Bitcoin Press Release: Decentralised token swap site Swap.Online release details of their upcoming protocol.
11th May 2018, Tallinn, Estonia – Decentralization is the basis for blockchain technologies. Decentralization ensures the security, transparency and integrity of all transactions in the network. But are the popular cryptocurrency exchanges really decentralized, and safe? Most DEX’s are not able to accept BTC without using an unreliable gateway between the two blockchains.
Exploring the Token Swap Ecosystem
There are several different types of DEX (Decentralised Exchange) such as pseudo-decentralized, working in the Ethereum network only, for example projects that link blockchains to each other using their own tokens, and decentralized exchanges that use “Hashed Timelock Contracts”.
Earlier, it was common knowledge that a crypto exchange that did not store user keys, and was decentralized and therefore safe. However, most of these exchanges are built on a single blockchain, which makes them vulnerable – in order to get funds from the Bitcoin network to such a crypto exchange for example, one needs to use a gateway, which takes bitcoin and produces a “holding” kind of bitcoins in another network in return. A similar principle lies with Ethereum-based exchanges, for example, EtherDelta.
Devotees of centralization believe that storing private keys on a secure server is safer than storing encrypted keys in the user’s browser. However, if a central server is hacked, everything will be stolen (as it was with a million bitcoins), and paranoids can remove signing of transactions from the browser into the application on the computer and encrypt it.
Since all code is executed in the user’s browser, the greatest risk is the intrusion of extraneous scripts into the code. It is likely to be made by the extensions the user installed in the browser, or by a hosting provider.
To prevent such attacks, Swap.Online will use cloudflare.com together with Workers, a solution that, in response to any request to the domain, sends a “Content Security Policy” header with the hash of the JS code allowed for execution in the user’s browser. Thus, server hacking and most attacks based on the introduction of malicious code will be eliminated. To understand how this works, see the video of the system operation below, or try to make an exchange yourself at https://alpha.swap.online.
The Swap Online Platform
By using Bitcoin.js, web3.js, and the libp2p library in IPFS, Swap.Online created a cross-blockchain swap system directly in the browser. The full details of the system can be found below:
- The solution operates on an average 2 to 10 times faster than the existing stock exchanges (taking into account the time to deposit and withdraw funds). On average, the exchange takes 2 to 3 minutes.
- Swap Online does not store secret user keys. Moreover, even messages between users do not pass through our servers (we use IPFS).
- The exchange works right in the browser – users do not need to download or install anything.
- The platform already works between the Bitcoin and Ethereum blockchains, with Tether, and Lightning Network planned.
- Theoretically, Swap Online is able to work with most cryptocurrencies, except for those where there is no scripting language. Even for currencies like Monero, solutions will be created over time.
The source code of the exchange is published in GitHub, and the protocol is distributed as Open Source. The AirDrop is scheduled for June 30th.
The Swap.Online team is also engaged in commercial implementation and release of related products:
- For the B2C market (swap.online): Exchange solution for BTC -> ERC20 (with an orderbook and a reputation system)
- For the B2B market (b2b.swap.online): Widget in the form of html code, which allows accepting any cryptocurrencies directly in the wallet of the site owner by sending tokens in return. The solution has a confirmed demand both from projects in the crowdfunding stage and from those who are already making a real product.
- For large holders of cryptocurrencies: Ability to safely exchange cryptocurrency without bringing it to centralized exchanges (by replenishing the account only during the exchange).
- As part of research, the possibility of using the solution as a bridge for the sidechains is being studied.
Media Contact Details
Contact Name: Alexandra Matveeva
Swap Online is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all. Token sales are only suitable for individuals with a high risk tolerance. Only participate in a token event with what you can afford to lose.This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest
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