The easiest way to create stability and growth is to slow the trading down. Take away the advantage given to HFT and bots and you'll see steady growth. I suggest that after wiring money to an exchange the only way to make a trade is to send a small bitcoin fee with the transaction encoded within. The exchanges can execute the orders after the fee is received even without verification.
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Topic: Bitcoin: The Decentralized Currency with a Centralized Exchange! (Read 2198 times)
Here's another recent idea.
April 10, 2013, 09:10:31 PM
I'm in agreement; a decentralized currency needs a decentralized exchange.
So how do we do it?
So how do we do it?
The problem isn't making a decentralized bitcoin exchange... technically speaking satoshi dice already has 90% of the framework for that.. the problem is would traders upload their US dollars to a faceless exchange?
Thats why we need brokers to handle clients and their fiat money. In the real world we got exchanges and brokers separated - the same should be true in the bitcoin world.
April 10, 2013, 09:06:52 PM
I'm in agreement; a decentralized currency needs a decentralized exchange.
So how do we do it?
So how do we do it?
The problem isn't making a decentralized bitcoin exchange... technically speaking satoshi dice already has 90% of the framework for that.. the problem is would traders upload their US dollars to a faceless exchange?
April 10, 2013, 08:10:20 PM
The short term solution is to not let exchanges do more than 25% of all trades.
Long term: p2p exchange.
Long term: p2p exchange.
April 10, 2013, 08:08:45 PM
I'm in agreement; a decentralized currency needs a decentralized exchange.
So how do we do it?
So how do we do it?
I described the template for this p2p exchange here: please add ideas for the functionality
https://bitcointalksearch.org/topic/p2p-exchange-for-bitcoin-172705
April 10, 2013, 08:07:03 PM
I'm in agreement; a decentralized currency needs a decentralized exchange.
So how do we do it?
So how do we do it?
April 10, 2013, 08:05:24 PM
If we could separate out the handling of fiat from the exchanges, and provide the handling of fiat as a service, then exchanges would be easy to build (with off the shelf open source software, as suggested).
This 'fiat handling service' would maintain bank accounts in all the countries it operates. End users deposit into these bank accounts, and the appropriate exchange account is credited with fiat. The exchange is notified, and the user's account on the exchange is credited.
So to use a dirty word, this service would be a kind of 'central bank' to the exchanges. Of course, there's no reason why it would hold a monopoly, though.
This 'fiat handling service' would maintain bank accounts in all the countries it operates. End users deposit into these bank accounts, and the appropriate exchange account is credited with fiat. The exchange is notified, and the user's account on the exchange is credited.
So to use a dirty word, this service would be a kind of 'central bank' to the exchanges. Of course, there's no reason why it would hold a monopoly, though.
April 10, 2013, 08:04:10 PM
Centalized MtGox is the bottleneck of the decentralized Bitcoin!
We must invent an decentralized exchange!
We must invent an decentralized exchange!
+1
April 10, 2013, 08:03:53 PM
Centalized MtGox is the bottleneck of the decentralized Bitcoin!
We must invent an decentralized exchange!
We must invent an decentralized exchange!
April 10, 2013, 07:56:07 PM
It is still under the control of a few people; whoever owns localbitcoins dot com. That is not decentralized, but it is an improvement.
April 10, 2013, 06:50:35 PM
April 10, 2013, 05:32:02 PM
Quote
What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.
That's what Ripple will be. So far, only the client has been open-sourced, but the server will follow.
Quote
Great idea, and technically it shouldn't be difficult - but the difficulty is taking/receiving fiat payments...
Ripple does that by trading in IOUs between nodes in a trust graph, with credit limits on each edge in the graph, and leaving settlement to individuals that have a trust relationship.
I got your point, but in my opinion, it shows very detailed how unprofessional they handle at least this technical stuff (I'm an IT guy too, this wouldn't so hard to handle...), I'm feeling very bad about the security of my bitcoins at mtgox. I think it's much saver to hold the most by my own wallet and if I need to trade, I choose localbitcoins or something like this.
April 10, 2013, 05:26:20 PM
I'm hoping Ripple will help with that. However, to use Ripple you need XRP, and I haven't been able to buy any. Maybe once the meltdown is over.
Things like Ripple and:
https://bitcointalksearch.org/topic/a-new-idea-for-bitcoin-markets-145389
should make bitcoin exchanges decentralized. The markets should match the money to prevent things like this:
http://www.youtube.com/watch?v=7fvSYT7vhQY
April 10, 2013, 05:09:30 PM
Quote
What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.
That's what Ripple will be. So far, only the client has been open-sourced, but the server will follow.
Quote
Great idea, and technically it shouldn't be difficult - but the difficulty is taking/receiving fiat payments...
Ripple does that by trading in IOUs between nodes in a trust graph, with credit limits on each edge in the graph, and leaving settlement to individuals that have a trust relationship.
April 10, 2013, 05:06:14 PM
I'm getting all my funds back this moment. MtGox is too unprofessional at all (tought they've learned their lesson when they got hacked). I'm damn sure I can protect my funds better than they are able to. I'm wondering how long payouts are possible... A lot people will do the same I think.
you dont seem to know whats going on, lots of people are just buying and selling bitcoins which creates lag. even if a ddos is happening at the same time it doesnt affect your money, its still secure. (atleast, its no more or less secure then usual.)
Great idea, and technically it shouldn't be difficult - but the difficulty is taking/receiving fiat payments...
I don't think we need a truly decentralized exchange (in the way that Bitcoin itself is decentralized), we just need several competing individual exchanges that are fast and reliable enough that people can arbitrage them.
What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.
What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.
Agree 100%
I'm getting all my funds back this moment. MtGox is too unprofessional at all (tought they've learned their lesson when they got hacked). I'm damn sure I can protect my funds better than they are able to. I'm wondering how long payouts are possible... A lot people will do the same I think.
I don't think we need a truly decentralized exchange (in the way that Bitcoin itself is decentralized), we just need several competing individual exchanges that are fast and reliable enough that people can arbitrage them.
What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.
What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.
I'm hoping Ripple will help with that. However, to use Ripple you need XRP, and I haven't been able to buy any. Maybe once the meltdown is over.
Ripple cannot help more than namecoin, litecoin, ppcoin or teracoin.They must build their own exchange network to could help and the same with ripple.
Many beleave that ripple can help because it is very confusing and nobody really understands it. Yes. You can exchange your BTC to debts or to ripple. But who would give you bitcoins for debts or ripple ?
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