SWAP.Online, Russia-based Atomic Swaps decentralized exchange protocol, announced the program of the utility-token distribution. This token will be the only acceptable mean of payment for the full range of the protocol services e.g. advertisement banners, token listing, premium accounts etc. There will be no ICO and no mining, so, the Bounty&Airdrop Participants will be barely exclusive holders of tokens and possible traders.
The tokens for the Project Development will be frozen during next year. Thus, the participation in SWAP.Online Smart Airdrop & Smart Bounty is the smartest way to get really rare asset – SWAP.Online Tokens.
For Smart Airdrop Program, the SWAP.Online team called for the venture investors, cross-chain geeks, Lightning & Rayden adepts, crypto fans with big social influence and IT girls. No kidding: the project is particularly interested in girls encouraged in crypto & blockchain sphere! Other categories are also welcome but need to explain their interest and value to the project.
For Smart Bounty Program, the team called for the bloggers, Facebook, Twitter, LinkedIn users, crypto writers. To receive the token volume equal to 400 USD for one week of Smart Bounty you need nothing but your social media influence. Only 25 % top participants will receive their tokens but the reward is six time more than average in compared projects. So, it seems to be the most interesting decision for real professionals in the sphere.
SWAP.Online itself is a revolutionary start-up sharing two main ideas . The first one is to exchange crypto (ERC-20 to BTC as well as ERC-20 to ERC-20) in browser in really decentralized peer-to-peer way, wallet to wallet. The second one is to accept crypto to B2B projects via SWAP.Online button that could be installed through the API principles on every crypto project web-site. Team and developers of the project have more than 10 years of experience in venture investment and more than 5 years fin-tech & blockchain projects. The project had successfully released alpha-testnet version (Spring, 2018) and executed first Atomic Swaps in browser.
Up to the nowadays, the world of cryptocurrencies has been meeting one but seemingly overwhelming contradiction. Basic, if you will, philosophical, principles of cryptocurrencies – anonymity, independence, equality – remained still only conditional. Even freshmen, who bought their first bitcoins during the market hype of December, 2017, listened to the stories about ‘chinese servers’ all the crypto traders’ data stored on and all the operations executed through. More experienced players of the market saw the things clearly: centralized exchanges’ servers became the targets of the multiple thefts, cyber attacks as well as by the admins’ frauds and scams. It needs to be mentioned, that it occured in 2016, in 2017 and 2018 – nothing changed as hackers upgraded their professional skills neck and neck with the technical advance of the exchanges. The ‘Holy Grail’ promises of the admins announcing compensations, lost tokens’ tracing, new cybersecurity systems were worthless: the traders remained the only victims of the services versus hackers fights.
Centralized exchanges became a brake on cryptocurrencies development. If 2017 was the year of ICOs, 2018 will be the year of decentralization.
Decentralized exchanges or DEX are the real solution of the problem, brand-new breakthrough mechanism. These systems allow traders to make and take the offers directly to each other without the united center, without data storage and middlemen. Based on most advanced technologies (0x, Plasma, Atomic Swaps et al.), they recover the initial value of cryptocurrencies as really anonymous, independent and free-to-use mean of payments. By the way, DEXs still are not able to reach the trade volume of the centralised services: it’s really the technology of tomorrow. Besides the fact, some old exchanges traced the new trend and started to mask their out-of-date technologies by the words ‘hybrid’, ‘semi-decentralized’ ensuring the customers that only uncritical part of infrastructure is centralized with the purpose of the operational speed raise.
In this context, it is very important to understand, how the DEXs are entering the market? Where do they find their clients? Which amount of transaction fee do they offer to traders? Which services are offered to businessmen?
SWAP.ONLINE captured this market at the time of birth.
Are the popular Bitcoin/Altcoin exchanges really decentralized and safe?
Decentralization is the basis for blockchain technologies. It ensures the security, transparency and integrity of all transactions in the network. But are the popular cryptocurrency exchanges really decentralized and safe? Fact: More than one million bitcoins were stolen after a few cryptocurrency exchanges had been hacked. The team of the Swap.online project analyzed the current problems of deсentralised cryptocurrency exchanges (DEX)
What are the types of DEX?
Pseudo-decentralized (using an unreliable gateway between two blockchains)
Earlier, it was of a common knowledge that a crypto exchange that did not store user keys was decentralized (and therefore safe). However, most of such exchanges are built on a single blockchain, which makes them distrustful. In order to get funds from the bitcoin to such crypto exchange, one needs to trust a gateway: it takes bitcoins and produces a kind of “bitcoins” in another network in return. A similar principle lies in Ethereum-based exchanges, for example, EtherDelta.
The advantage of this approach is the ease of implementation, but it does not outbalance the disadvantages: the gateway may not withdraw the funds back. Fast and free transactions are supported with a cheap infrastructure or by a certain group of people. The price of an attack on such an infrastructure is cheaper than an attack on the bitcoin or ethereum blockchain, which is provided by the capacities of miners around the world.
Crypto exchanges calling themselves decentralized, but functioning only in the Ethereum network, should be distinguished. For example, the 0x project which has many followers.
Their advantages are: Such exchanges are compatible with the most of the tokens issued during ICOs in 2017. In the Ethereum network it is easy to make up complex contracts (Margin Call and the like). But such exchanges do not support other leaders in the terms of the trading volume: Bitcoin, Tether, EOS.
Projects that link blockchains to each other using their own tokens
The most striking instances of such projects are: Polkadot, Kosmos, TON.
Polkadot allows transferring tokens from one network to another by blocking them in one blockchain and issuing them in the other. This exchange involves its own token.
Really decentralized exchanges that use Hashed Timelock Contracts
The community of blockchain developers has already for a long time created technologies that allow you to safely exchange cryptocurrency directly in the browser, without the involvement of a third party.
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 of bitcoins), and paranoids can remove signing of transactions from the browser into the application on the computer and encrypt it.
In fact, we are talking about the ordinary Atomic Swap (technical description of the algorithm). To understand how this works, watch the video of the system operation below, or try to make an exchange yourself at https://alpha.swap.online.
By using Bitcoin.js, web3.js, and the libp2p library in IPFS, we created a cross-blockchain swap system directly in the browser.
Features of the system:
The solution operates on average from 2 to 10+ times faster than the existing exchanges (taking into account the time to deposit and withdraw funds). On average, the exchange takes 2–3 minutes. Based on the data from our monitor (updated once a day). Source of the script.
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.
It already works between the bitcoin and ethereum blockchains. Exchange between Tether, Lightning Network is planned.
Theoretically, it is able to work with most cryptocurrencies, except for those where there is no scripting language. But even for such currencies (including Monero) solutions will be created over time (MultiSig for Monero).
Most frequently asked question about the security of the solution
— How will you deal with the intrusion of malicious scripts into the user’s browser?
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 we 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 intrusion of malicious code will be cancelled out, while hacking a server for a centralized service can be fatal.
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.