On 07/20/2011 08:24 AM, Ian G wrote:

Yes, sure, but:

1. we are talking about high frequency trading here, and speed is the first, second and third rule. Each trade could be making 10k++ and up, which buys you a lot of leaches.

Basically, you have to get the trade down to the cost of a packet, delay and two secret key ops. Indeed, if you can measure the delay of the secret key op, we might be encouraged to pre-calculate shared PRNG streams so as to speed up the encrypt/decrypt cycle.

I once spoke with some engineers who built and run one of those high-speed electronic trading networks/exchanges. Their time to match trades was something like 50 microseconds. Their serious members colocated their trading systems in their datacenter because it was so critical to eliminate the propagation delay. I guess I don't see the need to do bitcoin crypto transactions at that speed any more than the other high-speed exchanges need to rapidly move stock certificates, hard cash, or perform ACH/EFTs.

(Gee I wonder if I should file a patent on that idea :P )

Maybe you could be the next Certicom! ^_^

This and other aspects of high frequency trading forces a credit exposure to the trades, which requires someone to step in and control that credit.

But the term "high speed electronic exchange" seems to mean exactly this, almost by definition. - Marsh _______________________________________________ cryptography mailing list cryptography@randombit.net http://lists.randombit.net/mailman/listinfo/cryptography ----- End forwarded message ----- -- Eugen* Leitl <a href="http://leitl.org">leitl</a> http://leitl.org ______________________________________________________________ ICBM: 48.07100, 11.36820 http://www.ativel.com http://postbiota.org 8B29F6BE: 099D 78BA 2FD3 B014 B08A 7779 75B0 2443 8B29 F6BE