IS THIS HOW IT WORKS?

Discussion in 'General Discussion' started by inthearena, Nov 30, 2017.

  1. inthearena

    inthearena Member

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    Hi guys - are you able to help me clarify my understanding of Xtrabytes.

    Is this broadly correct? Please correct anything I've misunderstood. If you can help with the questions that would be great!

    History
    - Bitmox ICO was a scam. https://bitcointalk.org/index.php?topic=1742783.0
    - A new developer decides to resurrect old coin, salvage value and use existing exchange. Hard fork and renamed to Xtrabytes. https://bitcointalk.org/index.php?topic=1793468.0

    How it works (my basic / noob understanding)
    - Proof of Signature "Zolt" where all Static Nodes sign each block.
    - Almost 80% of XBY coins will be locked up with Static Nodes (517,120,000 / 650,000,000) so there's a semi proof of stake concept too (i.e. nodes are heavily invested in network).
    - Static Nodes have their own private, uninterpreted network of their to ensure they can sign blocks and communicate quickly "vital network".
    - There's also a function that alerts the nodes to sign the block and to timestamp each transaction ("pulse network").

    Positives
    - No need for Proof of Work
    - Can run D-Apps (like Etherium and Neo) and unlike most other cryptos, it can support most code languages Visual Basic, Java, C++.
    - Cool app roadmap (storage, exchanges, instant messaging )
    - No ICO.
    - Enhanced encryption (SHA 512)

    Negatives
    - Not as anonymous/private as some other cryptos (i.e Dash).
    - Insufficient information available on x-fuel/pay scale.
    - Shills on community forums/discord/slack.
    - Excessive marketing (18 country specific Facebook pages) before proof of tech.
    - Censorship on reddit community forums

    What I still don't get
    - Why three layers of static nodes?
    - What happens when nodes disagree? Is there a consensus / dispute resolution concept?
    - How do the developers get compensated via x-fuel (something about selling out to future nodes)?
     
    Last edited: Dec 29, 2017
  2. XTRABYTES

    XTRABYTES Well-Known Member

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    Hello and welcome!

    1). In short: Stronger and more secure network.
    2). Yes, there is a resolution concept, it's all built in the algorithm. (We can prepare a long explanation if you want).
    3). There is a plenty of info about XFUEL:

    https://community.xtrabytes.global/forums/x-fuel.15/
    https://community.xtrabytes.global/faq/xfuel.5/category

    The payment structure will be available soon.
     
    Last edited by a moderator: Nov 30, 2017
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  3. enki

    enki Well-Known Member

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    What happens when nodes disagree? Is there a consensus / dispute resolution concept?

    This is from the FAQs and might not be the technical answer you are looking for. That is coming...

    If one or more STATIC nodes tries to create a block with a fake transaction or bad block hash, it will send a different message than the other STATIC nodes and standout amongst the online network. The network of STATIC nodes will send a warn/repair RPC message to the "bad" client. If the "bad" STATIC node repairs the block, then the hash will become the same as the others. If the “bad” STATIC node isn't repaired after numerous communication attempts, the other nodes will eventually blacklist this node from the network.

    https://community.xtrabytes.global/...now-that-one-or-more-nodes-is-compromised.71/
     
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  4. inthearena

    inthearena Member

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    Really appreciate the prompt response from devs and the community!

    So is my understanding of XFUEL correct?
    - Devs committed to only having 650m XBY coins
    - Devs needed a way to compensate devs
    - Devs decided to issue a new coin/token that is traded separately.
    - Although separate, XFUEL can be used to buy Static Nodes just like XBY

    Is this right?

    Now the key point - is supply of XFuel limited? The white paper references a 67/33 ratio but it's not clear (it would be clearer to say the money supply is limited to 650m XBY and 325 XFUEL).
     
  5. Shixy

    Shixy Member

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    I would view XFUEL as a standalone scheme or module to let devs earn a little.
     
  6. CCRevolution

    CCRevolution Administrator Staff Member

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    Hello and welcome! The 67/33 ratio only refers to STATIC nodes. There will also be a circulating supply necessary for people moving in and out of STATIC (just like there must be a circulating supply of XBY). Additionally, we have identified another use for XFUEL (voting) which we believe will prompt many who care about the long term direction of their work with XBY, to hold these coins indefinitely.

    XFUEL in its "base use purpose" is a direct investment to the success of XBY. It is a true investment into the future of XBY because they are either bought from a developer or earned by a developer. Other uses could come up in the future also.

    The coin will be released slowly over time, but it is not possible to put a fixed amount of supply, other than the maximum of 650 million. We can say the maximum possible in the STATICS also... but we don't know how many people will hold and we don't know how many will be liquid.

    I think the best way to view this is to not be so concerned that there are a possible 650 million XFUEL. Anyone being concerned with this are being short sighted and not realizing the impact of actually releasing 650 million of these coins.

    So, what is the impact?

    650 million XFUEL being released the way we are releasing it translates to a MASSIVE amount of time and energy directly related to improving XBY. Therefore, we are talking about the XTRABYTES network having massive amounts of hours invested into making it better. Look where we are so far and look at the small team that is starting to grow. This is just the beginning. XTRABYTES is not a P&D project, this is a real project that will actually cause a paradigm shift in the crypto world, as time passes.

    We must also keep the following in mind: As we release more and more of the XTRABYTES plaform, the price of XBY will naturally rise and this price directly influences the amount of XFUEL we pay out. We do not pay a fixed salary of XFUEL, we pay with USD as a base number and also use XBY as the 1 to 1 reference for XFUEL payments, along with the USD-XBY price being calculated with the current BTC value.

    As an example, we use $200 as the base and a moderator gets paid with a multiplier of 1.0. Therefore, a moderator gets paid an XFUEL value of $200 per week. At the time of writing, XBY is sitting at 174 sats average (with USD value of $0.0173) and therefore the current moderator pay would be 11,351 XFUEL.

    However, lets move ahead a few months and use some different figures for XBY and BTC:

    If XBY is 1000 sats and BTC is $15,000 a moderator at that time will get paid 1,333 XFUEL, which is still the equivalent of $200 USD.

    In other words, the more successful we become, the less XFUEL will get paid out. This extends our available supply tremendously and at the same time ensures that a massive amount of time and energy is going towards the completion of XTRABYTES without devaluing either XBY or XFUEL as a result of paying our developers and contributors with XFUEL.

    This is a win/win/win situation for everyone involved and it is enhanced even more when we consider that certain aspects are not paid by salary and are instead paid by job completion. As an example, we will be adjusting the pay of developers to inspire them to finish the jobs faster. We do this by lowering the salary for them and enhance this by task oriented pay which will also be done with USD value.

    In other words, for example: A developer takes on the task of creating the XYZ interface connector for the ABC module and knows this is a job that is paid a value of $1000 in XFUEL.

    Today, the developer would get paid 48,190 XFUEL at the current rates. However, if they waited and didn't complete the job until 2 weeks from now and the values of BTC and XBY changed to $15,000 and 500 sats, the developer would get paid 13,335 XFUEL for the same amount of work.


    So, the point of explaining all of this is simply to show that the longer XTRABYTES is alive and the more development time and energy gets invested, this conversion to money will have an effect similar to the overall market cap of the crypto world during the last 2 years. This is not something we should be worried about because with each XFUEL paid, the value of XTRABYTES has increased.

    Nobody will complain if we are talking about $100 XBY in 5 years time, no matter how many XFUEL and XBY are circulating, locked or held for voting.

    Also, remember that nobody thought BTC would break the $1.00 USD mark, and XBY will break many similar psychological barriers as time passes because we started at 1 satoshi.
     
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  7. fish313

    fish313 Well-Known Member Staff Member

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    This is a fantastic write up CCR. It definitely helped me to better understand XFUEL.
     
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  8. cammie16

    cammie16 Member

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    Nice. This is the right thread I am looking for. Thank you for enlighten me. i have now some knowledge on xfuel
     
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  9. inthearena

    inthearena Member

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    Thanks CCRevolution and team. That response was very helpful.

    Can you help with some more clarification. On this?

    1) XFuel seems like it is inflationary to XBY. Even though they are separate - I understand they both can be used to buy Statics Nodes?

    2) XFuel is issued at the discretion of anonymous devs. No predetermined money supply control.

    Are these two points correct? If it is, you can see how this would put off future investors. It requires a lot of trust in the developers - i.e. not to issue themselves XFuel excessively.
     
  10. CCRevolution

    CCRevolution Administrator Staff Member

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    XFUEL is not inflationary. Without XFUEL we cannot have the critical Level 3 nodes and the end result is that with full node capacity, there are actually less XBY available in circulation than there are with 2 levels of STATICS.

    XFUEL is not released at the discretion of anonymous devs. It is release by our Finance Manager after payments have been approved by upper management. Nobody else has access to the cold wallets that contain the XFUEL except Borzalom and myself.
     
  11. inthearena

    inthearena Member

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    Thanks for this.

    I'm still confused as I can't see where the Static Node economics and tiering structures are (and how this relates to XFuel). I gather this is coming soon.

    As I understand you and Borz are anonymous (we don't know your real identifies). Unlike Bitcoin, XBY requires are higher level of trust in the team given the code is not on git hub and the developer team hm (and finance) have discretion to issue XFUEL as payments.

    This is a key risk we face as investors. I get that you guys want to prove the technology first and you're not focused on price at this stage. Let's see how we go. It's a great community so I'm hopeful for the best.
     
  12. SoyCD

    SoyCD Member

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    Amazing questions inthearena, exactly the same things I was wondering about and which will ultimately be asked by investors looking to get into XYB more seriously.
     
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  13. inthearena

    inthearena Member

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    Thanks SoyCD. I'm looking forward to learning more about how it works. This is one of the factors that is holding me back.
     
  14. Vyachek

    Vyachek Member

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    I heard that developers want to patent technology, where they are will do it?
     
  15. Rejinderi

    Rejinderi Member

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    they will have to go through some legal process.. heard it will cost quite a bit too.. hope everything goes smooth and is successful! good for us, great for the community!
     
  16. Superd

    Superd Member

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    Is this true?
     
  17. molten

    molten Well-Known Member Staff Member

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    Yes.
     

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