Hi, I have just spent the last 12+ hours working on a mind racking concept to allow trading between seperate cryptocurrencies PEER TO PEER without the need for operator trust. The main issue faced by other similar projects is ensuring the node nor the buyer/seller could trick the system or steal the money. I believe this graph represents a great method of removing the risk of peer to peer trading. I believe in this structure The Clients (Left and Right side) can safely make a trade after the node has helped them find each other.
http://ress-luapod.rhcloud.com/Diagram.jpgIn my head everything plays out. I am working on doing a concept if any programmers would like to give some assistance!
Any pointers would be great! This (in theory) removes completely the need to trust that the other user will send their secret key.
Another Method:
Two transactions are made (timelocked hashlocked transaction.) Instead of A1 and A2 outputting address keypairs it would output a key that will redeem your transaction!
A trading ledger will exist with the math to prove trades could have occured. This ledger will be used by the network to determine the stability and trustworthiness of a node.
The information that will be recorded onto the ledger will be the Public Keys used in the process of generating the Two addresses. Since they both can be verified as being derived from the
nodes key which it gives out in the beginning of the transaction. In order for the ledger to be accepted into the system the trading wallets must sign a response that will be signed by all three
parties, the node and both clients, If either of them disagree to this signing step the transaction will not continue and the funds will instead revert back to their accounts after the timelock.
Therefore keeping a nodes trust level low and fractional trust points removed. The trust points are merely used to determine their position on the Node list and availability on the network (Transactions failing from no-response causes the trust score to drop)
