Saturday, December 17, 2016

Shapeshift has no currency market

Welcome to ShapeShift...

ShapeShift is a new piece of infrastructure in Bitcoinland. It is how digital currency exchange should work. From start to finish you can change currencies in under ten seconds, no account required.
Let's assume you have Bitcoin and you want Litecoin. It goes like this:

  1. Select Bitcoin as the input and Litecoin as the output
  1. Provide your Litecoin address in the box, then click the Start button
  1. ShapeShift will generate a BTC deposit address for you. Please send your BTCs to this generated address. (Don't send more than the Deposit Limit).
That's it. In a few moments, your Litecoin will be sent to you.

This is the procedure for exchanging coin with the Shapeshift exchange.  The pricing market is outside the system, Shapeshift is only a protocol manager.  So users look outside Shapshift, get their price estimate, then do the exchange.

Works OK for humans, how to the bots do it?  Bot will  be jamming the outside market, looking at all the prior trades, in high speed.  They are fast traders and will outperform humans every time, and with a significant probability Shapeshift will jam at he times iy is most needed.

So where can Shapeshift get a trading pit so prices are compressed fairly? Well,... Don;y hire me, I have the 'doesn't work well with other' problem, so you are stuck.  Shapeshift needs to harass the python folks to get the trading pit class released, and secure.

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