Let's Design The Ideal Bitcoin Exchange

[Armis]

Bitcoin is changing rapidly, a new beginning is starting to take shape, now is the time to let the new bitcoin service providers know what it is that you want from them.  

They know they must be more accountable, responsive, reliable, and secure, but what in particular are you looking for, how exactly do you want them to prove solvency, what specifically would make you feel secures ...

Here are a couple at the top of my top 10 list:
1) community validation / certification - I would to see some huge size community group (none anonymous) say 1000+ people, vote give star ratings to service providers.
2) proof of solvency - on a monthly basis via some company signed blockchain documentation prove current assets


What would make you happy?

[Taras]

Decentralize the platform. It should require no trust and be peer to peer.

[GigaCoin]

just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.

[Phinnaeus Gage]

You have trustworthy bitcoiners running it.

A physical address that is know and visitable.

All principles are known from the get-go.

NO FUCKING BOTS.

Also, NO FUCKING BOTS.

Customer service is number one.

All cash deposits by clients are not to be touched, and at whatever institute they're stored at, an independent auditor reports monthly that all is, or isn't well.

If you can't survive with a 0.05% transaction fee on millions of dollars transacted daily, then don't even bother opening the doors.

I do the vetting!

I repeat, I do the vetting. (with no info made public of any individuals that don't pass, but the ones that do, we will know what their shit smells like on a daily basis)

If your exchange idea lacks any of the above, then it'll be a piece of shit outta the gate.

I have no issues with anybody having some criminal background as long as it's disclosed and not found out later via doxxing when somebody gets butthurt.

You want an excellent exchange, then heed 99% of the good advice that's going to be offered up via this thread.

If you don't want an excellent exchange, then only use 1% of the advice offered up via this thread.

~Bruno Kucinskas

[Singlebyte]

just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.

Actually (in a perfect world) a decentralized exchange would just use payment gateways for getting money in & out.  You deposit (or withdraw) money at the gateway.  They give you some type of verification usually in the form of a crypto like ripple XRP.  If your favorite gateway goes belly up, you just find another gateway processor.  No centralization at all!

[franky1]

authenticating/vetting businesses and ensuring they run compliantly

hmmmmm

sounds like what the bitcoin validation service was talking about. once you get past the tinfoil had forum users thinking it was validating non businesses

[franky1]

just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.

Actually (in a perfect world) a decentralized exchange would just use payment gateways for getting money in & out.  You deposit (or withdraw) money at the gateway.  They give you some type of verification usually in the form of a crypto like ripple XRP.  If your favorite gateway goes belly up, you just find another gateway processor.  No centralization at all!

the problem is definitely with FIAT. if your swapping actual regulated fiat person to person 100 times a day (day trader style) then the red flags of AML will pop up.

this is why its easier to trade a digital database that resembles fiat and then the regulations only kick in when you fully withdraw.
i think an altcoin was trying to develop this. by having the altcoin pegged at $1 value forever and used as the medium for internal trading and then exchanged back into dollars when people want to cash out

[Phinnaeus Gage]

just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.

Actually (in a perfect world) a decentralized exchange would just use payment gateways for getting money in & out.  You deposit (or withdraw) money at the gateway.  They give you some type of verification usually in the form of a crypto like ripple XRP.  If your favorite gateway goes belly up, you just find another gateway processor.  No centralization at all!

the problem is definitely with FIAT. if your swapping actual regulated fiat person to person 100 times a day (day trader style) then the red flags of AML will pop up.

this is why its easier to trade a digital database that resembles fiat and then the regulations only kick in when you fully withdraw.
i think an altcoin was trying to develop this. by having the altcoin pegged at $1 value forever and used as the medium for internal trading and then exchanged back into dollars when people want to cash out

Exactly what I thought a couple months back. Create an alt pegged at a dollar, for lack of a better exchange rate. Make sure that that system of things is on the up-and-up as much as possible, operated by honest folks, regardless of the color of their skin.

Its only purpose is to get funds in and outta of the exchange.

Alt X is would be easily exchangeable for BTC. In fact, it probably would only be used by traders, serving no other purpose.

BTW, did I mention NO BOTS in this ideal exchange?

[bananas]

Descentralized is utopia, not possible.
Holding private keys would make it slow, not a live exchange.

[Singlebyte]

Descentralized is utopia, not possible.
Holding private keys would make it slow, not a live exchange.

Decentralization IS possible, and it IS coming.  Lots of projects being worked on right now.  I think OpenTransactions will be one of the front runners to open up the new technology.

[bananas]

Descentralized is utopia, not possible.
Holding private keys would make it slow, not a live exchange.

Decentralization IS possible, and it IS coming.  Lots of projects being worked on right now.  I think OpenTransactions will be one of the front runners to open up the new technology.

It is not possible if it involves actual money.

[Singlebyte]

Descentralized is utopia, not possible.
Holding private keys would make it slow, not a live exchange.

Decentralization IS possible, and it IS coming.  Lots of projects being worked on right now.  I think OpenTransactions will be one of the front runners to open up the new technology.

It is not possible if it involves actual money.

Sorry, but you are clueless.

[GigaCoin]

just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.

Actually (in a perfect world) a decentralized exchange would just use payment gateways for getting money in & out.  You deposit (or withdraw) money at the gateway.  They give you some type of verification usually in the form of a crypto like ripple XRP.  If your favorite gateway goes belly up, you just find another gateway processor.  No centralization at all!

the problem is definitely with FIAT. if your swapping actual regulated fiat person to person 100 times a day (day trader style) then the red flags of AML will pop up.

this is why its easier to trade a digital database that resembles fiat and then the regulations only kick in when you fully withdraw.
i think an altcoin was trying to develop this. by having the altcoin pegged at $1 value forever and used as the medium for internal trading and then exchanged back into dollars when people want to cash out

Exactly what I thought a couple months back. Create an alt pegged at a dollar, for lack of a better exchange rate. Make sure that that system of things is on the up-and-up as much as possible, operated by honest folks, regardless of the color of their skin.

Its only purpose is to get funds in and outta of the exchange.

Alt X is would be easily exchangeable for BTC. In fact, it probably would only be used by traders, serving no other purpose.

BTW, did I mention NO BOTS in this ideal exchange?

This is actually in the works, and it's called BitUSD which will operate under BitShares X.

[Phinnaeus Gage]

just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.

Actually (in a perfect world) a decentralized exchange would just use payment gateways for getting money in & out.  You deposit (or withdraw) money at the gateway.  They give you some type of verification usually in the form of a crypto like ripple XRP.  If your favorite gateway goes belly up, you just find another gateway processor.  No centralization at all!

the problem is definitely with FIAT. if your swapping actual regulated fiat person to person 100 times a day (day trader style) then the red flags of AML will pop up.

this is why its easier to trade a digital database that resembles fiat and then the regulations only kick in when you fully withdraw.
i think an altcoin was trying to develop this. by having the altcoin pegged at $1 value forever and used as the medium for internal trading and then exchanged back into dollars when people want to cash out

Exactly what I thought a couple months back. Create an alt pegged at a dollar, for lack of a better exchange rate. Make sure that that system of things is on the up-and-up as much as possible, operated by honest folks, regardless of the color of their skin.

Its only purpose is to get funds in and outta of the exchange.

Alt X is would be easily exchangeable for BTC. In fact, it probably would only be used by traders, serving no other purpose.

BTW, did I mention NO BOTS in this ideal exchange?

This is actually in the works, and it's called BitUSD which will operate under BitShares X.

Great! Any notables involved, or all unknowns?

[GigaCoin]

just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.

Actually (in a perfect world) a decentralized exchange would just use payment gateways for getting money in & out.  You deposit (or withdraw) money at the gateway.  They give you some type of verification usually in the form of a crypto like ripple XRP.  If your favorite gateway goes belly up, you just find another gateway processor.  No centralization at all!

the problem is definitely with FIAT. if your swapping actual regulated fiat person to person 100 times a day (day trader style) then the red flags of AML will pop up.

this is why its easier to trade a digital database that resembles fiat and then the regulations only kick in when you fully withdraw.
i think an altcoin was trying to develop this. by having the altcoin pegged at $1 value forever and used as the medium for internal trading and then exchanged back into dollars when people want to cash out

Exactly what I thought a couple months back. Create an alt pegged at a dollar, for lack of a better exchange rate. Make sure that that system of things is on the up-and-up as much as possible, operated by honest folks, regardless of the color of their skin.

Its only purpose is to get funds in and outta of the exchange.

Alt X is would be easily exchangeable for BTC. In fact, it probably would only be used by traders, serving no other purpose.

BTW, did I mention NO BOTS in this ideal exchange?

This is actually in the works, and it's called BitUSD which will operate under BitShares X.

Great! Any notables involved, or all unknowns?

well known, very talented developer behind it by the name of Dan Larimer. Chkout invictus.io

[Singlebyte]

There are several projects going on.  I posted in this thread some of them.

https://bitcointalk.org/index.php?topic=488148.msg5513190#msg5513190

[Phinnaeus Gage]

There are several projects going on.  I posted in this thread some of them.

https://bitcointalk.org/index.php?topic=488148.msg5513190#msg5513190

Even though I can't get my head wrapped around Ethereum, I like Charles as a person, in spite of reading a couple negative things about him.

[Armis]

Decentralize the platform. It should require no trust and be peer to peer.

could someone tell me what a decentralized exchange would look like, apparently it is wanted and some are in the process of building it, but what is it?

[corebob]

...
1) community validation / certification - I would to see some huge size community group (none anonymous) say 1000+ people, vote give star ratings to service providers.
...

Something simple like star ratings would be nice. This is a feature that usually works really well due to the fact that it represents independent peer reviews, something that could fit bitcoin really well. If nothing else if would make sure the vast majority of newcomers picks a trustworthy service.

There was a session at the Texas bitcoin conference where this issue was discussed, and there was some interesting ideas there, even though I fear we could easily end up with a cartel like situation if we don't get it right.

[Armis]

...
1) community validation / certification - I would to see some huge size community group (none anonymous) say 1000+ people, vote give star ratings to service providers.
...

Something simple like star ratings would be nice. This is a feature that usually works really well due to the fact that it represents independent peer reviews, something that could fit bitcoin really well. If nothing else if would make sure the vast majority of newcomers picks a trustworthy service.

There was a session at the Texas bitcoin conference where this issue was discussed, and there was some interesting ideas there, even though I fear we could easily end up with a cartel like situation if we don't get it right.

what are some of the other ideas that were shared at the conference