I didn’t want to spoil the main thread with this very noob question relating to ERC20 token.
I understand that MAID is an OMNI token which is based on bitcoin.
And also that ERC20 is based on Ethereum.
After that i get totally lost trying to understand why one is better than the other. I know, i know…dim, naive, keep up seg!!
If anyone can point me in the right direction and tell me some basic facts on this it would really help - I am so interested in this project but feel a bit left behind trying to understand the details.
In the both cases, it is only a temporary placeholder for the real Safe token. The difference between the two options is in the way of storage (wallets) and more importantly the access to the market.
Many of the people who want the ERC20 token assume that it will bring more people into the project and help make it happen. Those who do not want an ERC20 token say that we do not need it and it is enough to launch the project.
No one knows what is more likely to help, everyone bases their preferences on personal knowledge and feeling.
If we want more users during test network and beta, and I assume we do, we’ll need more market access than we have now, regardless of how we accomplish it.
With the Omni coin, you can send the coin between peers or to a centralized exchange, and that’s about it. There have been issued with exchange delistings, exit scams, and low liquidity on exchanges.
With ERC20, there is a growing and vibrant DeFi ecosystem built around the ERC20 standard. There are various decentralized exchanges that offer greater security and likely deeper liquidity than has been the case with centralized exchanges.
One of the things that Safe is attempting is to deliver is effective decentralisation with a new approach that’s doesn’t have any reliance on Blockchain, proof of work, or proof of stake. With improved characteristics in key areas such as resistance to attack, security, availability, speed, energy efficiency and scalability.
There are people who speculate that it will be extremely difficult to run a direct fiat money on / off ramp for the Safe token (because it is totally anonymous + probably in the first days the ratio of useful data to “bad” data will not be good). These people think that we will have to take a detour through the decentralized exchanges on Ethereum, which have access to fiat money. Therefore, it is very likely that we will use a wrapped ERC20 token for the Safe token for access to fiat money even after the network is up and running.
I asked recently on the price and trading topic if there was some technical barrier to safe <-> fiat exchanges early in the network, and was under the impression that the answer was no. I’ve not seen people making arguments for this point too, what’s the argument? You say anonymity there, I don’t know what you mean.
I have, of course, witnessed people talk about CEXes and DEXes like the sky is falling down. Which would make a lot more sense to me if safe exchanges were massively difficult, and I haven’t understood how that could be true?
I also haven’t seen any convincing evidence there’ll be no good data early on. We don’t really know that, something like this has never existed, we’ve nothing good to base certainties upon. So yes, these ‘people’ who are concluding based on these two things that ‘Therefore, it is very likely…’ are certain about things which seem entirely uncertain to me.
As the digital currency industry grows and matures, regulations are coming into effect that seek to stamp out crime and protect investors. Privacy coins, which give their users anonymity, have been the biggest casualty of these regulations.
There is no technical barrier. You can do it same as openingt fiat ↔ BTC exchange, which sadly is not easy either. Every country has different administrative rules for this plus all the KYC/AML crap you have to deal with. That is a big investment and MAID wont be exactly huge market in the beginning.
Do you know what the regulations are for working with fiat money? You can’t just start a business and do it without a license. The Americans will cut you to pieces. Most countries have treaties with them and people are directly extradited and tried in the United States.
We had such a case in Bulgaria last year, a person who has an “unlicensed bitcoin exchange” is already serving a 10-year sentence in the United States…
So @JayBird, the consensus in Bulgaria is that the man is innocent and a Romanian criminal group has laundered money through him without his knowledge. What do you think would happen to an anonymous token like Safe if someone exchanged it directly for fiat money without a license?
It’s not just about money. See how they remove anonymous tokens from the exchanges. It’s not because they don’t make money from them. The Authorities simply do not want anonymous money. In Europe, there is already talk of a digital euro and maximum cash transfers of up to 3,000 euros…
I wonder … the way things are going with BTC now - more and more people getting into it - it could be that in 5 years or so we won’t have to worry about an exchange taking fiat anymore. People will come with a wallet full of Satoshi’s and be ready to trade for Sants and vice versa.
DEX’s are getting better and bigger too. Sure it will be hard on launch for some to get Sants, but as we will have good decentralization of farming, maybe all we need is a “localSants” website on the network to get things started. Exchanges will seek out ways to get Sants onboard when they realize they are missing out on profits.
It is important to think about everything at once. I know it’s not pleasant and I don’t like it too but without a strong token, we become vulnerable to vampires. I want this Safe Network to be successful, not someone else’s stolen vampire network… So we need DEXs with fiat from the beginning… The Ethereum DEXs are perfect for this.
Thanks for a solid answer, I was unaware that we were already there, with the US spreading its tentacles like that, very rough stuff. Their application of law extra-nationally is particularly disturbing. Not surprising, but I did not know it was already that bad.
The assumption I’d been making was that there’d be no one to extradite brutally and lockup, because of the nature of the Network and the increased ease of anonymity, making the law irrelevant. But if the threat from the US is so large, it does up the ante considerably and deters people from taking the risk of making free anonymous Safe exchanges.
You can have anonymous exchanges in Safe. The problem is the on / off ramps for fiat money. Unless you trade face to face, which also has disadvantages, if you accept money by bank transfer you are not anonymous. But with the ERC20 Safe Token we will be able to access the fiat money in the Ethereum network, which will make it harder for a Safe copy to do a vampire attack against our network.
Wrapping simply means that behind every ERC20 MAID / SAFE token sits a real OMNI MAID / SAFE token and can be exchanged vice versa.
See for example the ERC20 Bitcoin (WBTC). There are 123 320 real bitcoins that sit in the vaults of the exchange companies and they have issued the same number of ERC20 WBTC tokens in the Etherеum network:
You can wrap tokens in any network that has such a function. For example, there can be OMNI Ethereum or SAFE Bitcoin. The point is that a huge part of the liquidity in the decentralized exchanges is on the Ethereum network, for that reason the people who want a wrapped MAID / SAFE token are talking about it.
