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110 sats \ 2 replies \ @netstatic 23 Jul 2023 \ on: Bitcredit Protocol First: Introduction bitcoin
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?
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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:
  1. Bitcredit is a currency redeemable 1:1 in bitcoin.
  2. 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.
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0 sats \ 0 replies \ @telcobert OP 23 Jul 2023
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