Hi All,
Would like to introduce you all to a alternative thought line to Exchange mechanics by proposing a block based exchange.
Following is the entire idea.
- A Block chain independent of any coin but linked to any coin or having its own coin format
- Serving the purpose of exchange.(I.e. Transfer of value)
- Network Dependent price discovery.
At technical layer following is the concept -
- Forking the blockchain within itself by virtue of Issuers token and definition of Financial Instruments on the block chain.
- Trust model of Custodian.
- Orders are broadcast within the network.
- Price discovery a function of collision of open orders. ( Link Up CSMA/CD )
A Block Chain based decentralised exchange.docx - hhttps://docs.google.com/document/d/1ZRcQGHPyUHbcbKQ69fV-T2Mkf7A4jzw8JNRBvBNO1K8/edit
Abstract. A pure peer to peer version of the exchange system would allow all parties access to the market without relying on any central organization for market access. Paper proposes a solution for the problem of maintain an order book and determine the execution rate in the peer to peer network. Like crypto-currencies the network relies on blockchain of transaction. Digital signature system would be the core of the decentralized market place. The paper defines basic ground rules for the working of decentralized exchange. The major components of the decentralized exchange are issuing process, co-existence of blockchain and order books and functions of the miner. Unlike other crypto currencies de-centralized exchange would have a trust based issuing process which in long run would be a sum zero game. The decentralized
Exchange would have 3 types of entities namely – Issuer, Trader and Miner.
Any Suggestion or feed back is welcome. And PM if required only.
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Thanking You
A Common man.
