Believe it or not a decentralized Bitcoin exchange has already existed for 5 years. Ever since the creation of the first Bitcoin mining pool – Eligius – a decentralized exchange was formed. Bitcoin pool mining is in fact a completely functional and currently the most reliable Bitcoin exchange available.
Our definition of a decentralized exchange is a globally accessible network which allows for a secure exchange of fiat currency to digital currency. There are a few forms of decentralized exchanges in existence such as Localbitcoins, Coiffeine, EtherEx. However, due to the peer to peer nature of these exchanges one is faced with high risks of fraud, there are many limits on how many coins one can buy from each vendor, and in some cases one is still required to hand over personal information to a bitcoin seller. The beauty of pool mining serving as a decentralized exchange is that a competent miner can reduce the risk of fraud to zero. A transaction with a bitcoin seller on a platform like Localbitcoins is much more likely to go wrong versus paying the electricity bill.
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http://themerkle.com/the-decentralized-bitcoin-exchange-that-existed-for-five-years/
