When I first learned about Bitcoin I had to learn about the blockchain and the concept of decentralization. The main goal goal of cryptocurrency has always been decentralization and one important aspect of that is control over your money. The possession of your private keys always guarantees this control and safety of your money. Ironically, this movement founded on decentralization where you controlled the keys to your wallet and this you controlled your money, has always had centralized exchanges.
If you exam the large exchanges like Coinbase, Binance, Bittrex and others, they are centralized. They are run by a small group of people who make the rules. And in order to trade cryptocurrency tokens you must surrender your cryptocurrency tokens to them and you must trust them to return your property. They then control your cryptocurrency. Then if the exchange freezes all trading or if the exchange just freezes trading of your particular tokens wallet, you can't get your cryptocurrency tokens. You then have to wait until they say you can have them, and sometimes they say how much. When something like this happens you truly understand the importance of decentralization, and you truly realize how centralized the exchanges are.
After years of only centralized exchanges the "DEXS" or decentralized exchanges appeared. Uniswap, Justswap and others are more decentralized then the first generation of exchanges, but they still require your cryptocurrency to leave your wallet and be stored on the exchange wallet, so you can swap tokens, and contribute liquidity to liquidity pools. Many projects talk about the technology called Atomic Swaps as the solution to the centralized exchange. But this technology is frequently talked about but I had not seen a functioning product, until now. That product is XBridge, created by Blocknet.io
And cryptocurrency projects already integrated into its swap protocol include #Bitcoin, #Bitcoin Cash, #Dash and #Litecoin, there are over 100 projects!
Blocknet has been working on the problem of centralization of exchanges and centralization since 2014. It has a working product called XBridge. This product is a dApp, but it works on a network, not a blockchain. You see BLocknet.io is not just working on a dApp, they are working on a phenomenal concept called the interchain which is revolutionary network, not controlled by anyone and open to everyone.
This product is called XRouter.
A decentralized communication layer that connects blockchain networks to multi-chain applications. This allows dapps to consume services and obtain data from any blockchain without downloading the entire blockchain an application is running on.
Blocknet has conceived the notion that cryptocurrency isn't a zero sum game, with one or two blockchains being the winner and all others being loser. Instead Blocknet envisioned a network, open to all, which allowed all blockchains to speak to each other, and all applications on blockchains to be able interact with applications on other blockchains, and buy the goods and services of these applications.
I am pausing for your to unpack that mentally. It's a lot.
Thats right, envision all the blockchains in the cryptocurrency universe, being connected to other blockchains functionally by a network, called the internetwork. And this network allows communication between applications on different blockchains, and the purchase of goods and services between blockchains.And lets take it one step further, these purchases are made with each chains native cryptocurrency tokens, using atomic swaps and multiple asset wallets.
So your probably thinking this is fantasy, but Blocknet.do has a atomic swap dApp called X-Bridge and their are currently over 100 cryptocurrency blockchains which have been integrated with the XBridge and the Interchain, so any of those 100 cryptocurrencies can be swapped for any of the others.
This requires another pause I think, because I found a Unicorn. A functional decentralized exchange doing atomic swaps! This mythical beast which was often spoken about but never seen, has now been found. Plus it is in use by very notable projects like #Bitcoin, #Bitcoin Cash, Dash and #Litecoin. Yes these three coins are one of the 100 coins which has completed the Integration Process and now can be swapped via XBridge.
X-Bridge approaches each of the four main components of an cryptocurrency exchange in a decentralized fashion:
- Trading is non-custodial and occurs directly out of the client's wallet. Funds remain within the client's control throughout the entire process.
- Orders are broadcasted directly peer-to-peer over the network. Each client compiles the order book themselves instead of relying on a central order book service. All integrators and services on the protocol share the orderbook and liquidity. Currently there is just support for a public order book, but there are plans for private order books and direct trading as well.
- This is performed peer-to-peer by the clients.
- This is performed using BIP65 CLTV atomic swap contracts. For blockchains that do not inherently support BIP65, such as Ethereum, similar methods are being emulated to extend the protocol to those blockchains and subsequent assets.
So there are some technical details that you should know about, such as what cryptocurrency projects use this technology now, what is the process of implementing this for your cryptocurrency project, are there special characteristics or blockchain requirements, etc etc.. I have paraphrased information below from the website, translating some technical terms and phrases into more understandable sentences, but some of it, I quote directly to avoid losing anything in translation,
Compatible with Blocknet wallet v4.3.x
Supported Wallet Versions
v0.15.1, v0.15.2, v0.16.0, v0.16.1, v0.16.2, v0.16.3, v0.17.0, v0.17.0.1, v0.17.1, v0.18.0, v0.18.1, v0.19.0, v0.19.0.1, v0.19.1, v0.20.0
v18.104.22.168, v22.214.171.124, v126.96.36.199, v188.8.131.52
0.90.8.8.1, 0.90.8.9, 0.90.8.10, 0.90.8.11, 0.90.9.0, 0.90.9.1
Crypto Dezire Cash
v0.14.0.2, v0.14.0.3, v0.14.0.4, v0.14.0.5, v0.15.0.0
v184.108.40.206, v220.127.116.11, v18.104.22.168, v22.214.171.124, v126.96.36.199
v188.8.131.52, v184.108.40.206, v220.127.116.11
Internet of People
Know Your Developer
v0.17.3.1, v0.17.3.2, v0.17.4.5
v0.15.1, v0.16.0, v0.16.2, v0.16.3, v0.17.1, v0.18.1
nc0.13.99-name-tab-beta1, nc0.16.1, nc0.16.2, nc0.17.0, nc0.18.0, nc0.18.1, nc0.19.0, nc0.19.0.1, nc0.19.1, nc0.20.0
v1.6.0, v1.6.1, v1.6.2, v1.6.3
v4.1.0, v4.2.0, v4.2.1
Secure Cloud Net
Uniform Fiscal Object
0.14.0, 0.15.0, 0.15.0.1
Source for this material is the Blocknet webpage
In order for for a blockchain to be compatible it must support JSON RPC, CLTV atomic swaps, and the following calls:
getblockchaininfo (fallback getnetworkinfo, getinfo)
signrawtransaction (or signrawtransactionwithwallet)
Integration of assets is a free and open process, without permission required. All configuration files are located in Blocknet's blockchain-configuration-files Github repository.If you would like to have a digital asset supported, please ask a member of that project to fill out the integration form or create a pull request.
XBridge is not yet compatible with hardware wallets such as Ledger, web wallets such as MyEtherWallet (MEW), or lite wallets such as Jaxx. Desktop Qt/cli wallets must be used.
This may be one version of the future, where people exchange cryptocurrencies from their wallets.
Posted Using LeoFinance Beta