First crypto to hit the mainstream masses
The first (of, hopefully, many) front-end services being developed to ride on top of this DAC is PeerTracks. PeerTracks is being marketed towards music listeners and creators, not the micro-niche crypto currency world. BitShares Music will be the first blockchain to be used by the masses. Artists are incentivized to push their blockchain sales more than the other more traditional music retail sites since they keep a bigger slice of the revenue. They can also raise funds by selling their own artistcoins. Artistcoin holders are also incentivized to share music from a BitShares Music related link since it can generate a sale, thus increasing the value of the artistcoin (which they also hold). Without knowing it, artists and music listeners are using blockchain technology and spreading it virally across the Internet.
It has price stability
That’s right. The holy grail for many: a crypto-currency without volatility. The Notes themselves are just like any other crypto-token, they can fluctuate… wildly. Market pegged bitassets on the other hand will not. This means that customers that use services built on top of the BitShares Music platform, such as PeerTracks, , can now benefit from all the advantages crypto-currencies have to offer without being exposed to the volatility. When they fund their account with 20 USD of fiat, they get 20 BitUSD. This is what they spend while shopping for music. They can leave the funds in their wallet for months, come back, and it will still be there unchanged, and yet they still benefit from the low transaction fees and all the other benefits that come with crypto.
Not just another altcoin
Notes are not simply an altcoin that runs on DPOS. Although that alone would be enough to be merit your attention! More on DPOS below.
This blockchain is also a decentralized market. The blockchain can match bids and asks. You don’t need to go to an exchange and trust third party business with your funds in order to trade any of the different types of assets. BitUSD for Snoopcoin or Britneycoin for Notes. All can be done ON the blockchain.
Multiple layers of growth
The first layer is the DAC unit itself: the Note. The market cap for Notes can fluctuate.
The second layer is the multitude of front-end websites and services that use this blockchain. The first of these online service providers is PeerTracks. The more popular these service providers become , the more songs and albums are sold, the more BitUSD will be purchased to buy different artistcoins. This all serves to increase the transaction volume and leads to network growth.
The third layer is each artist’s new coin. This can create multiple ecosystems, a new altcoin economy. Artists, fan clubs and fandoms can all start using Biebercoin, for example, as their currency of choice. There could result in thousands of DOGEcoin like ecosystems popping up, each revolving around a band or celebrity. These ecosystems will all be based on the Bitshares Music blockchain.
It’s a DPOS blockchain.
DPOS stands for Delegated Proof of Stake. In Bitcoin, security is achieved by Proof of Work (“POW”). This means miners have to be paid out with both transaction fees and new coins each block. Miners take this “salary” and spend it on hardware and electricity. They are essentially taking wealth and value from the Bitcoin ecosystem and giving it to hardware manufacturers and power plants. With the new top of the line hardware (mining rigs) they purchase, you would hope it at least improves the network. It does not. It merely increases the difficulty to find the next block. As for the participants of the network, the bitcoin holders, they get no say in what happens to the network. The mining pools hold all the power, they have the last word. Bitcoin is not as decentralized as we would like since power is concentrated in the mining pools. Bitcoin holders cannot “fire” a miner if they suspect him of malicious intent.
With DPOS, security is achieved without mining.
Delegates get paid transaction fees in order to have the fastest node out there. Each delegate must perform faster than his competition, include all transactions and pump out a block within a certain timeframe. A delegate is only paid a salary in order to ensure the BitShares Music network is running full throttle. The transaction fees are paid out to improve the speed and efficiency of the network, not to increase the difficulty. The value stays in the ecosystem to make it better, faster, stronger.
The Note holder also has a say on who controls the network. Delegates can be voted out in a heartbeat if the Note holders desire. Delegates only process transactions and get their salary if Note holders keep “voting” for them. Without going into the technical complexities of the process, what is important to remember is that delegates can be voted out easily and automatically by a Note wallet, or manually by the owner of the Notes. Centralization is much less of a threat when the people pumping out blocks can be fired instantly for screwing up.
The delegates, to retain their position will need to differentiate themselves from the others. They must provide more value to the network than their competition. For example, one delegate could say: “With one part of my salary, I will get the best and fastest equipment on the market and with the rest, I will hire a team to build different tools/apps for the BitShares Music ecosystem” (Bitsapphire does this). Another could say: “Vote for me, I will burn 90% of my pay, effectively giving the salary back to the Note holders”. It could even be something as far fetched as: “I will use 1 years worth of salary to put a commercial up during the superbowl!” If the voters / Note holders wish it, this delegate will be voted in and start receiving funds for his added value to the network.
At launch, Notes will be in the hands of a wide variety of people. Notes will be distributed amongst the thousands of BitShares PTS holders, thousands of BitShares AGS holders, everyone that participated in the pre-sale and the BitShares Music Foundation.
This is the exact breakdown of the genesis block:
35% of the Notes are going to the holders of BitShares PTS;
35% of the Notes to those who donated to the BitShares AGS address;
20% of the Notes to those that participated in the pre-sale;
10% to the BitShares Foundation*
*These funds are to be used to develop and improve the BitShares Music ecosystem. Once initial start-up expenses have been reimbursed, the Foundation will compensate front and back end developers, invest in marketing and publicity, explore growth opportunities, and pay for legal and compliance services where appropriate. Overall, funds will go to paying all expenses related to the platform and ensuring the health and growth of the entire BitShares Music network.
We aren’t reinventing the wheel
Compared to many other projects floating around in the crypto space BitShares Music is a relatively low risk endeavour. BitSharesX has already been launched.The BitShares Music blockchain being launched is a copy of BitSharesX with a few slight tweaks (made by the core BitShares team) to make it better suited for the music world. We aren’t reinventing the wheel. The BitShares team did an excellent job already! The proof of concept is done, BitShares Music is merely bringing this technology to the mainstream via the music world.