5th Jun 13.20 GMT
A proposal published this morning by Jake Yocom-Piatt, one of the project leads behind the Decred cryptocurrency, has outlined the architecture for a fresh trust-less cryptocurrency exchange toneelpodium.
Acknowledging the ache points and frustrations of both existing centralised and decentralised exchanges, Yocom-Piatt is proposing a client-server specimen for hosting currency pairs with servers then integrating P2P atomic exchange knots to ensure users retain control of funds at all times.
The proposition essentially outlines what is a hybrid prototype with traditional centralised web architecture taking responsibility for cryptocurrency pair listings and buyer/seller matching, whilst trades themselves are executed with atomic exchanges that permit for P2P cross-chain cryptocurrency trades.
The blockchain era is still waiting for a successful decentralised exchange podium to emerge – and whilst there are existing architectural solutions te place, fully decentralised models such spil EtherDelta suffer from blockchain transaction latency.
It is the reason for which exchanges such spil Binance and Bittrex have emerged spil the leading platforms for managing cryptocurrency trades – but thesis charge fees and/or often exorbitant listing fees. Spil centralised architectures, they are also prone to security breaches.
It can be argued that the Yocom-Piatt proposition therefore seeks to combine the best of Binance and the best of EtherDelta ter order to offerande up an architecture which retains responsiveness whilst permitting users to exercise control overheen their own funds at all times.
Related video: BINANCE EXCHANGE Tutorial For Beginners In Hindi || Best cryptocurrency exchange in hindi
Yocom-Piatt makes a further suggestion of removing the FIFO (first-in-first-out) traditional trade execution prototype which exposes the market to high volume trading and thus price manipulation, and proposes a reputation-based mechanism for ordering trade sequences instead.
Related video: How To Sign Up For Binance Account, Solve The Puzzle and Trade
Conceptually, the proposition emerges to be a sound one but will likely not please decentralised tech purists. It is also predicated on the growth of atomic exchange technology which, at the time of writing, emerges to be limited to a petite number of cryptocurrencies such spil Bitcoin, Litecoin and Ethereum.