Decentralized Blockchain Exchange
The evolution of Blockchain has created incredible disruption in the technology and finance industries. Its critical-path of innovation follows the development of solutions to the primary friction points blocking its further development. Exchange was the first barrier to overcome to allow the basic trading of blockchain assets necessary for it’s adoption, and asset holders’ profit. It has also become common understanding that existing legacy financial systems rely heavily on outdated technology, and are in prime position to benefit from blockchain efficiencies.
The next phase in blockchain evolution solves the remaining problems in the exchange ecosystem, while standardizing the Internet Of Value for broader adoption.
Initially blockchain exchanges operated as centralized services operating in the middle of the transaction to execute the exchange. However the cash basis accounting used in autonomous blockchain networks means these services inherit tremendous risk from the impossibility to redress errors or losses caused by their system. The result was the passing along of this cost to users.
One of the most disruptive emerging technical innovations addressing existing blockchain exchange problems is inter-ledger transactions. The emergence of the Internet Of Value is based on interconnectivity between multiple independent blockchains through this common transaction protocol. Due to the “trustless” nature of DApps the IOV will require co-dependent two-way linking. This involves using a “hub” blockchain to act as a notary for these inter-blockchain transfers of funds, which is the core of the Decentralized Exchange.
The Decentralized Exchange (DEX) emerges as the next stage in the development of blockchain solutions enabling its further evolution.
The DEX also addresses the need for ultra-secure high value, low volume, and brokered type of exchange in blockchain denominated assets that cannot risk any type of centralized service. This is very much appropriate for business or institutional transactions in real world applications.
The Deximus project will implement a DEX protocol standard with a unique approach, a viable go to market strategy using a Redhat+ business model, and real world use cases.
The DEX operates to facilitate the exchange of value between ledgers by bridging trust as a first independent “party” to an exchange. The subsequent main asset blockchains can execute a synchronized but independent transfer of funds when the common sidechain of the DEX, as recognized by the “main-chains”, has notarized a matched exchange order.
Multiple interlinked DEXs create a distributed blockchain transaction routing network for the exchange and transfer of crypto-assets. This is the technology ecosystem that will form the backbone of the Internet OF Value (IOV). A necessary aspect of the broader adoption is also the blockchain DNS. With the ability to route transactions as data is routed today on the Internet, the resulting asset agnostic transactions is the true potential of a borderless Internet of Value made possible by inter-ledger transactions and decentralized exchanges.
The primary goal of Deximus is to facilitate adoption of inter-ledger transactions for business and institutions through a standardized and asset agnostic implementation of innovative multi-ledger blockchain technology for clients and partners. The specifications of Deximus will be open sourced, along with final protocol code. The Deximus DEX implementation will offer specific advanatages:
Deximus will use state of the art interledger technology (initially using Cosmos by Tendermint) of various types to implement initial and future versions of the Deximus decentralized exchange standard for its clients and partners.
A standard inter-ledger addressing scheme for blockchains as a combination of:
- Interledger Blockchain Addressing
- ICAP
- HDW
The purpose of an EBAN is to have a commonly understandable accounts addressing format for inter-ledger and inter-asset exchange within blockchain networks. This is to aid in generating traction for the IOV, and to support inter-ledger transaction routing. It is a consumer friendly aspect of the Deximus standard allowing for easy delineation between legacy financial technology, and blockchain financial technology.
As in the need for universal addressing schemes for the Internet, the IOV also be reliant on addressing schemes for routing of trancations. This is necessary to facilitate communication between separate but indirectly connected blockchains. DNS type services for the registration as source of authority to resolve collisions and conflicts of address prefixes will need to be implemented. This is left outside the initial scope of the Deximus project, and will be addressed as the inter-ledger protocol evolves, and as both technical standards and regulatory bodies evolve.
The ability to facilitate low cost exchange of value is a big benefit to businesses, institutions, and organizations wanting to transact in larger values, but facing the friction of current international banking systems. As a primary first use-case, Deximus is will be implemented as a transaction platform for international business and institutional transactions.
Deximus is targeted at industry consortiums or private exchange networks already facilitating international transactions. The DEX can even operate transparently as the backend for more standard payments and transaction services. Both legacy and new crypto exchange or multi-currency transaction services can implement the Deximus standard to leverage the value of a DEX’s security and data integrity and support transitioning to the broader adoption of blockchain as well as be positioned for the increased accessibility to banking ledger services made possible by continuing “virtual banking” trends.
Deximus intends to expand on more than just atomic exchange currently implemented in interledger protocols. Deximus is designed for larger transaction value, and lower transaction volume, and as such the initial use case may only need support atomic exchange. The core technology used in Tendermint provides the ability to extend the logic of the DApp using it’s framework.
The Deximus DEX standard is initially designed as an implementation of the Cosmos interledger network. Importantly Deximus takes a unique approach: Exchange between value measures across ledgers does not involve the “exiting” of funds from the ledger. As with all exchange in finance, it is the synchronization of account transaction between multiple ledgers that is the mechanism of exchange.
Likewise with typical exchange methods in existing financial systems, this same approach can be implemented in the blockchain, merely using the bridge blockchain hub as a limited notary for the synchronization of the exchange of funds between accounts across ledgers.
Importantly in the development of a common standard, no party to the standard should feel at risk from the incentive of a sole source of interest in the platform. The tokenless concept of the DEX ensures the parties and participants in the DEX and corresponding main blockchain networks have no particular advantage. Use Case
The tokenless approach of Deximus is designed to support individual asset pairing exchanges as in a currency market. This approach is best suited to the inter-ledger exchange of assets as any blockchain based value measure will itself be able traded against other assets in the free market, supporting growth in liquidity.
Initial implementations with existing partners will focus on virtual currency for e-banking and gaming.
The Deximus Organization will operate as a legitimate US/EU company. It will oversee the deployment of blockchain technology following the Deximus protocol and standards for partners and customers. Both transactional and services revenue will be generated as Deximus will also operate gateways on deployed networks. This can be called the RedHat+ business model.
The primary goal of Deximus will be the development of a successful business model. The initial asset of offer in exchange for private investment funding will be for equity stake within the organization. Following rounds of fundraising will be performed in a manner compliant with regulations of the jurisdiction for the organization and only as needed.
Crowd-funding may be employed later on in the project, as the needs of the organization and the opportunity emerges. Importantly Deximus recognizes that crowd-funding offers less initial value added than strategic investment partners.
Together the Deximus team has experience in:
- Extensive industry leading blockchain experience
- Award winning Blockchain 2.0 architecture
- Innovative technical designs and white papers for various Blockchain projects
- Several crowdsale and ERC20 contracts for various startups, including token disbursement contracts for over $150M in tokens to 3,000+ addresses in a safe and trustless manner
- Open source community leadership & engagement
- VC funded Blockchain projects in Silicon Valley
- Decentralized messaging protocol and comment board built on top of Ethereum
- Decentralized exchange that allows for atomic swaps between two tokens
Deximus is strategically positioned and timed to take advantage of the incredible opportunity to be a crucial component the Internet Of Value as it emerges. The existing trends in Inter-ledger transactions and Decentralized Exchanges of the “Third Wave” of blockchain technology will usher a once in a lifetime opportunity, and in this rapidly evolving industry the time to take advantage is now!
Contact Us vip+deximusorg@gmail.com