Quote from: Lloydie on February 12, 2014, 03:29:35 AM

Quote from: Lloydie on February 11, 2014, 02:23:42 PM

Quote from: alc on February 11, 2014, 01:43:27 PM

Quote from: jtpeters on February 11, 2014, 03:10:01 AM

Quote from: Lloydie on February 11, 2014, 12:36:03 AM

This is a very early thought/concept: is it possible to setup "exchanges" connected to every Vtc pool? So, the pool will have a bunch of Vtcs sitting in reserves that everyone can see (avoiding mt gox transparency problems).

Miners can elect the percentage they wish to keep and the percentage they wish to make available on the exchange and what crypto they are willing to accept. The percentage made available would be sold by the pool and then paid to the miner in the crypto of their choice.

Over time, miners can also add bank details to accept dollars via the pool/exchange mechanism, to sell Vtc for fiat.

Just an idea. Feel free to point out obvious problems with this setup.

That is a VERY good idea. I like it a lot. But how could we make it secure?

This is something that needs to be coded right away. In light of the Mt Gox scandal, we can de-centralize exchanges and re-establish the public's trust.

Bitcoin holders would trade their BTC for VTC in droves. (That will be good for 3 weeks until a new decentralized exchange comes out for the new kid on the block.. no fun intended)

With regards to Lloydie's suggestions, I think multipool.us already offers something approximating this arrangement - you mine, choosing what coin, then later you can convert it into BTC.

However, it's a massive leap to go from running a pool like this, to running an exchange for fiat. Any time you interact with fiat, by nature, you're playing it by their rules, and that means regulations and paperwork - most pools (especially the smaller ones of which Vertcoin has correctly encouraged a plurality so far) won't be interested in taking on, or capable of handling, the hassles associated. "Decentralizing exchange to fiat" is much easier said than done; you can't code your way out of this, because what's stopping it isn't a computer problem, it's a regulatory one.

Alc raised some great points. I think one of the key weaknesseses in bitcoin is the large regulated exchanges. For example, Bitinstant chose to be registered as a money transmission business. Therefore, AML and KYC rules applied to Charlie. However, at the other end of the spectrum, localbitcoin traders are completely unregistered. Why? Because they are too small and there are too many.

Now just use the same logical process with vertcoin pools being the mediators and the miners selling bitcoins like localbitcoins. It will be virtually impossible to regulate. There will be too many people in the world GPU mining, selling and buying vertcoins.

It will be what bitcoin was meant to be before big business took over.

Now the first step is to enable miners to sell some of their vertcoins for other cryptos...

There will be quite a lot of coins in profits for the first person who manages to link mined vertcoins at a pool directly with a vertcoin market. Just think the amount that could be made via fees on coin sales alone.

After that, it's a small step to allow non-miners to deposit crypto coins at each pool to buy and sell Vertcoins with other cryptos.

Vertcoins could be the backbone of the exchange mechanism in crypto world, with decentralised mining, decentralised pools and decentralised exchanges. It would be a regulator's nightmare to regulate.

Brilliant guys! Keep that train of thought going, you are definitely in the "zone". That's why I love Vertcoin, because it's community is a strange mixture of business men, computer geniuses and idealists. I am pretty sure by the end of the year this coin is going to evolve and include many new practical features that it will shock even early investors.