Perhaps this has been brought up already but here’s my idea:
To fight market manipulation, a P2P exchange should be developed. To my understanding, the only problem with a decentralized exchange is the trades between cryptos and the actual currency like USD. However, with NuBits being the representative of USD we could implement an exchange that operates only with cryptocurrencies. This should simplify the technical aspects of such an exchange a lot!
The traders must first buy NuBits from a centralized exchange or NuBits Shops. The latter is not a target to market manipulation because 1 nubit always equals to 1 USD. The traders must then move the nubits to a P2P exchange and trade them for bitcoins, for example. NuBits will be like a buffer between real world currencies and cryptocurrencies, allowing cryptos to be traded in a decentralized manner.
How should the decentralized exchange be implemented? The simplest way would be using Open Bazaar, but I’m sure that solely for cryptos a more effective trading platform could be developed.
[quote=“willywithcoinnode, post:2, topic:2951”]This is a great idea.
How would such an exchange bring buyers and sellers together?[/quote]
There are many advantages for a P2P exchange. No fear of an exchange hack or bankruptcy for example. Perhaps no transaction fees either? But most importantly, a P2P exchange wouldn’t be able to fake its volume or order book.
Should all participants transfer their coins into the software and a blockchain verifies the transaction?[/quote]
That’s definitely a tricky part. Perhaps multi signature addresses would somehow help to solve it? If that not then decentralized escrows? there is also an option for a mutual destruction.