Test Smart Contracts
About HOM Coin
HomesCoin is a cryptocurrency and decentralized database focused on real estate, which allows quick and seamless buying of homes.
Most transfers complete within 8 to 30 seconds, and are thus far faster than any large bank transfer. Expensive homes can be paid for just as fast as a cup of coffee.
As a decentralized database, it functions as a way to store information about houses online. Unlike centralized databases, it cannot be taken offline, and it can be accessed from anywhere. The information on the database is still trustworthy however, because only the contract owner can add or modify entries in this database.
Unlike most other cryptocurrencies, the HOM coin has a fixed price. Nobody wants to sell a home with other cryptocurrencies because they don't know what the currency will be worth when the buy completes, so I decided that each HOM coin is worth $1000.
How is the coin kept stable?
HOM Coin has the ability to be its own exchange, where the price is set at a certain amount of Ethereum. A user can convert Ethereum to HOM Coin (or vice versa) through the HOM Coin smart contract. The price of ethereum changes though, so the price in ethereum has to change to keep the price in dollars stable. To handle this, the price is changed by an oracle program. Each buy or sell executed on the contract has a very small fee which is sent to this oracle program. This program watches the price of Ethereum and ensures that the HOM Coin price is $1000 constantly.
This small fee is less than a cent, but multiple buys and sells provides the oracle program enough Ethereum to function. The oracle only needs a few cents to change the price. The oracle needs that few cents to pay Ethereum's transaction fees. As the oracle program gets more funds, the fee drops. Once the oracle program has a certain amount of Ethereum, the fee is fractions of fractions of cents. This cutoff is only worth a few dollars, so it would be met very quickly if there were even small amounts of trading volume on the HOM Coin smart contract.
If any exchange tried to sell HOM Coin at a different price then traders would take advantage of the opportunity, and buy from the cheaper source and sell to the more expensive one, correcting the market.
If the HOM Coin smart contract ran out of HOM Coin or Ethereum, the price would be able to change, but not for long. HOM Coin can be minted or destroyed, so the market can be inflated or deflated. This shouldn't be needed because the HOM Coin contract would have very very large amounts of HOM Coin, and selling it would give it very large amounts of Ethereum.
HOM Coin exists on the Ethereum blockchain, so it has the same level of security Ethereum does. Hypothetically, there could be a bug in the smart contract that would make it vulnerable to attack, but this is extremely unlikely. The prototype HOM Coin contract has already been through many test versions, and the most sensitive logic is very simple, so has less room for security holes. The biggest security risk is the HOM Coin controlling account. If an attacker gains access to the account, they would have complete control of the token. This can be avoided by storing the account on a hardware wallet with a password. At that point the attacker would need to physically locate and steal the hardware wallet, then obtain the password. This effort is nearly impossible.
The next biggest hole is the oracle program, which controls the token price. This program has an Ethereum account as well, but it cannot be put on a hardware wallet. The oracle program needs untethered access to the Ethereum account. The easiest way of attacking this program is by attempting to disconnect it from the Ethereum network, making price...Read more »