Topic: Decentralized exchanges will never work - page 2. (Read 3232 times)
Decantralized asset exchanges are alive and well (at least one), and you can find WhateverCoin/USD assets what you can reclaim at some USD gateways. So some workarounds are already available. Ripple is the best example.
So, every now and then I see a post about the beauty of a decentralized exchange. Well here's the thing. You can't get USD on a Decentralized Exchange, adding new coins to trade will always be a headache, and since there won't be any censorship, scamming with new, random, 2 day old altcoins will be abundant, among other things
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
Decentralized crypto only exchanges could work now though, agree it seems tricky with USD hopefully the ATM business will sort that so nobody has to deal with banks.
You got a point OP , but still I prefer Decentralized Exchangers then Centralized exchangers which are full of shit .
First of all , they are getting hacked one by one (Dosen't matter if it's an inside job or not ) and most of them are giving coins back. Secondly and the thing that defeats the whole purpose of Bitcoin which is "being annonymus" , I don't get how they ask for our ID's and resident and Passeport and other real informations ... then why we simply don't go and use Skrill , Paypal , Credit Cards etc ...? Bitcoin would be better without those exchangers .
~ Madness
First of all , they are getting hacked one by one (Dosen't matter if it's an inside job or not ) and most of them are giving coins back. Secondly and the thing that defeats the whole purpose of Bitcoin which is "being annonymus" , I don't get how they ask for our ID's and resident and Passeport and other real informations ... then why we simply don't go and use Skrill , Paypal , Credit Cards etc ...? Bitcoin would be better without those exchangers .
~ Madness
I have been using decentralized exchanges (localbitcoins) for years and it works fine
There is a high rate of fraud in decentralized exchange, a new trader will easily become the victim of scammers
There is a high rate of fraud in decentralized exchange, a new trader will easily become the victim of scammers
Why will a new trader easily become a victim of scammers? If he is careful, and trades with reputable members, he should be ok? Besides, never put all eggs in one basket, so if he wants to exchange 1000 euros, perhaps do 100 at a time?
I have been using decentralized exchanges (localbitcoins) for years and it works fine
There is a high rate of fraud in decentralized exchange, a new trader will easily become the victim of scammers. Other than that, I don't see big problem with that. Maybe the platform is centralized, but since all the trades are done between users, platform only hold funds briefly during the trade, even the platform shutdown, the trader's loss will be minimal
Even on a decentralized exchange, you are still dealing with humans, so the credibility of each trader is still important, some kind of feedback and rating system for each individual is a must
Once above certain level, the credibility becomes irrelevant: A trader who has 300 positive trades should be as good as a trader who has 3000 positive trades. If many of these traders listed on the bid and ask side, then you have a order book similar to centralized exchanges
I think localbitcoins is on the right track to become the biggest decentralized exchange. In future they could implement multi-sig and setup their servers to be replicated between different sites, so that they become truly decentralized
There is a high rate of fraud in decentralized exchange, a new trader will easily become the victim of scammers. Other than that, I don't see big problem with that. Maybe the platform is centralized, but since all the trades are done between users, platform only hold funds briefly during the trade, even the platform shutdown, the trader's loss will be minimal
Even on a decentralized exchange, you are still dealing with humans, so the credibility of each trader is still important, some kind of feedback and rating system for each individual is a must
Once above certain level, the credibility becomes irrelevant: A trader who has 300 positive trades should be as good as a trader who has 3000 positive trades. If many of these traders listed on the bid and ask side, then you have a order book similar to centralized exchanges
I think localbitcoins is on the right track to become the biggest decentralized exchange. In future they could implement multi-sig and setup their servers to be replicated between different sites, so that they become truly decentralized
The OP is correct , it won't work .
It will just be a open platform for scammers .
What's wrong with paying a little fees ,it can be considered like Escrow if you look at it clearly
It will just be a open platform for scammers .
What's wrong with paying a little fees ,it can be considered like Escrow if you look at it clearly
what happened to bitcointalk?
the forum is full of pish!
i'll just briefly comment on this so far worthless thread.
who cares about usd? i can't exchange bitcoin for donkeys on bitstamp as well so piss off, for some BTC to [insert fav altcoin] is enough
those who own no crypto - too bad, buy at centralized exchange
trust can be build with reputation
exchange of larger balances can be divided into smaller ones
still better than one centralized ponzi scam exchange where you loose it all
http://www.etherex.org/faq
multisig
the forum is full of pish!
i'll just briefly comment on this so far worthless thread.
who cares about usd? i can't exchange bitcoin for donkeys on bitstamp as well so piss off, for some BTC to [insert fav altcoin] is enough
those who own no crypto - too bad, buy at centralized exchange
trust can be build with reputation
exchange of larger balances can be divided into smaller ones
still better than one centralized ponzi scam exchange where you loose it all
http://www.etherex.org/faq
multisig
I wonder how far multisig can take the concept of a decentralized exchange. 2-of-2 and use the bank as intermediary? That would bring some funny lawsuits to the System.
There are a few NXT based asset issuers that issue assets that are based on USD, although their value is only as good as the reputation of the people who issue them (there is nothing to stop their issuers from running away with the assets that back them). In theory it is possibly that someone could sign a NXT transaction that trades two different assets that are backed by two different altcoins, although I would not personally trust this because you would need to put a lot more trust into the asset issuers then you would need to put into exchanges.
Decenteralized exchanges dont work?
Isnt localbitcoin.com a decentralized exchange
Isnt localbitcoin.com a decentralized exchange
So, every now and then I see a post about the beauty of a decentralized exchange. Well here's the thing. You can't get USD on a Decentralized Exchange, adding new coins to trade will always be a headache, and since there won't be any censorship, scamming with new, random, 2 day old altcoins will be abundant, among other things
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
You can buy a CoinoUSD asset, which represents the actual USD price, 1 CoinoUSD = 1$ (or 74.2936 NXT - latest ask order), on NXT decentralized asset exchange (as I can see same is in BitShares). And if you want to cash out, you just exchange CoinoUSD using Coinomat service to USD (see here).
There is definetely not enough volume right now, but that's just a matter of time. SuperNET is coming
Check NXT wallets, the exchange is built into client: SuperNET 1.2b (try Advanced mode, using SuperNET plugin you can withdraw cash to your bankcard directly from the wallet), NXTLite (no need to download blockchain) or try Secure Asset Exchange (SAE)
People have already said it, BitShares is a decentralised exchange, or at least the closest it thing possible to it. Try it for your self https://wallet.bitshares.org/. BitUSD is basically a way for bitcoiners to lock their BTC to the value of the USD without touching a regulated centralised service. The bank of the cryptosphere.
they say the same thing about a decentralised finance system, yet we see the beginning in bitcoin
This.
I was thinking the same
what happened to bitcointalk?
the forum is full of pish!
i'll just briefly comment on this so far worthless thread.
who cares about usd? i can't exchange bitcoin for donkeys on bitstamp as well so piss off, for some BTC to [insert fav altcoin] is enough
those who own no crypto - too bad, buy at centralized exchange
trust can be build with reputation
exchange of larger balances can be divided into smaller ones
still better than one centralized ponzi scam exchange where you loose it all
http://www.etherex.org/faq
multisig
the forum is full of pish!
i'll just briefly comment on this so far worthless thread.
who cares about usd? i can't exchange bitcoin for donkeys on bitstamp as well so piss off, for some BTC to [insert fav altcoin] is enough
those who own no crypto - too bad, buy at centralized exchange
trust can be build with reputation
exchange of larger balances can be divided into smaller ones
still better than one centralized ponzi scam exchange where you loose it all
http://www.etherex.org/faq
multisig
I would probably agree. I don't exactly see how they are going to work. Exchanges are the on-ramps and I feel they will be going more and more towards the way of Coinbase and regulation. Perhaps it's not a bad thing if those are the points of regulation. Not everybody who uses Bitcoin needs to use an exchange. You still can be private.
So, every now and then I see a post about the beauty of a decentralized exchange. Well here's the thing. You can't get USD on a Decentralized Exchange, adding new coins to trade will always be a headache, and since there won't be any censorship, scamming with new, random, 2 day old altcoins will be abundant, among other things
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
I agree the USD part will be a hassle however I am certain some solution will be found to this.
and since there won't be any censorship, scamming with new, random, 2 day old altcoins will be abundant, among other things
I disagree with this as an argument, participating in a decentralized market you must look after yourself, since there is no central authority who will severely punish those who do bad, it is inevitable people will do bad, but as with BTC the good tends to outweigh the bad. If you can't handle due dilligence on your own, with common sense then trading in a centralized market is just better.
Having your money at a bank is better than having it in BTC if you can't look after yourself or take the occasional hit because of the higher risk it usually carries. That's putting it plain and simple. For most, having money at a bank is better. But if you can fully understand, encrypt and have a wallet on your computer, BTC is better. Decentralized means that you and you alone carry the responsibility, because you believe you can handle it better than said authority, so it is not logical to use this argument against the theory of a decentralized exchange..
I have bitcoins and I've never sent fiat to an exchange. Bitcoin is peer-to-peer money. I handed my fiat cash to a person and they gave me bitcoins. Why do people always work under the backwards premise that exchanges are the be-all-and-end-all of crypto? You don't need intermediaries to trade bitcoin. Peer-to-peer and decentralised exchange is all we need to flourish.
But that's like saying we don't need delivery companies because we can deliver the package ourselves. Not everyone wants to deal in face to face transactions or can find somebody to trade with. You can still get robbed of your coins in the real world too.
The person I got them from used LocalBitcoins.com and their transaction wasn't face to face. What we need are more services like that to provide an easy "on ramp" to crypto. There might be *some* occasions where people are solely reliant on an exchange, but people still generally have it backwards and go to exchanges as the first port of call.
I have bitcoins and I've never sent fiat to an exchange. Bitcoin is peer-to-peer money. I handed my fiat cash to a person and they gave me bitcoins. Why do people always work under the backwards premise that exchanges are the be-all-and-end-all of crypto? You don't need intermediaries to trade bitcoin. Peer-to-peer and decentralised exchange is all we need to flourish.
But that's like saying we don't need delivery companies because we can deliver the package ourselves. Not everyone wants to deal in face to face transactions or can find somebody to trade with. You can still get robbed of your coins in the real world too.
So, every now and then I see a post about the beauty of a decentralized exchange. Well here's the thing. You can't get USD on a Decentralized Exchange, adding new coins to trade will always be a headache, and since there won't be any censorship, scamming with new, random, 2 day old altcoins will be abundant, among other things
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
Decentralized Exchanges sound good in theory, but in practice it just isn't plausible.
U r correct indeed. None of BitSquare, OpenBazaar or BitShares have been able to overcome the problem of trust. Some tried escrow, some tried multiple centralized gateways. But at the end of the day, to get FIAT on board u need some centralization.
I have bitcoins and I've never sent fiat to an exchange. Bitcoin is peer-to-peer money. I handed my fiat cash to a person and they gave me bitcoins. Why do people always work under the backwards premise that exchanges are the be-all-and-end-all of crypto? You don't need intermediaries to trade bitcoin. Peer-to-peer and decentralised exchange is all we need to flourish.
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