[DOTC] Decentralized Market Tool - Decentralized OTC / Localbitcoins / Silkroad

[lclc]

[DOTC] Decentralized Market Tool
Decentralized #bitcoin-otc / localbitcoins.com / Silkroad alternative

tl;dr: Decentralized order book over Bitmessage. Future: integration of decentralized WoT

The idea is from FelloTraveler (Open Transactions), where he wants to use Bitmessage for OT transactions. I plan to integrate this into Moneychanger for OT too, but first I'll make it for plain Bitcoin.

My tool enables a decentralized market to find offers for all kind of stuff, but mainly for things traded against Bitcoins. This is done by using Bitmessages Decentralized Mailing Lists (DML).

Definition of Decentralized Market
A market structure that consists of a network of various technical devices that enable investors to create a marketplace without a centralized location.
In a decentralized market, technology provides investors with access to various bids/ask prices and makes it possible for them to deal directly with other investors/dealers rather than with a given exchange.

# Example creating an offer to sell BTC with CHF:
A bid (including the amount) from your Bitmessage-address is send to the channel where it stays for ~2 days (livetime of a Bitmessage) or until you remove it with a delete message. Every client will keep this offer for 10 days, but new clients will only be possible to receive the offer in the first 2 days. The application parses these bids and shows them in a orderbook (including the reputation/trust-level of this Bitmessage-Address, see below). The buyer can now choose a price he wants to pay and a BM which he thinks has good enough reputation, and click "Request Trade" on a bid offer for a trade he wants to do. The application then sends a Bitmessage to the creater of this offer, which he can accept or decline (depending on the trust-level).
Everything from now is done manually by the user (contacting seller for exchanging payment-informations (bank, Paypal, etc)).

### Bitmessage Decentralized Mailing Lists (DML)
Using DML you can create public and private exchanges. If you decide to publish your DML-Name (which is also used as passphrase) it will be accessible to everyone. See https://bitmessage.org/wiki/DML

You can create a channel for everything you want to trade:
USD/BTC, BTC/USD, LTC/BTC, BTC/LTC, BTC/Potatos, Potatos/BTC, WeedCH/BTC etc.

### Trust and reputation
The problem for person to person trading is that you need to trust your trading partner (like you need to trust MtGox etc for classic exchanges).

The best solution for this problem is a distributed (decentralized) identity and reputation database (web of trust).
The application automatically shows the reputation of the ask/bid using the Bitmessage-Address of the sender.
So far there is no yet usable distributed reputation db, but there is identifi.org by sirius (https://bitcointalk.org/index.php?topic=130137.msg2391518) which looks very promising.

To start with I'm planning to use the WoT Database of bitcoin-otc.com, where you have to trust nanotube (the owner), which is ok I think


#### Benefits:
+ No central point of failure
+ Finding offers and communication is anonymous and encrypted
+ Private & Public "Exchanges" for all kind of stuff

############


More Snapshots: https://www.wuala.com/reqxa/LUCAS_Privat_Web/DOTC/UI/Snapshots?key=c2irXXqUySia

There is no reputation system included so far. But I want to do this as soon as the BM-Indtification for #bitcoin-otc is done. I hope somebody can help me with this, as it is written in Python..
The applications dependency is a running Bitmessage (GUI or daemon mode), like Armory needs bitcoind.

What has to be done / What you could contribute:
- Feedback & new ideas for features and improvements
- Testing
- Integrate BM-Inditication to the #bitcoin-otc WoT (https://github.com/nanotube/supybot-bitcoin-marketmonitor)
- Create an icon
- Create a simple, static website (Download, list of public channels, FAQ, hosted on github)
- Translate into other languages
- Implement the Request / Accept trade part

As everyone can parse a public channel one could also build a public webseite that displays the offers of a specific channel.

I think I will have a working development version at the end of the next weekend,which I will publish here.

Sooo, what do you think about this? Is it worth keep on spending my time on this project?

[moderate]

Honestly, calling this decentralized trading is a misnomer. This is a tool that formats bitmessage's messages, any possible trading is done outside it. Did I miss something ?

[lclc]

Honestly, calling this decentralized trading is a misnomer. This is a tool that formats bitmessage's messages, any possible trading is done outside it. Did I miss something ?

"My tool enables a decentralized market to find offers for all kind of stuff"
Yes, trading is done outside, like localbitcoins and #bitcoin-otc.

But your right, my tl;dr: is wrong, I've changed that. It's not decentralized trading, it's a tool to show market offers (like http://bitcoin-otc.com/vieworderbook.php).

[bluemeanie1]

I've already designed a Decentralized Market : http://www.altchain.org/?q=whitepapers/paper2.html

I also have very good knowledge of what's inside Open Transactions and the labelling is quite misleading.

[lclc]

I've already designed a Decentralized Market : http://www.altchain.org/?q=whitepapers/paper2.html

When will it be ready?

I also have very good knowledge of what's inside Open Transactions and the labelling is quite misleading.

FT wants to integrate Bitmessage like this into Moneychanger.

I don't see what's misleading, it does exactly what #bitcoin-otc and Localbitcoins.com does just decentralized (expect the WoT at the beginning).
I don't call it a decentralized exchange, I call it a decentralized market. The actual exchanging has still to be done manually by the users.

[bluemeanie1]

I've already designed a Decentralized Market : http://www.altchain.org/?q=whitepapers/paper2.html

When will it be ready?

We're going to release some timelines shortly.

I also have very good knowledge of what's inside Open Transactions and the labelling is quite misleading.

FT wants to integrate Bitmessage like this into Moneychanger.

Adding a peer-to-peer messaging system to a client-server system(OT) does not make it decentralized.  If I use Tor to contact my banking website, is it Peer-to-Peer banking?

I do recall running across this idea some time ago, didn't seem too sound which was to be expected.

[coreli]

Very interesting, I'm keen on seeing integration into existing payment gateways.

Nice work dude  .

[michelDiz]

I propose that https://bitcointalk.org/index.php?topic=413177.0

[gorgorom]

I think it's a great job! If you need a tester, let me know. I have all flavours of OS's

[lclc]

Thanks, but I already moved on the another, even better project
I'll reveal it when it's ready.

I put the source code of DOTC on github: https://github.com/lclc/DOTC

But the Open Transaction Client, called Moneychanger, will have a Bazar with trading over Bitmessage in it, so we can look forward to that. We'll need a lots of testing there too, if you're interested (www.opentransactions.org, www.opentransactions.org/forum, #opentransactions on freenode IRC).