Quote from: DooMAD on April 26, 2015, 12:00:49 PM

Quote from: bitcoin_bagholder on April 26, 2015, 04:57:53 AM

Quote from: Lexi Price on April 25, 2015, 10:58:34 PM

The 64BTC question though is how to decentralize and deregulate the exchange options - because those controls can kill domestic currency exchanges in any nation. There has to be some protocol developed to bypass this entirely. The closest would be the local bitcoin trading option. We genuinely need a real trustless format to exchange any currency anywhere to bitcoin and make it untraceable.

Government control over domestic currencies can become so bad that no business will touch bitcoin which kills its capacity for mainstream. Otherwise we accept those controls. What's a real solution?

How is this possible? (bolded part of your post)

Trustless and decentralised blockchain-to-blockchain transactions will be possible fairly soon, I'd say. There are people developing that as we speak and it sounds like they're very close. Although it may be some time before the code finds its way into Bitcoin's core (good news for fans of altcoins, though). Cash-to-blockchain without any third party, on the other hand, could take considerably longer. It's going to take some real genius to solve that one.

Fiat cash to digital should be solved this year I think, by at least one project. Bitsquare is one, but there are others.

Here's the general blueprint for solving the problem:
http://pastebin.com/SsLrxVP6

The only thing missing is the reputation system, which is a critical component - in this example Jorg could easily take 50% all day long, with no intention of ever actually transferring funds, and Alice would have no idea that she's dealing with a scammer.

This would make the fiat to crypto gateway censorship-resistant as well as make market manipulation more difficult, assuming it becomes the de facto method of moving between fiat and crypto.