Non-negotiable warehouse receipts aren't money by anyone's standards.
Create cooperatives of gold/silver dealers and exchanges. Exchange deposits $100,000 (for example) with PM dealer. PM dealers issue non-negotiable warehouse receipts to purchasers with a code instead of PMs, up to the amount that exchange has on deposit. The code is convertible only on the exchanges in the co-op. At the end of the day, the exchange turns in warehouse receipts to PM dealer and deposit is re-upped.
PM dealers make money on fees and their metal never leaves the shop. People get onto exchanges without directly using fiat. Exchanges and users don't have to mess with banks.
Best of all, banks are cut out completely.
Topic: A decentralized exchange! - page 2. (Read 4462 times)
A decentralized exchange would require each person converting dollars to Bitcoins or the other way around to become a registered currency exchanger according to FinCEN. This comes will $millions in fees.
Gotta love government created monopolies.
Gotta love government created monopolies.
Yes
Also the person who invented such an exchange would be responsible for reporting everything that happens on the network and staffing compliance officers. Lol not joking
This is only going to work if done anonymously using Gnunet but sadly infrastructure not ready, Gnunet is too young to fend off the ddos internal flood knocking down the escrow peers
I found out that people have been working on decentralized exchanges already for a long time.
Overview of current projects:
- bitcoinx: http://www.bitcoinx.org/
Protocol description: https://bitcoil.co.il/BitcoinX.pdf
Other code, as well as links to the forum can be found here: http://www.bitcoinx.org/resources/
Repositories here on github: https://github.com/bitcoinx
Wiki: http://wiki.bitcoinx.org/index.php/Main_Page
- darkxchange "Dark Exchange is a distributed p2p exchange for bitcoin.". Uses the I2P network.
Source available at https://github.com/macourtney/Dark-Exchange
Described on bitcoin wiki: https://en.bitcoin.it/wiki/Dark_Exchange .
Also has a forum thread: https://bitcointalk.org/index.php?topic=26063.0;
- opentransactions
Description on bitcoin wiki: https://en.bitcoin.it/wiki/Open_Transactions
Wiki: https://github.com/FellowTraveler/Open-Transactions/wiki
Source: https://github.com/FellowTraveler/Open-Transactions
Though it's not completely decentralized, you don't need to trust any single server.
- bitcoin-otc http://bitcoin-otc.com
Not really software, but a P2P exchange nevertheless, and frontend software could be built.
Uses PGP web of trust combined with a reputation system.
IRC: #bitcoin-otc on freenode
=====
Any others? I know about ripple (https://ripple.com/), but it isn't really a distributed exchange. From what I understood the plan is to have central servers, owned by one company, to get fiat money into the system.
Overview of current projects:
- bitcoinx: http://www.bitcoinx.org/
Protocol description: https://bitcoil.co.il/BitcoinX.pdf
Other code, as well as links to the forum can be found here: http://www.bitcoinx.org/resources/
Repositories here on github: https://github.com/bitcoinx
Wiki: http://wiki.bitcoinx.org/index.php/Main_Page
- darkxchange "Dark Exchange is a distributed p2p exchange for bitcoin.". Uses the I2P network.
Source available at https://github.com/macourtney/Dark-Exchange
Described on bitcoin wiki: https://en.bitcoin.it/wiki/Dark_Exchange .
Also has a forum thread: https://bitcointalk.org/index.php?topic=26063.0;
- opentransactions
Description on bitcoin wiki: https://en.bitcoin.it/wiki/Open_Transactions
Wiki: https://github.com/FellowTraveler/Open-Transactions/wiki
Source: https://github.com/FellowTraveler/Open-Transactions
Though it's not completely decentralized, you don't need to trust any single server.
- bitcoin-otc http://bitcoin-otc.com
Not really software, but a P2P exchange nevertheless, and frontend software could be built.
Uses PGP web of trust combined with a reputation system.
IRC: #bitcoin-otc on freenode
=====
Any others? I know about ripple (https://ripple.com/), but it isn't really a distributed exchange. From what I understood the plan is to have central servers, owned by one company, to get fiat money into the system.
Decentralized exchange is not possible because fiat money are involved in the transaction.
Sell order may be easy to distribute. New "sell" function can be added to the existing client. The client can check the wallet to ensure that you really have much to sell, and then the coin can "wrapped" in a digital envelope and transfer into the existing P2P network (to prevent double spend/double sell) to wait for the transaction to happen. A built-in sale-order chart can be added into the client. This can display stats, such as average transacted price, volume, all the current sales order etc.
However, buy order is tricky. You need to prevent fake buy order that has no fund to execute the order. Fake buy order can easily manipulate prices in the exchange.
In the end, you will still need some trust worthy external escrow services, the like of the current exchanges such as mtgox, btc-e, to hold the fiat fund to ensure the validity of the buy order, and to transfer the fiat fund to the seller.
Sell order may be easy to distribute. New "sell" function can be added to the existing client. The client can check the wallet to ensure that you really have much to sell, and then the coin can "wrapped" in a digital envelope and transfer into the existing P2P network (to prevent double spend/double sell) to wait for the transaction to happen. A built-in sale-order chart can be added into the client. This can display stats, such as average transacted price, volume, all the current sales order etc.
However, buy order is tricky. You need to prevent fake buy order that has no fund to execute the order. Fake buy order can easily manipulate prices in the exchange.
In the end, you will still need some trust worthy external escrow services, the like of the current exchanges such as mtgox, btc-e, to hold the fiat fund to ensure the validity of the buy order, and to transfer the fiat fund to the seller.
Yes, we still need mtgox, btce and bitstamp to handle our fiat and bitcoins- but their role will be as brokers instead of exchanges.
Decentralized exchange is not possible because fiat money are involved in the transaction.
Sell order may be easy to distribute. New "sell" function can be added to the existing client. The client can check the wallet to ensure that you really have that much to sell, and then the coin can be "wrapped" in a digital envelope and transfer into the existing P2P network (to prevent double spend/double sell) to wait for the transaction to happen. A built-in sale-order chart can be added into the client. This can display stats, such as average transacted price, volume, all the current sales order etc.
However, buy order is tricky. You need to prevent fake buy order that has no fund to execute the order. Fake buy order can easily manipulate prices in the exchange.
In the end, you will still need some trust worthy external escrow services, the like of the current exchanges such as mtgox, btc-e, to hold the fiat fund to ensure the validity of the buy order, and to transfer the fiat fund to the seller.
Sell order may be easy to distribute. New "sell" function can be added to the existing client. The client can check the wallet to ensure that you really have that much to sell, and then the coin can be "wrapped" in a digital envelope and transfer into the existing P2P network (to prevent double spend/double sell) to wait for the transaction to happen. A built-in sale-order chart can be added into the client. This can display stats, such as average transacted price, volume, all the current sales order etc.
However, buy order is tricky. You need to prevent fake buy order that has no fund to execute the order. Fake buy order can easily manipulate prices in the exchange.
In the end, you will still need some trust worthy external escrow services, the like of the current exchanges such as mtgox, btc-e, to hold the fiat fund to ensure the validity of the buy order, and to transfer the fiat fund to the seller.
What about Ripple?
A decentralized exchange would require each person converting dollars to Bitcoins or the other way around to become a registered currency exchanger according to FinCEN. This comes will $millions in fees.
Gotta love government created monopolies.
Gotta love government created monopolies.
We are discussing a solution for a p2p based decentralized bitcoin exchange.
https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
https://github.com/p2p/bitcoin-exchange
Just be sure to address this:
Quote
a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.
When a follow up was asked of FinCEN, no minimum was included. Anybody who exchanges bitcoins for fiat is an exchanger.
Even at bitcoin-otc or localbitcoins they are exchanging money illegally if doing it in the US without a license.
If you plan on trying to do it but stay under the radar then you may want to make sure it will run in Tor and mimick the Silk Road approach.
Better yet... set it up to run on it's own network, using existing darknet open-source code.
A decentralized exchange would require each person converting dollars to Bitcoins or the other way around to become a registered currency exchanger according to FinCEN. This comes will $millions in fees.
Gotta love government created monopolies.
Gotta love government created monopolies.
We are discussing a solution for a p2p based decentralized bitcoin exchange.
https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
https://github.com/p2p/bitcoin-exchange
Just be sure to address this:
Quote
a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.
When a follow up was asked of FinCEN, no minimum was included. Anybody who exchanges bitcoins for fiat is an exchanger.
Even at bitcoin-otc or localbitcoins they are exchanging money illegally if doing it in the US without a license.
If you plan on trying to do it but stay under the radar then you may want to make sure it will run in Tor and mimick the Silk Road approach.
Elwar: I suppose the idea around that is to trade small amount between people, so no one is really "the exchanger". A bit like bitcoin-otc but more automated and easier to use.
Good luck!
We are discussing a solution for a p2p based decentralized bitcoin exchange.
https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
https://github.com/p2p/bitcoin-exchange
Even with a github repository with only a README.md in it, you're already doing 1000% more than all people theorizing around here https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
https://github.com/p2p/bitcoin-exchange
Good luck!Every great project begins with a ReadMe File
The answer:
Demand payment in Bitcoin!
And if that doesn't work, wait a while, get more people to say it with you, and the say it again.
Repeat as many times as it takes
Demand payment in Bitcoin!
And if that doesn't work, wait a while, get more people to say it with you, and the say it again.
Repeat as many times as it takes
Elwar: I suppose the idea around that is to trade small amount between people, so no one is really "the exchanger". A bit like bitcoin-otc but more automated and easier to use.
Good luck!
We are discussing a solution for a p2p based decentralized bitcoin exchange.
https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
https://github.com/p2p/bitcoin-exchange
Even with a github repository with only a README.md in it, you're already doing 1000% more than all people theorizing around here https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
https://github.com/p2p/bitcoin-exchange
Good luck!A decentralized exchange would require each person converting dollars to Bitcoins or the other way around to become a registered currency exchanger according to FinCEN. This comes will $millions in fees.
Gotta love government created monopolies.
Gotta love government created monopolies.
We are discussing a solution for a p2p based decentralized bitcoin exchange.
https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
https://github.com/p2p/bitcoin-exchange
A decentralized exchange would require each person converting dollars to Bitcoins or the other way around to become a registered currency exchanger according to FinCEN. This comes will $millions in fees.
Gotta love government created monopolies.
Gotta love government created monopolies.
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