Return-Path: Received: from smtp1.linuxfoundation.org (smtp1.linux-foundation.org [172.17.192.35]) by mail.linuxfoundation.org (Postfix) with ESMTPS id 685B392 for ; Mon, 8 Aug 2016 09:56:27 +0000 (UTC) X-Greylist: whitelisted by SQLgrey-1.7.6 Received: from mail-qk0-f193.google.com (mail-qk0-f193.google.com [209.85.220.193]) by smtp1.linuxfoundation.org (Postfix) with ESMTPS id D9438115 for ; Mon, 8 Aug 2016 09:56:25 +0000 (UTC) Received: by mail-qk0-f193.google.com with SMTP id x189so20478269qkd.0 for ; Mon, 08 Aug 2016 02:56:25 -0700 (PDT) DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=gmail.com; s=20120113; h=mime-version:in-reply-to:references:from:date:message-id:subject:cc; bh=AsaQk/DIyoO5JzNlMBE9L5n7wX00A9/ir7XerCp6Rog=; b=S7RbCESLt9afNdwzJibTgfIBvCccyawCmXcSTMCdOYtyaP3jfexlpTHrW6Z/Hu4Jus lmONEoAngF7njSSgQJUGEa3tox1K+dg9nkOB2YCdgv4oYCC4EOyfRBAX9KfgTNuke5ky kWc8InV2C8DeKxqhv3PnlOaxUDA/nHYPoBA8Jym5cqPIaga5ZLQl6JmOwCONAQNXBaVg cswqv9LMjLUBPKGsz2Q7b2Hq+oUPgyoeAm+SpXqbERf+xxr1PIWHZLTJhaBT1WiWPMd1 d0gjkqN8laucbTkjEiqcfARBPhURek0OE9hYwurn5dSMi2Ii4ncoN6DG0AZo9MGANqHu ZpTw== X-Google-DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=1e100.net; s=20130820; h=x-gm-message-state:mime-version:in-reply-to:references:from:date :message-id:subject:cc; bh=AsaQk/DIyoO5JzNlMBE9L5n7wX00A9/ir7XerCp6Rog=; b=krfvs7pylm7XumwnQ2hs16CgZptulYKJlCqp3j0ZGwsDYSZSJNyDJlkXWHiYWwGXHf CC8/tC73Ecrhr4yVLhr4zrpjGvjgoXyprc3/trGLHQGEIlmZe3+UxsbcsF+naiyCaIBA mdWYW0erFfwUt/rT4OImRF/SqSl/ZOggN8JyX5CR8wYbqWtEoOxlTxaHPJfjXRvhT1zu lm/D1TReEoDaZerFqNgk6m5CFhoHejhvWPFtCKOUcXU3c5PxelJ3+X/7Nq0pOcxobfLk AmDIFtxkcovQOWHZFxXAX6qEB4W9IOHw2BPckDaxrRcv9/4A4MzQfkChCPDdI9XOsKap j3Lg== X-Gm-Message-State: AEkoouuEeXIapAulkpdYoQKqPbUQawpDyvFbOQbydAFW9Fs6WE5uG+NG5Q4o2C88lqk6ABJNl5Ywpc301PqeFA== X-Received: by 10.55.162.67 with SMTP id l64mr25876135qke.277.1470650184799; Mon, 08 Aug 2016 02:56:24 -0700 (PDT) MIME-Version: 1.0 Received: by 10.200.46.193 with HTTP; Mon, 8 Aug 2016 02:56:24 -0700 (PDT) In-Reply-To: References: <0b314ab7-b5ec-3468-15d7-37e07a6b592c@sky-ip.org> From: Tier Nolan Date: Mon, 8 Aug 2016 10:56:24 +0100 Message-ID: Cc: Bitcoin Protocol Discussion Content-Type: multipart/alternative; boundary=94eb2c0544b8da9d9905398c6d4e X-Spam-Status: No, score=-0.9 required=5.0 tests=BAYES_00,DKIM_SIGNED, DKIM_VALID, DKIM_VALID_AU, FREEMAIL_FROM, HTML_MESSAGE, MALFORMED_FREEMAIL, MISSING_HEADERS,RCVD_IN_DNSWL_LOW autolearn=no version=3.3.1 X-Spam-Checker-Version: SpamAssassin 3.3.1 (2010-03-16) on smtp1.linux-foundation.org Subject: Re: [bitcoin-dev] BIP clearing house addresses X-BeenThere: bitcoin-dev@lists.linuxfoundation.org X-Mailman-Version: 2.1.12 Precedence: list List-Id: Bitcoin Protocol Discussion List-Unsubscribe: , List-Archive: List-Post: List-Help: List-Subscribe: , X-List-Received-Date: Mon, 08 Aug 2016 09:56:27 -0000 --94eb2c0544b8da9d9905398c6d4e Content-Type: text/plain; charset=UTF-8 On Mon, Aug 8, 2016 at 1:48 AM, Matthew Roberts wrote: > Not everyone who uses centralized exchanges are there to obtain the > currency though. A large portion are speculators who need to be able to > enter and exit complex positions in milliseconds and don't care about > decentralization, security, and often even the asset that they're buying. > Centralized exchanges also allow for things like limit orders. You don't even have to be logged in and they can execute trades. This couldn't be done with channels. > Try telling everyone who currently uses Btc-e to go do their margin > trading over lightning channels, for example. > Using channels and a centralized exchange gets many of the benefits of a distributed exchange. The channel allows instant funding while allowing the customer to have full control over the funds. The customer could fund the channel and then move money to the exchange when needed. Even margin account holders might like the fact that it is clear which funds are under their direct control and which funds are held by the exchange. If they are using bitcoin funds as collateral for a margin trade, then inherently the exchange has to have control over those funds. A 2 of 3 system where the customer, exchange and a 3rd party arbitration agency holds keys might be acceptable to the exchange. --94eb2c0544b8da9d9905398c6d4e Content-Type: text/html; charset=UTF-8 Content-Transfer-Encoding: quoted-printable
On M= on, Aug 8, 2016 at 1:48 AM, Matthew Roberts <matthew@roberts.pm>= wrote:

Not everyone who uses centralized exchanges are there to obtain the currency though. A large portion are speculators who need to be able to enter and exit complex positions in milliseconds and don't care about decentralization, securi= ty, and often even the asset that they're buying.


Centralized exchanges also allow for things like l= imit orders.=C2=A0 You don't even have to be logged in and they can exe= cute trades.=C2=A0 This couldn't be done with channels.
<= /div>

Try telling everyone who currently uses Btc-e to go do their margin trading over lightning channels, for example.


Using channels and a cen= tralized exchange gets many of the benefits of a distributed exchange.
<= /div>

The channel allows instant funding while allowing = the customer to have full control over the funds.=C2=A0 The customer could = fund the channel and then move money to the exchange when needed.=C2=A0
Even margin account holders might like the fact that it is = clear which funds are under their direct control and which funds are held b= y the exchange.

If they are using bitcoin funds as collat= eral for a margin trade, then inherently the exchange has to have control o= ver those funds.=C2=A0 A 2 of 3 system where the customer, exchange and a 3= rd party arbitration agency holds keys might be acceptable to the exchange.=
--94eb2c0544b8da9d9905398c6d4e--