I feel there is already a decentralized exchange: openbazaar. That has the advantage of a decentralized reputation system and a head start in network effects.
A decentralized Bitcoin exchange
61–70 of 117 posts
Re: A decentralized Bitcoin exchange
#62Earlier quoted context omitted.
I found their proposed mechanism for handling settlement finality, outlined in their faq, https://bitsquare.io/faq/ . The escrow for bitcoin is a 2 of 3 multi-party contract. What happens if the person buying bitcoin does a chargeback on their national currency after the bitcoin has been released from the multisig escrow? We only support payment methods in which chargebacks are not easy (i.e. we don’t support Paypal)…
There is a trade limit of one bitcoin, which is generally too small to attract criminals (though this limit may be lifted in the future). I feel like technologists consistently overestimate where the lower bound is for size of an opportunity which causes it to attract adversarial attention, given an adversary who understands e.g. specialization of labor or, more prosaically, how for loops work.
You say this and I seem to see a huge amount of spam on HN today, almost as if to prove your point...
Re: A decentralized Bitcoin exchange
#63Earlier quoted context omitted.
Indeed. One bitcoin was over $3k about 5 weeks ago, and is still over $2k today. Scam someone for half a bitcoin twice a week and that's over $100k a year at current value.
Pretty sure I could devOps account/wallet creation initial wire transfers in a few days. Hilariously, the only gate would probably be those damn centrally own banks that get quezzy about transferring 2k on a 3 day old account.
Globalist!!!
Re: A decentralized Bitcoin exchange
#64This will not work, because regular bank wire transfers and cash deposits have been reversed in the past, the sender simply claimed hacked account or fraud. Examples: https://medium.com/@TheAlexGalaxy/why-i-m-suing-td-canada-tr... https://www.reddit.com/r/PersonalFinanceCanada/comments/6guh... https://www.reddit.com/r/Bitcoin/comments/1zruvf/warning_cas... https://www.reddit.com/r/Bitcoin/comments/1sglge/the_bank_ar.…
still not a bad alternative to localbitcoins.com, you could arrange to exchange cash in person or mail money orders around which could still be cancelled if the escrow fails.
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Re: A decentralized Bitcoin exchange
#65The fundamental problem with this is the same problem Ethereum has - the hooks to the real world aren't very good. Making them better implies trusting a third party. If you have to trust a third party, why do you need this?
Re: A decentralized Bitcoin exchange
#66The fundamental problem with this is the same problem Ethereum has - the hooks to the real world aren't very good. Making them better implies trusting a third party. If you have to trust a third party, why do you need this?
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Re: A decentralized Bitcoin exchange
#67The fundamental problem is that practically all exchanges are credit-based, and decentralized credit doesn't make sense.
When you want to purchase bitcoins on an exchange, you start out by depositing e.g. dollars on the exchange, thus converting your dollars to that exchange's dollar token (IOU x USD). You then sell your dollar tokens for bitcoin tokens on the exchange, which is super fast because it centrally controls token ownership, and when you want to get your bitcoins out you sell/redeem your BTC tokens for actual BTC. This system, which is how all large exchanges work, is inherently centralized, because it uses a central debitor (owes USD/BTC to customers) to handle token ownership, which works really well because it puts no limit on performance (as opposed to a system where we use a blockchain to define ownership).
One partial solution is to separate the debitor (funds holder) from the actual exchange: instead of exchanges issuing their own tokens (bitstampBTC, bitfinexUSD, mtggoxBTC, etc.), there would be dedicated issuers (lots of them), and an exchange would constitute a central meeting place, which accepts a specific set of issuers, and to whom people can sign over their tokens in order to engage in a trade. So, for example, a buy order would constitute signing over a token worth the buy order's value to the exchange, which immediately matches it with a sell order, swaps the owner of the matched tokens (after deducting a small fee), and sends the tokens to the buyer and seller.
Re: A decentralized Bitcoin exchange
#68Earlier quoted context omitted.
There is a trade limit of one bitcoin, which is generally too small to attract criminals (though this limit may be lifted in the future). I feel like technologists consistently overestimate where the lower bound is for size of an opportunity which causes it to attract adversarial attention, given an adversary who understands e.g. specialization of labor or, more prosaically, how for loops work.
Exactly. The assumption is that would-be fraudsters would neatly obey other rules/norms, such as opening one account tied to one legitimate funding source. Anyone who has run an online business that moves money can tell you that fraudsters are ever-probing for that weak spot and, if it is there, they will find it. There is too much "generally" and "might" in their risk mitigation here, such that their primary line of…
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Re: A decentralized Bitcoin exchange
#69Earlier quoted context omitted.
While I know nothing about this project or the creators, I find your comment very ignorant. If you don't like it, go do something else of your own. At least the creators spent time and effort doing something they find valuable. That's 100x better than your comment.
I'm not sure I understand your position. "ignorance" and criticism are two different things. I'm assuming you missed the word here. Secondly, do you feel there's no room for criticism just because something is provided for free? To me, the grandparents criticism is valid. Maybe it doesn't tell the whole story, I don't know, but it's a concern that deserves an answer. Any reasonable maintainer would welcome valif crit…
Fair enough, not worth more discussion.
Re: A decentralized Bitcoin exchange
#70Earlier quoted context omitted.
An ERC20 token is a token that conforms to the ERC20 protocol, that's all that ERC20 means.
Are there currently any ERC tokens with applicable utility other than wild speculation and claims about unproven future features which the ERC20 tokens are created in completely arbitrary (artificial scarcity, sidestepping SEC IPO investments) limited amounts for?
If some of these projects go on to produce open source software of worth it won't all be for nothing.
Associating the ERC-20 protocol with the current mania and nonsense of cryptocurrencies doesn't seem fair. It's simply a method of creating a sub-currency, which yes is often unnecessary but marketing is a powerful force so it happens.
Having seen small rural communities try and fail to create their own local currency years ago it's only a matter of time before some try again digitally.