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DEX [:star:Focus Now, Not The Main Tree] & Consenus (PBFT)…

- - - - Editing... Three classes; ShouldCloseLedger / CheckConsensusReached / CheckConsensus( >= 80%)
    - - Parameters that control consensus algorithm are declared. They are something to do with duration and manually set by specific numbers
- - - - Only a single node (the primary) can commit to the blockchain
      - Voting based
      - Adding or removing nodes from network is difficult
        
        How difficult?
      - P2P communication is very common/frequent
- - - - Seller set a Timelock and a min price.
      - Other users can start to post bidding buy orders for this open contract.
      - Once the time lock expires, the highest bidder pay with the price of the second highest bidder.
- - - - What are the notification and penalty mechanisms?
        How to guarantee the security? (What are they doing right now? :question:) Why this is the case, just their model or for security reason?
    - - Low popularity – centralized exchanges are more popular and has the biggest volumes of trading, that makes DEX not so good, because of low volumes and lack of orders.
      - No insurance – when you exchange your assets by yourself, noone can help you if you lose it by some reasons.
      - Not all services – there are no margin trading service or stop and loss, as a lot of services, providing by centralized exchanges.
      - No customer service – usually you can’t contact someone if you have a problem.
      - High cost – if fees will be high it could be expensive to trade, because you need to pay fee to miners to end the deal.
      - No fiat – decentralized exchanges exists only in blockchain and it’s only for cryptocurrencies.
      - Complicated to use – DEX is a tool for experienced cryptocurrency owners. It is hard to use and you need to know a lot of in crypto-trading.
  - - - :star: Owning a cryptocurrency address is the registration to a DEX.
    - - The Mr. Gox Bankruptcy (2014)
    - - Quick access – no need to register or verificate an account.
      - Peer-to-peer – no one can stop or control the trading.
      - Cheap and faster transactions – operations is direct, you don’t need to wait for exchange and to pay fees.
      - Security – the exchange does not hold your funds.
      - Comfort – most DEX provide integration with reliable hardware wallets.
      - Privacy – no one except traders can see personal data, which is kept locally.
      - Security – encryption and exchange is available through the Tor proxy.
      - No manipulations – noone can create fake orders or market volume to activate the trades.
- - - - Lightning network scales transactions, not users. The cost to run a full validating node will still be high.
      - Friction on L1 affects fungibility on L2; coins have position-dependent value.
      - Liquidity: most "wealth states" are not reachable via Lightning transactions. Payment failures are unavoidable.
      - Routing is hard when the network graph is large: lightning hubs will centralize to reduce routing and liquidity problems
      - The Lightning Networks's Dirty Little Secret
        
        If the value-in-flight is below the BTC dust threshold, then it cannot be represented as a third output in the channel-state transaction
        
        If the amount sent is too small, then that will go directly in to the miner's wallet (as mining fee).
        
        The damage the intermediate tx router can cost:
        
        The value of the payment + the cost of establishing a new lightning network (LN).
    - - Routing payments securely across multiple payment channels
      - Highly connected/integrable with the Lighting Network
      - Getting ride off the risk of middle man
      - Steps :star:
        
        Alice -- (open payment channel) --> Bob
        
        Alice what to buy something from Charlie for 1000 satoshis
        
        Carlie generates random value x, and get the hash digest h(x).
        
        Charlie -- (h(x)) --> Alice
        
        Alice -- (1000 satoshis, h(x)) --> Bob [condition: Bob can cash the money iff. he get x for the hash digest]
        
        Bob -- (1000 satoshis, condition) --> Charlie
        
        Charlie know x for h(x), thus can claim the payment now. By doing so, Charlie will necessarily make this secrete x available to Bob
        
        :question: How this works, and why it will be the necessary case?
        
        Bob uses the pre-image x to finalize his payment from Alice.
    - - Cryptographic Hash Function
      - Timeout
        
        1 day/hop starting from the fund receiver (e.g. 5 hop means you would have 5 days, and the next one have 4 days etc. to make the payment)
        
        Two parties can always cancel by mutual agreement (by creating timeout tx. w/ no locktime)
      - Cryptographic Random Number Generator
      - Digital Signature
        
        Sign what :question:
      - Details
        
        If you can produce a 20-byte random input data R that maps to the hash digest H you got within 2 days, then the next hop user will settle this contract (HTLC) by paying you the amount specified.
        
        If 2 days have elapsed, then the above clause is null and void and the clearing process is invalidated.
        
        Both parties, as long as they are honest, should pay out according to the terms of this contract early so long as they agree on this contract.
        
        :star: The key to connect these parties are by the hashing and time lock
        
        Hashing: prevent any intermediate routers to compromise the transaction
        (if attacker that got the H(x) and broken the hash to learn the x, then they can claim the fund without forwarding the msg)
        
        Timelock: Necessary to prevent black hold attack. (attacker stop forwarding)
        
        Incentives: transaction fee? :question: Yes, the money sender will send a little bit more as fee for the intermediate routers.
        
        Do we ignore the router that once "refuse" to forwarding our tx? (or just decrease the probability to route through them?
  - - - Buy orders
        
        Bids
        
        Amount they wish to purchase
        
        Ask price
      - Sell orders
      - Order histories
- - - - Slow in starting and closing
      - Trading buttons have high latency
      - Reward with their own stable coin.
      - Experienced Null Pointer exception: they post their software error directly on the UI, which is highly not recommended
      - How do they store their funds and derive their accounts? :question:
      - How decentralized are they, and what is their business model? Why can they set reward? Who issues the tokens?
  - - - VDEX is a market for digital assets where users can trade while maintaining control of their private keys.
      - Not really feel like a decentralized product...
      - https://volentix.io/
      - They are doing IEO
  - - - Open protocol. The Block DX DEX is built on top of the open source Blocknet protocol utilising cross-chain atomic swaps and XRouter.
      - For trading BTC based currencies
- - - - Blog
      - Documentations
        
        Bisq Node operator Issue
        
        How to list an asset?
        
        Bisq DAO
        
        Spec
        
        Payment account age witness
        
        Bisq Arbitration System
      - Whitepaper
      - Market
      - Github
    - - 2018 DEX Review
      - inDEX
    - - spec 2.0
      - Github
      - Documentation (Community Resources)
      - Whitepaper
      - Standard Relayer API
      - Tech Talk
      - ETH DevCon 0x
    - - Web App
      - Documentation
      - Whitepaper
      - RIDE contract language
        
        6.2 Atomic Swap
        
        RIDE in doc
        
        RIDE Smart Contract
    - - Documentation
      - Integration
      - Reserves
      - API
      - GitHub
        
        KyberSwap
        
        Smart Contract
        
        Reserve Data
- - - - Quite flexible, since we can apply the protocol on anything. Anyone can build the DEX relay and earn money by collection tx. fee.
      - 0x is supper versatile
  - - - My idea is the uncertainty, which cannot determine the result of fill/cancel when maker and taker make their action at the same time. (cause this is determined by the miner timestamp.)
  - - - We don't need to build from scratch, but we can make good marketing strategy. And we will need to check the security issues online before we start.
  - - - 0xOTX is only for ether-tokens. (radarRelay is not even for ether... They all use WETH for ERC20 standard tokens) Maybe ERC223 standard can make Ether compliant with all the other tokens based on ERC standards.
      - Yeah only ERC20 and ERC721 tokens right now. Not BTC