The issuer would be the trusted party to hold fiat. But by integrating the concept of multi-sig tx multiple issuers can issue a single Fiat and a consortium of issuer can be trusted party to hold fiat. However I will have to rework on certain elements of the paper to introduce multi-sig based issue.

Thanx for initiating a new thought line that can be added on to table.

All present day exchanges are custodian's. In a pure decentralized exchange the Issuer's handles the role of custodian.  In a traditional scenarios only one custodian handles all the gates for the market place. Hence making the entire market extremely vulnerable to default risk by a single custodian. Like in the case of MTgox. But if Custodian's itself are decentralised then the risk of single custodian defaulting is minimized drastically.

The function of issuing token is as follows

To create Financial instruments .
To delegate the authority of Issuer to another issuer.  ( A issuer can delegate issuing token only once. Hence limiting the issuing token to one active token at a given point in time )
Create a chain of trust amongst issuers.

Once the token is used up by a issuer it cannot be reused again. Simple fundamental of block chain.
The token cannot be split into two it can only be transferred as a one unity.  

Ripple system is dependent on XRP's but a completely decentralized exchange would not have a coin. Instead it would be a issuer who is created out of chain of trust entrusted by issuing token's. The tokens can be used to create and issue Financial instruments. Which can be commodities or currencies or even tickets based on dynamic pricing etc. The issuer can issue the financial instrument only ones he has created. The created FI's are granted to Traders/ Users. The users Broadcast the open orders for One Financial instrument to exchange other financial instrument. When a countering order is met then a execution order is generated which is verified by miners and complied into block chain. The execution order determines price of exchange for two financial instruments. Similarly the market exit could be facilitated by Issue in terms of withdrawal by traders.

Moreover ripple is kinda private controlled. A Dex market system is not meant to be privately controlled but open for all.

 
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Thanking you

Market.dex@gmail.com

I am aware of Coutnerparty and other similar implementation. Most of the decentralised exchange implementation till date are built on top of bitcoin chain. Which may be introducing a risk to bitcoin block chain by volume of transactions that are adding on to that chain. And thats where this thought line differs. (i.e. why not create a individual chain for exchange related transactions.)

Looking at users perspective if everyone starts building on top of bitcoin wont it become heavy weight and create issues of size of bitcoin and become a matter of concern for entire ecosystem.

I do not intend to counter your efforts but intend to bring in a different perspective in place 

All of the decentralized exchange have a coin or intermediate point. (e.g . Next has nxt token etc ) and so applies for other current decentralized implementation. A decentralized marketplace has to be network dependent for its functions and not dependent of coin / token for its functions.  The Proposed Decentralized exchange is network dependent for its functions.

Basic Functions of exchange are -

Order books - Open / executed order.
Rate determination.

Getting order / price determining mechanism over the network would mean making a different ecosystem altogether.

Hi All,

Would like to introduce you all to a alternative thought line to Exchange mechanics by proposing a block based exchange.

Following is the entire idea.
A Block chain independent of any coin but linked to any coin or having its own coin format
Serving the purpose of exchange.(I.e. Transfer of value)
Network Dependent price discovery.

At technical layer following is the concept -

Forking the blockchain within itself by virtue of Issuers token and definition of Financial Instruments on the block chain.
Trust model of Custodian.
Orders are broadcast within the network.
Price discovery a function of collision of open orders. ( Link Up CSMA/CD )

A Block Chain based decentralised exchange.docx - hhttps://docs.google.com/document/d/1ZRcQGHPyUHbcbKQ69fV-T2Mkf7A4jzw8JNRBvBNO1K8/edit

Abstract. A pure peer to peer version of the exchange system would allow all parties access to the market without relying on any central organization for market access. Paper proposes a solution for the problem of maintain an order book and determine the execution rate in the peer to peer network. Like crypto-currencies the network relies on blockchain of transaction. Digital signature system would be the core of the decentralized market place. The paper defines basic ground rules for the working of decentralized exchange. The major components of the decentralized exchange are issuing process, co-existence of blockchain and order books and functions of the miner. Unlike other crypto currencies de-centralized exchange would have a trust based issuing process which in long run would be a sum zero game. The decentralized
Exchange would have 3 types of entities namely – Issuer, Trader and Miner.



Any Suggestion or feed back is welcome. And PM if required only.

--
Thanking You


A Common man. 

Hi All,

Would like to introduce you all to a alternative thought line to Exchange mechanics by proposing a block based exchange.

Following is the entire idea.

• A Block chain independent of any coin but linked to any coin or having its own coin format
• Serving the purpose of exchange.(I.e. Transfer of value)
• Network Dependent price discovery.

At technical layer following is the concept -

• Forking the blockchain within itself by virtue of Issuers token and definition of Financial Instruments on the block chain.
• Trust model of Custodian.
• Orders are broadcast within the network.
• Price discovery a function of collision of open orders. ( Link Up CSMA/CD )

A Block Chain based decentralised exchange.docx - hhttps://docs.google.com/document/d/1ZRcQGHPyUHbcbKQ69fV-T2Mkf7A4jzw8JNRBvBNO1K8/edit

Abstract. A pure peer to peer version of the exchange system would allow all parties access to the market without relying on any central organization for market access. Paper proposes a solution for the problem of maintain an order book and determine the execution rate in the peer to peer network. Like crypto-currencies the network relies on blockchain of transaction. Digital signature system would be the core of the decentralized market place. The paper defines basic ground rules for the working of decentralized exchange. The major components of the decentralized exchange are issuing process, co-existence of blockchain and order books and functions of the miner. Unlike other crypto currencies de-centralized exchange would have a trust based issuing process which in long run would be a sum zero game. The decentralized
Exchange would have 3 types of entities namely – Issuer, Trader and Miner.



Any Suggestion or feed back is welcome. And PM if required only.

--
Thanking You


A Common man.