[Proposal] P2P Decenteralized Bitcoin Exchange

[NothinG]

In the recent events, I have decided to officially create this proposal. It's very messily written, because I wanted feedback as soon as possible. The original post created by NothinG from this thread is subject to change (for the better, if changes happen).

I have been very interested in creating a P2P De-Centralized Currency Exchange in C# for ~2 years. I've done much researched and messed around with different sections of code needed to create what we need. I've been looking into almost every resource I can for the past week more in-depth to see what it would take to create the most efficient exchange. Here are my suggestions, and if anyone is willing to talk me through it while I code...we could actually knock something out before Monday for testing. This would require very little sleep over the weekend (it's when I do my best coding), but with this...it could save Bitcoin from "Centralized Corruption!"

The project would no-doubtlessly become open-source; do prepare for that when it happens.

What do I need from you to help?
 - Microphone. I don't like talking on the phone too much, but require communication via VoIP.
 - C style Pseudocode. (I can also work with a Java or PHP style, the language will be c-based).
 - Basic ideas of how API's work.

What would you get out of this?
 1) Knowing you helped create something that almost everyone should use for currency exchange.
 2[?]) If there is a bounty and is accepted, the bounty will be split (percentages will be discussed).
 3) All donations, if the project is to accept them, will be split (percentages will be discussed).

Ideas

Code:

 Suggested Price?

Technical Ideas?

Code:

I2P (p2p bootstrap + optional security protocol) [Requires I2P to be installed for usage]
NoSQL (distributed database) http://nosql-database.org/
Bitcoin (bootstrap + we can use this to verify ownership of an address)

-[ More Information to Come! Please comment with ideas! ]-

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[joecascio]

Glad to see this.

While market-making is one thing that could be solved by a decentralized approach, I think a bigger problem is getting old-fashioned fiat currency to the market in an easy and quick fashion.

[nwbitcoin]

Glad to see this.

While market-making is one thing that could be solved by a decentralized approach, I think a bigger problem is getting old-fashioned fiat currency to the market in an easy and quick fashion.

The fiat side of things needs to be dealt with away from the exchange.  Its the fact that MTGox was a one stop shop that helped it become the centralised house of cards it became!

This might be were we need to create a two tier approach, much like using the internet is free, but access to broadband is something for ISPs to arrange and charge for!

[mmeijeri]

Before you reinvent the wheel, have a look at Ripple. If you still want to reinvent the wheel after that, build something similar on top of the block chain. You could even reuse and modify the existing Ripple reference client since it has been open sourced.

And while you're at it, why don't you start using Ripple now because it will be great for helping Bitcoin grow.

[greBit]

Before you reinvent the wheel, have a look at Ripple. If you still want to reinvent the wheel after that, build something similar on top of the block chain. You could even reuse and modify the existing Ripple reference client since it has been open sourced.

And while you're at it, why don't you start using Ripple now because it will be great for helping Bitcoin grow.

Im sure Ripple will be fantastic, but for the moment it might be best if the fan-boys call back a little later when they actually have a git repo to share

[NothinG]

Glad to see this.

While market-making is one thing that could be solved by a decentralized approach, I think a bigger problem is getting old-fashioned fiat currency to the market in an easy and quick fashion.

Currency exchange will between two people. It will work in the same format as http://bitcoin-otc.com/ with the trust aspect going as far as the past exchanges between two people. The "fast" and "easy" will depend on how well you trust the user you are wanting to trade with. Imagine something like Freenet's WOT system, without Freenet.

Before you reinvent the wheel, have a look at Ripple. If you still want to reinvent the wheel after that, build something similar on top of the block chain. You could even reuse and modify the existing Ripple reference client since it has been open sourced.

And while you're at it, why don't you start using Ripple now because it will be great for helping Bitcoin grow.

Ripple is a fantastic service! Unfortunately, it's not what I'm looking for. I'm wanting to create a completely decentralized exchange that is controlled by the users and not have ANY chance of a single user being able to "tank" the price. I'm actually REALLY interested in mathematically suggesting a price based on things like hashrate, popularity, supply/demands, etc...

[justusranvier]

I'm wanting to create a completely decentralized exchange that is controlled by the users and not have ANY chance of a single user being able to "tank" the price. I'm actually REALLY interested in mathematically suggesting a price based on things like hashrate, popularity, supply/demands, etc...

[NothinG]

I'm wanting to create a completely decentralized exchange that is controlled by the users and not have ANY chance of a single user being able to "tank" the price. I'm actually REALLY interested in mathematically suggesting a price based on things like hashrate, popularity, supply/demands, etc...

I said suggesting a price. I'm not setting anything.
It's also going to be open source. Don't like it? Change it.

[Sukrim]

What's the use of this suggestion then? Either you have enough depth to anyways have a solid price that would be better than any suggestion you can come up with or you don't then you can suggest as much as you want, every bigger trade HAS to move the market.

Your "suggestions" currently only consist of a listing of some technologies and the promise that whytever you do will be Open Source.

Please answer the following questions:
How can I trust a completely new user that I don't know personally in your system?
How will it be better than Ripple + gateways?
Who will do dispute resolution, how and why should users trust these mediators/escrows?

[NothinG]

I re-found OpenTrasnaction (couldn't think of the name for the longest time). I'm going to be looking through it to see if it's what I was looking for. They still need centralized servers; though, it may be possible to adapt what OT is doing and spread the "centralized data" across the network. Also, there is: https://github.com/p2p/bitcoin-exchange which explains in more-depth of what I was thinking.

[mmeijeri]

Im sure Ripple will be fantastic, but for the moment it might be best if the fan-boys call back a little later when they actually have a git repo to share

Ripple is already operational, albeit only in Beta. And you don't need the source code if all you want to do is to use it as a decentralised and more resilient Mt Gox. After all, you don't get the source code of Mt Gox either.