COIN NAME:
-ReserveX
PURPOSE:
-To provide a decentralised cryptocurrency exchange
-To provide a decentralised means of buying ReserveX, which then allows you to buy other cryptocurrencies
FUNCTIONS:
-Usual stuff
This wallet would need to provide all the usual stuff like “overview”, “send” & “receive”. However within each of these tabs there would need to be other cryptocurrencies available not just ReserveX. Eg; Bitcoin,litecoin,Ethereum,Syscoin … etc. (I don't know if that is possible). Ideally the currencies in the wallet would be up to the user with the one exception being ReserveX.
-Exchange
Within the wallet there would also need to be an online exchange hosted on the block-chain (not sure if the block-chain stores info other than transactions). This would work like any other exchange. However you only trade ReserveX for any of the other currencies. Alternatively the software could automatically handle the ReserveX transactions in the background of the software. For example if you trade BTC to LTC to you it would look like you are trading BTC directly for LTC, when in fact the BTC was traded for ReserveX and then the ReserveX was traded for LTC all without you seeing it.
(I may be misunderstanding the purpose of a reserve currency, if so the name makes no sense)
I guess you would not be allowed to trade any real world currencies on this exchange * (will explain why below). Additionally if the cryptocurrency is not already added to your wallet you can't trade it.
If a trade fee is applied this could be used as a reward within the buying system…
-Buy
This will connect miners of ReserveX with buyers. Or potentially connect buyers to miners of any cryptocurrency, with ReserveX acting as an unseen intermediary, as I explained above.
How I imagine this working is I look in the buy tab at the sellers. I pick the offer I want go with, send them the money over pay-pal, then they send me the coins.
Not sure of the best way to keep everyone honest. I guess the there could be an arbiter who must have enough ReserveX “locked in” to their account relevant to the size of transaction. The buyer then sends the money to this 3rd party through pay-pal, once the 3rd party confirms they have the money, then the seller sends the coin to the buyer, finally the 3rd party sends the money to the seller. As a reward for doing a good job the 3rd party gets some ReserveX that the system has gained from the transaction fees.
This 3rd party system also provides the non tech savvy with an alternate way to gain from the crypto world outside of trading. Which means potentially engaging/introducing a wider audience to the crypto world. However i think certain coins like Bitcoin may have to be excluded from the process as people may get done for money laundering if any of the coins are “tainted”.
SIDE NOTES:
-I think that 50% (or whatever works) of coins accumulated from transaction fees should be destroyed, allowing for the possibility of indefinite mining, which also means indefinite sellers.
-I haven't mentioned rewards for nodes, I think the nodes should behave as they do in Dash where they must lock in x amount of coin as an investment. They will receive 45% of mined coins, miners will receive 45% of mined coin and 10% can go into advertising, project funding, hype generation.
-Also these nodes can also vote on any issues that pop up with regard to the buying process, ie. someone didn’t get what was owed. I guess the 10% of coin above can also be used to right any wronged party.
WHY DID I DO THIS:
*Here in the UK it is not straightforward to buy bitcoin, there are no exchanges available that are easy to get GBP into I think because the banks won’t let the exchange companies have a business account here. Which means a two week waiting period while my money transfer is processed to a bank in Croatia.
-If i understand correctly if a system like this is possible then it means no downtime for server maintenance, and potentially a much safer medium for trade.
Let me know what I'm not getting right, what things are impossible and if you have any better ideas to any of the above… or if this idea is total garbage that makes no sense. Thanks for reading
Also if you do conciser making this pleas keep me in the loop...
Interesting idea but seems like you need to see again about the other such decentralized exchange like Etherdelta and bitsquare,
For example if you trade BTC to LTC to you it would look like you are trading BTC directly for LTC, when in fact the BTC was traded for ReserveX and then the ReserveX was traded for LTC all without you seeing it.
Complicated in my mind, They can spend doubled for fees.
