The problem, which I can't figure out a way to solve, is that any exchange can die at any time due to massive theft or failure. When this happens, customers will lose all of their funds.
People have mentioned m-of-n transactions as one possible solution, which means that the customer and the exchange both have to approve of any transaction involving the customer's funds. But this may preclude realtime trading, which is usually one of the main purposes of an exchange.
It's a tough problem, and there may be a solution. I'm continuing to think about it.
People have mentioned m-of-n transactions as one possible solution, which means that the customer and the exchange both have to approve of any transaction involving the customer's funds. But this may preclude realtime trading, which is usually one of the main purposes of an exchange.
It's a tough problem, and there may be a solution. I'm continuing to think about it.