There is a large OTC (=over the counter market) market for BTC and other big coins. Such OTC trades are usually done via escrow services like Genesis Global, Itbit, GBTC and others.
The worldwide OTC market volume is estimated to be way larger than what we see on open exchanges.
I'm issuing a 25k Komodo bounty for an easy-to-use gui that allows to trade a specific amount with a specific person, using the BarterDex protocol.
If a simple solution exists, BarterDex could take a large share of the OTC markets thanks to the huge number of coins supported, the inherent privacy and the lack of third party fees/risk
A rogue idea is that when 2 people have agreed what they want to swap, one of them will use the gui to setup the trade by selecting coins and amount.
The gui will create a file or code to pass to the other user for importing in his gui. The gui will then setup his side of the trade. Choosing netid and utxo splitting should all simply done by the gui. The traders need only to deposit and proceed.
I would be nice to have the Komodo security deposit feature available
Here's from Discord, jl777 explaining how to use BarterDex for OTC trading:
jl777c - just use a random netid and you can do OTC swaps, has worked for many months
barbierir - ok but is there a recommended way to split utxo if we want to swap a specific amount ? Let say I have 100 kmd and other guy has 10 Ltc and we want to trade them
jl777c - one makes an FR node with netid X
the other runs a normal node using netidX and seednode the IP of the FR node
one side setsprice
the other side buys
jl777c - and utxo need to be X, X*1.2 for bob, X and X/777 for alice
nothing is different other than using a different netid. so whoever needs to hurry up needs to >create a netid
and here from Discord the latest conversation about the challenges to make it simple for normal users:
blackjok3r - Currently, you would need some backend marketmaker your could spin up in a cloud instance, with the correct firewall settings to act as the FL node, so in effect this app would not and could not be free to use, unless every person trading know how to setup the networking on his computer to create the network,
its a nice bounty, unfortunate most of it would be needed to fund a FR node creation machine
barbierir - I understand, so it is harder than expected
jorian - why would one need a backend marketmaker?
why is a prebuilt binary in combination with electrum not feasible?
blackjok3r - you need an unfirewalled public IP with a direct connection to internet
cheapest way to do that, would be to docker it an lanch it in AWS on demand, and have it time ut and die after X hours.
not exactly expensive but has some cost
you need a FR node to connect to
otherwise you would need X FR nodes run somwherre and the app chooses randomly what one to use, much cheaper to launch on demand.
barbierir - ok I'm understanding less than half of what blackjok3r says except that my idea requires a lot more work than a gui
blackjok3r - we are talking cents per netid not dollars... its cheap, but not free.
someone has to pay the cost.
and cloud providers take USD... not crypto
jorian - ah, i get what blackjoker is saying. for a new network to work, some Full Relay nodes need to be spawned in that new network to relay the alice and bob msgs?
blackjok3r - yes
You only need 1, then the GUI connects alic and bob to it
jorian - i see
blackjok3r - then the user has no worries about firewalls or any of that complicated stuff