Mercury - Fully trustless cryptocurrency exchange - Looking for testers!

[olcaytu2005]

what it mean trustless? unsafe?

[1715019974]

1715019974

[1715019974]

1715019974

[1715019974]

1715019974

[1715019974]

1715019974

[favdesu]

nologies. Any crypto-asset can be tradable on Mercury, as long as it at least supports transaction scripts like Bitcoin's.

Some possible assets to be added:

• Ethereum
• Colored coins (USD, company stock, etc.)
• Sidechains
• Nubits
• Filecoin

looks pretty good so far!

Missing BitShares / BitUSD on your list

[mappum]

what it mean trustless? unsafe?

Trustless means you don't have to trust anyone else, so your funds are as safe as possible. When using centralized exchanges, you are trusting the exchange operators with your money so they have the power to do what they want with your money. In a trustless exchange, only you ever hold your money.

[olcaytu2005]

what it mean trustless? unsafe?

Trustless means you don't have to trust anyone else, so your funds are as safe as possible. When using centralized exchanges, you are trusting the exchange operators with your money so they have the power to do what they want with your money. In a trustless exchange, only you ever hold your money.

thank you but how decentralized exchanges do achieve that?

[GingerAle]

what it mean trustless? unsafe?

Trustless means you don't have to trust anyone else, so your funds are as safe as possible. When using centralized exchanges, you are trusting the exchange operators with your money so they have the power to do what they want with your money. In a trustless exchange, only you ever hold your money.

thank you but how decentralized exchanges do achieve that?

because no one is holding your coins - the coins are just locked up in algorithmic contracts. Therefore, you never have to send your money to an exchange in order to exchange it. Your money essentially stays in your wallet until the contract is filled, and then the transaction is sent.

(did I get this right?)

[olcaytu2005]

what it mean trustless? unsafe?

Trustless means you don't have to trust anyone else, so your funds are as safe as possible. When using centralized exchanges, you are trusting the exchange operators with your money so they have the power to do what they want with your money. In a trustless exchange, only you ever hold your money.

thank you but how decentralized exchanges do achieve that?

because no one is holding your coins - the coins are just locked up in algorithmic contracts. Therefore, you never have to send your money to an exchange in order to exchange it. Your money essentially stays in your wallet until the contract is filled, and then the transaction is sent.

(did I get this right?)

Yes thank you i got it

[blacklizard]

@mappum how you getting on with adding support for colored coins? Are you going to use the open assets protocol?

[mappum]

because no one is holding your coins - the coins are just locked up in algorithmic contracts. Therefore, you never have to send your money to an exchange in order to exchange it. Your money essentially stays in your wallet until the contract is filled, and then the transaction is sent.

(did I get this right?)

Yep, that's correct More details about the contract protocol are here: https://en.bitcoin.it/wiki/Atomic_cross-chain_trading

[mappum]

@mappum how you getting on with adding support for colored coins? Are you going to use the open assets protocol?

I'm holding off until there are some real assets to trade (I don't know of any high-volume colored coin assets on the market right now). However, I expect some companies to start issuing colored coin-based assets very soon.

[blacklizard]

I don't know of any high-volume colored coin assets on the market right now

GetHashing's smart asset has a net worth of $100K since it's backed by physical hardware which will double in the next weeks when batch 2 of the hardware comes online. GH basically created the first decentralized and freely tangible mining shares and a fully transparent and also decentralized cloud wallet / mining platform with all user data (inc the entire wallet strings) being stored in the users browser in LocalData and the user SALT.

There is also a few good assets on the Coinprism directory but what's really missing is a Marketplace. I thought Mercury would be the perfect solution since both, atomic-swap trading and colored coins are just about to gain momentum. Perhaps a smaller and niche kind of market for open assets using Mercury would benefit both.

[dzimbeck]

Hey I just wanted to make a suggestion. I know we talked earlier about AT and malleability and it was concluded it still is a problem until the update of checklocktimeverify.


However, I think I have a really good idea that may help you fully avoid malleability. In BitHalo, we use "instant refund" for preventing a malleable transaction. If you have a refund based on the TXID of the transaction in question to a multisignature account controlled by both parties then you can do AT! The amount must only slightly exceed the amount being traded. Hell, even a small refund would be a deterrent if it exceeded the probability of a successful attack.

Thus if a party deliberately changes the TXID before broadcast then he loses the refund. This can help you until checklocktimeverify is added and can make 100% sure your exchange is trustless.

This way we know that p2sh is indeed more resilient. Because we should try and attack the mercury exchange to test its resilliance to these attacks. If you want, i can give you a p2sh malleability script in python.

Please read my whitepaper on instant refunds and let me know what you think. If you have a question for me please PM me since i dont always check bitcointalk. The whitepaper is here... www.bithalo.org

Best,
David

[CryptInvest]

Hi! Please, support my order! Sell me some DOGE!

[mappum]

Hey I just wanted to make a suggestion. I know we talked earlier about AT and malleability and it was concluded it still is a problem until the update of checklocktimeverify.


However, I think I have a really good idea that may help you fully avoid malleability. In BitHalo, we use "instant refund" for preventing a malleable transaction. If you have a refund based on the TXID of the transaction in question to a multisignature account controlled by both parties then you can do AT! The amount must only slightly exceed the amount being traded. Hell, even a small refund would be a deterrent if it exceeded the probability of a successful attack.

Thus if a party deliberately changes the TXID before broadcast then he loses the refund. This can help you until checklocktimeverify is added and can make 100% sure your exchange is trustless.

This way we know that p2sh is indeed more resilient. Because we should try and attack the mercury exchange to test its resilliance to these attacks. If you want, i can give you a p2sh malleability script in python.

Please read my whitepaper on instant refunds and let me know what you think. If you have a question for me please PM me since i dont always check bitcointalk. The whitepaper is here... www.bithalo.org

Best,
David

Right, I mentioned that solution here before:

Additionally, a way to solve the malleability attack is to require party A to deposit some coins into party B's initial multisig deposit. If A mutates the transaction, they are also tying up their own funds in the process. This solution is already possible today, I may implement it in the Mercury alpha.

But it turns out to not be very viable from a UX standpoint, since traders have to already have a significant balance of the coin they want to buy (so they would have to buy it on another exchange), and they could then not trade their entire balance. It's still an option if necessary, but I'd actually rather lobby for OP_CHECKLOCKTIMEVERIFY to be added to coins since it only requires a soft fork and it is also necessary for micropayment channels and some escrow protocols.

[mappum]

Hi! Please, support my order! Sell me some DOGE!

Looks like someone made the trade

[tuaris]

This look interesting and it's in Java 

The code seems well written and easy to follow.  I'll study see if I can contribute to it in anyway.  Perhaps I'll start by adding in a new coin.

Thank you for making it open source.

[mappum]

This look interesting and it's in Java 

The code seems well written and easy to follow.  I'll study see if I can contribute to it in anyway.  Perhaps I'll start by adding in a new coin.

Thank you for making it open source.

Awesome If you add a new coin, look at my fork of Bitcoinj: https://github.com/mappum/altcoinj
Each coin has a NetworkParameters class in the params package.

Just letting you know, I'd prefer coins to be ones that have significant volume, I don't want to just add every boring altcoin. Some important ones that need to be added are Nubits and Ethereum (but those are a little more complicated).

[TwinWinNerD]

Is NXT on your radar too?

[wdnj]

Awesome project,good work

[mappum]

nice it looks like good work., any chance we see Monero on it?

Sure, Monero is a good candidate since it has a good amount of trade volume. I'll try to get it in the next release or two.

[mappum]

Good news on that front - our source code audit is nearly complete, meaning we will be open-source in the very near future. We'll post here as soon as you can access the code.

In the meantime, we have our Documentation available here: http://docs.nubits.com/, and our NuBitsj library here: https://github.com/Cybnate/NuBitsj

Shoot us a message if we can be of help! info at nubits dot com.

I'm a little worried about NubitsJ. Since Nubits uses PoS, the blockchain can't be safely verified by an SPV client. It seems that NubitsJ tries to solve that by trusting a centralized server for blockchain download, which is very insecure (full trust is being placed in that server).

If a more secure model can be worked out, I will work on adding Nubits. This might involve a client with a little more overhead than SPV (e.g. a pruned full-node).