A QUICK REVIEW OF THE bZx PROTOCOL

donrep (36)in #ethereum • 6 years ago

Cryptocurrency trading is the act of exchanging cryptocurrencies for other cryptocurrencies, digital assets or fiat. This is usually done on a cryptocurrency trading platform which could either be centralized or decentralized. Most trading platforms usually charge transaction fees or trading commissions on all trading activities executed on the platform.

The first cryptocurrency is the bitcoin created in 2008 by Satoshi Nakamoto. Right from its inception to this day, the global cryptocurrency space has witnessed significant increase with a massive capitalization market worth over $400 billion and still growing. Many people now work with various cryptocurrency companies and exchange platforms earning legitimate income. Exchange platforms operate either as centralized or decentralized exchange platforms.

Centralized exchanges are cryptocurrency trading communities which are owned and controlled by a company. Users do not have control over their wallet private keys nor their funds that have been deposited on the trading platform. The onus lies in the hands of the operator to execute transactions through the procedures they have prescribed.

Centralized exchanges face various risks amongst which include long downtime periods, long and overbearing verification procedures, security risks, high entry barriers, hacking risks, high transaction fees etc.

Decentralized exchanges are operated by companies that utilize the blockchain architecture to execute transactions through smart contracts. On this platform, users hold and control their private keys and funds. The platform simply matches or pairs sellers and buyers of various digital assets on the decentralized exchange.

A major barrier decentralized exchanges face is their inability to provide a reliable oracle that can offer security settlement of centralized exchanges. Ethereum contracts lack the ability to retrieve asset prices on or off the blockchain, this puts lenders at risk of losing as a result of adverse price movements.

The bZx protocol is solution oriented, poised to handle these challenges squarely, through its major components which include bZx.js Library, bzxPortal and bzxSmart contracts.

The bZx.js Library is a Java script library that is not synchronized, used to develop and integrate the bZx protocol. The library will provide a platform for relays and exchanges to build an interface for margin lending and trading, and also a funding tab like it is provided on centralized exchanges.

In the bZx protocol is embedded a web-based decentralized application that acts as a front-end for the bZx protocol. It leverages on the bZx.js Library and will enable users to interact with the protocol for margin lending and trading.

The bzx smart contracts engineer on-chain margin lending, opening, monitoring and liquidation of ERC20 compatible token trades on the platform. The bZx.sol smart contract controls other sub-contracts in the protocol like the bzXVault.sol, bZxTo0xsol and the custom oracle contacts.

bzXVault.sol plays the role of an escrow contract which stores tokens not used in active trades. The bZxTo0xsol provides an interface for taking trades on the 0x exchange contract, while the Oracle_Interface.sol offers a starting point for developing custom oracle contracts which interact with the bZx protocol, a component of the oracle marketplace.

In designing the contract, there is room for future upgrades with little or no disruptions and a security guarantee for user funds.

Lenders will be charged 10% of their earnings which will be used for decentralized governance, incentivisation of bounty hunters, risk insurance, gas fee refunds. Decentralized insurance fund is created to check cryptocurrency volatility which could be as a result of abnormal market circumstances.

the BZRX token has been designed to be used for remuneration or incentivization and governance of the bZx protocol.

You can use the links below for more information
https://t.me/b0xNet