10 sats \ 0 replies \ @jeff 30 May 2022 \ on: What is the bitcoin price reference? bitcoin
I think this is a very interesting data engineering, governance, legal and economic problem combined into one. But its probably going to be a thankless job.
Add in considerations such as...
- Private contracts marking something to market, then using BTC, for future payments, require both parties agreeing on price feed (Exchanges listed) and methodology (Eg. "last tick", "VWAP of trailing X amount of time", "midpoint of bid-ask spread", etc.).
- The futures markets include a premium/discount, such as counterparty risk, that isn't relevant to every deal, but the aggregate probably has signal worth considering.
I was mulling what would be the cheapest way to host a pseudo-decentralized reference rate that had an idempotent methodology such that if anybody had the same deployment/infra, it would spit out the same number at the same time.
I say pseudo-decentralized, for lack of a better word. Not sure how to frame a "centralized set of input feeds" + "calculated by a federated army of reliable altruistic data-engineers".