Wednesday, December 14, 2016

The reconstitution network behind microBTC and S&L pits

Working on the third part of the micro BTC architecture.  part 1 was leave BTC block chain as it is. 2 was create 'whole' BTC asset backed S&L which took loans and deposits on micro BTC.

Now part 3.  If a trader has enough micro BTC to get one whole BTC how does that work? Ultimately, this is the goal, to swap 'whole' BTC around on the main block chain.  whole BTC owners will be spending their integers in the micro net, but the micro coins tag back to them whole BTC via the hash algorithm in each S&L. S&Ls have the list of whole BTC being loaned as micros, they have the hash of all micro BTC on deposit.

So, the pit bosses in these S&L support a background task which swaps micro BTC between the S&Ls, so as to re-constitute the most number of whole BTCs and make them redeemable on the main block chain.  Then we have the circulation of whole BTC,the separation of wholesale and retail baking, the ability to assigned risk without creating or destroying micro coins.  The fixed exchange background net should work. All the risk swaps eventually settle on the main block chain.

part 4, end point risk, that is where the remaining unpriced risk is, the consumer device.

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