It sounds to me very similar to the lightning network.
Bitcoin - Redditt
Outside of having your own Bitcoin at addresses that you control in your own wallet how does the average person know that the bitcoin volume quoted at these large exchanges is real. I mean isn’t there some way that the average person who runs a full node can examine the utxo set to confirm trading activity as well as how many bitcoins exist and at which addresses? Otherwise how do we even know that any of what the exchange quotes state are legitimate in terms of volume or price? I would imagine that they could be Financializing Bitcoin because there’s no transparency as far as I’m aware. It seems like they can just coordinate amongst themselves and say there x amount of volume at x price. How would we know? I mean it seems like they would be able to control the price if there’s no way for us to know how many Bitcoin they actually have and where on a blockchain they are located. Maybe someone out there can help me see this more clearly but from where I stand this seems like it can be very effective way to manipulate and control the price of Bitcoin.