You can now move SLP tokens (including USDH stablecoin) without having Bitcoin Cash

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4 years ago

I think this is one of the most important news that I've heard. Vin Armani has released the SLP postage protocol, which seemingly means that we can now have pure token experience - if you want to move USDH - you need only USDH, not USDH+BCH for fees.

I haven't yet read the protocol, but it sounds very promising. Basic idea is that you have "postage offices", as Vin called them, pay the fee for your SLP transaction, taking a bit of your SLP token in return. That sound pretty impressive.

Interesting note from @LeeFlemingster: "You're still going to need bitcoins if you want change, ie a 1 input 2 output transaction." I don't think it's correct, as the video clearly shows as 1:42 last output being the change sent back.

How I understand the proposal

(It might not be correct, I'll change it later if new information arrives)

The idea itself (as I understand it) is pretty simple. Let's say you want to earn about $1.01 for each $1.00 you spend - you post an open offer: "If you want to send $100 worth of USDH - just send me this signed transaction spending $101 USDH and your recepient getting $100 USDH, I'll mix it with my own unspent BCH outputs to cover your fee, and send $1 USDH to myself".

And that's about it. Someone willing to send $100 USDH worth sends a signed transaction to this "postage office": "Take 101 USDH worth from this output, send 100 USDH worth to this address, signed" and sends it as payment request to the "postage office", postage office adds "Take $0.001 from this MY output and use it as miner fee, send $1 USDH to this MY address, signed" and combines the both into transaction that he broadcasts.

More details

Here's the original post from Vin Armani, explaining it all.

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4 years ago

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The truth is that I do not fully understand the proposal, I suppose that once it is deployed or there is a stable prototype we can learn more about the UX and the security of this system (for now I think it is more of a service - decentralized or not - than something else).

I must confess that I have no problem with the idea that fees can ever be purely paid with SLP tokens if that increases the UX and usability of Bitcoin Cash and those assets, because the payment of fees with tokens anyway it would benefit the profitability of the miners (and by extension the performance of the chain).

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4 years ago

I've added a part where I try to explain it in simpler words.

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4 years ago