In the cryptocurrency universe where people often make significant investments into ideas before the first line of code is ever written, one of the world’s most secure currency projects has already released a major product.
You can’t tell the story of BitBay without providing a brief bio about the developer David Zimbeck. When David started working on BitBay, he had already developed one of the first successful bitcoin based cryptocurrency projects called BitHalo. It provided a solution to remove the middleman from transactions. For the first time in history, Halo tech allowed for counterparties to transact in a truly trustless, peer-to-peer environment, without the need for a 3rd party arbitrator dictating who’s at fault when a transaction goes sour. David’s concept was the final piece to the puzzle of Satoshi Nakamoto’s fundamentals of creating a peer-to-peer currency, removing the demand for intermediaries to keep people honest. Bitcoin posed a limitation on the BitHalo Client, which BitBay is able to overcome. The BitBay Halo Client’s key difference will be to include a revolutionary price stability protocol to remove price volatility – yet still allow fluctuations – through a Client that holds both cold wallet security with hot wallet functionality.
The project is years ahead of any other decentralized smart contract system all in a 100% trustless environment. BitBay has a fully functioning client with so many capabilities it’s best to provide a link to review them: https://bitcointalk.org/index.php?topic=1744745.0
Any arrangement you can come up with can be customized within BitBay’s existing client. Do you want to exchange XMR for ETH without first having to convert to BTC? Are you interested in trading your silver dollars in exchange for gold krugerrands? Want to create a binary option with a trade buddy because you think the price of gold will increase to the US Dollar at a specific time? Want to buy BAY cryptocurrency with EURO? How is this possible? The solution is called Double Deposit Escrow, or Trustless Escrow. Simply explained, each party in the agreement puts up a deposit as collateral to assure the transaction is completed successfully. After all parties are happy, the deposits are returned. This encourages each party to work out any issues and discourages scammers because they have no way to profit. There are no middlemen and no corporate fees… as a matter of fact there are no fees of any kind. It is completely FREE to use.
While there are many enhancements planned for the BitBay client to increase security even more and make it “mom-friendly,” the contract creation system is live and stable. Cold staking, price pegging, and keylogger defense are important and ambitious additions planned for 2017. BitBay’s cold staking feature allows users to create an account by installing two private keys on two separate computers. To break in and gain access to a user’s account, a thief would need access to both systems, then to find the keys hidden in pictures (steganography encryption), and to unlock both keys. The upcoming release of price pegging will create the stability needed to utilize the powerful combo of blockchain and smart contracts in the real world.
There is arguably only one proven method of price-pegging, and it involves the freezing/unfreezing of a currency to control the inflation/deflation of the value. User accounts will consist of both frozen and liquid BitBay coins controlled by a decentralized algorithm along with the built-in voting system. The liquid coins can be used as an asset within the client to purchase, or as collateral for contracts. If the user value protection algorithm calculates the need for the total supply of the coins to deflate, then a portion of a coins in a user’s account will freeze to weaken sell pressure on the exchanges. Even though small portions of your account could be frozen, these coins will still be able to be sold through a time-lock-verify futures market, and therefore can be exchanged for other assets in the market price.
Price-pegging is necessary for BAY within the BitBay client because people need a reliable store of value which will have the same or greater value in the future. On auction sites today, such as EBay, people sell in exchange for dollars or other national currencies, which will likely retain a similar value next week. For a crypto currency to be used in exchange for goods/services and as collateral for contracts, it needs to do the same.
The pegged value of BAY will be decided by voting using the Proof of Stake system already available, so the people with the most at stake will decide the price, which will also result in their personal BAY being frozen or unfrozen. This “rolling peg” will still allow the price to fluctuate somewhat but the extreme volatility we have become familiar with in crypto will not be possible. The price will roll gently like the gentle swells in a safe harbor, instead of being subject to the violent waves common to the vast ocean of cryptocurrency pump and dumps.
David has been working relentlessly for years and all the hard work should soon begin to finally pay off. He has overcome all of the early adversity and delivered everything he promised to the community in the tumultuous early days of BitBay. Rather than struggling to recover the stolen coins taken by the ICO exchange host, the community decided it would be best to keep the decentralization of BitBay intact to maintain the principle of cryptocurrency. For over the last 2 years, Lin Han of Bter, has been dumping his coins to deter investors’ confidence and dishearten David’s ambitions for the project. Without the proper funding due to the ICO thievery, marketing BitBay to the world has been extremely challenging. The good news is that we’ve been tracking Lin’s accounts since the beginning and as our price charts are starting to show, he has run out of his supply, finally allowing for the market to correct to a fair price. At this point the “million dollar question” is the discovery of what the true fair market price really should be!
The Bitbay Team