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Author Topic: could decentralized exchanger revolutionize bitcoin?  (Read 1664 times)
kenji (OP)
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July 21, 2014, 07:38:02 PM
Last edit: July 23, 2014, 11:33:40 PM by kenji
 #1

after mtgox we all know all centralized exchanger like bitstamp..etc could be all hacked.
do you think that decentralized exchanger like blackhalo, bithalo in the future will play a major role?
i think it is also very important for the chinese people ,should the government ban all exchangers.

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July 21, 2014, 10:28:47 PM
 #2

could you explain how exactly does decentralized exchanger works?
kenji (OP)
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July 22, 2014, 05:24:33 AM
Last edit: July 22, 2014, 05:52:36 AM by kenji
 #3

How halo works?
If I have understood correctly:

You want to sell, someone will buy.
Both give BTC to escrow more than transaktion is worth
Halo deposit Works like ensurance,  no one will fuck you, cause both sides looses if Transaktion will fail.

http://m.youtube.com/watch?v=oS56CqCR-oU
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July 22, 2014, 05:40:15 AM
 #4

After losing bitcoin to the thieving fucking criminal Ukyo / Jon Montroll, who stole millions of dollars worth of bitcoin from users who deposit money into his exchange, I'm pro-pro-pro-PRO decentralized exchanges. I think they are the future, and they make sense with bitcoin. Bitcoin being decentralized in nature should not be dependent on a handful of centralized exchanges.

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July 22, 2014, 07:41:06 AM
 #5

ban all exchangers?

how to get bitcoin for people no bitcoin?

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July 22, 2014, 11:23:55 AM
 #6

yeah, and can avoid banker to take control of centralized exchange

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July 22, 2014, 12:22:14 PM
 #7

it might change how bitcoin exchanges work
one decentralized exchange and become popular, many will follow it

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July 23, 2014, 12:28:39 AM
 #8

 halo is awsome and it is the Future Cool
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July 23, 2014, 01:43:32 AM
 #9

How halo works?
If I have understood correctly:

You want to sell, someone will buy.
Both give BTC to escrow more than transaktion is worth
Halo deposit Works like ensurance,  no one will fuck you, cause both sides looses if Transaktion will fail.

http://m.youtube.com/watch?v=oS56CqCR-oU
How do you know that you can trust the escrow? I think this would have a lot of instances of stolen coins.

What if you want to sell all of your bitcoin? How would this work if you are giving more bitcoin then the amount you are selling to escrow?
kenji (OP)
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July 23, 2014, 11:22:10 AM
 #10

http://www.cryptocoinsnews.com/news/bithalo-bitcoin-adoption-online-payments/2014/07/23  Wink
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July 23, 2014, 11:30:04 AM
 #11


Please, it already exist.

http://multigateway.com/

(https://nxtforum.org/ for support)
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July 23, 2014, 10:10:08 PM
Last edit: July 23, 2014, 11:29:18 PM by blacky90
 #12

Now that would be a game changer!

thanks to the blackcoin dev team they have done a relly good job Wink

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July 23, 2014, 11:24:26 PM
 #13

Wow, that's really cool!  Irreversible transactions has been one of my biggest concerns with using bitcoin, so I'm really glad to see this innovation.
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July 24, 2014, 12:29:45 PM
 #14

How halo works?
If I have understood correctly:
You want to sell, someone will buy.
Both give BTC to escrow more than transaktion is worth
Halo deposit Works like ensurance,  no one will fuck you, cause both sides looses if Transaktion will fail.
http://m.youtube.com/watch?v=oS56CqCR-oU

What if something wrong happen ?

What if one disagree ?

What if the buyer claim that he never received the package ?

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July 24, 2014, 12:47:39 PM
 #15

I think decentralized exchange is future. Everyone can go there without the restriction of the regulation and worrying the unconscience owners of centralized exchange.But the service is not mature yet. 
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July 24, 2014, 03:03:16 PM
 #16

How halo works?
If I have understood correctly:
You want to sell, someone will buy.
Both give BTC to escrow more than transaktion is worth
Halo deposit Works like ensurance,  no one will fuck you, cause both sides looses if Transaktion will fail.
http://m.youtube.com/watch?v=oS56CqCR-oU

What if something wrong happen ?

What if one disagree ?

What if the buyer claim that he never received the package ?

Good point.  They don't go into that.  I would guess that both parties would have to agree to cancel the transaction, otherwise the funds would continue to be held.
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July 24, 2014, 03:50:53 PM
 #17

How halo works?
If I have understood correctly:
You want to sell, someone will buy.
Both give BTC to escrow more than transaktion is worth
Halo deposit Works like ensurance,  no one will fuck you, cause both sides looses if Transaktion will fail.
http://m.youtube.com/watch?v=oS56CqCR-oU
What if something wrong happen ?
What if one disagree ?
What if the buyer claim that he never received the package ?
Good point.  They don't go into that.  I would guess that both parties would have to agree to cancel the transaction, otherwise the funds would continue to be held.

No you can't cancel anything. If one disagree, no one get his Bitcoins back. So who get them ? Halo devs ?
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July 24, 2014, 04:10:24 PM
 #18

it is possible, and not conceptually difficult, to extend the way ownership of Bitcoin is determined in a decentralized way using the blockchain to more complicated constructs such as the ownership of other things or the commitment to contracts, including offers to trade at certain prices. Yet there are two nontrivial issues a decentralized exchange, or its underlying protocol has to solve: How to enforce trades (solving the counter-party risk any exchange has), and how to detect if a trade has occurred.

Obviously there are many ways all of this could be settled. For example, exchanges in real finance leave fulfillment and enforcement to the trading parties and the authorities, but that has huge real-world problems even with a limited number of tightly regulated and registered participants that one may hope to avoid in a decentralized approach.

There is a simple solution for exchanging (specially designed) cryptocurrencies where ownership and contract fulfillment is determined by a blockchain. At least typically, protocols enabling a decentralized exchange include at least one such cryptocurrency, such that as a partial solution an automatic escrow can be implemented. But full automation requires that the ownership of the other currency involved in the exchange can also be automatically established, i.e. it must also be some kind of altcoin.

To extent this to cover fiat currency, there must be some form of agreement to honor the obligation to transfer fiat and to reflect its completion in the decentralized exchange. Sadly, this is at the core of all kinds of blockchain-based contracts: How do we get them to be enforceable, ideally by becoming legally binding? I see two possibilities:

Limit trading to participants that sign some kind of real-world contract to honor them in a way that makes them legally enforceable. This has the problem of being difficult to do in a truly decentralized way, unless legal systems start to recognize at least some kind of digital id and digital contracts.

Require some kind of security deposit to be confiscated in case of breach of contract---possibly from both sides of a contract or exchange-brokered trade, to remove profitability for both sides in the event that one party fails to deliver a fiat payment or that the other party fails to admit having received it. Sadly, designing a system where it is ensured that no kind of fraud pays off is not easy and may require a very large security deposit, giving this approach severe disadvantages as well: A cyber-troll willing to suffer a loss could cause someone else to suffer an even larger loss (and potentially blackmail such a victim into letting the troll get away with a profit), and potential users wanting to use the exchange because they need cryptocurrency may find it difficult to cough up a cryptocurrency-based security deposit.
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July 24, 2014, 09:56:21 PM
 #19

BUMP!  Have you used BlackHalo yet??  It is amazing and the wallet is a Security Fortress!

Please try it and provide feedback.

STEP-BY-STEP (WITH IMAGES) INSTRUCTIONS TO SETUP BLACKHALO AND DO A CONTRACT

I had a chance to play with BlackHalo and did a contract for sending BlackCoin.  It worked perfectly and my BlackHalo wallet address could not be found on the block chain.  I am not expert but sending BC with this wallet appears to be anon!  If this is the case a detailed write up on the anon-send feature should be carefully explained and PR release on this feature alone should be done.
Here is quick summary for those interested in using the BC contracts feature.

First Install BlackHalo

1. Download BlackHalo http://blackhalo.info/  Go to official site and scroll to download link
2. Shut down BlackCoin wallet
3. Unzip Blackhalo.zip anywhere
4. To speed up BlackHalo wallet sync go to .. ...\blackhalo\data\ directory and delete all files
5. Go to BC wallet ...\AppData\Roaming\BlackCoin
6.  Copy all files except wallet.dat
7. Paste these files into ...\blackhalo\data\ directory
8. Double click on Rescan.bat in ..\blackhalo\ directory
5. When finished, the command screen from Rescan.bat disappears.
6. Double click on BlackHalo.exe in a couple of minutes BlackHalo is 100% synched!
Note, if you do not have BlackCoin wallet then you will have to let BlackHalo sync by itself, skip items 4 through 5. 

Second get email for BlackHalo clients to communicate automatically.

Get a new gmail or hotmail account so that BlackHalo can communicate automatically with other people doing the contract.  You will need the email and the password which will be added to BlackHalo.  I used gmail.

Third getting a BlackHalo wallet and activating email.

7. Go back to BlackHalo, it should be syncronized, and click on File > New Wallet
8. Click on save to save your first private key, then click on save again to save your second private key.  You will need both keys to open your wallet so do not loose them, make a backup of them along with your new wallet.dat saved in ...\blackhalo\data\ directory.
9. In a minute you should see a wallet address and in a little longer you should see Balance = 0



10. Click on the "Receive Blackcoins" tab
11. Click on the Add/Change button near the bottom
12. Add your email and then your password.  Your account will be validated automatically, and your email address will now be shown above the Add/Change button.



13. You will need to send some BLK to your wallet so click on the "Copy Adress to Clipboard" and save it somewhere. 
14. Click on File > Exit to shut down the client.  It will not close properly if you click on the x button on the right.
15. Wait a couple of minutes for clients to shut down properly and open BlackCoin Wallet to send some BLK to your BlackHalo.  Used the saved address from step 13.
16. When it shows one confirmation then shut down the BlackCoin wallet.
17. Wait one minute and open BlackHalo
18. In a couple of minutes your BLK will show in the Balance.

Fourth: Doing your first contract.

19. You will need the email from the other person to do the contract.  There will be IRC rooms where you can find people interested but right now this IRC chat room is not working.  Once you agree on the contract price then you can set it up. 
20.  This can be a typical contract:  I am a buyer for a service (graphic design) and found the designer that cost 1000 BC.  We have agreed on the price and that the design will be done in 24 hours, and that each of us will escrow 1000 BC extra until the job is completed and accepted.
20. Click on the "Make an Offer" tab and fill the form:

Send Contact to:  email (xxx@gmail.com)
Amount: 1000
You Deposit: 1000 (your escrow)
They Deposit: 1000 (his escrow)
Time to Complete: 36 hours (better give a little extra time)

Before you click on the Send button make sure that you select "I pay this amount (I am the buyer)" from the drop down menu below the Send button, or the seller if you are the seller.



21. Click on the Send button
22. Now the clients will communicate with each other automatically via email.  You can see the current status of your offer under the tab "Pending Offers".  It should say "Sent Offer ... sent offer details awaiting response..."  If you click on it you can see some options to  cancel it, send it again or copy the email.



23. At this point we are waiting for the order to be accepted.  On the other end the details of the offer can be seen in the "Pending Offer" tab.  When they click on the offer the options are to Accept, Counter-Offer, or Delete.



24. When the offer is accepted the transaction will be broadcasted, this may take a little while but when finished this transaction will move from the "Make an Offer" tab to the "Open Contracts".  Now the contract should be listed and say something like Order: cxxxx.....
25. When the contract gets executed and the seller delivers the goods or services he selects the "Open Contracts" tab and click in the open Order: xxxxx.  A window pops up where you have the option to click the Completion Request.  When both have acknowledged that completion has been achieved by clicking on the Completion Request then the transaction is broadcasted as completed.



26.  After some minutes the payment is sent and the escrows are returned.  When all the transactions are completed the Open Contract Tab clears automatically and the contract is complete.

Thanks Dave Zimbeck this is an Amazing tool!

This is the link to the video which describes some of these steps:  http://www.youtube.com/watch?v=1mpNYCasuGE

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July 24, 2014, 10:59:38 PM
 #20

I think this would add a lot of spam to the blockchain
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