P2P Exchange for bitcoin

[greBit]

Guys, the forum is overflowing with topics that initiate a p2p bitcoin exchange. I'm not kidding. Yesterday I investigated them all, and I chose help developing bitcoinx (2nd place was darkexchange, at a distance). You can do your research and you'd probably end up joining bitcoinx as well . See user killerstorm, project armoryx, project bitcoinx.

edit: I meant user "killerstorm" (on this forum).

Agree completely.

I definitely recommend looking through the posts from killerstorm. His project is pretty much exactly what I (humbly) believe we need. It could open the door for endless awesome opportunities, decentralized exchanges just being the start!

[mobile4ever]

Guys, the forum is overflowing with topics that initiate a p2p bitcoin exchange. I'm not kidding. Yesterday I investigated them all, and I chose help developing bitcoinx (2nd place was darkexchange, at a distance). You can do your research and you'd probably end up joining bitcoinx as well . See user killerstorm, project armoryx, project bitcoinx.

edit: I meant user "killerstorm" (on this forum).

Agree completely.

I definitely recommend looking through the posts from killerstorm. His project is pretty much exactly what I (humbly) believe we need. It could open the door for endless awesome opportunities, decentralized exchanges just being the start!

He is here:


https://bitcointalk.org/index.php?action=profile;u=8620

[dancupid]

Ripple is already doing this

from their FAQ: https://ripple.com/how-ripple-works/

"Ripple is a decentralized but unified system.
The Ripple network is open source and peer-to-peer. So, instead of a central server, owned by an individual or corporation, a distributed collection of servers around the globe runs Ripple. These interconnected servers collectively maintain a shared Ledger. Since the Ledger tracks account balances and not people, moving money through the Ripple network only takes as long as updating the Ledger, a matter of seconds. Also, Ripple contains its own network currency called ripples (XRP), which serve as the single most efficient way to send payments within the unified system."

People are already using ripple as an exchange.

http://bitcoincharts.com/markets/rippleUSD.html

Am I missing something?

[mobile4ever]

Ripple is already doing this

from their FAQ: https://ripple.com/how-ripple-works/

"Ripple is a decentralized but unified system.
The Ripple network is open source and peer-to-peer. So, instead of a central server, owned by an individual or corporation, a distributed collection of servers around the globe runs Ripple. These interconnected servers collectively maintain a shared Ledger. Since the Ledger tracks account balances and not people, moving money through the Ripple network only takes as long as updating the Ledger, a matter of seconds. Also, Ripple contains its own network currency called ripples (XRP), which serve as the single most efficient way to send payments within the unified system."

People are already using ripple as an exchange.

http://bitcoincharts.com/markets/rippleUSD.html

Am I missing something?

I dont know if you are or not, but Ripple, is it under the control of a few people? If so, it is not decentralized.

[r.willis]

Screw ripple.
I think our best bet is colored coins and blockchain transactions. Current exchanges will become gateways, will take fiat and issue fiat-denominated colored coins. So there will be "MtGox USD", "btc-e USD" etc. which you can atomically trade for BTC.
Order matching is another thing and IMO must be handled by separate network of scalable servers for small fee (may be, fixed per-order fee).

[juice]

"If you're a BitCoin user, the best thing you can do is to monitor the popularity of the services you use and switch away when they get too popular."

[mobile4ever]

Did you guys see this?


http://www.reddit.com/r/Bitcoin/comments/1c4veh/order_placing_suspended_on_mtgox/

[juice]

mtox: Trading is halted until 2013-04-12 02:00am UTC to allow the market to cooldown following the drop in price. Read more details on the support. Additionally trading fees will not be charged within 48 hours of trading resuming (until 2013-04-14 02:00am UTC).

[moni3z]

Maybe if Ripple was open source we could talk about them but it's not (yet) so pointless. Instead I've been playing around with GnuNet, but found many pitfalls like potential flooding therefore denial of service for nodes acting as escrow.

Since we already have p2p trading on IRC, this forum and localbitcoins basically we already have decentralization. apt-get install irssi and go to #bitcoin-otc and make orders. No such thing as a trading freeze on IRC (:

[gollum]

mtox: Trading is halted until 2013-04-12 02:00am UTC to allow the market to cooldown following the drop in price. Read more details on the support. Additionally trading fees will not be charged within 48 hours of trading resuming (until 2013-04-14 02:00am UTC).

That would never occur in a 100% decentralized exchange. If Broker A wants to halt trading there are Broker B,C,D...XYZ that are okey with accepting orders in a volatile market.

[gollum]

Maybe if Ripple was open source we could talk about them but it's not (yet) so pointless. Instead I've been playing around with GnuNet, but found many pitfalls like potential flooding therefore denial of service for nodes acting as escrow.

Since we already have p2p trading on IRC, this forum and localbitcoins basically we already have decentralization. apt-get install irssi and go to #bitcoin-otc and make orders. No such thing as a trading freeze on IRC (:

Trading on IRC is way to complicated and nerdy. Joe-Six-Pack, your sister or your grandma will never trade bitcoin that way - they need a simple user friendly system via a broker to put buy and sell orders, through web or iPhone/Android/WinPhone app

[mobile4ever]

That would never occur in a 100% decentralized exchange. If Broker A wants to halt trading there are Broker B,C,D...XYZ that are okey with accepting orders in a volatile market.

One of those dollar exchanges found anywhere would be the same. Its the same thinking. Release the bottleneck ( centralized markets or exchanges ) and bitcoin can be free!

[greBit]

Yeah ripple does not seem ready and the colored coins solution should be able to be achieved fairly simply.

Just a thought ... what would the consequences be of having all of these alt/colored coins being thrown about over the same bitcoin infrastructure...

Would we start to see merchants choosing to only accept MtGoxUSDCoin ? or EuroCoin? It would be quite attractive since there would be no exposure to the risk of market fluctuations, and they can put their prices in fiat.

Is it a bad thing? Or perhaps just a stop-gap until we do away with fiat completely

Could it also mean that bitcoin hoarding becomes less profitable? 

Could be interesting anyway!

[TierNolan]

Would we start to see merchants choosing to only accept MtGoxUSDCoin ? or EuroCoin? It would be quite attractive since there would be no exposure to the risk of market fluctuations, and they can put their prices in fiat.

Interesting question.  However, since you would still need to pay the tx fees in BTCs, there would still be a market for them.

[nwbitcoin]

I really think we are on to something here.

I'm feeling very confident that the next step towards a crypto currency future is a bit closer.

But on that basis, we should also ensure that we can exchange any alt coin in the same way - and put that into the mix at this point, rather than as an after thought.

Would it be as simple as choosing a different service port for different currencies, or am I missing something?

[Un zafado cualquiera]

ok, a bunch of guys talk about a p2p exchange. I tested th opencoin ripple client and it works perfectly with bitstamp.net an think open transactions has been stuck with the same question. so far the only working implementation is the one form ripple.com. why don't you try making an implementation form the ripple client?

[gollum]

I really think we are on to something here.

I'm feeling very confident that the next step towards a crypto currency future is a bit closer.

But on that basis, we should also ensure that we can exchange any alt coin in the same way - and put that into the mix at this point, rather than as an after thought.

Would it be as simple as choosing a different service port for different currencies, or am I missing something?

We should allow the trade of any two assets against eachother in this system as long as bitcoin is used to pay fees to the exchange servers.
Obviously this kind of markets would emerge:

BTC-USD
BTC-EUR
BTC-JPY
BTC-XAU (Physical Gold or Gold ETF or Gold Futures)
BTC-LTC
EUR-USD
EUR-JPY
USD-JPY
XAU-USD (Physical Gold or Gold ETF or Gold Futures)
BTC-SPY (S&P 500 ETF)
...

[World]

http://irdial.com/blogdial/?p=3505

The question is, who is going to put it together and release it?

[Luckybit]

There is already a project that is moving in this direction:
https://ripple.com

Where is the Ripple white paper?
All these people know about Ripple from what?

[greBit]

http://irdial.com/blogdial/?p=3505

The question is, who is going to put it together and release it?

Not sure I get it. We already have a price finding mechanism -  the marketplace. The only problem is that it is currently ridiculously centralized, hence talk of colored coins/ripple etc. The decentralized versions i.e. localbitcoins are awesome but are by no means suitable for real-time trading and also are not particularly user-friendly for the average-joe consumer who just wants to quickly buy $20 of bitcoin.

The blog does not seem to mention the hardest part which is dealing with fiat in a decentralized manner. How can you guarantee to the seller that the buyer will indeed transfer the agreed $10k after the price suddenly drops?