Hi bitcoiners,

I am an avid bitcoin supporter and have previously posted using another account. I post anonymously this time because I would like to ask a few questions that relate to my line of work, but at this time I cannot associate my company with bitcoin.

I work as a software developer at a (significant) high-frequency trading firm. I'm exploring different ways that I might have a positive impact on the bitcoin economy, and am seeking ways of introducing bitcoin to my associates. I'd like to share some of my ideas, see if they might stir your own thoughts, and also ask some technical questions.

Idea #1: Suppose a company can issue its own version of the bitcoin concept as "stocks" (bitstock?). I know this has been talked about on other threads as well. What would be the implications of high-frequency trading on the infrastructure borrowed from bitcoin? For example, we trade thousands of stocks at a rate of thousands of messages per second (i.e. not all messages result in trades). We deal in terabytes of data per day. Is it even reasonable to consider a proof-of-work blockchain in this context? How would this disrupt the trust mechanism for resolving conflicting claims (e.g. could I send some "bitstock" shares to one person, but then change my mind an instant later by sending the same bitstock to another recipient, and then trying to convince the rest of the network that the second transaction was the valid one)?

Idea #2: What if bitcoins could be used as an internal tip system to help associates track performance? When one associate wants to thank another one anonymously, the first could drop bitcoins in the second's tip jar. At the end of the bonus period, tips are amplified by actual group performance and bonuses paid out. Since there are no transaction costs, everyone wins and individual performance gets a little bit of measurement. Is there any reason we should consider a point-based system rather than use bitcoin?

Idea #3: What if our company could provide a "forex" marketplace for BTC/USD? This has certainly been done already (MtGox, etc.), however it seems there is still a lot of barrier to entry for many participants. How might a big player help? Would it hinder bitcoin's progress in any way?

Idea #4: Does bitcoin need a market maker in its exchange markets? Market makers usually help narrow the spread between the "bid price" and "ask price" by taking some of the risk in moments when there are no natural market participants (e.g. if you want to sell, but at this moment no one is willing to buy, you either have to lower your price to gain attention, or wait a while for more buyers to show up). My sense is that bitcoin is too young to need a market maker, and perhaps does not yet have enough volume to make the role worthwhile. What are your thoughts?

I look forward to hearing your thoughts.

Thank you,
ano-nym

ano-nym

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