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OtcTradingPlatform
Peter Banik edited this page Jul 3, 2017
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The OTC market for Bitcoin is bigger than the exchange market. Exchanges set the price but large trades don't happen there because the market is simply not large or liquid enough yet to process large trades. To place a seven-figure dollar trade would shift the price in a direction unfavorable to the trader before the trade is completed, a phenomenon known as slippage.
As the overall cryptocurrency market grows, this will be true for other currencies as well, it's already true for Ethereum.
Build a decentralized exchange platform that enables OTC trades between participants.
Leverage these key mechanisms/technologies:
- Blockchain identity - anonymous authentication and proof of funds
- Lightning Network for atomic cross-chain swaps
- A smart contract platform
- Use external exchanges for price feeds