Solidus Bond

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A Solidus Bond is a smart bond on the SwiftCoin blockchain ,a sub-category of smart contract. [1] [ unreliable source? ] [2] [ unreliable source? ] It is a U.S. patented, peer-to-peer digital bearer bond that uses proof of work to perform the functions of interest payments and bond redemption typically carried out by a financial institution. [3] [ non-primary source needed ] [4] [ non-primary source needed ] It was designed by Daniel Bruno,CMT [5] [ non-primary source needed ], a Chartered Market Technician and graduate of the Said School of Business at Oxford University. [6] [ unreliable source? ][ not in citation given ] A patent was filed with the USPTO on March 6, 2012. [7] [ unreliable source? ] [8] [ non-primary source needed ] The name derives from the gold solidus, which was the primary legal tender of the Roman Empire. [9] [ irrelevant citation ] [10] [ irrelevant citation ] In 2015, Daniel Bruno,CMT published a paper proposing the substitution of cryptocurrency bonds for dollars in commodity markets such as oil. [11] [ unreliable source? ] [12] [ not in citation given ] [13] [ not in citation given ]The paper was translated into Farsi, Russian and Spanish. In 2018, Venezuela launched the Petro cryptocurrency in an experiment designed to replace the US dollar as the medium of exchange for Venezuelan oil and gold.[ non sequitur ]

A smart bond is a specific type of an automated bond contract that uses the capabilities of blockchain databases that can operate as cryptographically-secure yet open and transparent general ledgers. It is one of a class of financial instruments known as a smart contract, "a computerized transaction protocol that executes the terms of a contract."

Blockchain distributed data store for digital transactions

A blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.

Contents

Design and use

The Solidus Bond utilizes SHA-256 elliptical encryption on a decentralized block chain to create and redeem debt instruments issued in a digital currency. The bonds are brought into existence upon command by any investor via algorithm rather than fiat. Coupon payments and bond redemption are also executed by algorithm, eliminating the need for brokerages and theoretically reducing bond duration to zero, making credit ratings obsolete. Investors choose bond size and bond maturity of seven days to 10 years. Payments are emitted from the block chain to the SwiftCoin wallet chosen by the investor at the time of bond creation. There are no commissions or fees to pay. The only requirement to purchase a Solidus Bond is a SwiftCoin wallet and a sufficient balance of the SwiftCoin digital currency to cover the face value of the bond. Bond ownership is conveyed solely through possession. There are no accounts, records, or user databases and the block chain ledger is not public. Interest rates are set by the market and were 18% in 2016. Holders of Bitcoin and other cryptocurrencies convert to SwiftCoin to access the Solidus Bond block chain, then cash back into their initial currency at bond expiry. Solidus Bonds are not open source. [14] [ non-primary source needed ] [15] [ non-primary source needed ] [16] [ non-primary source needed ] [7] [ unreliable source? ] Unlike Bitcoin, Solidus Bonds cannot be mined. [17] [ unreliable source? ] [2] [ unreliable source? ]

SHA-2 is a set of cryptographic hash functions designed by the United States National Security Agency (NSA). They are built using the Merkle–Damgård structure, from a one-way compression function itself built using the Davies–Meyer structure from a (classified) specialized block cipher.

Algorithm an unambiguous specification of how to solve a class of problems

In mathematics and computer science, an algorithm is an unambiguous specification of how to solve a class of problems. Algorithms can perform calculation, data processing, and automated reasoning tasks.

Bitcoin (₿) is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

The Solidus Bond is kept on any computer hard disc and the bond portfolio can be cloned to another device or backed up using a common pendrive. The proof-of-work block chain prevents double spending such that the bond portfolio clone has a unique position that cannot be duplicated. [18] [ unreliable source? ] [19] [ unreliable source? ] Patrick M. Byrne, the CEO of Overstock.com and an early adapter of bitcoin, made headlines in 2015 with the promotion of "the world's first bitcoin bond" purchased for US$500,000 using concepts laid out by Daniel Bruno in 2010. [20] [ unreliable source? ] [21] [ unreliable source? ] In 2015, Daniel Bruno, CMT, published papers proposing the substitution of cryptocurrency bonds for dollars in commodity markets such as oil. [22] [ unreliable source? ] [23] [ unreliable source? ]

History

As early as 2014, banking executives were speaking publicly about the ability of blockchain technology to trigger significant "simplification of banking processes and cost structure." [24] [ irrelevant citation ]

As of 2015, UBS was experimenting with smart bonds that use the bitcoin blockchain [25] [ irrelevant citation ] in which "risk free interest rates and payment streams [could be] fully automated, creating a self-paying instrument." [26] [ irrelevant citation ] The Huffington Post reports than an announcement of the UBS smartbond service is expected in 2016. [27] [ irrelevant citation ]

UBS Swiss bank

UBS Group AG is a Swiss multinational investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centers as the largest Swiss banking institution in the world. UBS client services are known for their strict bank–client confidentiality and culture of banking secrecy. The bank's large positions in the Americas, EMEA, and Asia Pacific markets make it a systemically important financial institution within the European Union, and to a lesser extent, the broader economy of Europe.

See also

<i>Code and Other Laws of Cyberspace</i> book

Code and Other Laws of Cyberspace is a 1999 book by Lawrence Lessig on the structure and nature of regulation of the Internet.

The Ricardian contract, as invented by Ian Grigg in 1996, is a method of recording a document as a contract at law, and linking it securely to other systems, such as accounting, for the contract as an issuance of value. It is robust through use of identification by cryptographic hash function, transparent through use of readable text for legal prose and efficient through markup language to extract essential information.

References

  1. ↑ "Solidus Bond：数字货币债券悄然问世_资讯_新金融". if.pedaily.cn. Retrieved 19 June 2017.
  2. 1 2 "數字貨幣債券 Solidus Bond" . Retrieved 19 June 2017.
  3. ↑ "System and method for providing debt securities denominated in virtual currencies" . Retrieved 19 June 2017.
  4. ↑ "United States Patent Application: 0130238478 - SYSTEM AND METHOD FOR PROVIDING DEBT SECURITIES DENOMINATED IN VIRTUAL CURRENCIES" . Retrieved 19 June 2017.
  5. ↑ "Daniel Bruno Approved Academic Papers". SSRN. 19 January 2019. Retrieved 19 January 2019.
  6. ↑ Wang, Ace (2014-12-16). "数字货币债券 Solidus Bond". 36kr. Retrieved 2017-03-30.
  7. 1 2 Lombardo, Hans (2014-12-10). "[Update] Swiftcoin Team Announces Launch of Digital Bearer Bonds". All Coins News. Retrieved 2017-03-28.
  8. ↑ "System and method for providing debt securities denominated in virtual currencies". AllPatents. Retrieved 2017-03-30.
  9. ↑ Porteous, John (1969). "The Imperial Foundations". Coins in history : a survey of coinage from the reform of Diocletian to the Latin Monetary Union. Weidenfeld and Nicolson. pp. 14–33. ISBN   0-297-17854-7.
  10. ↑ Spufford, Peter (1993). Money and its use in medieval Europe. Cambridge University Press. pp. 7–9, 18–19, 25, 33–35, 37, 50–52, 397, 400. ISBN   978-0-521-37590-0.
  11. ↑ "พบกับ CryptaMail อีเมลล์แบบใหม่ที่ทำงานบนระบบบล็อกเชน". Siam Blockchain. 2016-12-30. Retrieved 2017-04-02.
  12. ↑ "数字钱币债券 Solidus Bond". 29 April 2017. Retrieved 19 June 2017.
  13. ↑ "【中/英】比特幣債券悄然問世". 16 December 2014. Retrieved 19 June 2017.
  14. ↑ "System and method for providing debt securities denominated in virtual currencies". Google. Retrieved 2017-03-30.
  15. ↑ "The John McAfee $10,000 SwiftCoin & SwiftMail Hack Challenge". The Business Journals. 2016-03-07. Retrieved 2017-03-30.
  16. ↑ "数字货币债券 Solidus Bond". Guangzhou News. 2015-04-17. Retrieved 2017-03-30.
  17. ↑ Leung, Angus (2016-12-30). "John McAfee to Make Email Systems Great Again With Blockchain". The Cointelegraph. Retrieved 2017-04-02.
  18. ↑ Fletcher, Katherine (2015-08-21). "John McAfee SwiftMail using blockchain to replace email". CoinReport. Retrieved 2017-04-02.
  19. ↑ Scott, Allen (2014-05-14). "World's First Bitcoin Brick and Mortar Swap Point to Open in Uruguay". The Cointelegraph. Retrieved 2017-04-02.
  20. ↑ Santos, Maria (2015-06-09). "CEO of Overstock.com buys world's first Bitcoin bond for $500,000". Bitcoins. Retrieved 2017-04-02.
  21. ↑ Lunn, Bernard (2015-06-15). "The Overstock crypto-currency bond: a TIGRcub to settle and clear on TØ.com". Bank Innovation. Retrieved 2017-04-02.
  22. ↑ Jenn, Sarah (2015-06-09). "Bitcoin Revolution to Pose Regulatory Challenges for SEC". NEWSBTC. Retrieved 2019-01-19.
  23. ↑ "Swiftcoin: We Are Talking to Chinese VCs on Our Bitcoin Bonds". 15 June 2015. Retrieved 19 January 2019.
  24. ↑ Irrera, Anna (2014-10-27). "UBS CIO: Blockchain Technology Can Massively Simplify Banking". Wall Street Journal . Retrieved 2016-05-27.
  25. ↑ Ross, Rory (2015-09-12). "Smart Money: Blockchains Are the Future of the Internet". Newsweek . Retrieved 2016-05-27.
  26. ↑ Wigan, David (2015-06-11). "Bitcoin technology will disrupt derivatives, says banker". IFR Asia. Retrieved 2016-05-27.
  27. ↑ Seaman, David (2016-08-10). "Ethereum: Here Come The Big Banks". Huffington Post . Retrieved 2016-08-11.


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