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CURRENCY CONVERSION PROTOCOL (OT with Bitmessage.)

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May 21st, 2013
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  1. Open-Transactions and Bitmessage combination to produce:
  2.  
  3. CURRENCY CONVERSION PROTOCOL
  4. An easy way for OT wallets, behind the scenes, to negotiate currency conversions.
  5.  
  6. Let's say Alice is someone who wishes to convert Silver Grams into Gold Grams.
  7. Let's say Bob is someone who is willing to perform such conversions for a fee.
  8.  
  9. 1. Alice is already on Server A. If the market on Server A does not already serve her needs, then she must discover other traders who may be on other servers.
  10. 2. Alice generates this ID: "Silver_Asset_ID--XOR'd--Gold_Asset_ID"
  11. 3. Alice uses the above string to generate a Bitmessage broadcast key (Bitmessage calls this a "pseudo-mailing-list.")
  12. 4. Bob, wishing to earn some money, is already listening to all broadcasts for that key.
  13. 5. Alice broadcasts a message to that key: "I want to convert X grams of Silver into Y grams of gold, at price of Z. My Bitmessage ID is ALICE and I am on Server A."
  14. 6. Bob receives the message, and agrees with the price.
  15.  
  16. 7. For TWO-WAY-TRADE smart contract (more privacy):
  17.  
  18. Bob sends a message via Bitmessage to ALICE, saying:
  19. --- "I am willing to make the trade. My NymID on Server A is BOB. My silver account on server A is BOB_Silver_A and my gold account on server A is BOB_Gold_A."
  20. NOTE: If Bob does not already have funds on Server A, he can wire them there, using the WIRING PROTOCOL.
  21. --- Bob could also say, "I am willing to make the trade, but only on Server B. My NymID on Server B is BOB. My silver account on Server B is BOB_Silver_B and my gold account on Server B is BOB_Gold_B."
  22. NOTE: If Alice does not already have funds on Server B, she can wire them there, using the WIRING PROTOCOL.
  23.  
  24. From this point, Alice and Bob can process the existing two-way-trade smart contract to finish the transaction.
  25.  
  26. 8. For conventional OT MARKETS:
  27.  
  28. Bob sends a message via Bitmessage to ALICE, saying:
  29. --- "I am willing to make the trade. I am already on Server A, trading on Market Silver_Gold_A."
  30. NOTE: If Bob does not already have funds on Server A, he can wire them there, using the WIRING PROTOCOL.
  31. --- Bob could also say, "I am willing to make the trade, but only on Server B, trading on Market Silver_Gold_B."
  32. NOTE: If Alice does not already have funds on Server B, she can wire them there, using the WIRING PROTOCOL.
  33. From this point, Alice and Bob can finish the trade using conventional OT Markets.
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