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January 26, 2014, 11:25:58 AM |
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1. all that an exchange does is: a) establish a price by aggregating orders in a continuous auction b) exchange goods after orders are matched. what Peter is suggesting doesn't solve either of those problems. he has a theory, but not the code. same as all the other attempts in this direction (mastercoin, bitshares, ethereum, OT). otherwise, prove me wrong: I bet 1 BTC that BTC will close under 1000$ this month on bitstamp at 1.8x. any bids? see, exchanges without price discovery are not exchanges.
2. without external inputs smart contracts are worthless. you can't run this on p2p nodes.
3. this is not O(1). order matching is time-dependent.
again, there are some very basic concepts missing which are obvious to people who have worked in the field. a good start is a good book on exchanges, i.e. auction systems. usually it also takes a couple of years to acquire the necessary concepts in practical microstructure of auction, to understand the issues such as latency, reference prices, etc. etc.
I can tell you what P2P scheme works for certain asset classes, but its simply impossible to do this for liquid public assets as of now.
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