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Title: Will a new cryptocurrency have to be made for high frequency trading? Post by: LurbQBurdock on March 27, 2013, 06:08:38 AM Right now, there is a huge impediment to the finance industry using Bitcoin - high frequency trading is impossible due to the slow transaction speeds (I've had a transfer take 1hr already) and the fact that the blockchain would grow humongous if used that way.
Does increased mining speed up the transaction speeds? Is it currently feasible to make a cryptocurrency that could handle the volume of transactions required for high frequency trading? Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: odolvlobo on March 27, 2013, 06:14:41 AM As long as transactions occur on the exchange, they can be internal to the exchange, and not go through the block chain. There wouldn't be a need to speed up transactions.
Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: samborambo on March 27, 2013, 08:49:41 AM He didn't mention anything about exchanges.
You mean instant confirmation services like https://www.bitinstant.com/ ? If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now. Sam. Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: MagicBit15 on March 27, 2013, 09:38:49 AM Yeah I am unsure if you mean in the block chain or between people.
Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: 🏰 TradeFortress 🏰 on March 27, 2013, 10:02:51 AM He didn't mention anything about exchanges. It won't ever be needed. You're not going to pay for a 0.0007 BTC cup of coffee on the blockchain.You mean instant confirmation services like https://www.bitinstant.com/ ? If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now. Sam. Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: samborambo on March 27, 2013, 10:09:45 AM He didn't mention anything about exchanges. It won't ever be needed. You're not going to pay for a 0.0007 BTC cup of coffee on the blockchain.You mean instant confirmation services like https://www.bitinstant.com/ ? If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now. Sam. Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: poelling92 on March 27, 2013, 10:41:12 AM He didn't mention anything about exchanges. It won't ever be needed. You're not going to pay for a 0.0007 BTC cup of coffee on the blockchain.You mean instant confirmation services like https://www.bitinstant.com/ ? If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now. Sam. Yup, you will have to use CC for cup of coffee. Bitcoin future is in speculation. Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: Gator-hex on March 27, 2013, 12:00:48 PM Quote Will a new cryptocurrency have to be made for high frequency trading? High frequency trading is done with derivative contracts, when the contract expires you settle, only then do you deliver the coins. But if you need a faster transaction coin, for that cup of coffee, Litecoin is Bitcoin with all the problems fixed. ;) Title: Re: Will a new cryptocurrency have to be made for high frequency trading? Post by: odolvlobo on March 27, 2013, 05:51:12 PM He didn't mention anything about exchanges. You mean instant confirmation services like https://www.bitinstant.com/ ? If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now. Sam. By "high frequency trading", I assume he means this: http://en.wikipedia.org/wiki/High-frequency_trading |