What is the ideal decentralized fiat-to-bitcoin transaction me | YTP-全球數字資產交易平台官宣

What is the ideal decentralized fiat-to-bitcoin transaction method?

Existing decentralized exchange solutions, such as BitShares, have very poor liquidity. Whether you are buying or selling, it is usually difficult to get a good transaction price. In addition, the user experience is also very poor, and centralized exchanges are the biggest The problem is security. Exchanges can claim that they have been hacked at any time and then run away. Besides, when the government decides to crack down on centralized exchanges, you have already seen the ending. Is there any way to achieve a transaction between fiat currency and Bitcoin (or other digital currency) that does not require trust in a third party and has good liquidity?
You need to know a few concepts first, one is the smart contract, and the other is the withholding function of third-party payment.
We use the withholding of third-party payment and the smart contract on the blockchain to design the transaction process.

The bitcoin buyer is called Alice and the seller is called Bob.

(1) Alice and Bob put up their own ask and bid on an information agency that does not have much money

(2) After the information intermediary system is matched, Bob credits the currency to a smart contract account (one for each transaction). The smart contract account is not controlled by anyone, only controlled by open and open source code, and runs on the public chain. If the number of bitcoins is right, the execution continues, otherwise the coins will be returned and the end.

(3) Alice and Bob's Alipay accounts are bound in advance to initiate a deduction, and Alice's account RMB is deducted to Bob. In this process, Bob (seller) needs to apply for a merchant account and fill in the key into the smart contract. (Although the buyer of WeChat cannot be matched with the seller of Alipay, they have to be divided into Alipay area, WeChat payment area, etc., but it is already an improvement.)
(4) The smart contract detects whether the deduction is successful and the amount is correct. If successful, the bitcoin on the smart contract account is paid to Alice's wallet, otherwise it is returned to Bob's wallet

By analogy, Alice here is the passenger of the Didi special car, and Bob is the driver. The driving service turned into a transfer between Bitcoin wallets. Drive to change coins, everything else is exactly the same.

Alipay and WeChat act as a trusted third party for legal currency, and smart contracts act as a trusted intermediary for blockchain assets (there is no third party).

The whole process does not need to send money or coins to a certain exchange. The coins are only between the wallet and the wallet, and there is no risk of exchange theft. The renminbi was transferred between Alice and Bob's Alipay accounts without going to the exchange.

Is this design completely decentralized?

No, Alipay and WeChat are third-party centralized nodes after all, so they are not a complete decentralized solution. If Alipay and WeChat are hung up during the entire transaction process, they will also be hung up.

But I think this model design is still an improvement, and the risk is greatly reduced. The most vulnerable nodes are Alipay and WeChat Pay. Much better than the exchange. Alipay and WeChat Pay have no incentive to cheat.