Bitcoin: The Decentralized Currency with a Centralized Exchange!

[rat]

ZOMGWTF!

[superduh]

that is the biggest point of fail

[bitlancr]

I'm watching this with dismay. Surely Mt Gox has lost all credibility now.

[mmeijeri]

I'm hoping Ripple will help with that. However, to use Ripple you need XRP, and I haven't been able to buy any. Maybe once the meltdown is over.

[virtualmaster]

I'm hoping Ripple will help with that. However, to use Ripple you need XRP, and I haven't been able to buy any. Maybe once the meltdown is over.

Ripple cannot help more than namecoin, litecoin, ppcoin or teracoin.
They must build their own exchange network to could help and the same with ripple.
Many beleave that ripple can help because it is very confusing and nobody really understands it. Yes. You can exchange your BTC to debts or to ripple. But who would give you bitcoins for debts or ripple ?

[tlr]

I don't think we need a truly decentralized exchange (in the way that Bitcoin itself is decentralized), we just need several competing individual exchanges that are fast and reliable enough that people can arbitrage them.

What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.

[dawn]

I'm getting all my funds back this moment. MtGox is too unprofessional at all (tought they've learned their lesson when they got hacked).  I'm damn sure I can protect my funds better than they are able to. I'm wondering how long payouts are possible... A lot people will do the same I think.

[wksantiago]

I don't think we need a truly decentralized exchange (in the way that Bitcoin itself is decentralized), we just need several competing individual exchanges that are fast and reliable enough that people can arbitrage them.

What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.

Agree 100%

[bitlancr]

Great idea, and technically it shouldn't be difficult - but the difficulty is taking/receiving fiat payments...

[Eri]

I'm getting all my funds back this moment. MtGox is too unprofessional at all (tought they've learned their lesson when they got hacked).  I'm damn sure I can protect my funds better than they are able to. I'm wondering how long payouts are possible... A lot people will do the same I think.

you dont seem to know whats going on, lots of people are just buying and selling bitcoins which creates lag. even if a ddos is happening at the same time it doesnt affect your money, its still secure. (atleast, its no more or less secure then usual.)

[mmeijeri]

What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.

That's what Ripple will be. So far, only the client has been open-sourced, but the server will follow.

Great idea, and technically it shouldn't be difficult - but the difficulty is taking/receiving fiat payments...

Ripple does that by trading in IOUs between nodes in a trust graph, with credit limits on each edge in the graph, and leaving settlement to individuals that have a trust relationship.

[mobile4ever]

I'm hoping Ripple will help with that. However, to use Ripple you need XRP, and I haven't been able to buy any. Maybe once the meltdown is over.

Things like Ripple and:


https://bitcointalk.org/index.php?topic=145389.0


should make bitcoin exchanges decentralized. The markets should match the money to prevent things like this:

http://www.youtube.com/watch?v=7fvSYT7vhQY

[dawn]

What we need to do is build a fast, robust, extremely secure, open-source exchange, with a standardized API that traders can plug into to easily arbitrage.

That's what Ripple will be. So far, only the client has been open-sourced, but the server will follow.

Great idea, and technically it shouldn't be difficult - but the difficulty is taking/receiving fiat payments...

Ripple does that by trading in IOUs between nodes in a trust graph, with credit limits on each edge in the graph, and leaving settlement to individuals that have a trust relationship.

I got your point, but in my opinion, it shows very detailed how unprofessional they handle at least this technical stuff (I'm an IT guy too, this wouldn't so hard to handle...), I'm feeling very bad about the security of my bitcoins at mtgox. I think it's much saver to hold the most by my own wallet and if I need to trade, I choose localbitcoins or something like this.

[benjamindees]

http://www.localbitcoins.com

[mobile4ever]

http://www.localbitcoins.com

It is still under the control of a few people; whoever owns localbitcoins dot com. That is not decentralized, but it is an improvement.

[gollum]

Centalized MtGox is the bottleneck of the decentralized Bitcoin!

We must invent an decentralized exchange!

[deadweasel]

Centalized MtGox is the bottleneck of the decentralized Bitcoin!

We must invent an decentralized exchange!

+1

[bitlancr]

If we could separate out the handling of fiat from the exchanges, and provide the handling of fiat as a service, then exchanges would be easy to build (with off the shelf open source software, as suggested).

This 'fiat handling service' would maintain bank accounts in all the countries it operates. End users deposit into these bank accounts, and the appropriate exchange account is credited with fiat. The exchange is notified, and the user's account on the exchange is credited.

So to use a dirty word, this service would be a kind of 'central bank' to the exchanges. Of course, there's no reason why it would hold a monopoly, though.

[Mike Christ]

I'm in agreement; a decentralized currency needs a decentralized exchange.

So how do we do it?

[gollum]

I'm in agreement; a decentralized currency needs a decentralized exchange.

So how do we do it?

I described the template for this p2p exchange here: please add ideas for the functionality

https://bitcointalk.org/index.php?topic=172705.0