Bitcredit Protocol v0.2.0πΌ Demo:
We showcase a decentralised financial system utilising Bitcoin, eCash, and credit-based transactions.
This simulates a real-world supply chain, illustrating how businesses can issue, mint, and settle bills of exchange using Bitcredit.
Participants and Roles:
Hubertus: CEO of Apricots Delight GmbH (supplier of apricots)
Mykyta: CEO of Wildcat One (issues bitcoin credits against bills of exchange)
Mario: CEO of Apricot Brandy Makers Corp (buys apricots to make brandy)
A farmhand (on carnivore diet)
Issuing a Bill of Exchange:
Mario (Brandy Maker) wants to buy apricots but lacks liquidity.
He issues a bill of exchange to Hubertus, promising payment in two months.
The eBill is digitally signed and recorded on the network.
Monetizing the eBill:
Hubertus, needing liquidity now, submits the eBill to Mykytaβs mint (Wildcat One).
The mint creates Credit eCash minus a small minting fee.
Hubertus receives 1,224 credit satoshis for the eBill of 1,234 satoshis.
Using eCash for Payments:
Hubertus sends eCash via Telegram to pay his farmhand's salary: instantly, zero transaction fees.
Farmhand buys steak from a butcher with a Bitcredit compatible eCash wallet.
Credit eCash can be sent in any way, via Telegram, WhatsApp, SMS...
eBill Settlement:
When the eBill reaches maturity, Wildcat One (Mykyta) requests payment from Mario.
Mario pays in Bitcoin to a special taproot address on mainchain, settling his debt to the mint.
Wildcat One waits for confirmations.
Credit eCash Redemption into Bitcoin:
Mykyta (Wildcat One) receives mainchain BTC.
Hubertus pays his farmhand with matured Credit eCash. Wildcat One automatically swaps it into outright Debit eCash.
Debit eCash interconnects with Lightning or Mainchain. (Slow, expensive).
Takeaways:
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Decentralized Credit β Businesses need not rely on banks.
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eCash Payments β Reliable, instant, free transactions.
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Bitcoin Settlement β Ultimately, eBills are settled with Bitcoin on mainchain.
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Flexibility β eBills can be endorsed, traded, or minted.
Recap:
The Bitcredit Wildcat One v0.2.0 demo shows a live credit system built on #Bitcoin. Businesses can trade on credit with final settlement in Bitcoin. This aims to revolutionise B2B financing in BTC: fast access to liquidity, low fees, total decentralisation. π
Chicken-egg problem:
Which businesses will want to use bitcoin, so people can start to earn bitcoin thus start to spend bitcoin?