Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: How Exchanges Will Work  (Read 768 times)

0 Members and 1 Guest are viewing this topic.

Offline bitbadger

  • Full Member
  • ***
  • Posts: 95
    • View Profile
How Exchanges Will Work
« on: February 20, 2014, 05:33:01 PM »

I have seen Exchanges mentioned as a use of BitShares repeatedly.  However, I have not seen anyone describe how they will actually work.

I understand the BitBTC, BitUSD, etc. concepts.  None of these require the system to actually hold BTC, USD, or whatever the underlying asset may be.

Is this the idea for Exchanges?  E.g. once you have created BitBTC and BitUSD, you can trade your BitBTC and BitUSD without ever owning or actually trading the underlying assets?  Or you could hold BitLTC, BitDOGE, etc. and trade all of them versus each other and BitBTC, BitUSD, etc.?
Pei5BrnEUqcCuUdffNZmBPL3rg6duj3vnU

Offline toast

Re: How Exchanges Will Work
« Reply #1 on: February 20, 2014, 06:28:50 PM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline NewMine

  • Hero Member
  • *****
  • Posts: 549
    • View Profile
Re: How Exchanges Will Work
« Reply #2 on: February 20, 2014, 10:48:25 PM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

By "face value", do you mean dollar value?

Offline toast

Re: How Exchanges Will Work
« Reply #3 on: February 20, 2014, 10:59:48 PM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

By "face value", do you mean dollar value?

Any assets like oz of gold or barrel of oil, or dollar values of those things (whatever their local exchange services)
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline bitbadger

  • Full Member
  • ***
  • Posts: 95
    • View Profile
Re: How Exchanges Will Work
« Reply #4 on: February 21, 2014, 06:18:00 AM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

So, to be perfectly clear, all "Exchange" functionality will be in the form of trading BitAssets only?  It will all be a sort of derivatives market, i.e. the underlying assets will never enter the system?  There are no current plans for actual trading of underlying assets?

Sorry to be so repetitive, but this is an important question to me.
Pei5BrnEUqcCuUdffNZmBPL3rg6duj3vnU

Offline toast

Re: How Exchanges Will Work
« Reply #5 on: February 21, 2014, 06:25:01 AM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

So, to be perfectly clear, all "Exchange" functionality will be in the form of trading BitAssets only?  It will all be a sort of derivatives market, i.e. the underlying assets will never enter the system?  There are no current plans for actual trading of underlying assets?

Sorry to be so repetitive, but this is an important question to me.

Yes, it's a sort of derivative market, everything stays in BTS.

The idea is that the actual trading of the underlying asset is supposed to happen in a distributed manner (trade ***USD for BitUSD like you trade BankUSD for PaperUSD) but with global price discovery enabled by the BTS market.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline bitbadger

  • Full Member
  • ***
  • Posts: 95
    • View Profile
Re: How Exchanges Will Work
« Reply #6 on: February 21, 2014, 07:14:20 AM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

So, to be perfectly clear, all "Exchange" functionality will be in the form of trading BitAssets only?  It will all be a sort of derivatives market, i.e. the underlying assets will never enter the system?  There are no current plans for actual trading of underlying assets?

Sorry to be so repetitive, but this is an important question to me.

Yes, it's a sort of derivative market, everything stays in BTS.

The idea is that the actual trading of the underlying asset is supposed to happen in a distributed manner (trade ***USD for BitUSD like you trade BankUSD for PaperUSD) but with global price discovery enabled by the BTS market.

Thank you for clarifying.  Is there a technical, legal or philosophical reason for never allowing the exchange of actual assets?  Wouldn't the "distributed manner" of actual trading be a great application for BTS, so people don't have to rely on third-party exchanges?
Pei5BrnEUqcCuUdffNZmBPL3rg6duj3vnU

Offline bytemaster

Re: How Exchanges Will Work
« Reply #7 on: February 21, 2014, 07:31:20 AM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

So, to be perfectly clear, all "Exchange" functionality will be in the form of trading BitAssets only?  It will all be a sort of derivatives market, i.e. the underlying assets will never enter the system?  There are no current plans for actual trading of underlying assets?

Sorry to be so repetitive, but this is an important question to me.

Yes, it's a sort of derivative market, everything stays in BTS.

The idea is that the actual trading of the underlying asset is supposed to happen in a distributed manner (trade ***USD for BitUSD like you trade BankUSD for PaperUSD) but with global price discovery enabled by the BTS market.

Thank you for clarifying.  Is there a technical, legal or philosophical reason for never allowing the exchange of actual assets?  Wouldn't the "distributed manner" of actual trading be a great application for BTS, so people don't have to rely on third-party exchanges?

When you combine Ripple with BitShares X you get the full decentralized exchange....

Local trades are much easier because you don't have to match bid/ask/location and instead you only have to match location as the BitUSD/USD price will be the same within a small transaction fee.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline bitbadger

  • Full Member
  • ***
  • Posts: 95
    • View Profile
Re: How Exchanges Will Work
« Reply #8 on: February 21, 2014, 07:52:46 AM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

So, to be perfectly clear, all "Exchange" functionality will be in the form of trading BitAssets only?  It will all be a sort of derivatives market, i.e. the underlying assets will never enter the system?  There are no current plans for actual trading of underlying assets?

Sorry to be so repetitive, but this is an important question to me.

Yes, it's a sort of derivative market, everything stays in BTS.

The idea is that the actual trading of the underlying asset is supposed to happen in a distributed manner (trade ***USD for BitUSD like you trade BankUSD for PaperUSD) but with global price discovery enabled by the BTS market.

Thank you for clarifying.  Is there a technical, legal or philosophical reason for never allowing the exchange of actual assets?  Wouldn't the "distributed manner" of actual trading be a great application for BTS, so people don't have to rely on third-party exchanges?

When you combine Ripple with BitShares X you get the full decentralized exchange....

Local trades are much easier because you don't have to match bid/ask/location and instead you only have to match location as the BitUSD/USD price will be the same within a small transaction fee.

I'm not necessarily talking *USD here; I just mean cryptocoins exchanging with other cryptocoins.  (Or other crypto products such as BTS itself.)  A decentralized cryptsy/bter/etc... the BTS network, when making a match, could simultaneously generate transactions in the respective blockchains of the coins traded.  I think that there is a way to do it without making private keys vulnerable, or requiring any coins to be held by the exchange itself.
Pei5BrnEUqcCuUdffNZmBPL3rg6duj3vnU

Offline bytemaster

Re: How Exchanges Will Work
« Reply #9 on: February 21, 2014, 07:55:41 AM »
This is called cross-chain-trading and is something that our chains will support on the backend, but which requires additional infrastructure.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline bitbadger

  • Full Member
  • ***
  • Posts: 95
    • View Profile
Re: How Exchanges Will Work
« Reply #10 on: February 21, 2014, 08:06:53 AM »
This is called cross-chain-trading and is something that our chains will support on the backend, but which requires additional infrastructure.

Ok, that is the answer that I was looking for!  I suspected that the BTS system would be theoretically capable of this, but wanted to make sure.  Thank you.
Pei5BrnEUqcCuUdffNZmBPL3rg6duj3vnU

Offline Stan

  • Hero Member
  • *****
  • Posts: 2865
  • You need to think BIGGER, Pinky...
    • View Profile
    • Cryptonomex
  • BTS: Stan
Re: How Exchanges Will Work
« Reply #11 on: February 21, 2014, 06:08:21 PM »
BitAssets are just banknotes.
BTS X lets people trade these banknotes as easily as they trade bitcoin.
Banknotes are more useful than bitcoin because you can expect people to pay roughly their face value for them.

So, to be perfectly clear, all "Exchange" functionality will be in the form of trading BitAssets only?  It will all be a sort of derivatives market, i.e. the underlying assets will never enter the system?  There are no current plans for actual trading of underlying assets?

Sorry to be so repetitive, but this is an important question to me.

Yes, it's a sort of derivative market, everything stays in BTS.

The idea is that the actual trading of the underlying asset is supposed to happen in a distributed manner (trade ***USD for BitUSD like you trade BankUSD for PaperUSD) but with global price discovery enabled by the BTS market.

Thank you for clarifying.  Is there a technical, legal or philosophical reason for never allowing the exchange of actual assets?  Wouldn't the "distributed manner" of actual trading be a great application for BTS, so people don't have to rely on third-party exchanges?

Another intriguing feature that *might* be true (in some tax jurisdictions and moon phases, until it isn't any more) is that while your wealth is stored in a BTS chain it is simply denominated in BTS (viewed polymorphically as a single crypto-currency) as far as the outside world is concerned.  So you can trade back and forth among the BitAssets on the chain all you want without (theoretically) generating any short term capital gains until you cash out of the whole chain - at the taxable boundary between Free Space and Fiat Space.

This does not constitute tax advice.  Your actual mileage may vary.   :)
Anything said on these forums does not constitute an intent to create a legal obligation or contract of any kind.   These are merely my opinions which I reserve the right to change at any time.

 

Google+