Bitcredit Protocol First: Introduction \ stacker news ~bitcoin

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2167 sats \ 14 comments \ @telcobert 23 Jul 2023 bitcoin freebie

Bitcredit Protocol is Free Software to create a money-substitute for Bitcoin, as defined by Ludwig von Mises: “A claim to money may be transferred over and over again in an indefinite number of indirect exchanges." – Ludwig Von Mises: The Theory Of Money And Credit

The currency period of bitcredits, usually several months, ensures maximum privacy when they redeem automatically into outright bitcoins at maturity.

By running Bitcoin Protocol, real economy businesses can start to use bitcoin credit money ("bitcredits") to raise working capital and pay salaries into their employees' non-custodial lightning wallets which is a promising way to accelerate bitcoin adoption.

Feel free to read up on Bitcredit Protocol project: www.bit.cr

Version Alpha 0.0.1 is now available on Github, and provides part 1: wholesale "e-bills". The two other parts, "wildcat" full nodes, and retail wallet will follow in due course.

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110 sats \ 2 replies \ @netstatic 23 Jul 2023

a method to issue non-inflationary, non-custodial, trust-minimised payment instruments redeemable in bitcoin at a future maturity date

I don't understand the point of this. On first read the website sounds like it aims to create a new non-inflationary and elastic currency backed by Bitcoin.

End users’ final bitcredit UTXO redeems one-to-one into a bitcoin UTXO.

Then when I read the description of how it works it sound like you're making a currency with a fixed exchange rate to Bitcoin.

The totality of bitcredits in circulation at any time is backed by a broad basket of goods

How is the bitcredit UTXO redeemable for a bitcoin UTXO if it's backed by a "broad basked of goods"?

E-bill: Short for electronic bill of exchange, a payment instrument where a drawer instructs a drawee to pay a certain amount of bitcoins to a payee on a certain date or at sight.

So e-bills are a derivative of bitcredits?

0 sats \ 0 replies \ @telcobert OP 23 Jul 2023

Thanks for your questions.

it aims to create a new non-inflationary and elastic currency backed by Bitcoin.

Kind of. Let's be precise:

Bitcredit is a currency redeemable 1:1 in bitcoin.
As it is credit money it is elastic, yes. However, it is strictly limited by proof of real value.

it sound like you're making a currency with a fixed exchange rate to Bitcoin.

Yes, the buildup of this elastic bitcredit M1 on top of fixed bitcoin M0 will stabilise the value of bitcoin AND bitcredit, as it is 1:1 to bitcoin.

How is the bitcredit UTXO redeemable for a bitcoin UTXO if it's backed by a "broad basked of goods"?

When buyers pay sellers of real goods (or services) with a bitcoin denominated e-bill, their liability is "backed by the goods" they bought. When these buyers then pay the bill of exchange at maturity in bitcoin on mainchain, this provides the input for bitcredit redemption.

So e-bills are a derivative of bitcredits?

No. commercial e-bills denominated in bitcoin are the raw material from which wildcats (Bitcredit Full Nodes) mint bitcredits.

Hope that clarifies.

0 sats \ 0 replies \ @telcobert OP 23 Jul 2023

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10 sats \ 1 reply \ @duvel 24 Jul 2023

I think Fedimint solves this?

0 sats \ 0 replies \ @telcobert OP 24 Jul 2023

Yes, there is a possible role for Fedimint in the retail part of Bitcredit, although this introduces some custodial risk. An alternative solution may be ARK.

The novel solution of Bitcredit lies elsewhere. It mints bitcoin-denominated currency from commercial e-bills issued by businesses, real economy value, instead of just transforming or locking financial value.

Let's say, Bitcredit is a new on-ramp for accelerated adoption by the real economy.