Switcheo : Multi-chain Decentralized Exchange primarily for NEP-5 tokens

magpielover (51)in #cryptocurrency • 6 years ago (edited)

With Cryptocurrency trading and investment becoming mainstream there is an increasing necessity to build convenient, secure and stable exchanges to trade cryptocurrency assets. Although, exchanges such as Coinbase, GDAX, Binance, Kraken are popular, many of them have demonstrated the pitfalls of their centralized architecture. Some of the biggest issues are security, reliability, high listing fee etc. For example, the popular Exchange Kraken was recently shut down for around 40 hours leading to its users getting outraged. Another one of the popular exchanges has been accused of insider trading as a consequence of which, a lawsuit has been filed. These are some of the many issues while depending on centralized, exchanges controlled by profit-oriented entities. Hence it is sufficient to say that Decentralized exchanges or DEXs are the future of Cryptocurrency trading.

The public blockchain NEO and the smart economy associated with it has been assuming popularity with several entities such as Red Pulse (RPX), Qlink (QLC), Deep Brain Chain (DBC), Zeepin (ZPT), TheKey (TKY) etc doing their ICO’s on top of it. These tokens are referred to as NEP-5 tokens because they conform to the NEP-5 standard of NEO. Although there are several decentralized exchanges to trade Ethereum based ERC-20 tokens such as IDEX, EtherDelta ,ForkDelta etc., we still don’t have a stable, secure and responsive decentralized exchange to trade NEP-5 tokens. This is where an NEP-5 based decentralized exchange called Switcheo comes into the equation.

Screen Shot 2018-03-12 at 8.47.52 PM.png

The winner of City of Zion’s NEO dApp challenge, Switcheo is a decentralized exchange that will facilitate seamless trading of NEP-5 tokens such as RPX, QLC, DBC, TKY on the NEO platform. Further the platform will extend its coverage to facilitate cross-chain swapping of ERC20 tokens on the Ethereum network as well as the QRC20 tokens on the QTUM network. Thus Switcheo will effectively become state-of-the-art multi chain decentralized cryptocurrency exchange.

The Switcheo runs on the NEO blockchain and will use of smart contracts to carry out the operations. The main components of the DEX are;

FRONT-FACING USER INTERFACE (UI)- Something that closely resembles the UX of centralized exchanges and provide the same level of user experience. Unlike Centralized exchanges, Switcheo wouldn’t require users to login using a username and a password. Instead of that users login using their wallets.

CUSTOM BLOCKCHAIN NODE — This will be used to log smart contract events and interactions basically serving the objective to improve the User Experience.

OFF-CHAIN ORDER HISTORY DATABASE AND API — Serves as a source of data in the appropriate format (JSON API) for external entities such as Coinmarketcap.com, portfolio trackers etc to display the transactions withing Switcheo DEX.

BROKER SMART CONTRACT — This is the primary engine of the DEX and this is where the magic happens. These smart contracts run all the asset swaps and handle deposit and withdrawal of assets through transaction invocations. The smart contracts are available on Github

SWH Token & Sale Details

The native NEP-5 token called SWITCHEO or SWH tokens power the DEX. The SWH Tokens primarily serve as the base token for all cross-chain swaps. Further, all operations on the Switcheo Network will accept the SWH token. The SWH tokens are available through a Public Sale the details of which are given below;