What's the basic concept?
Traders risk money for destruction in each other's hands whenever they get into a deal.
So, when one sends first, it doesn't benefit the other to just take it and run.
How is btc/ltc destroyed?
Bitcoin/litecoin addresses are generated from a private key. Without this private key, there is no way to spend it.
So, we make a vanity address without a private key.
Then we send money to it, so that no one will be able to spend it without spending unprofitable amount of money cracking it.
How do i know NashX dosen't have the private key?
Every destruction gets a unique destruction address based on your username and the other party's username. So, for bitcoin it would looks something like 1nashx1username11username22Wd4keb
We generate these addresses with your username in it, which shows that these addresses were not generated from a private key which unlocks it.
Where's the proof of destruction?
As soon as someone destroys risked funds, we send the money to destruction address and provide you with the destruction address. You can use tools like blockchain explorer to see that risked funds have been to sent to destruction address.
Why destroy money?
NASHX only works when both parties know that they have more to lose by doing anything else other than what they're supposed to do.
So, we have to take the money away from the parties if one of the party is unhappy with the transaction. It would be nice if we could keep it, but that would introduce bad incentive for us to make fake accounts, get into fake deals with real people, and destroy risk funds, which end up coming back to us. This is why we have to destroy it for real.
Why don't we give destroyed funds to charity or miners?
It gives them a bad incentive to make fake accounts, get into fake deals with real people, and destroy risk funds. If destroyed risk funds are not really destroyed and given to anyone, then whoever gets that has bad incentive to do bad things to get more of it.
Why does the buyer have to risk twice as much?
The seller is sending the item first, and will have risked amount equal to the value of the item.
So, once you take the risk value of the item being sent first into account,
the seller's risk and buyer's risk are actually equal.
Also, the buyer chose to buy from the seller, and has had the chance to look at the seller's history of NASHX transactions.
But, the seller has yet to decide whether to sell to the buyer or not, and have not had the chance to look at buyer's history of transactions.
Therefore, by making buyer risk twice as much, it allows the seller to the power to refuse to continue with the deal, and both parties can simply withdraw with from their deals.
Must the seller always send first?
Yes, the buyer is risking twice as much as the seller in exchange for the seller sending first. The buyer would be risking three times as much as the seller if the buyer is asked to send first. Sellers should not ask buyers to send first, and buyers should expect sellers to send first.
Why not implement multi-sig?
We could, but it would make a horrible user experience as not enough clients support it. It would hugely complicate the whole process, while only providing one benefit in that NASHX would not be able to run away with the money. But even if multi-sig is implmented, if NASHX wanted to be a scammer, we could make a fake account, and get into a deal with you, then we'll have enough keys to just take the money.
Do I need to risk 10 btc to buy/sell 10 btc?
No. If you wanted to make buy/sell 10 btc, then you could simply risk 1 btc, then buy/sell 1 btc at a time 10 times.
How can i trust that NashX won't run away with my risk funds?
We understand that there have been many scammers in the bitcoin community,
and that it's not easy to trust any site with your coins. Rest assured that NashX is a product of its parent company Mosaically Inc.
which has been in business for over 7 years. Visit http://mosaically.com/nashx for more information.
Besides, we made NASHX because we needed it. Running away with your money just doesn't make sense for us because that would be the end of NASHX, and we wouldn't have a business anymore.
However, it is important to note that we cannot be responsible to reimburse you for lost, damaged, or stolen coins, should anything happen to your coins while in our hands.
So, it is important that you only put coins in your account when you want to use it to make deals on NASHX. You should take it out when you're done to reduce risk of losing it.
Do I need bitcoin/litecoin to use NASHX?
Yes. Any other currency besides bitcoin and litecoin cannot be transferred in a irreversible manner.
Therefore, there is no way for us to destroy currencies other than bitcoin and litecoin.
Traders are welcome to use whatever currencies they want, but their funds must be in bitcoin or litecoin.
If you don't have any bitcoin or litecoin to risk, you can go to one of the following sites to buy bitcoin or litecoin.