Topic: Decentralized P2P Exchange Proposals: exactly how do you fix the fiat issue? - page 2. (Read 2269 times)
May 29, 2013, 04:17:11 AM
There is no universal solution. Every jurisdiction will have different requirements that must be followed to do business above board. There can of course be in person cash transactions, but anything digital will likely have to follow laws, and the laws will vary widely.
May 29, 2013, 04:10:18 AM
Web of Trust
So, again, how is that a solution?If Bob's trust level is much higher than Alice's, what prevents Bob from claiming he never received Alice's fiat? Everybody will believe Bob, because he has more trust.
May 29, 2013, 04:00:17 AM
Web of Trust
May 29, 2013, 03:48:30 AM
I'm a fan of random-man-in-the-middle, myself.
So how is that a solution? What prevents this random-man-in-the-middle to run away with the crypto and/or fiat money that is temporarily trusted to him? Note that in the questions above, Bob could also refer to this random middle man.Or maybe I misunderstood the whole idea, can you elaborate?
May 29, 2013, 03:41:35 AM
I'm a fan of random-man-in-the-middle, myself.
May 29, 2013, 03:33:53 AM
There have been quite some initiatives lately about setting up decentralized P2P exchange solutions. I believe this is a great development and I'm sure it will all work out (the technology is there and the time is right) except for ONE thing:
Getting fiat in and out safely.
I've asked it before in other threads, and I'd like to once again discuss this issue exclusively:
For all this to work, if Alice wants to buy bitcoins (or other cryptocurrency) with dollars (or other fiat), at some point she'll have to put some money into the P2P exchange ecosystem by means of a wire transfer (I mean a classic oldschool bank transfer or SEPA transaction).
(1) How can she be sure the person she wires her fiat money to (let's call him Bob) doesn't disappear, or claims he never received it, or otherwise screws her over?
(2) Vice versa, what happens if Alice claims she wired her dollars to Bob's bank account, but she actually never did. Who's going to decide if Alice or Bob is right?
Getting fiat in and out safely.
I've asked it before in other threads, and I'd like to once again discuss this issue exclusively:
For all this to work, if Alice wants to buy bitcoins (or other cryptocurrency) with dollars (or other fiat), at some point she'll have to put some money into the P2P exchange ecosystem by means of a wire transfer (I mean a classic oldschool bank transfer or SEPA transaction).
(1) How can she be sure the person she wires her fiat money to (let's call him Bob) doesn't disappear, or claims he never received it, or otherwise screws her over?
(2) Vice versa, what happens if Alice claims she wired her dollars to Bob's bank account, but she actually never did. Who's going to decide if Alice or Bob is right?
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