The most complicated part about running an exchange, I assume, would be the exchange rate formula. If there were discussions held publicly to discuss all variables that would be included into the exchange rate per currency then I could see a trustworthy endeavor, especially for Bitcoin.
Dude, the exchange rate is calculated by demand and supply, there is no magic formula. Or did I completely misunderstand something here?
Very true the exchange rate is calculated by demand and supply, but I think what tripyl was referring to is the rumors going around about exchange owners manually shifting embedded price tickers on their sites by hand. This anti-bitcoin resource (
http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/) talks about one example and try to use it as a basis to discredit the whole bitcoin concept. This Flaw does not apply to the concept being discussed here at all.
What would be the issue at that point still since the application / web services would essentially be treated as an exchange by whatever laws a centralized bank's homeland currency may have on their currency, there is still the legal bounds for the traceable transactions within it if the money is transferred electronically.
One way I could see an application like this becoming widely used is if each person involved with the trade were kept private but the escrow itself be transparent. The payments would have to be handled away from the application itself where each party would make the exchange personally.
Bitcoin would be the only currency that would be electronically handled within the escrow. So you'd only either be buying or selling Bitcoin. All "fiat" currencies would have to be traded off the site putting the taxation and legal liabilities on the individuals buying and selling fiat currencies rather than those who build and operate the application // web service.
Makes me think about the pirate bay and how they lost
their biggest lawsuit.
Kind of a shame, too. Since I think they got pinned because their site made money off their ads within the same visual real estate as the illegal distribution of copyrighted content. Their site is still up, but I doubt they get to keep their ad revenue.
Anyways, this project has my endorsement, whatever the hell that's worth. ^_^
1) This service will not be classified as a money transmitter of exchange, only modeled as such to leverage discovery through google, social media etc. The service is a "Scalable Dispute Mediation Service" which leverages paid dispute mediators who make simple final decisions on "locked up bitcoins" when there are problems between traders. Of course those decisions are only based on evidence and terms of agreements between traders.
2) The service is completely transparent. Every one involved is private. Unless when disputes arise. When there are disputes, it usually means that someone is trying to be sketchy, so they forfeit every privacy by revealing identity, contract terms and other evidence to mediators presiding pseudonymously over the disputes, if the traders want to prove they are entitled to locked up bitcoins.
3) payments are handled away from the application and evidence of payment MUST be brought back as evidence incase of a dispute to prove entitlement to locked up coins
I feel like you have seen the details of my project before, because every one of the issues you bring up, is exactly what the project aims to satisfy. Thanks you for your endorsement. I will be notifying you if and when I launch the campaign.
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