Republic Protocol Dark Nodes : Decentralized Cross-Chain Dark Pool?

Republic Protocol is a dark pool exchange that’s decentralized by using the blockchain technology. The platform facilitates cross-chain atomic trades through a hidden order book that’s on the Ethereum and Bitcoin networks.

Miners that operate within this protocol solve equations and earn REN tokens for doing so. The miners are supposed to match orders and not reveal the underlying trade until it’s executed. There have been updates that Republic Protocol is gearing up for its preview and installation for the Dark Nodes, a decentralized dark pool for cryptocurrency trading.

There are even rumblings of the Federation Zero Republic Protocol Testnet from going live in the near future as well.

Republic Protocol Rationale

The platform aims at creating a trustless network that trades large block orders under the ERC 20 standard. It allows for ETH and BTC pairs to be exchanged under minimal slippage and also provides protection from front running.

The Republic Protocol is able to deliver privacy and security that’s mathematically proven. This is not usually the case when it comes to dark pool exchanges. When this is possible, investors and traders can efficiently exchange a significant amount of cryptographic assets.

Republic Protocol Timelines

Q1 2018

  • Peer to peer overlay network
  • REN token ERC 20 contract-Atomic swapping contracts that support ETH,BTC, ERC 20,ERC721-Peer to peer pooling networks-Registrar contracts for registering nodes & traders

Q2 2018

  • Order booking contracts for opening as well as closing trades
  • Computation and secret sharing-Release of the official nodes that are supported by Republic Protocol-Setting up of trader terminals that’re designed to open or expire orders-Verifiable sharing of secrets

Q3 2018

  • Full specification of the Republic Protocol
  • Implementation of the open source reference-Ubuntu & Docker package reference implementation-Nodes maintained by Republic Protocol partners-REN token powered DAO

Q4 2018

  • Inclusion of more chains such as Litecoin
  • Scaling of more atomic swapping solutions such Lighting and Raiden-High Frequency Trading support-Institutional support

Assumptions of the Republic Protocol

The platform is built on the following assumptions:

  • That a 3rd party exists who is trusted and that this party will always perform their functions with honesty. They however have limited computational power.
  • Participants will always act in a rational manner and that they won’t engage when there’s no incentive to do so. They are to try and maximize their own profit and not act in a malicious manner.

Properties of Republic Protocol

The following are the properties of this platform:

  • Identity of traders is secure within this platform although the underlying crypto that’s being traded may have its own limitations in terms of privacy.
  • When orders are being matched. The traders are not obliged to remain online. Immediately an order is placed the nodes carry out computations until a batch is found.
  • Before an order is matched, it’s usually secure. Once matching occurs, some of the details about the order are revealed to the parties involved.
  • No single participant can estimate the liquidity of the Republic Protocol dark pool

Republic Protocol Conclusion

The REN token is being introduced as an incentive where traders can offer it as an order fee. From this order, the nodes that are matching are then rewarded. The token is also used as a bond by traders which increase security on the platform.

We can see that updates are streaming out about the Dark Node Registry and even was able to pick up a quote from Republic Protocol CTO, Loong Wang, saying;

“The community will now be able to access our visualization website, which shows how the Dark Node Registry has organized Dark Nodes into randomly sampled Dark Pools. It also shows the health of the network, and the flux of orders being opened and matched.”

“During this preview, Republic Protocol will run five of our own Dark Nodes to act as a bootstrap for the rest of the network. A very small group from the community has been selected to run their own Dark Nodes, with more to be added in the coming weeks. Once the preview is complete, we will be one step closer to the Federation Zero Testnet, which will be open to everyone!”

“Stay tuned for further tech updates to learn more about the progress of the Federation Zero Testnet, we are always looking for active and engaged members of our community to help preview the Dark Nodes.”

As we look forward to more updates about the 2018 Q3 launch of the Ethereum mainnet, the Republic Protocol ICO (REN Token) has already raised over 35,000 ETH from over 4,000 people.

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