I wish to create a decentralized exchange i.e,
1. fully decentralized
2. peer to peer
3. created by annon devs
4. no govt can shut down
5. open source so devs can input and work on improving the project
I need help in building this. Please advise if this is possible? as well as the type of consensus mechanism, token purpose i.e, what the token should do in the ecosystem that would work this project? I am not a techie but believe firmly in the decentralization of exchanges which is full of scam bots and fake volume that i am totally pissed off by.
I know this is not easy, people will not trust annon devs and founder, but i can't shake this off and its gnawing within me. So i need your advise to which how to go about this.
I will be really grateful for your kind advice. Thanks.
It sounds like you need to build on the Blocknet Protocol. It hits all items in your list and you can build your own white label DEX on it.
1. It is fully decentralized and can't be shut down by any government agency. The order book is validated and broadcasted by a decentralized network of community owned and operated service nodes running full blockchains to validate utxos being used in orders, effectively maximizing security (absolutely no centralized entity is required for the exchange to operate).
2. When an order is accepted, the trade is executed p2p via an OP_CHECKLOCKTIMEVERIFY-based trustless atomic swap.
3. The project is open source, the Github repo can be found here:
https://github.com/BlocknetDX/BlockDX ... contributed by both anonymous and non-anonymous devs (if your fear with the non-anonymous contributor is related to the blockchain being able to be squeezed by regulatory bodies: no contributor or entity for that matter has total control over the blockchain project and the blockchain cannot be stopped by any current contributor).
4. As was mentioned in point 3 and point 1, no government can shut down the exchange because service node operators are completely anonymous and literally spread across every continent in the world (Antarctica too probably
). Additionally,
anyone can operate a service node with a sufficient amount of BLOCK and the exchange can function with a minimum of
one service node.
5. As was also mentioned in point 3, the blockchain is entirely open source.
Blocknet features a Proof of Stake consensus mechanism utilizing the Quark algorithm. Service nodes are similar to a masternode in that there is a list that is validated by locked utxo collateral (5000 BLOCK). The BLOCK token is used as a fee paid to the service nodes in order to trade on the exchange so as to compensate them for the services they are providing to participants in the ecosystem. The blockchain also features a block reward of 1 BLOCK per minute where 0.3 BLOCK is awarded to the staker and 0.7 BLOCK is awarded to a random service node. BLOCK is also needed to operate a service node in order to receive trading and protocol fees alike (5000 BLOCK is a required lock-in per service node as was mentioned above). Service nodes also receive a vote in the governance system built into the blockchain itself.
As I mentioned before, you can easily build your own DEX on the API. This will allow you to additionally monetize your own exchange after fees are paid to the underlying Blocknet protocol itself. Doing this will also save you the hassle of launching your own blockchain and creating a brand new ecosystem, and instead allow you to leverage the already existing super decentralization of the Blocknet protocol itself.
