I believe you are all correct and should suspect and be skeptical about every new bitcoin exchange.
We just want to learn more about the structure and participants of the service before we decide to test it out.
If the exchange is open source and deployed from the public repo, is there a way to follow when updates are migrated to the live site or a script that checks the integrity of the files compared to the latest commit (like blockchain.info)?
Blinktrade provides a 100% open-source technology that can be found at
https://github.com/blinktrade (contributions are welcome).
Besides providing operators with technology, BlinkTrade also offers what we call the BlinkTrade network, the network consists in a chain of bitcoin exchanges connected using our platform. Because the exchanges are all part of this trusted network, the bitcoins can be sent across the world off-chain and instantaneously. That way we avoid the volatility that can happen in the 10 or 60 minutes that confirmations usually take.
In order to be a part of the network, all operators must follow a set of rules:
90% of the bitcoins are kept in a multi-signature wallet, co-signed between the operator, BlinkTrade and a trusted third party. In that case only one key is exposed to hacker, and not all at the same time. It also prevents operators from stealing the users bitcoins, and BlinkTrade from stealing from the exchange.
10% of the bitcoins are kept in a hot wallet, and those bitcoins have a colateral deposited by the operator in the cold wallet that is multi-signature, in case of theft only his bitcoins are lost, and not the client’s.
Both cold/hot wallets are public and open to the users, anyone can audit the amount of bitcoins kept by the operators. The operator is forbidden to use another wallet or try to anonymize the transactions. Any user should be able to audit the exchange at any time using the BlockExplorer, please check the exchange’s info for the wallet address.
The operator is STRICTLY forbidden to operate/trade against its customers. Besides being illegal, the operator has access to confidential information that could be used against its clients. The operator’s task is to attract more users, offer the best customer service and process deposits/withdrawals.
The operator is required to follow local and international laws regarding money laundering and anti-terrorism. If the operators fails to comply with this rules, BlinkTrade can cut the operators access to the server and suspend the operations, not before returning the customers money and bitcoins.
Blinktrade only provides the technology and makes sure the operators are following a specific set of rules. The exchange is managed by local entrepreneurs. The BlinkTrade network is a chain of connected exchanges that use and follow the mentioned rules.
sorry about the long text, just wanted to make sure it's detailed enough.
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