What if? You could lock a Bitcoin in a Safecoin?

[19eddyjohn75]

@janitor

How do you know I would pay you? Or do you want me to pay you first and hope you wan’t “run out of battery” before you send me the stuff?

Ìmagine that you have 2 options to send a Safecoin
1 SEND, in this mode the Safecoin would just normally be send to the intented address
2 EXCHANGE, in this mode the Safecoin would be send to the address and exchange whichever value it holds for Safecoins or whatever you specify. So I only have to send you the coin with the locked asset and it automatically gets exchanged, without human intervention. The Safecoins just communicate to eachother “Hee I hold this value, give me something of equal value in exchange”.

@janitor

And what would I do with that bitcoin private key once I get it packed into a Safecoin? I have to copy it and add it to a bitcoin client.

The Bitcoin privatekey would be kept in a Safecoin with password protection. So the former holder can’t access it, only the current holder can see the password to the privatekey. If the current holder looks at the password, when they send the Safecoin with the asset, the password will be changed again.

@janitor

That seems too complicated and since bitcoin can’t be spent on SAFE network, what value does it add? You can do this (cheap sending and even decentralized exchange of various assets) on almost any Bitcoin 2.0 platform today without copying and pasting.

If you can lock the privatekey of a Bitcoin in a Safecoin, it is the REAL BITCOIN ASSET that your holding. It’s true that you can do this on Bitcoin 2.0 platforms, but some are not the REAL BITCOIN ASSET for instance, Counterparty/XBTC. How can you be sure if they will keep their word to give you BTC for XBTC. This is fractional reserve banking all over again on the crypto level.

What would even add more value to using Safecoin, is that if you can lock your cryptocurrencies in it. You have the possibility to make TX for free and instant. There is a ongoing talk to make the TX cost of a Bitcoin higher, so this would be great for some people.

@kirkion

Another question is whether the SAFE coin protocol will include color coin capability, and in particular the ability to interact with public blockchains like bitcoin. If a Colored SAFEcoin could have independent access to the bitcoin blockchain, to the extent that it could verify that a particular wallet contains X amount of bitcoin, then access to that wallet could be traded in a truly anonymous SAFEcoin fashion.

To be honest coloring a coin for now is just giving it a name. What if you can add attributes? For instance:

• If you don’t spend this coin within a month, it’s value will decrease with 1% or you can’t spend it anymore.
• What if Safecoin can ID and value eachother. I could hold a Safecoin with 1 Bitcoin send it to you with the exchange function on and receive a Safecoin with € 323,76.
• What if a Safecoin could be equity, but equity in the sense that your directly connected to the wallet of the company. And when you wanna pull out, you don’t have to sell shares or ask permission. The Safecoin automatically makes the exchange for you to whatever currency or what else you wish.
  A tweakable Safecoin could be the perfect way for communities to create community currencies.

@Warren

And it very much remind of the old political alchemy where one would hollow the silver our of a sample of a neighboring princedome’s coins replacing it with an equal weight of some cheap alloy filler and then at the right time announce the debasement and sit back and watch the implosion and hence the latter stiff penslties in the forgery tradition.

The idea of storing/locking other REAL assets in a Safecoin is to expand the choices that people make. Do I send a Bitcoin on the Bitcoin network or on the Safe network? I know it sounds crazy, but if people can safe money, some of them will make that choice.

@Blindsite2k

“Let’s store information inside of safecoins and allow that information to be traded and exchanged as currency and instantly extracted and exchanged upon delivery.”

Wow Blindsite2k you are saying what I’m saying even better than I’m saying it. But that’s correct. I’m also saying “Let them password protect the asset to keep it out the hands of the previous owner”

@polpolrene

Great discussion. But why do you want Bitcoin and Safecoins linked in a way like that? to make the Bitcoins trade fast? At Open Transactions the’re working on a way of doing Bitcoin-transactions in a tenth of a second. They use so called “trustless servers” and if you connect to one, they us a voting pool to decide which coins belong to who.

If your making use of high frequency trading, storing a Bitcoin in a Safecoin might just be the solution your looking for. Although I don’t know if Safecoins are moving in nanoseconds, but it’s quicker than what the Bitcoin network currently does. I’m assuming that the Open Transactions Bitcoin is just another fractional reserve solution. What I’m talking about is locking/storing the Bitcoin privkey (so the REAL BITCOIN) in a Safecoin. In this scheme later on you don’t need a third party to hand you the Bitcoin, you allready got it. Just enter the privkey and type in the password to access, your Bitcoin.

BTW the Safecoin would only be in contact with the Bitcoin network, to change the password/check the value. Depending on if some one took a look at the password stored in the Safecoins. The other advantage that a Safecoin would have if you could store everything in it, it would probably not have a size limit, like other coins out there.