BEFORE YOU CONTINUE
The information below is based on hypothetical and untested theories.
There is no proven evidence in favor of or against what is presented.
Cryptocurrency prices are hiaaghly volatile and many exterior forces can influence them.
This project team makes no guarantee of any form of financial reward for any form of sustained
duration of time. Spending any resources, financial or otherwise, on such mediums of exchange,
is done by the initiative of each user alone and under no coercion or suggestion by any member
of this project team.
This information forms part of a concept that lacks sufficient empirical data to be proven
on its claims alone.
Read at your own will and under no form of contractual obligation.
BIDX Global Whitepaper v1.0.1
Dedicated to our users above all else
“Business chief executive officers and their boards succumb to the pressures of the
financial markets and their fears of takeovers and pour out their energies to produce quarterly
earnings - at the expense of building their companies for the long term.”
--J. Irwin Miller
“Open markets offer the only realistic hope of pulling billions of people in developing countries out of
abject poverty, while sustaining prosperity in the industrialized world.”
As it is now
Internet commerce has revolutionized trade and brought many ways for individuals to market their
businesses and get their goods to parts of the world where they may not have found an audience before.
Many companies now exist where this type of commerce can take place.
Companies such as Ebay, Amazon and Etsy generate billions in profit by charging users high fees, per item
sold, to use their platform. These fees represent a large amount of lost revenue to those that sell on
these platforms and by extension an increase in the price of goods to the consumers that buy from them.
Let us take as one example, eBay.
This image is directly from their website and is
publicly known information
As we see, up to 10% and possibly 12% of a sale could be lost to seller fees alone!
Aside from the listing fees for placement into the marketplace, the final sale also depends on a
global payment processing system. This system exists with products by companies such as PayPal.
These companies also charge per transaction, which is the second solid cut from user revenue.
This is the PayPal fee structure.
This image is directly from their website and is
publicly known information
This is again another fee added ...well SUBTRACTED from seller revenue!
If this system does not work to benefit those that are selling on these platforms,
why do we continue to do business in this way?
BIDX Global Proposal
BIDX Global is rethinking the structure of the traditional online marketplace and
redesigning it as a free global sales platform.
We propose a determined change to the way the current system works.
We see the benefit of an online marketplace and understand that it can be something
that nourishes international commerce instead of drying all revenue from manufacturers and small businesses
and siphoning it to corporate bank accounts where in the end it serves no purpose.
We understand that the changes we propose are somewhat radical but we know that they will
be a benefit to overall global financial health. As we develop this new marketplace and test the possibilities
and limits of the new technological advances we have been offered in the areas of blockchain and payment
processing, we also explore what distributed governance can contribute to the agility of a project.
We are looking to accomplish two things:
- ) Lower prices for better goods with small businesses that benefit from healthy margins.
- ) Free Shipping
Accomplishing these two things will set a new standard in e-commerce and has the
potential to completely redefine this industry.
How exactly is BIDX Global different?
At its core BIDX Global is an online marketplace.
This is how someone can closely compare it to what currently exists.
This is also where most of the comparison stops.
The first difference of BIDX Global, is that it does not use a “traditional” payment processor like PayPal
Until very recently, these types of payment processors were the only viable option for settling
online transactions where two unknown and untrusted entities are participating.
While they still have “network fees”, these are miniscule which makes cryptocurrencies
now, the most excellent way to allow users to detach from the “third party” fees. They have allowed a system
to be designed with a built in reward mechanism that directly benefits its participants and motivates its
users to act in the interest of the whole, since the whole is the system that rewards them.
What is BIDX?
BIDX is the native currency used in BIDX Global. It is a new and unaffiliated
cryptocurrency that works in a system of “symbio-stasis” with BIDX Global.
It permits an easy transfer of value between parties and accurate tracking of transactions on a
permanent blockchain ledger. This allows for rapid settling of transactions without immediately
involving standard national currency.
This system essentially allocates the value of a specific item sold to the BIDX used to purchase it.
It also allows for value portability unlike what is seen in current banking systems.
Although in the cryptocurrency world there are currently many projects that could have been chosen
to be this transaction processing network, BIDX Global Core Team decided to build a clean blockchain
without attachment to others which may not share the same initial ideals.
The BIDX Global Core Team believes wholeheartedly that the new “cryptocurrency economy” is here to stay.
We understand that many currencies will exist in this economy as well as many different iterations of
similar services and that users will transfer from one to another as their needs change.
This is why we chose to separate BIDX from BIDX Global and allow it to be used as any user decides
which will allow for exchange from one cryptocurrency into BIDX and from BIDX into any other cryptocurrency.
This stages a new paradigm and proposes a complete decoupling from traditional corporate revenue models.
Customers are not only able to choose a different company to do business with but now can also -easily-
choose a completely different currency to interact in.
No longer are users susceptible to fee increases as multiple companies battle for profits.
No longer are users simply pawns in a system where contracts are won and lost depending on how much
“free money” they are willing to leave their customers. Now buyers and sellers will interact
on platforms where each user is an active participant of the full system. These platforms must
respond to the financially motivated needs of its users instead of the users adjusting to
increased revenue demands of the platforms.
Benefits of BIDX:
In any marketplace there should be only two key user types, a seller and a buyer.
By using the BIDX network to process transactions on BIDX Global, the payment processing network is
now effectively owned by these two user types.
While it can also be mined through Proof-Of-Work, BIDX is primarily a Proof of Service
coin (also commonly known as Proof of Stake) which means that coins held in a wallet for a specific
amount of time (“coin age”) become “mature” and begin to receive transactions to verify. For verifying
these transactions they are entitled to a fraction of a “block reward”. This reward is the incentive
that keeps stakers staking and therefore verifying transactions.
There are three types of coin groups in BIDX:
- ) "Coins in a wallet”
This group is highly dynamic which means it can change at any moment and therefore coins in
this type of status do not stake.
- ) “Staking coins”
This group is dynamically static which means they have been stable and untouched for
enough time that the coins have become “mature” and will also start to verify transactions.
Usually these groups of coins are small and therefore only process a small amount of transactions.
For processing these transactions they earn the right to a small fraction of the block reward,
which is granted to one group from the whole of this group class at random.
- ) “Masternodes”
This group is static, which means that these coins are specifically designated for this purpose.
To hold these coins, there is a process which must be followed so that the network assigns them
this class. They must also be placed on a stable computer or such designated machine, so as to
remain up at near 100% of the time. Because the user, or group of users, who hold this group
class have essentially frozen their coins to render this service to the network, they are granted
a larger fraction of the block reward, which is granted to one masternode in a pseudo-random
fashion. The process is pseudo-random because it usually begins to follow a pattern in which each
masternode is only granted one reward every cycle.
A DAPP or “decentralized application” could have been an ideal model, unfortunately because
in a decentralized application, there is no direct control by any one group or person and instead this
“leadership” is spread among all involved, this model hinders control and a global marketplace requires a
certain degree of oversight and policy enforcement that a DAPP could simply not appropriately allow.
What has instead been created for BIDX Global, is an application with distributed governance.
How BIDX Global distributed governance works:
- While the BIDX Global team is responsible for the upkeep of the platform and day to day functions,
a large portion of direction comes from user input and voting.
- Since BIDX can be used outside of the BIDX Global, voting is not done directly on chain,
instead it is done through a special portal on the platform that can only be accessed by users of BIDX Global.
This ensures that the user making a suggestion or offering a vote has direct involvement with BIDX Global
and that the system is not accessed by bots that flood it with “fake” data.
- This also means that simply owning a BIDX masternode grants you no voting rights to BIDX Global
governance, youmust be a user of BIDX Global to decide how BIDX Global functions.
The second and perhaps most noticeable difference is that BIDX Global does not
charge a fee to a user for listing or selling on the platform.
How is a zero fee service possible for BIDX Global users?
Primarily because BIDX Global also participates in processing transactions for users on the
BIDX network. At the time of BIDX launch, BIDX Global retained some BIDX to establish the initial backbone
of the network and to launch a reserve of masternodes. This BIDX reserve group of masternodes is now used to
generate block rewards and sustain the basic needs of BIDX Global. These are the standard type of expenses for
any form of online software applications, such as servers, advertising etc.
Secondary revenue will come from optional extra services that users can add to their listings
to give them a genuine advantage over others who may sell the same item. These services are, again, optional
and not a requirement to use the platform.
The price for these additional benefits will be determined by the marketplace itself in a
competitive manner through an active bidding system. The revenue from these extra services will be redirected
to accomplish our goal of providing free shipping to our users.
Unlike the companies that funnel the revenue generated from their exorbitant fees into multiple
other services, which sometimes results in sustained losses for them that are used to offset their “real” revenue,
BIDX Global is focused on one single thing--being a zero fee and zero commission online marketplace.
BIDX Global will operate, as closely as possible, on a cost neutral basis. There are no investors
to demand increased profits which would require users to be hit with higher and higher fees or unrelated and
intrusive advertising-- instead, there are sellers that need to sell their items to buyers that want better
prices and a platform that can now deliver on this.
With the current system, manufacturers are being forced to lower their prices as much as
possible to compete in a market where small retailers earn very small profits and are barely able to make
sufficient revenue to sustain operations. This leads to the easiest solution which is to cut staff and push
higher yields from remaining employees. Often times the end result is low quality goods made with less
expensive materials. Worse yet is a factory or small business shutdown for lack of funding. Not to mention
the lack of innovation and variety as resellers push only what makes them the most profit.
New technology has enabled small firms to design and build new items that could not have
been conceived years ago, but when an online platform instantly takes sometimes 10-12% of a company’s profits
before even a sale is made, creativity and innovation take a back seat to profitability.
Many companies now are testing systems in which most employees are deemed obsolete,
both in the manufacturing sector and in retail. With these types of proposals and a decrease in employed
individuals, who then is going to be purchasing items being sold?
To remedy this, many have proposed a “living wage”, essentially, a standardized pay
across the board for all adults.
This sounds like a benevolent concept, until you realize that the real reason they propose
this type of pay is that it allows their companies to cut as many jobs as possible and still have buyers.
What are the job cuts for?
These job cuts only serve one end purpose, which is to eliminate the expense of human capital and thus maximize net profits.
This then becomes the perfect setting. They don’t pay employees and the rest of society becomes their
dependent and loyal customer base. What an amazing idea, right?
This leaves a global system shaken since a majority of manufacturing is done in underdeveloped
countries, that most likely will not receive the benefits of this “universal living wage”.
We propose a change where everyone using our platform, from buyers to sellers and
all in between can truly enjoy the benefit of its growth.
We believe that the future of commerce will be one of tokenized ownership of art, automobiles,
space, time and data, along with an infinite number of tokenized assets that can not yet be fathomed. The team
understands that the new cryptocurrency economy that is emerging is one of function and value and know that to
be custodians of a marketplace with distributed governance where every user, member, wallet, masternode, and
transaction is a fraction of the value of the whole, so too must each BIDX Global Core Team member represent a
similar fraction of value.
The community of BIDX holders are who keep this system of checks and balances, therefore it is
in the best interest of the team to maintain a constant level of performance.
This team is distributed across various time zones and geographic regions to allow for
consistent attention to the needs of the platform.
As the platform complexity grows and further tasks
are needed, these tasks will be assigned a value and the proper sourcing will occur to procure the needed
skill set from a qualified individual. Assigning these tasks and other such needed decisions are where the
BIDX Global distributed governance will shine.
There are many tasks to be completed and much work to be done but with our community's support
and continued trust we will build a truly revolutionary addition to global commerce.
Thank you for reading.