New wiki page on ripple currency exchanges

[Mike Hearn]

Hi,

I wrote up a wiki page on how to build a p2p currency exchange (bitcoin to fiat or vice-versa).

   https://en.bitcoin.it/wiki/Ripple_currency_exchange

This is not a new idea. But ideas that are only documented in the forums tend to get lost.

Hope it is useful.

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[mystery2048]

This sounds brilliant!

[ripper234]

+1 for documenting it.

My bet: it's a matter of 6-12 months before we see a functional implementation of this advancing past the alpha stage. Maybe sooner.

[Boussac]

Very interesting.
I am wondering how much this could expand the reach of bitcoin while maintaining a high level of security.
Then again, they say everybody is only 20 social relationships away from Barack Obama
 

[Yankee (BitInstant)]

(Full disclosure- I run a company who's revenue stream would be hindered by this)

Having said that, and trying to keep my bias aside I think a p2p exchange is necessary for Bitcoin (Hasn't it been attempted already?)

Sure, exchanges exist to help keep a minute-by-minute exchange rate, and services like Bitinstant exist to help first timers get their Bitcoin in a few minutes, there will always be a need for someone to cash in or cash out instantly.

A good usage of a p2p exchange would be if I was doing a road trip and I only owned Bitcoin. What I can do, is set up trading partners along the way using a p2p exchange. Furthermore, a p2p exchange is fantastic for emerging economies in Africa without a solid banking infrastructure or countries with currency control like China, India, Argentina, ect.

I'd be happy to talk to OP or whoever is interested in building this. We have the money, staff, resources, connections and tools to have this rolled out within a few months.

-Charlie

[Brunic]

Wow, it's funny how things goes, just yesterday, I was working to design a similar system. I'm looking for a new project to develop, and I was evaluating if and how it could be done.

The idea is sexy and really inspiring. But the hard part is how you implement that in real life, with real people with different intentions. Those "nodes" are not computer functions, they don't always follow the instructions. We're dealing with money, and people can act weird when money is around. The system needs some leverage to convince nodes to follow the instructions.

The wiki page is a great start, but I find the system described too "computerized". You must not build a hacker-proof system, but a nodedontscrewup-proof system. The exchange is only a way for those nodes to know each other. Since they live near each other, once they meet each other, they can easily trade without using the exchange. We need a goodwill incentives more than a transaction verification system.

Anyway, since it seems that there is some interest, I could put more time on that and develop a prototype.

[jimbobway]

I think we need a P2P library that encapsulates mining, alt-mining chains, storing of data etc.  It is difficult for most developers to rebuild the core bitcoin logic, and it seems like there is a need to do it over and over.  For example there is now Bitcoin, Namecoin, and Ripple Exchange that require this core logic and it is replicated each time.  If someone could develop a P2P library it could unleash another wave of P2P applications including this ripple exchange.

[jancsika]

Hi,

I wrote up a wiki page on how to build a p2p currency exchange (bitcoin to fiat or vice-versa).

   https://en.bitcoin.it/wiki/Ripple_currency_exchange

This is not a new idea. But ideas that are only documented in the forums tend to get lost.

Hope it is useful.

Could you add a paragraph or two about the potential downside of making your entire personal collection of financial trust relationships part of a globally visible database?

[Mike Hearn]

The trust relationships are between keys, same as with Bitcoin. The association between keys and people is known to you for your own relationships, and nothing stops somebody publishing their keys globally either. But otherwise it's a similar privacy model to Bitcoin.

[Mike Hearn]

I think we need a P2P library that encapsulates mining, alt-mining chains, storing of data etc.

Yes, absolutely. I'd like bitcoinj to evolve into such a library one day. But there are higher priorities so I don't think I'll have time to work on it for a long time yet. Patches welcome though.

[Bitcoin Oz]

Im getting developed something that uses bitcoin in a way that will allow you to prove you own  an identity and youll be able to export your identity anywhere because you own the private keys to a bitcoin address. A  p2p exchange could be plugged in to this easily.