyspaddy10tellys Posts: 248 Bronze ✭✭✭
A two-way peg allows bitcoin & aurum to become interchangeable. Bitcoins are not transferred, but temporarily locked on the bitcoin blockchain while commensurate equivalent tokens are unlocked in the aurum (goldmoney) blockchain and used to buy & sell physical gold. The original bitcoins can be unlocked again when commensurate tokens on the aurum blockchain themselves become locked as gold transactions complete.

Use cases: exploits on liquidity & volatility; Hedging verthaftigkeit (value-holding-ness); Arbitrage. Capital control avoidance (gold or bitcoin).

Goldmoney to ‘fix’ the price of gold in bitcoin terms twice a day. Traders submit bids and asks for bitcoin and gold during these sessions. Goldmoney attempts to match the bids and asks. A bit like the ‘London gold fix’

There are various technical ways of doing all of this that have already been described. ‘Rootstock’ seems the best. It uses different unlocking methods for each side i.e., a sidechain on the secondary blockchain (aurum) and a drivechain on the primary network (bitcoin). I digress…

Comments

  • ShannaShanna Posts: 28 Tin ✭
    When i discovered Goldmoney i was enthusiastic about its acceptance of Bitcoin, but that enthusiasm died quickly when i discovered that Bitcoin/Goldmoney was a one-way street and i could not cash-out to Bitcoin.

    The reason for my disappointment was that i have been trying to assemble financial alternatives that can work in the absence of a banking system. It's pretty obvious that there is a need for independence from that dying and about-to-fail system. So, in my mind, Goldmoney's partial (but not full) interchangeability with Bitcoin is a deal breaker, and i've backed off using Goldmoney while i ponder this and search for other alternatives.

    For Goldmoney to be a real alternative, in my mind it needs to be completely hassle-free to move value back and forth between Goldmoney and the Bitcoin network. Otherwise there is no way for me to get value out, other than physical metal, which may work locally as money but would not otherwise be very useful for exchange. Being able to transact in both Bitcoin and Goldmoney, and to move value between the two, would be a powerful alternative to fiat banking, and i'd really like to see things go in that direction.
  • GoldIsCurrencyGoldIsCurrency Posts: 1,781 Gold ✭✭✭✭✭
    @Shanna It is my understanding they are working on that.
  • paddy10tellyspaddy10tellys Posts: 248 Bronze ✭✭✭
    @Shanna @GoldIsCurrency I totally agree but don't backoff for too long because Goldmoney appear to want what you want as well & are working towards that goal. I bought Goldmoney shares & they hold gold for me. Encourage them to keep moving in the right direction
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