Crypto-economics with the Cannacoin Devs

(20:13) <tokyopotato>It's kind of shocking how little people understand about economics of crypto and currencies
(20:13) <SubCreative>yea it is
(20:13) <SubCreative>same for other markets
(20:14) <tokyopotato>If you go and look at the Ripple markets, where coins are issued and not mined, you'll see they are easily pegged and hold their value
(20:14) <tokyopotato>such as 1 XAU = 1 ounce silver
(20:14) <SubCreative>thats not a bad idea really
(20:14) <SubCreative>1g / 1 coin on ripple
(20:14) <tokyopotato>exactly
(20:15) <tokyopotato>and there's no possibility of a 51% attack
(20:15) <SubCreative>you could easily peg a 10$ coin
(20:15) <SubCreative>and limit the supply
(20:15) <tokyopotato>yes, you could
(20:16) <tokyopotato>let's say you grow 1 LB... that's 16 ounces, 28 grams per ounce = 448 grams
(20:16) <SubCreative>453 techically bud
(20:16) <tokyopotato>so you issue 448 coins
(20:16) <SubCreative>:P
(20:16) <tokyopotato>lol
(20:16) <tokyopotato>okay
(20:16) <tokyopotato>28.5 grams
(20:16) <tokyopotato>smartass
(20:16) <SubCreative>28.73 i think
(20:16) <tokyopotato>haha
(20:16) <tokyopotato>one atomic gram please
(20:16) <SubCreative>sorry .35
(20:16) <SubCreative>ok
(20:16) <tokyopotato>lol
(20:17) <tokyopotato>so anyways, you issue 453 coins
(20:17) <tokyopotato>you sell them for $8
(20:17) <tokyopotato>and they are good for a $10 gram
(20:17) <SubCreative>3600 market cap
(20:17) <tokyopotato>you've just incentivized people to start using your crypto-based IOU
(20:17) <tokyopotato>yeah
(20:17) <tokyopotato>then...
(20:18) <SubCreative>and now that value is stuck in the network
(20:18) <tokyopotato>you start selling more coins than weed you produce
(20:18) <SubCreative>consumed by the consumer
(20:18) <tokyopotato>and you use the extra money to invest
(20:18) <tokyopotato>and do it again
(20:18) <tokyopotato>and again
(20:18) <SubCreative>yup
(20:18) <tokyopotato>and we have fractional reserve weed banking
(20:18) <tokyopotato>:D
(20:19) <SubCreative>interesting
(20:19) <tokyopotato>it's basically what all large companies do... they take on more liabilities than they have revenue, and finance it
(20:19) <tokyopotato>by selling securities, stock, bonds, whatever
(20:19) <SubCreative>theres this weird stigma with ripple
(20:19) <SubCreative>which I think immediately puts people off
(20:19) <tokyopotato>well, it's a strange concept
(20:19) <SubCreative>really it was the BTC community
(20:20) <SubCreative>and coinmarketcap
(20:20) <SubCreative>labeling it as premine
(20:20) <tokyopotato>because the network itself is decentralized, but the coins are centrally issued
(20:20) <SubCreative>right
(20:20) <tokyopotato>yeah, well, those people fundamentally misunderstand the point of the network, which is to issue IOUs
(20:20) <tokyopotato>NXT and Ethereum are going to do the same thing
(20:21) <tokyopotato>they just have different methods of consensus
(20:21) <tokyopotato>Anyways, those Ripple guys are pretty generous with their XRP
(20:21) <tokyopotato>they gave me 20k a few weeks ago
(20:21) <tokyopotato>which is like $100
(20:22) <SubCreative>right on
(20:22) <tokyopotato>yeah, i will just hold onto it
(20:22) <tokyopotato>and forget about it
(20:22) <tokyopotato>hehe
(20:22) <tokyopotato>and maybe one day it will be worth a lot, but i doubt it
(20:22) <tokyopotato>but i have enough XRP to last me 100 lifetimes of IOU trading
(20:23) <SubCreative>:D
(20:23) <tokyopotato>the Ripple network basically acts like an off-chain exchange
(20:23) <SubCreative>yea I see that
(20:23) <SubCreative>The hard part though
(20:23) <SubCreative>is getting those who see the networks as 1
(20:23) <SubCreative>its like EXTRA work to use ripple for them.
(20:23) <tokyopotato>hehe, yeah, it is but eventually it will be pretty basic
(20:24) <SubCreative>now ...
(20:24) <SubCreative>is it possible to create offchain coins?
(20:24) <tokyopotato>yes
(20:24) <tokyopotato>in a sense
(20:25) <SubCreative>for instance creating a separate CCN that are generated OUTSIDE the total supply?
(20:25) <SubCreative>but somehow integrating them into the chain?
(20:25) <SubCreative>like a side chain
(20:25) <tokyopotato>well, yes you would issue CCN on the Ripple network, and then you would redeem those for actual coins
(20:25) <tokyopotato>so you wouldn't want to issue more coins than you have
(20:25) <tokyopotato>otherwise you could go bankrupt if they are all redeemed
(20:26) <SubCreative>right
(20:26) <tokyopotato>like say you have 100 ounces of gold in your vault
(20:26) <SubCreative>but ...
(20:26) <tokyopotato>and you issue 200 digital gold coins
(20:26) <SubCreative>say we create a seperate CCN on ripple
(20:26) <SubCreative>specific to a task or funding project
(20:26) <tokyopotato>yes
(20:26) <tokyopotato>we could do that
(20:26) <tokyopotato>absolutely
(20:26) <tokyopotato>in fact.  I wouldn't call it CCN
(20:26) <SubCreative>right
(20:26) <tokyopotato>I would create a separate IOU
(20:26) <tokyopotato>for example.
(20:26) <SubCreative>it'd be a good way to start a fund project
(20:26) <tokyopotato>yes
(20:27) <tokyopotato>you have to be careful as not to violate SEC law
(20:27) <tokyopotato>but you could issue "shares" in your project
(20:27) <SubCreative>right
(20:27) <tokyopotato>and sell them for like $100 a piece
(20:27) <tokyopotato>and pay a dividend to anyone holding 1 share in their wallet
(20:28) <tokyopotato>as an issuer, you can track where all the coins went
(20:28) <tokyopotato>pretty easily
(20:28) <SubCreative>are those dividends built into the ripple protocol?
(20:28) <SubCreative>or is it a manual thing?
(20:29) <tokyopotato>You can do either
(20:29) <tokyopotato>for a small amount of shares, you can do $100
(20:29) <SubCreative>so there is a contract in a sense?
(20:29) <tokyopotato>err
(20:29) <tokyopotato>yes, that's what a contract is for
(20:29) <SubCreative>ahh ok
(20:29) <SubCreative>cool
(20:29) <SubCreative>very cool
(20:29) <SubCreative>I remember you walking me through
(20:29) <SubCreative>but its been a minute
(20:29) <tokyopotato>The Ripple smart contracts is called Codious
(20:29) <tokyopotato>Codius
(20:30) <SubCreative>This just came out huh
(20:30) <tokyopotato>Yes, recently
(20:31) <SubCreative>Using javascript too
(20:31) <SubCreative>and express for hosting contracts
(20:31) <tokyopotato>It's fucking brilliant
(20:31) <SubCreative>very nice
(20:31) <SubCreative>node.js based contrats
(20:31) <tokyopotato>And I've always wanted to incorporate it alongside a blockchain
(20:32) <tokyopotato>yeah, I mean, you could build a gateway that redeems CCN as well as issues NWGT shares
(20:32) <tokyopotato>or wahtever
(20:32) <tokyopotato>you could do both with the same Ripple wallet
(20:33) <tokyopotato>in fact, you can issue an unlimited amount of things, and the only reason they have value is because you are willing to redeem them for real goods/services
(20:33) <SubCreative>I like it
(20:33) <tokyopotato>this is the type of shit that sort of gives me chills and makes me realize how currencies will function in 500 years when we have colonized like 100 planets
(20:33) <SubCreative>oh yea me too
(20:34) <tokyopotato>because how do you enforce contracts across a galaxy?
(20:34) <tokyopotato>hehe
(20:34) <SubCreative>the future of BTC and any other crytpto like service will be API's communicating with APIs
(20:34) <SubCreative>blockchain to blockchain
(20:34) <SubCreative>seamlessless through custom integration
(20:34) <SubCreative>with things like ripple
(20:34) <SubCreative>ethereum
(20:34) <SubCreative>and those still not even invisioned
(20:35) <SubCreative>in 20 years kids will ask how the F that speghetti of communication was created
(20:35) <SubCreative>and well say... naturally
(20:36) <tokyopotato>yes
(20:36) <SubCreative>it's kind of crazy to look at the paradigm shifting so rapidly and thinking just a few years ago people were baffled
(20:36) <SubCreative>now we're already onto the next so to speak.
(20:37) <tokyopotato>Once I started reading Jed McCaleb's stuff and getting to know more about Ripple, I realized how far behind most of the crypto scene is
(20:37) <SubCreative>we were just asking how did we get here, now we're already asking where do we go.
(20:37) <tokyopotato>People are still stuck on "my coin"
(20:38) <SubCreative>decentralize all value
(20:38) <tokyopotato>Yeah, what's really interesting
(20:38) <tokyopotato>is how many people are coming into the crypto scene
(20:38) <tokyopotato>who have no fucking clue what they are talking about
(20:39) <tokyopotato>and no understanding of the technology
(20:39) <tokyopotato>they are suckers for the pumps and dumps
(20:40) <tokyopotato>It's very easy to become close-minded
(20:40) <tokyopotato>and turn into a blind follower
(20:40) <SubCreative>Your making some pretty good points I cannot lie.,
(20:40) <SubCreative>We're fortunate to have been ingraned with the early satoshi
(20:40) <SubCreative>if that makes sense.
(20:40) <SubCreative>the true ideology behind BTC
(20:40) <tokyopotato>Yes we are.
(20:40) <SubCreative>and crypto
(20:41) <SubCreative>You have to know the full story
(20:41) <tokyopotato>The truth is that researching Ripple is what really made me see the other dimensions
(20:41) <SubCreative>to understand where we're suppose to go
(20:41) <tokyopotato>Yeah
(20:41) <tokyopotato>Exactyl
(20:41) <SubCreative>The message was pretty clear to not get distracted from the mission at hand.
(20:42) <SubCreative>Everything has been perfection up until this point
(20:42) <SubCreative>we don't have room to fuck up satoshi's idea
(20:42) <tokyopotato>Yeah, I mean, Satoshi's BTC is still the bedrock of the entire ecosystem
(20:43) <tokyopotato>It will change though
(20:43) <SubCreative>no doubting that
(20:43) <tokyopotato>There will be a time when BTC is not the reserve digital currency
(20:43) <SubCreative>we've seen it change.
(20:44) <SubCreative>but theres a core ideology there that was left
(20:44) <tokyopotato>Yes
(20:44) <tokyopotato>That's true
(20:44) <tokyopotato>Satoshi is the eternal legend
(20:45) <tokyopotato>Crypto is kind of like a religion and Satoshi is it's God
(20:45) <tokyopotato>hehe
(20:45) <SubCreative>they call him the jesus of the internet
(20:48) <tokyopotato>The crazy thing is that Phil and hybridsole get this stuff too.  We've got a team of people that really understand what we are working with.  I'm excited to discuss this stuff in a couple weeks.
(20:48) <SubCreative>yea man I 100% agree
(20:49) <SubCreative>Both of those guys are really intelligent
(20:49) <tokyopotato>I'm going to log this discussion
(20:49) <tokyopotato>hehe
(20:49) <SubCreative>:D
(20:50) <SubCreative>be my guest
(20:50) <tokyopotato>Mind if I post it as "discussions with the Cannacoin devs"?
(20:50) <tokyopotato>I will take out the parts that involve other people
(20:50) <SubCreative>Not at all.
(20:50) <tokyopotato>Sweet.  That will give some insight for other developers and people as to our thought processes