Now that Openledger has come clean to say they are no longer in service it is now time for Bitshares as an entity to explore other ways of bringing liquidity to the DEX especially for the remaining bridges, Openledgers reasons for closing is that they could no longer meet with the demands of their DEX projects for the customers and due to the current cryptocurrency climate in their host country they had to close shop. This means that at a point they were no longer making money from their investment,this is an exchange that has been existing since the beginning of bitshares which is pretty bad. This also means that the remaining bridges might probably close shop too if the situation continues.
This is why Bitshares as a whole must have some sort of frame work or regulation to forestall a repeat of such occurences in the future, a lack of change in approach may lead to loss of confidence in bitshares by DEX users and newbies who are considering a venture in bitshares and ultimately the death of bitshares DEX structure, there has to be a fail proof way of safeguarding the assets of DEX users, such that the closure of a bridge would not have much impact on the users afterall it is they who provide liquidity on the DEX. The Bitshares token is safe, however, what good is it if it can not deliver on its promise of decentralised trading for all crypto-asset class (Bitcoin and the others).
Bitshares has the solution to this problem already, yes there is already a form of exchange on the DEX that does not rely on bridge exchanges, a trustless bridge in the form of Hash Time Locked Contracts (HTLC), where users use smart contracts to validate asset exchange without a third party, we also have many gateway services available.
The use of HTLC introduces another form of bridge exchange known as teller exchanges, these exchanges will no longer be custodians of users funds, but will act as an exchange terminal for the bitshares network helping users to have access to the DEX trading functionality without being worried of losing their funds.
How can this be achieved, firstly the bitshares network can create a pseudo asset, a form of security token or semi-fungible asset using the laid down parameters available on the network, say for example Bit.BTC (Must be UIA not a smart asset) which can be traded on the DEX, after issue, the asset ownership would be transfered to null-account so that no one else has control of it, and then the issued coins would be sold for BTS by the bitshares committee through an account set up for this (Current bridge exchanges may be given first right of purchase). This account would be the first seller and will sell the coins in batches according to the market demands and at exactly or almost thesame price as bitcoin, as it is committee owned it is immutable and trust will be guaranteed. Now this is where the tellers come in; holders of the psuedo asset can then post trades on their sites where they are matched with other users who are in need of the asset on the DEX (current bridge exchanges can also perform this service), another way is the use of gateways like blocktrade, atomicpay, gatehub, etc. that will exchange the asset 1:1 for bitcoin at a prescribed fee supposing the user doesnt want to use the HTLC teller method.
Using this pattern future bridge exchanges would no longer need to create their own assets but instead would be given first rights of purchase and special previleges to be able to sell and exchange the assets ( bitcoin for example) to users at reasonable costs. It also makes every user a potential exchange.
Topic: THE NEED TO LICENCE BRIDGES PART 2 :HOW TO MAKE BRIDGE EXCHANGES MORE ATTRACTIVE (Read 1355 times)
