Bitshares <-> Ethereum Decentralized smart bridge

[moinyoin]

I see no value connecting to centralized, unsecure, non-innovative projects like ethereum.

maybe after they can do it with btc, steem, xmr we can do eth although it's a huge security risk to rely on anything there.

[beokuu]

Hey,

Maybe we can do an autonomously regulated peer2peer ethereum bridge using only graphene.

Practical users
Bridge peer: one that want to make profit on his ETH/bitETH by collecting bridge fees.
User: one that want to have a bitETH bitshares asset that can be easily traded for real ETH on a 1:1+(free market fees) basis.

What it needs:
common
- bitETH: an ETH pegged smart coin
- A way to lock a bitETH collateral that does not belong to you for a limited time to initiate the bridge process
- A way to associate a collateral to ethereum addresses
- A way to have a bridge offer (fees) market with one offer associated to one collateral

bitshares -> ethereum
- A way to lock a bitETH collateral deposited by the user that is the amount of ETH it wants + the fees
- A way to watch the ethereum chain to check that the bridge peer is indeed sending the ETHs at the right address, if the bridge peer sends the right amount or more of ETH the collateral is given to the bridge peer, if not, it is returned to the user.
(I feel the fees makes little sense in that case)

ethereum -> bitshares
- A way to lock a bitETH collateral deposited by the bridge user that is the amount of ETH it wants to bridge that can be locked by another user
- A way to watch the ethereum chain to check that the user is indeed sending it's ETH+fees at the right address, if the user sends the right amount or more of ETH the collateral is given to the user, if not, it is unlocked for an other user to initiate a bridge transaction.

Actually there is 3 types of user:
1) One that want to exchange his bitETH for ETH
2) One that want to make profit on his bitETH/ETH pair by collecting fees
3) One that want to exchange his ETH for bitETH

Theoretically user 1 and 3 should set their fees to 0% to pay the less fees and bypass user 2

Solutions:
- Witnesses could check the ethereum network for a low resources cost using trusted third party ethereum nodes (infura, etc..)

Questions:
- I know only a bit about graphene, is this possible at all?
- Is bitETH feasible, would there be incentives for people to short it into existence?

Of course if this works this opens up the door to all erc20 coins I think

I'm not the best writer and this is in no way complete. Please do ask questions if it's not clear or correct me if I'm missing things!

Any ideas?