Nostr Web Client

The 10 Rules of Bitcredit Protocol

(which Wildcat mints must adhere to):

1. Proof-of-work: Only commercial e-bills for goods already produced, invoiced to other businesses, qualify for minting of Bitcoin credits (MoE).

2. Verifiable terms: E-bill maturity must match expected reflux from buyers, and no more than 12 months.

3. Verifiable prices: Invoice prices must be plausible.

4. Bitcoin rails: Payment is in Bitcoin, irrespective of e-bill denomination.

5. Verifiable redemption: Upon maturity, e-bills must be verifiably paid via Bitcoin mainchain or Lightning Network.

6. Non-custodial: Not your keys? Not your coins, nor your credits.

7. Privacy by default: Fungibility of credits through bearer instruments and censorship resistance.

8. Decentralisation: Wildcat mints in the Bitcredit Network compete independently under peer supervision.

9. Game theory: A clowder majority can eliminate rabid wildcats through punishment transactions.

10. Future money: No contractual convertibility before maturity.

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Discussion

Bitcredit Protocol 3d ago

PS: We expect earlier, voluntary exchange of Bitcoin credits into Bitcoin base money usually at par, for a small fee.

Note that during a liquidity crunch free market exchange rates may diverge.

Despite our best effort to apply sound, strictly free market based Austrian Economics, such divergence would be indicative of a problem or mistake somewhere in the protocol.

This will then need some fix to the protocol. We will find out after launch. Be careful in the initial period while we all learn.

r4f4 3d ago

It looks like a twist of the Real Bills Doctrine. The notes are issued using ecash?

Does this implies a market where you can discount this notes?

Are implementing this “free bank”?

Sorry if there is a naive question

Bitcredit Protocol 3d ago

1. Yes, but modified to comply with Austrian Economics principles.

2. The wholesale e-bills sit on Nostr, the retail currency format is a novel form of non-custodial e-cash.

3. Yes, but not "discount". Mint. We will explain more upon mainchain launch.

4. Not free banking in Selgin's sense. In Bitcoin/Bitcredit we want banks strictly only as intermediaries of 100% money, not as fractional-reserve issuers.

r4f4 3d ago

Interesting!

Does the credit come from previous savings/deposits?

Isn’t there fractional reserve?

Do you have a Whitepaper? Where I can see the details?

Bitcredit Protocol 3d ago

1. Yes.

2. No.

3. Full Whitepaper will be published upon mainchain launch.