Quote from: synechist on April 09, 2017, 07:46:09 PM

Quote from: CoinHoarder on April 09, 2017, 03:03:20 AM

Hi,

Can someone explain to me in simple bullet points how the decentralized exchange works?

1. Create an order in your wallet
2. XBridge relays it over our DHT network overlay to nodes on any chain
3. People's apps add your order to the order book
4. Someone accepts your order
5. Atomic coin exchange takes place (This is completely trustless, utilising OP_CHECKLOCKTIMEVERIFY)

Quote

I would like to add it to my thread (The DEX Thread). Actually, I already have added it, but I would like to elaborate on it there. I could not find a whitepaper.

Quote from: CoinHoarder on January 24, 2016, 04:54:21 AM

Blocknet
- Status: Alpha
- Website: http://blocknet.co/
- BCT Thread: https://bitcointalk.org/index.php?topic=829576.0
- A peer-to-peer protocol between nodes that connects different blockchains
- More to come...
Weaknesses:
- To be announced after I understand how it works...

As for weaknesses, I'd say that, from a trader's perspective, a weakness is that we can't support scalping and other fast-in-fast-out trading techniques without inducing risk. (We could, for example, build a slider that enables traders to accept orders from contracts with less than the "safe" number of confirmations. This would basically function as a filter on the order book, enabling "instant" trades in exchange for increased double-spend risk. Best used on small position sizes.)

Note: the Blocknet isn't just a decentralised exchange. That's just what we're bringing out currently. The Blocknet is infrastructure for the inter-chain era and the emerging "token ecosystem." We aim to provide monetised service-delivery from nodes on any chain to dapps on any other one. In this context, the decentralised exchange is our service-monetisation mechanism, and if we are successful, the exchange will be used mostly by machines.

I understand that Blocknet isn't just a decentralized exchange. I was just curious about how it works specifically for the purpose of creating a DEX, as that is what the DEX thread focuses on.

I wish good luck to this project, as I think it is very interesting and can become quite useful with all of the things that can be made possible with it!