A Veritaseum Smart Contract form.
A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim:




A Veritaseum Smart Contract form.
A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim:
Forgive my ignorance. I fail to see how this platform, can reduce transaction costs, where there are multiple transactions over time. As someone who has traded both stocks, Binary Options, and spread-betted various instruments. The costs are usually either fixed in advance (as an example - £15.00 for shares upto the value of £2,500.00) and then up in stages dependent on the value of the trade. In a spread-betting account, there are no fees except the spread, which on massively traded items, like the "Cable" (USD/GBP cross) costs can be as little as 0.0001 or 0.00015 of the value of a currency (Up or down) times the value of the trade. so no more than 1/10th, or 1/15th of 1%, which is pretty good.
I also wonder about enforcement in a contract where the parties to the contract fail to deliver (particularly with service contracts). Surely legal services - taking someone to court, and gaining a judgement - whilst perhaps easier with the contract terms set in stone and therefore evidential) but a court will surely still be needed?
Hi Reggie,
Jon here again. Please feel free to publish this or answer privately. I still have several questions about VE. You have stated that VE will be required to participate in P2P contracts in Veritaseum. However, since an individual does not know how many VE will be required per contract and/or if the amount of VE required will be based on the notional amount of the contract or some other formula, it is impossible to even make a guesstimate as to how much they may be worth. This may be true of all ICOs and it is a reason I have not participated in any of the thousands of ICOs (most of which are close to worthless). However, if I knew that one VE will be required for any P2P contract, I could at least compare it to a brokerage fee and get some feel for the potential value.
In addition, if the price of VE rises, it in essence makes the admission fee to a P2P contract higher. Finally, if Veritaseum proves to be a huge success (hopefully it is) there may not be enough VE 'admission tickets'. Would you then dilute the supply of VE to accommodate?
To be absolutely honest, we are talking about a system that is not even built yet. We have the P2P value trading system up and running, but it is currently running on the Bitcoin blockchain, to be ported over to Ethereum. We will likely tie the Ve cost to the complexity of the contract, but I would prefer to get the system up and running and into the hands of users before committing.
We plan to make the platform extremely disruptive, thus by tying cost of contracts to complexity vs notional underlying, we totally upend the status quo's pricing system - which is our goal.
To put your question into perspective, when Ethereum held its ICO, it was not know what the specific costs and rates of ETH as gas would be for well over a year until the alpha of the platform was built, and even then it was adjusted several times (which is to be expected when building a new platform).
The same goes for the vast majority of ICOs that are aimed to assist in building out new platforms. What we are doing is building out an entirely new form of capitalism - P2P capital markets. We will need some time to accomplish this, as well as wiggle room.
Think of this is Ethereum for capital markets, value transfer and intelligent money.
We do plan on listing Ve on exchanges, but as mentioned in the presentation, Veritaseum will have its own liquidity engine which will will attempt to provide implicit access to other popular tokens, namely BTC, ETH and Ve.USD (which will be redeemable directly for USD on a 1:1 basis).
Again, please keep the questions and comments coming. They help clarify the offering to many and are greatly appreciated. This is meant in its most sincerest form.
Thank you for addressing most of my questions. However, the emphasis of much of it was directed towards Veritaseum more so than Veritas which I still feel is vague in detail. As a for instance, to get access to the trades you used as an illustration, how many VE will that require? Are we talking about one VE or are we looking at 100 VE? Similarly does the VE entrance fee scale with the notional value of the contract or is it a flat fee? Finally do you plan on listing VE on other crypto exchanges? Thank you.
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