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Offline speedy

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Will gateways actually catch on?
« on: January 30, 2015, 01:27:09 AM »

With a traditional crypto exchange, you only need to worry about them getting hacked making them unable able to cover their deposits. With a gateway, you have to worry about them getting hacked, and when they issue you an IOU on the blockchain for your deposits, you have to worry about getting hacked yourself and losing that as well.

Assuming that an exchange is secure, its trading website would be much easier to use and more secure than downloading specialist wallet software to trade yourself on a blockchain. The only advantage gateways have is that you can quickly trade the IOUs for market pegged assets to free yourself of counterparty risk, but first weve got an uphill battle to convince people that works.

Will gateways actually become popular and be a preferred option?

Offline fluxer555

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Re: Will gateways actually catch on?
« Reply #1 on: January 30, 2015, 01:30:32 AM »
Assuming that an exchange is secure

 ;)

With Bitshares, you don't need to be exposed to the IOUs for very long, as you can immediately trade them for BitAssets.
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Offline Methodise

Re: Will gateways actually catch on?
« Reply #2 on: January 30, 2015, 11:18:07 PM »
Traditional crypto exchange password credentials can also be poached.

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Offline speedy

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Re: Will gateways actually catch on?
« Reply #3 on: January 30, 2015, 11:33:10 PM »
There is actually a huge advantage of the gateway/IOU system - issuing an IOU on the blockchain means that the set of users who can potentially trade it automatically becomes the entire set of BitShares users, not just the small set of customers of an exchange.

 

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