Swap Online: An online cross-blockchain system solution in the era of decentralized exchange platforms (DEXs)
One could say that decentralization is one of the unique characteristics of any cryptocurrency. In fact, that specific feature represents one of the main reasons why users decide to work with virtual coins, the inherent capability of not having to attend to any entity or middleman to successfully transact.
The blockchain technologies function primarily due to decentralization. This feature guarantees the all of the transactions in the network are safe and crystal-clear, but here it comes the big question. Do the most famous cryptocurrency exchanges really function in a decentralized way?
Well, they actually don’t. As a matter of fact, a number above the million in Bitcoins were stolen due to crypto exchange platforms hackings. But what’s exactly the problem? The Swap.online project has dedicated not only to determine the causes for the main issues on regular exchange platforms, but it has also as well set a new proposal to reinvent exchanges as we know them.
The idea behind the Swap.online proposal
The primary factor that has slowed down the growth and evolution of cryptocurrencies have been centralized exchange platforms, one of the reasons why it’s urgent now more than ever the implementation of decentralized exchanges that put an end to the problems these archaic systems have placed in the industry.
2017 was definitely the year of Initial Coin Offerings (good and bad), and as everything seems to point 2018 will be the year of decentralization. Swap.online will surely help in this matter, and the first step towards this started with the research the analysts of the project finished a few days ago at the end of April.
As many exchanges surged in the landscape labeling themselves as ‘Hybrid exchanges’ the need of differentiating this from a fully-decentralized platform was crucial. Let’s see why decentralized exchanges (DEXs) are different from conventional platforms and how Swap.online will provide a new era in the cross-blockchain processes.
Four problems shown in the Swap.online research
1) Unreliable gateways on ‘decentralized’ exchanges
There are several exchanges ‘pseudo-decentralized’ that are labeled as such just because of not storing user keys. Nonetheless, a high number of these, actually function using a single blockchain, a fact that naturally removes any validation granted and of course the trustability as well.
Although this type of exchanges are so easy to implement, disadvantages are way more worse such as the possibility of the gateway not withdrawing funds, a cheap infrastructure support, and bigger accessibility to a possible attack.
2. Ethereum as the central figure
The same way, many exchanges are being considered decentralized but far from that they only work with protocols such as the Ethereum ERC-20.
The usage of Ethereum has become very popular among projects and ICOs, and of course, it has advantages, but we surely can not speak of decentralization while depending on a single figure like Ethereum. Besides that, exchanges of this kind do not support tokens with an excellent performance in trade volumes such as Bitcoin, Tether, or EOS.
3. Blockchain bridges with a token strategy
There are exchange platforms that offer the possibility of linking one blockchain with other, but the price of this is paid by conditioning in the transaction the usage of a particular token. That kind of restriction is characteristic of platforms like Polkadot.
4. Really decentralized platforms using central servers
Some existing platforms are actually decentralized but still function in an old-fashioned way storing private keys and data in central servers instead of safely transferring data directly to the browser as developers have managed to succeed.
As we’ve seen before, central servers may be hacked (like the case of the million Bitcoins stolen), so it’s time for a better approach such as the ordinary Atomic Swap.
The Swap.online proposal
The project has managed to create a cross-blockchain swap system without needing to turn to anything else than just the browser, for this it has implemented the usage of Bitcoin.js, web3.js, and the libp2p library in IPFS.
Main characteristics of the Decentralized Exchange (DEX) System
- The solution designed by Swap.online it works even ten times faster than conventional exchanges, considering the entire time between operations such as deposit and withdrawal. Like this, a transaction using this cutting-edge system will last an average of 2-3 minutes only.
- Swap Online uses the InterPlanetary File System (IPFS) features to make data more secure. Secret users keys are not saved in the system, and even messages between the users are not stored on the servers.
- The exchange has the practicality of being available only on the web, which users just need to access to the browser to transact, they don’t need to download an app or an executable program.
- It works linking different blockchains already. For instance, between the blockchain of Bitcoin and Ethereum, and very soon is planned that it’ll work as well betwixt Tether and Lightning network.
- Swap Online has developed functionalities to be able to work with different virtual coins in the market, even with those lacking scripting language such as Monero. However, it is expected to work on a solution for those cases any soon.
Swap Online plan on avoiding malicious scripts on the browsers
The primary concern on an exchange working directly on a browser is the intrusion of a malicious script, a fact that without any doubt is a possibility. This could occur because of extension installed by the user, or in more complex cases, because of hosting providers.
To avoid this to happen, Swap Online will make use of website cloudflare.com, with this, once a request has been made in the domain a “Content Security Policy” alert will show up in the header. This way, any potential intrusion or malicious attack will be canceled and disarmed.
The Swap Online Alpha version:
Swipe Online has already developed and launched the alpha version of the platform. It works even if accessing from mobile devices, and integrates all of the features mentioned above. Go to https://alpha.swap.online to try it out.