Post
Topic
Board Bitcoin Discussion
How can we properly decentralize exchanges?
by
thejaytiesto
on 13/08/2016, 15:16:28 UTC
After the Bitfinex debacle im very scared to have any funds in exchanges, but for traders like me, we NEED to have funds availible or you can miss good trades, there's no way around it. You need to have some liquidity in the exchange otherwise by the time you send the transaction from your wallet to the exchange you end up missing a lot of opportunities since it takes way too long to confirm and so on. Not to mention sometimes you take long positions and you can't cancel them or you'll lose them.

Bitsquare.io is not a solution since its only a marketplace, its not a proper exchange to speculate and do high volume trading getting in and out of currencies and setting and removing orders instantly like on centralized exchangers, with a proper broker, market depth graphs and so on.

So how do we do this? We can't depend on centralized exchanges forever or we'll keep seeing massive selloffs forever hindering Bitcoin's growth since there will always be thiefs as long as centralized exchangers exists where single entities carry a ton of BTC from a lot of people.

So in hell we solve this fundamental problem? Can Lightning Network channels in the future be used to assemble proper exchange replacements so I no longer have to sleep scared that the next MgGox/Mintpal/Cryptsy/Bitfinex/... is going to happen and I'll lose what I keep on the exchanges? (a small % compared to my total holdings of course, but still very annoying).

What are the solutions being considered for this? Because I hope someone is working on this.