Author: Tier Nolan 2016-08-08 11:01:57
Published on: 2016-08-08T11:01:57+00:00
There is a possibility of doing instant trades between altcoins using channels and the exchange as a hub, but it doesn't work with fiat accounts. However, a "100% reserve" company could issue fiat tokens which the exchange could trade, thus eliminating counter-party risk. If the exchange goes down, investors still have their (alt)coins and fiat tokens. But there is still a risk that the token company could go bankrupt. This risk could be mitigated if the company requires only verified accounts to cash out tokens. The company could set up a blockchain where it signs blocks instead of mining and gets transaction fees and minting fees (1% for minting new tokens). It's unclear how the law would work in this situation because the company isn't technically trading; it's only issuing and redeeming tokens.
Updated on: 2023-06-11T19:19:15.003394+00:00