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I guess most people use exchanges for the possibility to interface with non-crypto currencies, right? I don't think you can set up a dollars-Bitcoin exchange wi

I guess most people use exchanges for the possibility to interface with non-crypto currencies, right? I don't think you can set up a dollars-Bitcoin exchange without centralized exchanges.

Uptrenda 5y ago
Well, everyone has their own bank account. There's a lot of potential there to just transact directly. You would have to design the deposit layer to be someone efficient though so traders can still use credit. But I think its possible. To give you an example there is this application called https://bisq.network/ https://bisq.network/ that uses double-sided collateral in contracts to trade fiat currencies. There might be the potential to link this up with SSL, too. I've seen this application that can provide proofs that a page was in your browser https://tlsnotary.org/ https://tlsnotary.org/. Use that to prove a bank transfer happened on an SSL page and you've got yourself a dex that can work trustless with oracles.
- lottin 5y ago
  > can work trustless with oracles Isn't that a contradiction in terms?
  - throwaway248329 5y ago
    The amount of trust will be limited to trusting that the bank is showing your balance correctly and that nobody stole their SSL keys.
    - paulgb 5y ago
      Or, more likely than stealing their SSL keys, found a “vulnerability” that caused whatever string the smart contract is looking for to appear in a signed request from the server. I put vulnerability in quotes because it's not clear to me that that is not something banks would consider part of their threat model. It's kind of like how SMS messages worked fine until “if I can read an SMS sent to your number I can withdraw from your account” became part of the threat model.
- gjulianm 5y ago
  Sounds technically interesting. However, it seems that they can't accept credit cards and transactions take some time, so I guess that most users will end up flocking to centralized exchanges for a better experience.
- yyyk 5y ago
  >Well, everyone has their own bank account. There's a lot of potential there to just transact directly The technical problems with that are much less important than the legal problems. It's likely that the IRS will maul users (unless they report every transaction as a tax event!), and the bank may refuse transactions. Users may even ask the bank to refuse transactions, and then your collateral isn't really a collateral.

I guess most people use exchanges for the possibility to interface with non-crypto currencies, right? I don't think you can set up a dollars-Bitcoin exchange without centralized exchanges.

Uptrenda 5y ago

Well, everyone has their own bank account. There's a lot of potential there to just transact directly. You would have to design the deposit layer to be someone efficient though so traders can still use credit. But I think its possible. To give you an example there is this application called https://bisq.network/ https://bisq.network/ that uses double-sided collateral in contracts to trade fiat currencies. There might be the potential to link this up with SSL, too. I've seen this application that can provide proofs that a page was in your browser https://tlsnotary.org/ https://tlsnotary.org/. Use that to prove a bank transfer happened on an SSL page and you've got yourself a dex that can work trustless with oracles.

lottin 5y ago
> can work trustless with oracles Isn't that a contradiction in terms?
- throwaway248329 5y ago
  The amount of trust will be limited to trusting that the bank is showing your balance correctly and that nobody stole their SSL keys.
  - paulgb 5y ago
    Or, more likely than stealing their SSL keys, found a “vulnerability” that caused whatever string the smart contract is looking for to appear in a signed request from the server. I put vulnerability in quotes because it's not clear to me that that is not something banks would consider part of their threat model. It's kind of like how SMS messages worked fine until “if I can read an SMS sent to your number I can withdraw from your account” became part of the threat model.
gjulianm 5y ago
Sounds technically interesting. However, it seems that they can't accept credit cards and transactions take some time, so I guess that most users will end up flocking to centralized exchanges for a better experience.
yyyk 5y ago
>Well, everyone has their own bank account. There's a lot of potential there to just transact directly The technical problems with that are much less important than the legal problems. It's likely that the IRS will maul users (unless they report every transaction as a tax event!), and the bank may refuse transactions. Users may even ask the bank to refuse transactions, and then your collateral isn't really a collateral.