Topic: P2P EXCHANGE - page 2. (Read 5338 times)

1. Is a given one
2. THIS is the most difficult (if not impossible?) part - you can try to limit this as much as possible, but in the end there is no way to transact fiat money without third party trust, as it is transacting on a different system than BTC.
3. clear
4. Might be quite difficult - if 2 was in place of course you don't need it anyways (you don't need it for BTC). If 2 were possible somehow thoug, there would be no need for BTC in the first place!
5. slightly difficult, fees should be low on one hand but prevent spamming and overloading on the other. I'd rewrite it to "once initiated, you quickly (within seconds) get a decision if it will be completed"
6. That's one of the main points I guess, it makes the other parts (especially 2 and 4) very hard if not impossible. Trading BTC for LTC and others is easy, because these altcoins fulfill #2. USD doesn't.


1 - Where would each user send the money to and how? There must be no third party involved, so the only way this is possible (well, the only third party is the FED then) is when you have a physical dollar bill in your hand and the seller has e.g. 1 BTC on a private key only he knows. The transaction then needs to happen in a way that none of the two can shy away and also that they don't know or care about each other.
2 - of course!
3 - Must not even use any infrastructure?! Even Gnutella runs nodes and supernodes, which both act as servers and clients at the same time. I'm not too sure you mean what you just wrote the way it looks like to me - I think you mean something along the lines of "anyone with a fairly decent computer + internet connection can run a server and participate in the network"
4 - That looks more like the NashX approach - Game Theory only works if you have rational market participants (and look at current BTCUSD markets and tell me again that the participants there are acting rationally!)
5 - Which ones are "banks APIs" exactly by the way? I am currently checking out quite a few of them and the API part in the international finance community seems to be an utter and complete MESS beyond any imagination. Also you wrote about no infrastructure and no 3rd party risk, now we are allowed to use bank wires?! Nice, I'll open an account in Cyprus right away!
6 -Must they also be able to receive BTC and pay someone in North Korea? Kuba? Iran?
7 - of course, though "safe" is a bit weakly defined and I think you are talking about free software, not just open source.


There is already an exchange that fulfills nearly all the points you mention here by the way and it is live + trading as we speak.

I don't agree, the objectives should be realistic and attainable.
@Foroplus, It is also desirable that we can exchange others cryptocurrencies in a P2P way, but i think that is better to create the Bitcoin Exchange in the first place, and then create another exchanges to other cryptocurrencies.
Also, the difficulty of exchange which works with multiple cryptocurrencies is much higher for a initial development.

That's what I would also add. Not only for BTCs, but also for other main alt coins like at least LTCs, and exchanging between them.

It would be awesome to have a tool like this Flix. Good point.

Sure MTC <-> BTC...

But the biggest hurdle remains BTC <--> $

In order to clarify, these should be the requirements to win the bounty proposed by @flix:

1 - The software must provide a automatic way to exchange BTC by fiat money. The user just provide the price/BTC and the amount to buy or to sell.

2 - The software must not require any personal information about the user, just run and use the program.

3 - The software must be decentralized, it must not use any server, tracker or infrastructure, it must be P2P, for example as the Gnutella Protocol:
http://en.wikipedia.org/wiki/Gnutella

4 - It must not use any third party services (as social networks), reputation methods (as LocalBitcoins, etc) or support from others users in the P2P network to ensure the exchange safety.
It must use Game Theory to ensure the safety.
http://en.wikipedia.org/wiki/Game_theory

5 - The software can uses third party services APIs (as banks, etc) to move FIAT money automatically between users, but the bank activity of these kind of services should not be related to the exchange activity.

6 - The software must allow to exchange money and BTC to users from anywhere in the world. For example, users from USA must be able to exchange money or BTC with users from EU.

7 - The software must be safe and opensource.

Only just noticed this....nice gesture!

Our exchange will be pretty advanced and also take some effort to get running full steam due to various logistics required, so I imagine some other developers will beat us to it.

With ours in brief, not only can you exchange eMu for ANY other currency (be it fiat or other cryptos), it is also able to facilitate the transfer of any asset providing there is an entry in the system for it and someone is trading that item, be it physical or digital.  I guess our exchange will be more like a P2P decentralized marketplace.

In addition to that, the fiat in and out points will be stable, and within the exchange itself there will be fiat assets.  So you can trade eMu on the exchange for fiat, and hold that fiat in your wallet until you either decide to cash it out, or perhaps the price of eMu has dropped and you want to buy back in and profit.

There are still some points in our execution that we are still wrapping up, but I hope to have the eMunie system whitepaper finished this week with a section on the exchange/marketplace.  A more detailed paper for the exchange will be published separately at a later date.

Mastercoin's distributed exchange seems to be up.

http://mastercoin-explorer.com/order_books

I think there are two missing proposals from these lists. This is one: https://bitcointalksearch.org/topic/cunicula-system-for-usd-derivatives-backed-by-escrowed-crypto-currency-291108, and the other one I forget now.

Mastercoin and Coloredcoins are under development.. Freimarkets not started yet (needs donations)
Nxt genesis block just has been released today, and will start this week AFAIK. It has colored coins feature implemented natively in a decentralized manner. It is possible to use it for trading any kind of tokens. There will be a direct BTC to Nxt exchange as well. Can't say more because it is to be seen before making practical judgement and also because I invested a small part (I have not the morality of Bump and Dump). I recommend you to have a look into it and decide for yourself. Also have an eye on eMunie which will be launched in January.
As for donations, the most deserved one is Freimarkets (I am not involved with it).
To answer the other guy who posted after you: yes coloredcoins themselves are not decentralized but they could be implemented in a decentralized manner (which is what the Nxt guys promised us). I saw your scheme too, it has been the recent one and I couldn't make a review and judgement yet.

all the projects I've looked at in this realm don't have anything concrete.  The color coins people have an idea that in my view is not really a 'P2P Exchange' or even a Distributed Exchange.  I did talk to a developer not so long ago who was working on some ideas, but he hadn't made much progress.

I have already described in detail how a Distributed Exchange could be constructed: http://goo.gl/vy1uUr

The idea is public domain and the code will be open source.

..that's a lot more people working on this than I thought.  Thanks.

MasterCoin white paper:   https://github.com/mastercoin-MSC/spec
Coloredcoins:                  http://coloredcoins.org/
Freimarkets:                   http://freico.in/docs/freimarkets-v0.0.1.pdf
Pauv:                            http://pauv.org/paper.pdf
Emunie                          http://emunie.com/
DACs                            http://invictus-innovations.com/i-dac/  
Factum Exchange            http://xk.io/wp/?p=34
Elqnt Exchange                https://secure.elqnt.org/

DO you have ETAs for a working P2P exchange that can be used to exchange BTC<->$ from any of these?

Mastercoin and Coloredcoins both are working for obtaining this objective, both good projects, first one with huge funding and second with a good development bounty. There is another one, claiming to pay dividends too, but it is an obvious ponzi.
Nxt and eMunie both will have p2pexchanges natively attached (both altcoins). Nxt is a pure POS and will be launched in a few days..
And there is Freimarkets which called for crowd funding to start developing the whitepaper scheme, but the last time I spoke with its creator, he told me that crowd funding has not been satisfactory yet (about month ago)
Among those three (mastercoin-coloredcoin-freimarket) I found freimarket the advanced one, you may have a look into their whitepapers each to decide for yourself. Also Nxt if what its creator said before become true will be a very suitable choice to use for trading securites (decentralized coloredcoin exchange+instant transactions+internal messaging+decentralized DNS features). This is to be seen soon in practice of course. eMunie will be launched in January with several similar advanced features promised. There is the possibility to use these altcoins as a dilemma to exchange btc securities, commodities or any other token.. Have a look into them as well.

----reserved----

----I have withdrawn the bounty due to lack of interest----


There are several teams working on P2P Bitcoin Exchanges based on a completely decentralised, no-third party trust required, no need to know your counterparty, zero fee models.

I am very much looking forward to this exciting tech coming online, and I want to give the guys working on it an extra incentive to hurry up and get it out there.

So I propose a bounty for the developers to first release an open source P2P exchange software. If we can get a decent-sized bounty going maybe that will give these developers a good reason to work on this full time.


You don't have to send me (or anyone) BTCs, just state your pledges here. I trust you guys to pay up when the time comes!


As well as your pledges, I welcome your suggestions on what conditions the software should meet to deserve our reward.

Needless to say the benefits of such a development would be huge for anybody holding or using bitcoins. It would  remove a major vulnerability for the network embodied by the centralised exchanges. It would make Bitcoin accessible to a much wider audience. It would make regulation of Bitcoin exchangers irrelevant. It would remove exposure to the banking network with its delays and unending rules. It would make knowing your counterparty and his reputation unnecessary.

CONDITIONS

1. Open source
2. No third-party trust required (no third party escrow, server, website, etc..)
3. No commissions (except for network fees)
4. No need for identity verification. No need for reputation.
5. Include a mechanism that ensures that transactions, once initiated, are completed.
6. Allows users to exchange $ € ¥  <--> BTC within hours.