Re: [NXT] Decentralized Asset Exchange Discussion Thread
Glad to see that the asset exchange feature is coming along. I have a proposal for the asset exchange feature. It can truly make decentralized peer to peer transactions/exchanges legitimate. I have been developing this idea ever since the asset exchange feature was first mentioned in NXT. Here it is.
Obviously there are dangers inherent within p2p transactions. The main issue here is the lack of trust, and the trust that is lost by not utilizing a third party. When transactions are non reversible, especially with no intervening regulatory figure, the willingness to exchange goods, services, or currencies becomes an issue. My idea to bypass these issues involves an escrow service, a rating system (similar to those on Ebay and Amazon) and the aliasing feature.
Lets say..
"Joe" wants to exchange something of value with "Sue" but Joe and Sue don't know each other. How can Joe trust Sue in receiving the item in question after Joe pays Sue? Well of course, they can utilize a third party escrow service, which will insure Joe will receive the item in question by transferring money to the escrow service.
But,
you may be asking, doesn't the escrow service defeat the purpose of a true p2p exchange? Yes it does. But it doesn't have to be permanent. This is where NXT can implement a rating based system attached to accounts or the alias' of an account. Think of it as someones credit score attached to a social security number. But within the NXT ecosystem, the credit score is a star based rating, and the social security # is the users NXT account.
Now revisiting Joe and Sue's transaction, they "must" now rate each other based on how well they serviced each other after the transaction has taken place. When Joe and Sue continue to build their "trust" rating with everyday users of NXT, they have the choice of opting out of the escrow service and they can start trading and exchanging with other users that have trustworthy reputable ratings. After people have built trustworthy ratings within the NXT ecosystem, users will now have a much better understanding of whom they are doing business with, and will establish the most efficient p2p exchange mechanism which no other
crypto-currency utilizes.
I hope you developers see the potential of this system, especially in a p2p environment that exchanges things of value.
NXT: 5464489754473015994
Obviously there are dangers inherent within p2p transactions. The main issue here is the lack of trust, and the trust that is lost by not utilizing a third party. When transactions are non reversible, especially with no intervening regulatory figure, the willingness to exchange goods, services, or currencies becomes an issue. My idea to bypass these issues involves an escrow service, a rating system (similar to those on Ebay and Amazon) and the aliasing feature.
Lets say..
"Joe" wants to exchange something of value with "Sue" but Joe and Sue don't know each other. How can Joe trust Sue in receiving the item in question after Joe pays Sue? Well of course, they can utilize a third party escrow service, which will insure Joe will receive the item in question by transferring money to the escrow service.
But,
you may be asking, doesn't the escrow service defeat the purpose of a true p2p exchange? Yes it does. But it doesn't have to be permanent. This is where NXT can implement a rating based system attached to accounts or the alias' of an account. Think of it as someones credit score attached to a social security number. But within the NXT ecosystem, the credit score is a star based rating, and the social security # is the users NXT account.
Now revisiting Joe and Sue's transaction, they "must" now rate each other based on how well they serviced each other after the transaction has taken place. When Joe and Sue continue to build their "trust" rating with everyday users of NXT, they have the choice of opting out of the escrow service and they can start trading and exchanging with other users that have trustworthy reputable ratings. After people have built trustworthy ratings within the NXT ecosystem, users will now have a much better understanding of whom they are doing business with, and will establish the most efficient p2p exchange mechanism which no other
crypto-currency utilizes.
I hope you developers see the potential of this system, especially in a p2p environment that exchanges things of value.
NXT: 5464489754473015994
In my mind I have another approach for trust, not using any rating system, using some "permanent account" to act like escrow.
1. Jon wants to sell "asset" for Sue for 100NXT
2. Jon push "sell", asset goes to "permanent account"
3. Sue push "buy", 100 NXT goes to "permanent account"
4. If both things arrived to "permanent account" then this account sends 100 NXT to Joe and "asset" to Sue.
"Permanent account" is only for naming, can't find better description for now
Does it sound stupid?