Trust-minimized centralized exchange through multisig

[starspirit]

Not a technical expert, but is the following a possible?

Say we have a new block-chain established for trading derivatives of each asset, and in that way it avoids bloat on the asset block-chains, as well as  speeds up transaction times to a common fast level.

I take the view (on bloat) that it is encouragement for the core devs to implement pruning - at some point it has to come into existance to avoid centralising the service.

Regarding speed - I'm not sure you can get much faster than bitshares already is if you're waiting for transactions to appear in a block before acting on them?

Regarding speed - agreed. My comparison was against the waiting times one would experience if trying to trade cryptos in a decentralised manner as per the OP. Faster speed is attained by trading their derivatives on an a single fast chain, such as BitShares.

[monsterer]

Not a technical expert, but is the following a possible?

Say we have a new block-chain established for trading derivatives of each asset, and in that way it avoids bloat on the asset block-chains, as well as  speeds up transaction times to a common fast level.

I take the view (on bloat) that it is encouragement for the core devs to implement pruning - at some point it has to come into existance to avoid centralising the service.

Regarding speed - I'm not sure you can get much faster than bitshares already is if you're waiting for transactions to appear in a block before acting on them?

[starspirit]

Not a technical expert, but is the following a possible?

Say we have a new block-chain established for trading derivatives of each asset, and in that way it avoids bloat on the asset block-chains, as well as  speeds up transaction times to a common fast level.

All trading between the derivatives could be decentralised on its this block-chain as it is with bitAssets on BitShares. The purpose of a centralised third-party ("exchange") would be to take deposits and withdrawals, and to create and destroy the derivatives on a 1:1 basis for those same users. Is there a way to do that securely so that only those owning the derivatives can withdraw the real asset, and force the destruction of the derivative?

starspirit, have you seen my post on the BitShares Standard Gateway?

No I hadn't seen it, but the BitShares Standard Gateway concept sounds consistent with what I was thinking, except probably better in that it would use the existing BitShares block-chain for the derivative trading. Although this can never be trust less, how did you feel in the end about the level of user protection that could be built around the Gateway? I think there will always be trust issues where parties need to deal with multiple chains, but workable solutions are required in this area.

[arhag]

Not a technical expert, but is the following a possible?

Say we have a new block-chain established for trading derivatives of each asset, and in that way it avoids bloat on the asset block-chains, as well as  speeds up transaction times to a common fast level.

All trading between the derivatives could be decentralised on its this block-chain as it is with bitAssets on BitShares. The purpose of a centralised third-party ("exchange") would be to take deposits and withdrawals, and to create and destroy the derivatives on a 1:1 basis for those same users. Is there a way to do that securely so that only those owning the derivatives can withdraw the real asset, and force the destruction of the derivative?

starspirit, have you seen my post on the BitShares Standard Gateway?

[alt]

What advantage do I have using this exchange over the internal exchange?

I think here is some advantage:
1. you can use light wallet/mobile wallet trade.
2. trade engine of call auction is good, you can make deal with a more better price if you don't care about wait some time.

for example, there is a bid order at price 0.051 now, but the price is down to 0.049 at btc38,
so someone should make an ask order at price 0.05 or 0.049, the final price will change to 0.049.
there are enough time to compete the price for ask order and bid order.

[fluxer555]

What advantage do I have using this exchange over the internal exchange?

[alt]

I think you really should  try this exchange if you want to know how it work.
you can use a very small order, sell 1 BTS at price more than 0.051CNY/BTS

Code Select Expand


transfer 1 BTS youraccount auction.btsbots 0.051

buy with 0.1 USD at price less than 0.051 CNY/BTS

Code Select Expand


transfer 0.1 USD youraccount auction.btsbots 0.051


[alt]

Alt, I have to admit that I don't really understand what's going on on your auction page, or what's happening behind the scenes.

in fact, this type of trade engine is named "call auction" at stock market, it's very hardly to control price, and is used to decide the open price at stock market.
here is a introduce for call auction with google translate
https://translate.googleusercontent.com/translate_c?act=url&depth=1&hl=zh-CN&ie=UTF8&prev=_t&rurl=translate.google.co.jp&sl=zh-CN&tl=en&u=http://wiki.mbalib.com/wiki/%25E9%259B%2586%25E5%2590%2588%25E7%25AB%259E%25E4%25BB%25B7&usg=ALkJrhjmbTrf_2bDH0Pxc_cx-aLyVISSSA

and here is howto use btsbots exchange
https://bitsharestalk.org/index.php?topic=14018.0;topicseen

I select call auction, because btsbots exchange based blockchain, it can't response very fast, and this type of trade engine don't need very fast response time.
now the trade engine excute every 4 hours, when there are more active order, we can change this to every 30 minutes.

[fluxer555]

Alt, I have to admit that I don't really understand what's going on on your auction page, or what's happening behind the scenes.

[alt]

you should try this exchange, it's really more safety than other centralized exchange, because all trade data are inside blockchain
http://btsbots.com/auction

[starspirit]

Not a technical expert, but is the following a possible?

Say we have a new block-chain established for trading derivatives of each asset, and in that way it avoids bloat on the asset block-chains, as well as  speeds up transaction times to a common fast level.

All trading between the derivatives could be decentralised on its this block-chain as it is with bitAssets on BitShares. The purpose of a centralised third-party ("exchange") would be to take deposits and withdrawals, and to create and destroy the derivatives on a 1:1 basis for those same users. Is there a way to do that securely so that only those owning the derivatives can withdraw the real asset, and force the destruction of the derivative?

[CLains]

haha, best interaction.  +5%

[fluxer555]

+5% +5% +5% +5% +5% +5% +5%

[monsterer]

Exactly!

It looks like you're in a pretty good position to implement something like this... ;)

Funnily enough, we do have this planned :)

[fluxer555]

The difference is that the centralized entity here would facilitate an order book. So, it's sort of a bridge/exchange combination.

Right. So, as well as market orders, you can place limit orders with this method and your theft exposure is then limited to open orders on the book.

Exactly!

It looks like you're in a pretty good position to implement something like this... ;)