2. I do not understand how a distributed exchange involving fiat is feasible. Due to the nature of the dollar you will always require a trusted third party (e.g. ripple gateway).
Thank you:)
I have a hard time seeing how to include non-cryptos in such an exchange, and don't think I could trust any such methodology. The need for crypto-only markets is something I have been anticipating for some time. With so many ways in and out of cryptos I think that fiat will find a way "off-chain" even if more visible fiat exchanges get picked off. Then, the key to eliminating as much friction as possible would be to have a truly reliable, distributed, peer-to-peer exchange between crypto pairs.
- looks like trust free crypto-only markets are cumming, very exciting here is a summary,
http://www.youtube.com/watch?v=teNzIFu5L70 
