Staking – Proof of Stake
How do I know if my Client is synchronized to the blockchain?
At the bottom of the Home tab or the History tab is a synchronization status bar. If it’s at 100% then you are fully synchronized. You cannot perform transactions until you are fully synchronized. You will not see deposits to your Client until you are fully synchronized.
How does staking work and why does it generate value?
Proof of Stake (POS) was originated by Peercoin. It’s an eco-friendly alternative to Proof of Work (POW) coins like Bitcoin. It is similar to POW except that you don’t need mining hardware to mine new coins. You simply have to hold coins in your wallet and keep the wallet connected to the network. To keep staking fair it requires that the coins held in a wallet reach a maturity level before they can begin staking for newly minted coins.In order for coins to mature they must not leave the wallet or else they risk reseting their maturity level. BitBay’s maturity level is roughly 2 hours or (120 block confirmations at 64 second block time) – after that they begin the process of staking for the next newly found block on the blockchain. If they fail to stake the next block they gain miniscule advantage to potentially stake the next block, this repeats over and over until they finally stake a block, after which the coins must wait another 2 hours before they can become mature again.
All of this is automated as long as you hold coins in your wallet and keep you computer online and unlocked (yet still password protected) to the network. The more mature coins you own the better the odds that you will stake the next block receiving the newly minted coins that are associated with that block.
Proof of Stake holds many advantages over Proof of Work – mainly being:
- Bitcoin mining and POW is currently one of the most wasteful uses of electricity in history. The Bitcoin network is more powerful than all the world’s known supercomputers combined. This power could be contributed for research but instead it is completely wasted on the search for digital gold. Proof of Stake solves that issue and makes more sense as it is economically friendly.
- Miners in POW always have the fear that their mining hardware will become obsolete premature of their breakeven point. New hardware can turn existing hardware worthless in just a matter of weeks. With Proof of Stake your coins are the mining hardware, they only risk is that someone wants to buy more coins to stake more than you, yet this creates a scarcity factor and drives the price of the coin up in value which does nothing but benefit your pocket!
In cryptocurrencies, any computer that supports a fully synchronized blockchain online is considered a “node” for the network. Currently with most POW coins like Bitcoin, there is no incentive for people to be a node for the network as all incentive goes to the miners. As their blockchain grows in size the number of nodes are diminishing as there is no reward for supporting it. POS coins provides incentive for people to synchronize to the blockchain which secures the network and helps provide a healthy decentralized atmosphere for the coin.
- BitBay staking schematics:
- New block added to blockchain every 64 seconds.
- Coin maturity 120 confirmations at 64 second blocks = 128 minutes
- 1% annual increase in coins supply enforced by POS 3.0 protocol (see below)
- Staking Protocol: POS 3.0 which is cloned from the Blackcoin developer known as “rat4”. POS 3.0’s whitepaper can be found here:https://bravenewcoin.com/assets/Whitepapers/Blackcoin-POS-3.pdf
- It’s main upgrades are that it enforces a true APR of the coin supply.
- Mature coins can only stay mature if you keep your wallet running. There is no ‘coin age’ factor anymore.
- This is achieved by providing a block reward proportional to the APR. BitBay currently has a total supply of 1,007,545,000. With BitBay’s 64 second block time that equals 492,750 new blocks per year (60x60x24x365/64), which equals a current block value of 20 newly minted coins per block. With this in mind, we can actually create a much higher APR for staking wallets. It’s impossible for the community to stake every coin in the total supply for various reasons – some are locked in contracts, timelock bonds, held on exchanges for trading, etc. That being said, the APR is only awarded to those that participate. The coin supply will increase 1% no matter what, yet if only 30% of the entire coin supply is staking then that 30% will receive the 1% APR of 1 billion+ coins! We believe the actual APR’s will vary from 2% to 5% a year – not the advertised 1%!
- You can track your network ranking here:https://chainz.cryptoid.info/bay/#!extractionThis webpage how many coins are currently staking. Typically the amount of coins staking averages around 25 – 35 percent of the entire coin supply, which equates to around 250 million to 350 million. Since only the staking coins can obtain the 1% APR, that mean the actual APR is much higher than 1%, but rather around 2.5 – 4% APR!
- Please understand that your APR doesn’t occur overnight. It is based on staking the entire year. So in order to understand the math behind staking, you need to understand how the block rewards fit into your APR. For example, if you own 12000 coins and start to stake. The minimum APR is 1% which equals 120 coins a year. Currently each block reward mints 20 new BitBay, therefore you would only need to find 7 blocks over the course of the entire year in order to reach your APR. That’s only 1 block every 2 months based on a 12000 coin wallet!
How much RAM do I need for staking?
4 GB of RAM should be sufficient for staking BAY. Anything less and you begin to lose potential rewards due to processing power. I tried staking once on a raspberry pi (1 RAM) and couldn’t find a block on a healthy amount of coins even after 6 days of staking.
Can you mine BitBay?
Staking is just another form of mining. See above for staking information
How do I stake?
First, the Client needs to be synchronized 100% with coins in your wallet. Second, you need enable staking in “Settings”. Then you unlock your wallet by going to the File tab of the Client and click on “Unlock Wallet”. For security reasons it’s best to unlock your wallet for staking only.
How do you install and load the Client on linux?
Download the tar.gz file found at the website. Extract the file with an app like Archive Manager.
Then open a terminal and navigate to the BitBay directory. On some Linux systems you are able to click on BitBay.sh or else you can go to the command prompt type:
Why won’t the BAY client open properly on my Macbook?
When using a Macbook, BAY operates in WINE rather than as a typical mac program. This results in some issues, as a Mac user myself I have found that BAY will not work properly without “Control Clicking” and then clicking Open. Despite the fact I am using my administrator account, I have found this is the only way to get BAY to work 100%. Don’t worry though, we will address this issue in due time! Also remember to use Control + V for paste instead of Command + V for paste in WINE, it took me a few minutes to realize this myself.
BitBay will not run on my Mac. What do I do?
You may have to move the BitBay application to the “Applications” directory for it to run. Also sometimes Mac will require you to allow applications from publishers that are not from the Apple Store. This can be enabled in your system’s settings.
Where is my wallet on my Mac?! I saved the keys but now I can’t find them.
Your blockchain files and program files are stored INSIDE the application package. For this reason you should always pay attention to where you save your keys. And ALWAYS back-up your account. Remember, your account is your responsibility. To see inside the application package just right click on it and go to “Show package contents”.
BitBay runs slow on my Mac, what do I do?
We are currently improving our Mac build. Chances are you are running the WineSkin VM build of BitBay. So you might need some extra RAM and speed to get the best performance. However we have a lot of happy users who have tested this successfully and please always keep posted for updates. If you disconnect while running the Mac build simply shut down the software and reboot. Please note, if you are running Mac please turn off sleep. In fact even on Windows this can cause unexpected behavior of the software.
BitBay is not loading and saying “bitbayd” is unable to load. What do I do?
It is possible that something happened that crashed the blockchain database(for example not shutting down properly). This can happen on any coin and is not exclusive to BitBay. The software gives the option to “reindex” when this message is displayed. If that does not work, you might have to rebuild the blockchain from scratch. So in order to do this you must delete all the files(except wallet.dat) from the directory called “bitbaydata” and run the software again.
I see my transaction pending but nothing is happening! What do I do?
First you should make sure you are fully synchronized. You can compare the current block to the one on https://chainz.cryptoid.info/bay/ . If the blockchain is not in sync please wait so the transaction can confirm. Next, you should check to see if you have both keys loaded. Remember, BitBay is a multisignature wallet meaning there are two keys. This means double the security! However sometimes people accidentally only load on key similar to a joint account. They forget to load the second. You can tell if the pending transaction is a “Two Step Send” transaction because it will say so in the “History Tab”. You are able to simply cancel the transaction by clicking on it. Realize that if you store one of your keys on USB or disc and forget to connect it, then the software will not be able to find it. Lastly, check the amount of connections you have to the network. You can go to the Settings menu and see if there is enough connections. Worst case scenario you are on a small network split(extremely unlikely). If you are on a split, contact us and we will most likely instruct you to synchronize the chain again.
How do I update to a newer version on the Mac client?
When an update is ready, you will be asked to downloads the windows updater. Then you navigate to the Mac application and “Show Package contents”. Run WineSkin inside of it. Then have WineSkin run the installer you just downloaded. It will update normally. Then it may tell you that no “new executables” were found. You can ignore that message as your software is now up to date.
Is there any way to get around downloading the entire Blockchain through the client?
Yes! Check out bitbay.market/downloads and find the “bootstrap” blockchain download. Note: this doesn’t work for Mac users however you can contact us for a prebuilt package that will save you time synchronizing.
How is the market moderated?
There is only one ‘default’ marketplace called “BitBay”. Everyone by default becomes a member to this market when they install the Client. This market will be kept clean of any illegal activity like selling drugs. Remember just like the internet, this is a protocol with a user interface. We also do not escrow transactions. This means you must be familiar with the laws pertaining to the contracts you create, the exact same way you would do so with any contract you make on paper.
If you want to create a private market, by all means, create as many as you want. If you create a private market called “Bob’s market” then you probably run the risk of it not being so private as anyone else who creates “Bob’s market” will also be on that market and can post items on it. Yet if you create a market called “Kskg89f6wDKGU7s9hjs&DKBF78sgjn” the odds are that no one else will know that market exists unless you tell them it exists.
We want this protocol to provide a way for e-commerce to function in a serveress environment on a global scale. Therefore, we want to keep it clean of illegal activity, yet at the same time we can’t moderate what we can’t see. We can issue moderation keys available by request to any person or agency interested in removing markets. We hope that this will make it self-governing. Also your IP address is encrypted and sent in every offer. This means anyone else subscribed to the markets could decrypt it if they are holding one of these keys. This is meant to prove our intent that we truly want to popularize serverless commercial internet services.
We can program this protocol design to anything we desire (majority consensus of course). Users could easily set up public markets that are specific to geographics. For example, if there is a country where different laws apply, then they could create a market eccentric to that country and moderated by the merchants from that market (they could be voted into power by the voting consensus feature built into the Client). So merchants from a specific country could create a market called “BitBay Netherlands” These merchants could sell whatever is legal in the Netherlands to clientele in the Netherlands. It would be up to them to take the risk if they transact with clientele outside of the country that could potentially be illegal elsewhere.
The private markets are decentralized and cannot be moderated if we can’t see them. If something is brought to our attention we can give out the moderation key to parties interested in volunteering to keep the markets commercial. The public markets like “BitBay” are decentralized for legal commerce and moderated for illegal activity. A moderator cannot prevent a post before it happens although a moderator can remove a market, ban a user’s IP address, their wallet and various other identifying information such as their public key.
I can’t get any network connections?
Depending on geographics and your internet connection this can cause some Clients have issues finding BitBay network connections. The best way to alleviate this is to update the bitbay.conf file found inside the bitbaydata folder which is inside your Client’s main directory on your hard drive.
To create or update the bitbay.conf file you need to download a text editor like Notepad ++ or Sublime text editor.
Once the text editor is open paste this info into at the beginning of the file: ____________________________________________________________________________ __
rpcuser=bitbayrpc rpcpassword=4c80db0bfc751aaadba16bb8ed2c9f050d00952b476b83cc96e24909c06625b3 rpcport=19915
Then you can use this link for the most current list of network connections
If you click on “node list” button you will see a list of all the current IP addresses that are connected.
Copy and paste this list under the text script you have created above.
Then save the file as bitbay.conf
So the final configuration file should look similar to:
rpcuser=bitbayrpc rpcpassword=4c80db0bfc751aaadba16bb8ed2c9f050d00952b476b83cc96e24909c06625b3 rpcport=19915
addnode=184.108.40.206 addnode=220.127.116.11 addnode=18.104.22.168 addnode=22.214.171.124 addnode=126.96.36.199 addnode=188.8.131.52 addnode=184.108.40.206
It’s okay to list all the addnodes you find on the website link – the more the merrier. I’m just saving some space in my example above.
For the Client you need to save this file in your BitBay directory in the bitbaydata folder.
For the QT wallet you need to save it to your >username</appdata/roaming/ BitBay folder.
If you are having trouble finding the folder for the QT wallet you can refer to this youtube tutorial on how to find a bitcoin folder. To find your BitBay folder it’s the same procedure. https://www.youtube.com/watch?v=jGXf2xFyWaE
My Client is loading and responding really slow, how can I speed it up?
Check your free RAM while using the Client. Recommended RAM amount for
solid performance: 4 – 8 GB. Also refer to the FAQ above and create/update your bitbay.conf file.
Is there a feature list of BitBay Client somewhere?
Is there a way to generate paper wallet for Bay?
Yes. And the beauty of it – there’s no need for 3rd party software! Just print out your key1.private and key2.private files. Easy to follow video tutorial:
My client is loading and responding really slow, how can I speed it up?
Check your free RAM while using the Client. Recommended RAM amount for
solid performance: 4 – 8 GB. Also you can try downloading a memory manager such as “CleanMEM mini monitor”. This software lets you know when memory is too high and allows you to clear up the file cache. Also be aware if you are running too many programs at once.
What will be the price of 1 Bay in x time?
No one knows for sure. Bay team does not speculate on price. Bay is one of
the safest long term holds you can find. Many projects are priced based on roadmaps. And you can never know if they will be fulfilled. We have already developed more than most other coins have on their roadmap.
Is there a block explorer for Bay?
What is a rolling peg?
Think of the rolling peg like a stabiliser. It will make the price of Bay behave
much more like a big mature market like commodities, blue chip stocks, forex. This is done by controlling the coin supply. If there is too much sell pressure, we freeze a certain percent of the coin supply. This creates two balances for most users. Liquid and Frozen. The amount you have frozen depends on the time you received and spent the coins. This makes it fair for everyone. You can move frozen coins however the exchange will not let you sell them. To move a frozen it is “slowed” down by forcing a delay of one month per movement. This creates a wonderful advantage of being able to use the frozen coins as a sort of bond, future, trustless loan and so forth.
After the release of the rolling peg, is it possible to sell frozen coins?
Yes, as explained above the coins can be moved with a one month delay. The value/price of a frozen coin may not be the same as a liquid one, however it can be an excellent way to get coins at a discount or exchange for liquid coins.
Will selling frozen coins create a futures market?
Yes, the rolling peg will create one of the most lucrative trading games in the entire exchange industry! This will create a great opportunity for speculators and investors to buy cheap coins in hopes that upon maturity, the time-locked coins will reward profits.
Can I migrate from the QT wallet to the Market wallet?
No. You need to install the Market client, sync it, and send your coins from your QT wallet to your new account you create in your Client. The Client does not utilize the wallet.dat file found in the QT wallet to backup your account!
How do I backup my QT wallet.
Everything you need to know about backing up your QT wallet can be found here: https://www.youtube.com/watch?v=jGXf2xFyWaE&t=2s
I downloaded the Client or I downloaded the QT wallet and sent coins to the address inside the wallet, but my balance is not showing any coins received.
The Client and the QT wallet both need to be synchronized 100% to the blockchain before balances will show correctly. Think about it for a second – if you send coins through the network then the transaction is going to be stored on the most recent block at the moment of the transaction. If you are syncing up to block 50000 yet you made to the transaction on block 1,200,000 how is the Client or QT wallet supposed to know you made the transaction on that block. It still needs to catch up with all the transactions.
I have coins in my Client account, yet it won’t let me withdraw them.
Make sure your blockchain is synchronized 100%. The Client won’t be usable until it’s synced 100%. Check to see the status of the synchronization bar found on the Home tab of the Client. If this bar says disconnected, close down and restart the Client.
– Make sure your account has both keys loaded up. A ‘normal’ account in the Client requires that the owner utilize 2 private keys for extra security. If you load only 1 private key, the Client will think a a joint account/2fa account is loaded and not function properly. You can check to see if you have 2 private keys loaded by clicking on the History tab of the Client. If you accidentally try to send with one key don’t worry you may cancel as only 1⁄2 of that transaction was signed and it was not broadcasted to the network.
How long does the synchronization of the blockchain take?
It depends on multiple factors. Mainly being
● Your OS:
Windows – pretty fast yet depends on processing chip and Ram and an updated bitbay.conf file should sync in about 12 to 18 hours.
■ Debian is super fast and has no known bugs
■ Ubuntu has been known to have graphical issues ■ Whonix – works like Debian
■ Mint – Works possible graphics issues
Mac – This depends on Ram, we have synced a build in advance for some users. It can take a day or two otherwise.
What makes bitbay unique?
First, it isn’t vapourware with a roadmap http://bitbay.market/features/
What is the total coin supply?
At the initial launch of BitBay the total coin supply was 1 billion. This increases over time as the coin increases in coin supply by 1% annually. To find the current total coin supply you can visit: http://coinmarketcap.com/currencies/bitbay/
What is market cap and what is the current market cap of BitBay?
Market cap is determined by this formula: price * supply = market cap
You can find the current market cap here: http://coinmarketcap.com/currencies/bitbay/
What exchanges is BitBay listed on?
Currently we are listed on Bittrex and C-cex. We will be included into the Blocknet Dex as soon as they release their exchange.
Didn’t BitBay get scammed?
BitBay could be considered the ‘Cinderella Story’ of Crypto. During the ICO, the founders of the coin cheated the investors by diluting the ICO with their own bitcoin.They basically added their own investment to the ICO that went right back in their pockets. Rather than use the ICO funding for the right reasons, they basically took the money and ran. They then proceeded to try to blame everything on David Zimbeck. At the beginning, David’s main purpose was to lease the Halo Client software to the founders of the coin. When they abandoned the coin and took all their bitcoin funding, David proceeded to take full control of the coin as the new lead developer. Not only did the founders leave with the ICO funding, they also proceeded to dump all their BitBay on the exchanges for nearly 2 years. This is why BitBay was left hiding in the dark from the rest of the crypto community. Their main intention was to dump coins in hopes David would give up and abandon the project. Little did they know David is not a quitter. No matter how hard we tried to gain some marketing traction, the founders would dump on top of it squashing investor confidence. Thankfully through the grace of blockchain technology, we were able to track the remaining coins the founders controlled. They ran out out of coins in January of 2017. We use to be traded on the exchange called, Bter. Bter was the host of the ICO and the owner Lin Han was the main thief of the ICO scam. He proceeded to delist us from his exchange in January of 2017, thus confirming our suspicion that the founders were finally all out of coins – he had no use for us anymore! If you look at the price of BitBay on the daily timeframe chart, you will see this to be the truth. Now the market can finally begin the process of determining ‘true market value’, this takes time, yet as you can see the market is determining that BitBay is still undervalued!
What is a sat or a satoshi
A satoshi is a unit of value based in bitcoin. It is a fraction of a bitcoin. Bitcoin can be divided up into 0.00000001 units. Each of these units is called a satoshi. Some people mention to it as ‘sat’ for short form or ‘sats’ for plural short form.
55,000 satoshi = 0.00055000 bitcoin
75 satoshi = 0.00000075 bitcoin
What is a smart contract?
There is not one definition that everyone agrees on. But “a contract that executes itself” is one common definition. BitBay does not require the need for a 3rd party escrow service for the marketplace to function. The “Double Deposit Escrow” system in BitBay is controlled solely through the Client’s protocol. Without the middleman needed anymore – everyone wins! Double deposit escrow shares similarities with old game theory ideas like Nash equilibrium, mutually assured destruction, ultimatum game, etc. But it had never in history been accomplished in a way that people could use it until now!
Is BAY the sole coin that has double escrow deposit?
David is the creator of the Halo Client, which is the only software to date that utilizes an escrow system that doesn’t require a middleman to manage. He first began the project by working on BitHalo (Bitcoin based) and BlackHalo (Blackcoin based). When BitBay was created he was to license the Halo protocol to the original founders. After they abandoned the coin David took full reigns of developing BitBay. All new features to the Halo Client will be exclusive to BitBay. BitBay will be the only coin to implementing the decentralized rolling peg. BitHalo/BlackHalo will only utilize the contract templates (after BitBay has released all its remaining features and allowed for maximum impact for investors) and receive bug fixes.
All new features will be exclusive to BitBay since this is where the community is. BitHalo does have a large following but not as many users. So it may be years until they are given the remaining templates and everything will be contingent on the success of the BitBay project. It should be noted that Halo is still the ONLY protocol in the world that does smart contracts
Does BitBay scale well?
Scalability is probably the most important aspects of any cryptocurrency. Ethereum’s blockchain currently increases by 1.25 gigs a day and that number is growing by the week. At this rate they could surpass Bitcoin’s chain before ethereum reaches its 2nd year in existence. Ethereum currently has no solution to scale their system in a decentralized manner, yet investors believe it to be worth over a 30 billion dollar market cap. One of the main aspects of cryptocurrency is to provide to the world with the ability to transact with others in a decentralized environment! David foresaw the dangers of blockchain bloat before he even began to code Halo. He is a firm believer that the blockchain should be utilized only as an accounting ledger. Therefore, when he was coding Halo, he devised a way in which he utilizes the bitmessage protocol https://bitmessage.org to carry the weight of hosting the marketplace. Bitmessage is trustless and decentralized and arguably more anonymous than tor. This way we can keep our blockchain bloat free from unnecessary items that have no reason to be stored on the blockchain. As cryptocurrency technology evolves the issue of blockchain bloat will become less of a concern. The segwit lightning network is a perfect example. With the lightning network cryptocurrency can now complete transactions off the blockchain. Granted there are a few security issues that still need to be addressed, but for the most part, in the near future we will see this technology evolve to a point where it can help crypto remain under the Moore’s law principle (except for Ethereum :). It may be possible once we see a strong lightning implementation to leverage our frozen coins to scale a much more decentralized and fair lightning network. We are waiting for research to mature in this field.
Will BitBay run into the same political gridlock issue that Bitcoin is currently facing?
No – BitBay is the first coin to implement a user friendly decentralized voting consensus built into the Client. The majority vote can dictate the future of the coin, since it utilizes the staking protocol by attaching votes to stake rewards, the majority vote is determined by the most powerful mining consensus, therefore, there is no fear of a fork being created by the minority and disrupting the coin just because they got their panties in a wad. 🙂
Bitcoin can only dream of this technology!
And I'd like to know why Core won't give their users the tools to express their opinion on consensus-level changes.
— Gavin Andresen (@gavinandresen) April 19, 2017
Gavin Andresen @gavinandresen
@TheBlueMatt @cyounessi1 And I’d like to know why Core won’t give their users the tools to express their opinion on consensus-level changes.
How do you install and load the Client on linux
Download the tar.gz file found at the website. Extract the file with an app like Archive Manager.
Then open a terminal and navigate to the BitBay directory. At the command prompt type: ./BitBay.sh
What is fiat?
Fiat currency is legal tender whose value is backed by the government that issued it. The U.S. dollar is fiat money, as are the euro and many other major world currencies. This approach differs from money whose value is underpinned by some physical good such as gold or silver, called commodity money. You might hear the term in BitBay exchange crypto for fiat because the Client is the only protocol in the industry that allows you to trade cryptocurrencies for fiat/cash without the need for a middleman to try to keep counterparties honest. This allows us to trade cryptocoins for fiat absolutely free of charge in some cases (regional bank wires for example.)
How is the fiat price of BitBay truly determined? What is a buy or sell wall?
The price of almost everything in this world is determined by supply and demand. The lower supply and the higher demand drives a high price. The larger the size of the BitBay community and the larger the volume the more this drives demand. Currently, BitBay can be bought peer to peer through the software and that doesn’t affect the market price greatly. On different cryptocurrency exchanges, you can see people who bid on the price on BitBay in exchange for Bitcoin for example. They may keep their coins off the exchange and only deposit for purchases or sales. However some people who trade the currency full time will place orders or sometimes called “walls”. These orders may be lower than the current price or higher than the current price. If someone wants to buy 10 Bitcoins of BitBay at 5% lower than the current market price that would create a “wall” because in order to drop the price of the currency, someone would need that much BitBay to fill their entire order. This is why the rolling peg will be so effective. As we can set a dynamic supply that adjusts properly to the volume, orders and demand.