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RE: What is a Decentralized Exchange?
Now let's imagine that something goes wrong with that IOU token issuer - than the tokens lose their value, as it will be impossible to exchange the tokens back for USD.
And the holder lose his fund accordingly. What prevents such kind of scenario?
This is the same situation we have today. Exchanges take your money and issue an IOU on their internal trading system; if something goes wrong, their server is hacked, they are corrupted, they steal, etc. you lose your money.
The difference with this decentralized system is that you push the trusted IOUs to the periphery (the edge) of the system, so people will just use it to move in and out of the network, while the core of the system is completely trustless (the smartcoins). In addition, the IOUs are transparently tracked on the blockchain, so whereas in a trusted exchange you do not have insight into the accounting, here you have full insight into the movements of the IOUs.
So in a traditional exchange, everything is trusted. In this decentralized exchange, just the gateways (in/out ports) are trusted. In addition, both the trusted and trustless parts of the decentralized exchange are completely transparent.
Any on going work to improve openledger UI?
See Bittrex. They have beautiful UI. BitShares desperately needs one.
There is a new wallet out soon called MoonStone:
There's also a wallet by the BitShares Munich team:
Finally there's the Echo wallet coming out:
http://my-echo.com/
There's still work being done on the Openledger GUI as well. And there are probably one or two other wallets coming out as well. Wouldn't count BitShares out yet. ;)