Prism Beta is Out
This one More step towards decentralization. Exchange Markets are getting hit hard with attacks.
People are loosing faith in exchanges and feeling uncertain about their money on exchanges like Poloniex.
Prism is a step towards a decentralized Market place. This will help flood in more conservative people who feel safe.
The beta is now out https://prism.exchange/login
Registration is possible right now, hoping getting in soon.
How is Prism a decentralized marketplace? Think about it for one second. Say you create a portfolio, 50% bitcoin, 50% monero - where is the bitcoin and monero? we don't have sidechains yet so its not in the ethereum blockchain. its not locked up in wallets under your control because you can only exit you position in ether... so where is the actual crypto and who owns it and who is in custody of it? Because if you use Prism its not you.
Good point. From what I've read...this quoted...enabling users to create custom "prisms" by putting ether into a smart contract on the ethereum blockchain that is designed to mimic the price fluctuations of any of the hundreds of available cryptographic assets traded on exchanges.
there is a mechanic going on behind the scenes that they are keeping very quiet about. I suspect this is because when you put your ether into the "smart contract" it really just goes into an account ShapeShift has control over. Shapeshift then allocates the funds based on your portfolio and then charges you a fee to withdraw (which they do at the beginning when you create the fund).
Bitshares has something similar when you create bitAssets, however those assets are backed by BTS and creating only makes sense if you are trying to sell the borrowed bitAsset which effectively becomes a short trade position. I short about 10-20% of my bitshares portfolio at all times against the USD.
My point is there is no such thing as a free lunch. If bitshares looses value I loose money, that's the risk I take by shorting the dollar. With prism the risk is that ShapeShift might not be around to send you your gains back, or they just might not do it. What legal obligation do they have?
Billing this as "trustless" with "no counterparty risk" is just plain dishonest.
I see your point and if all of what you say is right, that is not good at all. So you are saying that ShapeShift has a contract over my smart contract? Is there proof of this?
Look at my sources. Basically shapeshift is buying and holding your coins for you. There is a smart contract between you and shapeshift but if shapeshift goes under tmor just decides not to pay you you will get nothing because they physically own your coins.