[zdkl]

Thank you for taking the time to answer. Respectfully, I see no point in the mechanism you outline above. You're moving the icky cash-for-tokens risk source from the established coin markets to your private coin with no added benefit I can discern.

If you already assume I as user don't trust the established exchange, what makes you confident that this setup with the added complexity alters any downside/risk/cost of transferring value from coin tokens to cash?

[Edit] For instance given a user with a diversified portfolio of coins, in what way does adding another coin like asset facilitate any of the coin-coin or coin-cash transactions?

[giergirey]

I agree you probably won't see much benefit if most of your transactions involve cash-in-a-bank-account or coins on non-Ethereum chains.

However, if:

- Ethereum continues to grow; and

- we continue to see more and more successful/useful coins/tokens built on top of Ethereum (especially if asset-backed ones are accepted as payment);

Then we're going to see a lot more coin-coin transactions that /can/ be done on-chain - at which point a smart contract exchange is attractive (no counterparty risk, no fees, no waiting weeks for document verification, no limits).

Right now today it's possible for me and you to trade millions of dollars worth of tokens such as WINGS, BAT, USD.DC, GNO with each other on https://etherdelta.github.io or https://oasisdex.com/ (and soon https://ubitok.io/) - without needing to get verified or sign up, and only needing to trust that the exchange smart contract behaves as claimed (well, and that we're interacting with the right contract!).

If you don't see smart contracts / decentralised apps working well here, are there any problems where you do see them as being a good solution? A distributed exchange always seemed to me like a bit of a poster child for smart contracts ...

[zdkl]

What I don't follow is why Ethereum is a good target to implement this type of program on. If you have the know-how to implement a bulletproof/trustable multi-token transaction clearing platform, why would you want to tie yourself to this platform?

The only advantage I see for smart contracts is that it would allow you to implement security-like mechanisms without regulatory burden associated with the SEC and other financial entities. Apart from this "new world" thing, in what concrete ways is using an etherium based exchange more advantageous for me-user than traditional financial organisms who must submit to oversight and scrutiny with safeguards in place to prevent hostile behaviour from my peers?

[zdkl]

I should've bet on it.

https://news.ycombinator.com/item?id=14807779