How would ppl trade scBTC with each other?
Example:
Simplified version of exchange.
1. I can create bid/ask Merger as SC.
- it can be implemented as central authority server b/c it cannot move coins (I'll remove feature send coins from this mergerSC)
- merger can only pair bids and asks (new featue I'll add) => Merger will create proof (Merger creates signature that he found signed bid by A that match signed ask by B) => in fact merger mines blockchain as list of trades.
2. now I can create 2-way-peg (Federated Peg, Oracle or by Bitcoin protocol)
- I can deposit asset into Merger
- I can withdraw asset from Merger because I can create proof from merger-blockchain.
- Merger can be easy audited
3. Merger feature cannot be implemented on MC b/c it requires to remove feature "send coins" and new blockchain concept.
But that'ssa centralized system which we've already agreed is not ideal. I more interested in how this works on the SC via spv proof
It is too complicated to explain. ( 20 pages of pdf ).
2wp can be replaced anytime (I mean switching from Federated Humans to SNARK scheme)
For the begging let's use 5 federated human judges who can use brain and can check trades. (ticker log)
You didn't answer me
"isn't this same as move BTC from MC into exchange orderbook ?"
Maybe but you can't explain in less than 20 pages of pdf why we should prefer that system or if it's even safe or efficient. Are current wn wallets or exchanges getting safer? Maybe.