We have started active development on a new cross-platform exchange, which will be based on the 0x protocol.
Decentralised exchanges are the holy grail for crypto: a secure, anonymous and trustworthy way of trading. Waves and Ethereum already have DEXs for their own assets — in Waves’ case, built into the core and the reference client, or in Ethereum’s case, third-party exchanges such as EtherDelta. But whilst it’s easy enough to build decentralised exchanges for tokens hosted on the same platform, cross-chain exchanges are a very different matter.
Moving assets from one blockchain to another involves additional technical challenges, but it’s a hugely important development that needs to happen if the crypto world is to stop relying on centralised exchanges, and all the disadvantages associated with them. To date, there are no popular and reliable distributed exchanges.
This is something ChronoBank aims to address with TimeX. Our exchange will use the 0x protocol, which we started exploring last year. The reasoning behind this is that we want to make it compatible with other decentralised exchanges, so that they can all benefit from the additional liquidity and depth of sharing orderbooks. In short, it’s good for the market.
The new TimeX exchange will use the same Ethereum side chain we’re using for LaborX, our decentralised labour hire exchange portal. That’s important because conducting trades on the Ethereum mainnet would be slow and expensive. Using the LaborX sidechain will mean it’s possible to trade any ERC20 token quickly and safely, as well as coins and tokens from other chains. For that, we’re going to be using a special ‘wrapper’ using SPV proofs.
A sidechain like the LaborX sidechain we are using is a decentralised two-way peg, which was first articulated in this white paper. Our approach is to lock coins on one chain and issue a token on our sidechain that represents it (e.g. ‘ERC20 — BTC’). This token, which is effectively backed by the locked BTC, can then be freely traded against ETH and ERC20 tokens, before being ‘withdrawn’ and unwrapped back to its original chain.
Whilst EtherDelta and most other decentralised exchanges operate fully on the blockchain, our 0x-based exchange will employ an off-chain orderbook. This gives the benefits of both worlds: the speed of a regular exchange (which is necessary for market-making and for tradebots to operate on the platform) with the ultimate security of blockchain-based settlement.
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TIME is trading on the following exchanges: