[Bitcoin-development] Decentralized digital asset exchange with honest pricing and market depth

Tue Feb 11 17:59:19 UTC 2014

Is there any code that does this? I would like to develop a multicoin-qt
wallet that runs on two blockchains from one binary, and allows trading
using this mechanism between the two chains.

On Mon, Feb 10, 2014 at 02:32:47PM -0500, Peter Todd wrote:
> On Sun, Feb 09, 2014 at 03:44:34PM -0500, Peter Todd wrote:
> > On Sun, Feb 09, 2014 at 01:04:58PM -0500, Peter Todd wrote:
> > > Alex Mizrahi recently outlined a mechanism(1) based on SIGHASH_SINGLE
> > > that allows colored coins and similar embedded consensus system assets
> > > to be securely transferred to another party in exchange for Bitcoins
> > > atomically. In summary his p2p 2-step-trade mechanism operates as
> > > follows:
> > 
> > I'm told there's probably at least one if not more earlier
> > attributions/reinventions for the 2-step-trade protocol using
> > SIGHASH_SINGLE. Please reply with them if you have them so we can give
> > credit where credit is due.
> 
> Got this:
> 
> Message-ID: <52418EBA.3080602 at monetize.io>
> Date: Tue, 24 Sep 2013 06:08:10 -0700
> From: Mark Friedenbach <mark at monetize.io>
> Organization: Monetize.io Inc.
> To: Meni Rosenfeld <meni at bitcoil.co.il>
> Subject: Re: Freimarkets and investment
> 
> If assets were tagged you could do a very limited form of pre-signed offers:
> 
> in: 10 btc SINGLE|ANYONECANPAY
> out: 1 AAA
> 
> These are composable, in that you can append the inputs and outputs of
> multiple offers together and result in a valid transaction. However this
> is pretty much the limit of what is possible without adding new SIGHASH
> modes, and if you're going to hard-fork to add tagging, then you might
> as well go the whole distance with explicit hierarchical
> sub-transactions as we did with Freimarkets.
> 
> Cheers,
> Mark
> 
> On 9/24/13 5:44 AM, Meni Rosenfeld wrote:
> > Hi Jorge,
> > 
> > The video was sent to me by Amos Meiri, I think eToro funded its production.
> > 
> > Maybe I don't understand SIGHASH_ANYONECANPAY very well. In the
> > transaction, there will be an output of 1 "my stock" to an initially
> > unknown address. Can I provide a signature for my input of 1 "my stock"
> > that will be valid even with the output details provided later?
> > 
> > In any case, I think that's out of scope for the presentation.
> > 
> > Meni
> > 
> > On 24/09/2013 13:10, Jorge Timón wrote:
> >> Yes, it's a nice presentation.
> >> I love the video with the chameleons that you link at the end !!
> >>
> >> As a little sugestion, I think the biggest advantage of tagging is not
> >> inflatable assets, it's open binding orders. Even without granular
> >> subtransactions as freimarket has, you could sign your input (say,
> >> representing 1 "My stock") and only the output you're interested in
> >> (say 100 bitstampUSD to myAddress) with SIGHASH_SINGLE |
> >> SIGHASH_ANYONECANPAY.
> >>
> >> Without tagging, you need to know where the inputs come from to check
> >> they're really bitstampUSD, because the network won't enforce the "100
> >> bistampUSD" in your output, any uncolored coins filling the btc
> >> quantity you wanted to represent those 100 usd will be ok, for miners.
> >>
> >> Goog luck with the talk, I'm eager to hear it.
> >>
> >> By the way, Mark, the explanation of the blockchain image sounds a
> >> little bit like hashcasttle, no? well, just merged mining every new
> >> asset, sounds like jaromil's freecoin too.
> >>
> >>
> >> On 9/24/13, Meni Rosenfeld <meni at bitcoil.co.il> wrote:
> >>> Hi Mark,
> >>>
> >>> We currently have a more general mathematical framework for the concept of
> >>> colored coins - a color is a combination of initial state and a kernel
> >>> function that maps input colors to output colors. Order-based coloring is
> >>> one such kernel function, tagging is another. As long as you can point at an
> >>> output and say what its color is, we call it a colored coin system.
> >>>
> >>> The blockchain image is a stand-in for "using a new block chain for each
> >>> asset".
> >>>
> >>> Meni
> >>>
> >>> On 24/09/2013 00:42, Mark Friedenbach wrote:
> > Hi Meni,
> > 
> > I did call Freimarkets "colored coins" in the early days, but the term
> > colored coin itself within the community seems to have become
> > identified with the specific proposal of assigning value to specific
> > satoshis, and running an order based coloring algorithm to determine
> > asset flow, e.g. Bitcoin-X. Freimarkets allows issuance of entirely
> > new assets and has explicit tagging of outputs, so we decided to avoid
> > the phrase "colored coin" so as to keep from confusing people. But as
> > an academic, yes you are correct.
> > 
> > You presentation looks great. BTW, what's the first logo for the
> > "Alternative token systems" slide? Or is that just a stand-in for the
> > block chain?
> > 
> > Mark
> > 
> > On 9/23/13 12:24 PM, Meni Rosenfeld wrote:
> >>>>>> Hi,
> >>>>>>
> >>>>>> As you might know I'm giving a talk about Colored Coins in
> >>>>>> Amsterdam.
> >>>>>>
> >>>>>> My presentation is available at
> >>>>>> https://bitcoil.co.il/files/Colored Coins.pptx (I'm not posting
> >>>>>> this link publicly until after the talk).
> >>>>>>
> >>>>>> I'll be happy for any feedback.
> >>>>>>
> >>>>>> I'm listing Freimarkets as an implementation of Colored Coins. It
> >>>>>> doesn't look like you're identifying with the term, but it does fit
> >>>>>> the definition (and though it does obviously do much more than
> >>>>>> just implement colored coins.)
> >>>>>>
> >>>>>> Thanks, Meni
> >>>>
> >>>
> >>
> > 
> 
> -- 
> 'peter'[:-1]@petertodd.org
> 0000000076654614e7bf72ac80d47c57bca12503989f4d602538d3cd7892ca7d

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