Decred Outlines Decentralized Exchange Plans
Decred is an autonomous cryptocurrency. Its commitment to a system of public, automated governance has routinely won support from many within the blockchain community. Professionals have praised the company’s technicians for their work in developing a sophisticated automated currency with a knack for application in multiple potential sectors.
The company once again made headlines in the community when they recently announced their intentions to develop a decentralized exchange, a unique first of its kind. They capped off initial developmental efforts with an official, formal proposal to create the new exchange. So far, the project is only known by the temporary name DEX.
The proposal has already won significant interest from many investors and analysts within the crypto community. At this time, the public desire for a system of efficiency and security in the exchange sector has never been higher. Consumers have been clamoring for a new format to the old model of exchange for quite some time, and recent security concerns in some main platforms have further exacerbated safety and storage concerns from investors.
Consequently, the market is on-watch for further developments from the team on this new form of decentralized platform. Its actualization could have several significant impacts for the cryptocurrency ecosystems, including increased interest in the Decred coin and, if things go as planned for the development team, the potential mass adoption of a new model of trading for cryptocurrencies all over the world.
The proposal itself lays the groundwork for the project in its initial inception. The project lead for Decred outlined that the topic “has been discussed for some time,” and that the end-goal of the developmental team’s dialogue is going to be to “structure the conversation” so that developers can apply their ideas to “real-world solutions.” On an ideological note, he stressed that blockchain can progress only if developers place more power “in the hands of the community.”
With this in mind, it is clear why a decentralized principle is likely to guide the development of the company’s latest project moving forward. Lead author on the proposal Jake Yocom-Piatt cited decentralization as the main reason behind the creation of the latest project, as well as an essential component of the heavily-anticipated final project.
Naturally, the development of an entirely decentralized new market is no easy undertaking. Consequently, a few notable features of the project have been integrated into the original plan in order to make it a more feasible undertaking in actualization.
The first major component of the project is the simplicity of the client-server relationship. Instead of integrating a corresponding token or a specific blockchain like protocol would normally dictate, DEX will emphasize a simple client and server architecture.
With a policy of server-noninterference on client funds, smart contract-enforced automatic transactions, random order matching, and an automated reputation system for fending off malicious clients, the project seems to make every effort to truly decentralize the cryptocurrency exchange they are creating.
Additionally, the backend features backing the platform are essential to its creators’ decentralized end-goal. An off-chain LN network can facilitate instant exchanges between clients, and external wallets are easily accessible using what the creators call a “simple client API” which provides constant feedback and data-based services.
The project is also poised to be the first exchange with the ability to directly exchange Decred with traditional cryptocurrencies such as Bitcoin and Litecoin.