Blocknet.io : A peek at the future of cryptocurrency trading.


Block net.io

Security and Cryptocurrency exchanges

The concept of safety while trading is very important and you have to be very careful when moving your cryptocurrency on and off cryptocurrency exchanges to trade there, you must be careful storing your cryptocurrency there and you must be careful with decentralized finance Tokenization and custody processes.

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.

Not your keys, not your cryptocurrency

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.

Decentralized exchanges

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.

Atomic Swaps

Many projects talk about the technology called Atomic Swaps as the solution to the centralized exchange. In general terms, atomic swaps allow you to exchange your cryptocurrency for someone else’s cryptocurrency without moving your crypto-currency to an exchange wallet, where it’s no longer in a wallet under your control, but in an exchange wallet under their control. In an Atomic Swap you trade cryptocurrencies in a trustless fashion, from peer to peer and wallet to wallet, by interfacing your wallet with a smart contract, into which both parties input the details of the trade, the smart contract verifies the existence of the cryptocurrencies involved in the proposed trades and once both parties agree to the terms and consent to the swap, the cryptocurrencies are exchanged. Your cryptocurrencies stay in your wallets until the trade deal is agreed to and appropriate wallets exist on each side and then they are exchanged. Most exchange style risk is eliminated.

#Blocknet.co atomic swap solution is called Xbridge.

I have read about atomic swaps as an answer to security concerns involving cryptocurrency trading. 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. In fact, there are over 100 projects!

Blocknet.co has

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.

The interchain: X-Router

A decentralized communication layer that connects blockchain networks to multi-chain applications. 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.

The Interwork

Imagine a software platform, similar to the internet connecting webpages, that connects blockchains.

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.

Fantasy or Reality?

So your probably thinking this is fantasy, but Blocknet.co 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.

Yes, 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.

Read more about XBridge

XBridge performs a decentralized wallet to wallet exchange or swap using the atomic swap technology.

X-Bridge approaches each of the four main components of an cryptocurrency exchange in a decentralized fashion:

Storage of Funds

• Trading is non-custodial and occurs directly out of the client's wallet. Funds remain within the client's control throughout the entire process.

Order Books

• 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.

Order Matching

• This is performed peer-to-peer by the clients.

Settlement

• This is performed using BIP65 CLTV atomic swap contracts[1]. 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.
  #Please-note-this-is-paraphrased-from-their-website-for-accuracy. Source

So there are many more technical details that you can read about on their website.
Blocknet.do has created a True decentralized cryptocurrency exchange with atomic swaps. This may be one version of decentralized trading of the future, where people exchange cryptocurrencies from their wallets.

@shortsegments

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