Melonport Co-Founder Opens Agora Trade Decentralized Crypto Exchange in Malta
The co-founder of Melonport, one of the most popular blockchain projects at the moment, has decided to launch his own decentralized exchange with the goal of making this kind of platform easier to use. Reto Trinkler has opened Agora Trade, which will be set in Malta, the so-called Crypto Island.
Malta has become increasingly crypto-friendly over time and several bills have been approved in the country which will be used to create a good environment for the evolution of the blockchain market there.
Melonport, the main work of Trinkler, is a crypto asset management platform which was created in 2016 during a partnership with Mone El Isa, a Goldman Sachs veteran. This project put Trinkler on the map and he appeared in the Forbes 30 Under 30 list afterward, as he was only 28 years old at the time of the publication.
Decentralized Exchanges Are Already A Crowded Field
It is true that the cryptocurrency market is currently flooded with decentralized exchanges and they employ many different methods of addressing the problem with traditional and centralized exchanges, but how this new company will do anything in a different light so it will not simply be another company in the market but a noteworthy one instead?
Agora Trading will offer the trading of cryptos across different platforms, just like the Plasma DEX does, for instance. Agora intends to be set apart from other exchanges that run on top of the Ethereum network because most of them can only trade tokens made for that chain.
Trades will be able to use NIM tokens, which are native from the Nimiq blockchain, Ethereum and Agora to trade. Bitcoin, Ethereum Classic, EOS, NEO and Tezos are some of the next ones that will be added.
The order for buying and selling assets on Agora Trade will be made off-chain and they will be stored on a central server that will match them. Because of this, the orders will be free of charge and you will be able to complete them faster, which makes the whole process more efficient in the end.
Trinker hopes that the combination of these features will attract more customers and that more people will start to be interested in the decentralized exchange market. The goal of the platform is to be a cross-chain, non-custodial crypto exchange that will challenge the others and become the major one of the market.
Between the Chains
While Agora Trade will be a decentralized exchange, it will use a partially centralized solution to sort orders that are matched on one server and still be the best option around. According to Trinkler, synchronicity is one of the main challenges in decentralized exchanges.
Agora will not take custody of the funds of the users, which will be staked via a multi-signature, time-locked contract until the trade is finished. Everything will be done via smart contracts that will hold the funds of the customers and let them accept off-chain orders free of charge that can be settled on-chain.
A InterPlanetary File System (IPFS) will be used to ensure P2P distribution, which is a secure and decentralized way to handle crypto keys that is better than normal web apps. The company is also planning to use the Polkadot blockchain protocol to make the cross-chain trades faster and to use its interchain communication feature as a way to streamline the cross-chain settlement features.
The exchange will also use hashed time-locked contracts, the famous atomic swaps. They will be used for a time while better solutions are being developed. The CEO of the company dislikes atomic swaps, though, as he believes that they are too much busy work for the users that have to do too much.
According to him, with inter-chain communication, this is an additional step that they have to do and it makes the process more similar to a centralized exchange, which is not ideal.
Malta, The Blockchain Island
Trinkler did not choose Malta only because of its pro-crypto political climate and legislation but also because the country has recently attracted some major exchanges like Kraken, Binance and ZB, which have all opened offices in the island.
Having some proximity with these exchanges can help Agora Trade in creating its dark pool, a space in which trades can be made without being public, as this might help with the liquidity of the dark pool.
Another way that Agora Trade wants to use to set itself apart from the other decentralized exchanges is that the company will have an integrated wallet that will store keys for holdings on multiple blockchains in an image file called “imagewallet”. It will be basically a picture of a QR code with a warning not to share it.
Developers are already thinking of concealing the image within another image, which could create a graphic wallet, Trinkler believes.