After reading this https://www.cryptocoinsnews.com/bitcoin-price-manipulation-centralized-exchanges-seems-coordinated/
I realized since the beginning, when I first came in touch with bitcoin and some shitcoins in 2013, that no matter where you traded, the values are almost always the same. Then this article came, and then it clicked. Centralized exchanges are, obviously, there to make money, not to serve (well) the users. How many of those exchanges have a heavy hand behind them? Are there so many whales that sole exist to crash / pump bitcoin and other coins? It never seemed reasonable to me.
What Multigateway (from jl777) tried to do is to end this centralized exchange issue, but he couldn't keep the project alive because of the issues related to RAM and processing power to keep 1-2 daemons running on the server. Have no idea of the intricacies of the MGW project, but with SuperNET, it "tries" to solve this problem. Ripple and Stellar tries to solve it in a centralized manner as well.
How could NEM do better? I have this in back of my head for some time, and have yet to have an idea on how to create something that would be really useful for the ecosystem, in this matter. Like SuperNET premise to make crypto "unite" instead of fighting each other, how would a decentralized exchange work? (MGW is kinda centralized, since it needed the daemons to be running on the MGW servers to use NXT AE)
After reading this https://www.cryptocoinsnews.com/bitcoin-price-manipulation-centralized-exchanges-seems-coordinated/
I realized since the beginning, when I first came in touch with bitcoin and some shitcoins in 2013, that no matter where you traded, the values are almost always the same. Then this article came, and then it clicked. Centralized exchanges are, obviously, there to make money, not to serve (well) the users. How many of those exchanges have a heavy hand behind them? Are there so many whales that sole exist to crash / pump bitcoin and other coins? It never seemed reasonable to me.
What Multigateway (from jl777) tried to do is to end this centralized exchange issue, but he couldn't keep the project alive because of the issues related to RAM and processing power to keep 1-2 daemons running on the server. Have no idea of the intricacies of the MGW project, but with SuperNET, it "tries" to solve this problem. Ripple and Stellar tries to solve it in a centralized manner as well.
How could NEM do better? I have this in back of my head for some time, and have yet to have an idea on how to create something that would be really useful for the ecosystem, in this matter. Like SuperNET premise to make crypto "unite" instead of fighting each other, how would a decentralized exchange work? (MGW is kinda centralized, since it needed the daemons to be running on the MGW servers to use NXT AE)
Now you know why the chinese exchanges have no transaction fees.;) They sodomize you big time behind the scene and every man and his dog fell for it thinking it is all free. THere is no such thing as free lunch in this world. And those poor buggers running a decent exchange have to keep cutting down their transaction fees to compete.
My question to you at the end of the day is, do we want to exchange with every coin or just BTC is good enough. My opinion is we should not be bothered with too many coins. Just our own AE and its colored coins will be a handful of options that we can have to make NEM better.
I think the Chinese exchanges are huge offenders and cheaters.
It is hard for me to do any trading because I don't really know who to trust. (plus I am a terrible day trader anyway)
I am really looking forward a truly decentralized exchange, or at least a distributed one, where nobody can be pulling strings behind the scenes. I want an exchange where what you see is what you get.
I think it will come, i just don't know when or where. NXT's MGW was the best thing I have seen yet, and it is very rough. Some transactions take hours to go through. That just isn't acceptable.
I think the Chinese exchanges are huge offenders and cheaters.
It is hard for me to do any trading because I don't really know who to trust. (plus I am a terrible day trader anyway)
I am really looking forward a truly decentralized exchange, or at least a distributed one, where nobody can be pulling strings behind the scenes. I want an exchange where what you see is what you get.
I think it will come, i just don't know when or where. NXT's MGW was the best thing I have seen yet, and it is very rough. Some transactions take hours to go through. That just isn't acceptable.
The biggest challenge we have with decentralized exchange is that it works on the blockchain and therefore is painfully slow and is not practical for high frequency trade.
I think the Chinese exchanges are huge offenders and cheaters.
It is hard for me to do any trading because I don't really know who to trust. (plus I am a terrible day trader anyway)
I am really looking forward a truly decentralized exchange, or at least a distributed one, where nobody can be pulling strings behind the scenes. I want an exchange where what you see is what you get.
I think it will come, i just don't know when or where. NXT's MGW was the best thing I have seen yet, and it is very rough. Some transactions take hours to go through. That just isn't acceptable.
The biggest challenge we have with decentralized exchange is that it works on the blockchain and therefore is painfully slow and is not practical for high frequency trade.
IMHO that is in no way the biggest challange. A lot of people couldn't care less if it takes 1 minute to go through or 1 second.
The biggest problem I see is the trust issue.
well I've been thinking about how it would be feasiable, and I guess I have the answer, just haven't matured the concept in my mind yet. The trade could happen to ANY type of coin, regardless. Would need a way to secure the current balance to avoid an "empty fund" trading
Brawker done it (but not in the same way, just using multisig)
https://www.cryptocoinsnews.com/brawker-now-decentralised-bitcoin-exchange/
IMHO that is in no way the biggest challange. A lot of people couldn't care less if it takes 1 minute to go through or 1 second.
The biggest problem I see is the trust issue.
If trust is the main issue, then NEM's V1 solution would have solved that for a decentralized exchange using multisig solution like brawker which can be easily implemented.
Brawker done it (but not in the same way, just using multisig)
https://www.cryptocoinsnews.com/brawker-now-decentralised-bitcoin-exchange/
You still need an arbitrator, which is centralised in a way.
There are flaws here I can see. What if you send bitcoin in and the other person walks out on you. When and how can the arbitrator know. If there are 1K transactions a day like this sort of situation arbitrator will be so busy verifying and unlocking accounts.
The arbitrating process can be very tedious. Ask Pat. He can tell you how tedious it is with the coin distribution. It will be something like that.
I sent Kraken a request to ask them to consider to support XEM <-> EUR trading. This is the answer I got:
"Thanks for asking. We don’t have any plans to add any other
digital currencies at the present time. We’re open to adding more currencies in
the future, but every currency we add first has to go through a lengthy process
of evaluation. For example, in the case of Namecoin, we found a serious bug in
the protocol during our evaluation process.
http://www.coindesk.com/namecoin-flaw-patch-needed/
The bug was of course fixed before we allowed trading in
Namecoin on our exchange. This evaluation process takes valuable time away from
other important development projects, and at the present time we can’t spare
the resources needed to add a new currency.
Best Regards,
William
Kraken Client Engagement"
too bad they don’t just use the APIs
but I do love that they really go over the code.
Listing XEM in CCDEK and Openledger
Thanks for sharing. The most important and better decentralized exchange are localbitcoin, bitstamp, coinbase, etc.
There is a decentralized exchange the problem that there’s not enough liquidity. It’s called Bitshares, ultimately the price been rising. I think it’s a sleeping giant.