Hi folks,
I’m creating an open source exchange protocol designed to be used with open currencies like Bitcoin that uses the price of goods transacted as the basis for the activity.
Upon establishment of this protocol an industry of brokerages will be created that will embed the exchanges to process transactions in their selected markets.
There will be two equal exchanges:
BTC "buy" requests open positions and update candlestick charts in BTC equal to the price of an item transacted in USD at current exchange rates.
USD “sell” requests open positions and update candlestick charts equal to price of an item sold in USD.
Each processed transaction creates equal volume on both exchanges.
The processed transactions of each market's brokerages will update both exchanges across all brokerages.
Brokerages submit “buy” requests equal to the price of the item they are transacting at current exchange rates plus a percentage taken as profit, updating the BTC “buy” exchange.
Brokerages simultaneously submit USD “sell” requests equal to the price of the item without including the percentage taken as profit and update the exchange chart.
Brokerages exchange the bought BTC to USD and route the amount equal to the price of the item purchased to the merchant and the transaction is complete.
Candlesticks update on each exchange chart at selectable time intervals - 5 minutes, 1 hour, 1 day, etc. - determined by the brokerages.
Customers will use a brokerage to make purchases in each market depending on their needs.
Brokerages will use this exchange themselves and register purchases from profit generated processing transactions as activity.
This can potentially be used with any crypto-fiat currency split depending on what merchants accept.
Upon completion of this protocol I anticipate starting a brokerage to process transactions in the academic research market. You may choose a market in which to operate: entertainment, healthcare, transportation, technology, law, etc. and determine the percentages of each item’s price transaction processed to take as profit.
I have set up an IDE on Cloud9 and already have some help configuring this protocol. Upon completion we will post to GitHub for others to fork. If you wish to contribute, request an invite and feel free to join the discussion.
https://ide.c9.io/papermache/openexchangeprotocol
