Customs Standardization Group Outside the Box Technology

On the use of the Ethereum protocol

In my previous posts, Providing credit to the Bitcoin economy through Credit Coin, Asset Control Coin (ACC), and to a lesser degree The Customs Standardization Group I propose using the Ethereum protocol instead of the Bitcoin protocol.  I have received criticism for this decision, mostly from the Bitcoin community, who I love but can be a bit dogmatic in their refusal to see use cases for alternative protocols, and so I have decided to use this month’s post to explain my decision.

Reduce the burden

If Credit Coin and Assest Control Coin were adopted at scale, each system would add hundreds if not thousands of transactions every day to the blockchain.  If all these transactions were added to the Bitcoin blockchain they would increase block size, slow down the network, and increase transaction fees.

By separating the Credit Coin and Assest Control blockchain(s) from the Bitcoin blockchain my aim is to reduce the chance of this happening.  Through the use of Oracles, this chain or chains can still interact with the Bitcoin blockchain but will not add a heavy burden to it.

But Bitcoin is building these tools

Yes, I am aware that the Bitcoin protocol is building most of the tools I propose using on the Ethereum protocol, but they are not there yet.  When making my proposals I wanted to point to a proven and tested protocol that people outside of the Bitcoin community could see working.

Let’s say that by the time Credit Coin and Asset Control Coin are in development all the tools needed to fully build them are added to the Bitcoin protocol and fully tested.  If this were the case I’d be totally happy switching to those tools on a separate SHA-256 blockchain.  Again my biggest concern is overburneding the main Bitcoin blockchain.

Leveraging buy-in

Remember that no matter how much we believe in Bitcoin, we have to face the fact that we live in the real world.  Trying to gain buy-in from people already skeptical of anything with the word blockchain is an uphill battle.  By using the tested and proven Ethereum protocol to build these systems it would present a higher level of stability and security to the very people needed to gain buy-in from to get the projects off the ground.

Conclusion

I believe in Bitcoin, I want to support Bitcoin, and I believe that using the Ethereum protocol is the best way to increase Bitcoin adoption and use. The increased Bitcoin adoption will come from Credit Coin providing extra liquidity to the BTC network in the form of loans, and from Asset Control Coin allowing payments via Bitcoin backed Credit Coin or directly with Bitcoin.  Some may disagree with me, and that’s fine, but I’m proposing what I feel is the best way to further that goal.

If you feel you have a better proposal for how to build these projects comment in one of the places listed below.  Please note I don’t allow comments on blog posts due to excessive spamming.

Credit Coin

Asset Control Coin

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