Jump to content

MARKET Protocol

VERIFIED
  • Content count

    26
  • Joined

  • Last visited

  • Time Online

    1h 37m 11s

Social Info

2 Followers

About MARKET Protocol

  • Rank
    MARKET Protocol Team

Recent Profile Visitors

357 profile views
  1. Kleros partners with MARKET Protocol for decentralized derivatives trading The decentralized arbitration technology will integrate with a leading project decentralizing the derivatives market… Blockchain allows for an entirely new class of trustless trading. These new forms of transaction without central intermediaries bring higher security and lower costs to financial services. For this trend to consolidate and grow, a new legal infrastructure is needed. Kleros, a new decentralized dispute resolution ‘layer’ for virtually any transaction, has partnered with MARKET Protocol, a company building an open source foundation for decentralized derivatives markets, an industry worth over 500 trillion. Together, the two companies will provide a completely decentralized trading and dispute resolution technology platform for secure and trustless transactions. “The decentralized nature of MARKET Protocol is another great application for our trustless arbitration services”, said Federico Ast, CEO of Kleros. “As in other critical use cases such as e-commerce and payments, this is another step for our protocol to build the dispute resolution infrastructure for the global decentralized economy to operate smoothly and securely”. Kleros, whose name is derived from the Greek word for Kleroterion (a stone randomization device used in democratic processes in ancient Greece) provides completely decentralized arbitration services for virtually anything. The company proposes doing this using Ethereum smart contracts. Its dispute resolution technology can be used to arbitrate all kinds of disputes in industries such as e-commerce, finance, and insurance. MARKET Protocol is powering safe, solvent & trustless derivative trading of any asset. This creates a decentralized framework allowing traders to establish long or short positions without lending or borrowing. Contracts are guaranteed solvent with no counterparty risk. Users can trade cross-chain, off-chain or on-chain relationships, such as Monero/ETH or APPL/stablecoin using ERC20 assets as collateral while remaining on the Ethereum blockchain. The protocol provides the pieces necessary for others to create decentralized exchanges and applications. MARKET Protocol’s first beta dApp was released on Rinkeby test network in April. Seth Rubin, CEO, and co-founder of MARKET Protocol mentioned: “With a trustless settlement, we are guaranteed to have issues from time to time. This can be as simple as bad data or worse, malicious data. We are excited to work with Kleros to provide creators of MARKET Protocol contract relationships a robust dispute resolution mechanism. We look forward to working with Federico and the rest of the Kleros team!” Combined with Kleros, the two applications will provide the infrastructure for secure and fair decentralized trading for the next generation of derivatives traders. To learn more visit: www.kleros.io www.marketprotocol.io
  2. @Arhon I am very happy to hear that you found our project to be interesting! The best way until now when it comes to guiding people into the MARKET Protocol and its use cases, as well as the benefits of having such solution available on the blockchain, was to share people our resources from our blog, starting with explaining what is MARKET Protocol - https://medium.com/market-protocol/market-protocol-explain-it-like-im-five-673312673b6e. In case this introduction is still not sufficient, I always send people an article explaining the history of derivatives trading - https://medium.com/market-protocol/the-history-of-derivatives-trading-631e9ab64fed. Also, it is crucial to realize why derivatives are important in the first place - https://medium.com/market-protocol/why-derivatives-cb65de0cd528. Now that you should have a basic understanding of both MARKET Protocol and derivatives, you are probably going to think of the possible use cases for such solution. What we want to emphasize as the most important ones are the following: - Safe, solvent and trustless trading of any asset - Decentralized settlement and custody of funds enabled via smart contracts - Ability to protect from a price decline - Efficiently short cryptocurrency assets - Decoupling token utility from market volatility in order to help the higher level of digital asset adoption - Creating off-chain and cross chain trading relationships (a good example would be trading a TSLA stock or S&P 500 by using your crypto) and many more! So now with this covered, if the idea resonates with you, the biggest question might be the team. Luckily, our founders have given many interviews so far, some of the most important questions they have answered were done as a part of the "Meet the Team" series on our blog: - https://medium.com/market-protocol/meet-the-market-protocol-team-collins-brown-decef020be36 - https://medium.com/market-protocol/team-interview-co-founder-seth-rubin-3e1def8d4870 - https://coincrunch.io/marketprotocol/ - https://pressurecast.simplecast.fm/9de17399 To learn more about the rest of the team, please visit - https://marketprotocol.io/team We are developing our protocol in a decentralized, open-source and remote manner. In order for everyone to always be in sync with the latest progress, we do weekly engineering calls every Thursday at 8AM MDT, fully open for public participation - https://github.com/MARKETProtocol/community/blob/master/docs/engineering-weekly.md Since we believe in collaboration much more than in competition, we are constantly working on establishing mutually beneficial partnerships with leading projects in the industry that would enable us to build the best possible product. You can stay updated on our partnerships announcements by subscribing to our newsletter - https://marketprotocol.io/#subscribe. Also, we have a partners page available on our website - https://marketprotocol.io/partners Since i hope by now you very much liked the idea, the logical question would be "how do I get involved?" I would certainly advise you to join or community on Telegram and Discord, depending on your backgorund you can chat with our engineering team and join one of the future calls, and follow us on Twitter and Instagram, where we are always focused on providing our community with our latest updates, and acknowledge the ones that are a true program ambassadors. I hope I didn't put too much on your plate with this, and I look forward to seeing and chatting with you soon! Lazar Jovanovic Community Manager at MARKET Protocol
  3. MARKET Protocol partners with Bluzelle! We are pleased to announce a partnership between MARKET Protocol and Bluzelle! MARKET Protocol is powering safe, solvent & trustless derivative trading of any asset. We offer a decentralized framework allowing traders to establish long or short positions without lending or borrowing. Contracts are guaranteed solvent with no counterparty risk. Users can trade cross-chain, off-chain or on-chain relationships, such as Monero/ETH or APPL/stablecoin using ERC20 assets as collateral while remaining on the Ethereum blockchain. As a protocol, we provide the pieces necessary for others to create decentralized exchanges and applications. Our first beta dApp was released on Rinkeby test network in April. Bluzelle is a decentralized, on-demand, scalable database service that aims to provide a data storage solution to the decentralized internet. To ensure developers get the highest throughput in performance, reliability and scalability, Bluzelle implements swarming technologies. A swarm is a large group of nodes (computers) that work together to store and manage data. Nodes in these swarms can go down and new nodes can come up with minimal impact on the network. Overall Bluzelle is a meta-swarm comprised of multiple swarms. Modern financial exchanges generate an enormous amount of market and trading data. Data providers and exchanges record all kinds of information including trade size, trade price, bid size, ask size and much more. Even though the crypto trading landscape is still just a fraction of the traditional trading space, there is still need for efficient and scalable data storage. Utilizing Bluzelle’s database solutions offers exchanges, applications and traders a way to store trading and market data. By integrating with order book hosts and other applications, Bluzelle can offer a necessary, standard and consistent decentralized database solution. “The amount of market data created on traditional exchanges like the CME is staggering. We expect this trend to continue in the crypto space. We believe Bluzelle’s architecture provides a reliable and scalable solution and look forward to working together.” said Seth Rubin, CEO and co-founder of MARKET Protocol. Nitin Cunha, Director of Developer Relations at Bluzelle commented, “We believe MARKET Protocol provides an essential piece of trading infrastructure in the blockchain space.” Learn more about MARKET Protocol: Join our Telegram chat and Discord Follow us on Twitter, Medium and Facebook Learn more about Bluzelle: Join our Telegram chat Follow us on Twitter and Medium
  4. Blockchain Crash Course: Protocols, dApps, APIs and DEXs The current primary focus of the MARKET protocol team is to build the product and grow the community around it! While doing so, we have noticed some confusion in our interactions with interested parties about what MARKET Protocol is. The initial common misconception is that we are building a decentralized exchange where various assets, futures, and derivatives are traded. Well, that is not exactly the case. To be precise, MARKET Protocol is a decentralized and trustless Ethereum-based derivatives trading protocol. It is a set of rules to replace the classic notion of traditional exchanges with a ‘decentralized exchange protocol’. An accompanying ecosystem of APIs and dApps will operate in a decentralized, user-friendly, reputable, and adjustable manner on the Ethereum network. The MARKET Protocol will give traders the opportunity to enter into trades by relying on the protocol and exchanges — third-party nodes to facilitate them. To create a deeper understanding of the MARKET Protocol, a shift in perception is needed. We first need to define what is a protocol, what are dApps and APIs, and where do decentralized exchanges fit into place. Protocols A protocol can be seen as a methodology agreed upon by two or more parties that establish a common set of rules that they can agree upon so as to enter into a binding agreement. Humans are known to establish protocols spontaneously, even in their formative years in schoolyards, for instance, where they come to agree on a common set of binding rules to play a game. Computer science has taken this notion further. The Encyclopaedia Britannica describes the computer science notion of protocols as: “…a set of rules or procedures for transmitting data between electronic devices, such as computers. In order for computers to exchange information, there must be a preexisting agreement as to how the information will be structured and how each side will send and receive it.” Protocols are therefore the set of rules that govern the network. Blockchain protocols usually include rules about consensus, transaction validation, and network participation. Before we get into examples of blockchain based protocols, it is very important to explain why this layer is so revolutionary in terms of its value compared to web protocols. Many people are familiar with Google, its evaluation and services, without thinking what makes Google work in the first place. The World Wide Web works on top of shared protocols like TCP/IP, HTTP, SMTP, etc., with the majority of the value captured and re-aggregated on the applications layer, mostly in the form of data. Blockchain, however, keeps the majority of its value in the base, protocol layer with only a fraction of that value distributed along at the applications layer. That’s why we call blockchain protocols “fat”. Figure 1: Web vs. Blockchain Protocols Value capturing The main reason for the outlined differences lies in the fact that blockchain protocol level assets can also be its native product. Bitcoin is a good example. Since Bitcoin, the protocol hinges upon a native asset, which is also used as the end product. There are also examples of protocols like Ethereum which exists at all three layers — protocol, development platform, and native asset. Due to its architecture, Ethereum is able to facilitate other protocols and dApps built on top of its network. Since it was launched, many dApps have been built on top of the Ethereum blockchain. Many new, different protocols were also created to address some blockchain issues like NEO, Cardano or IOTA, which is not even a blockchain. Like with Web protocols, there is not a single protocol that is able to satisfy all the market participants needs in a single layer. Therefore, there is a need to create a new protocol, for example, one that lies on top of another protocol like Ethereum as the base layer, for a specific use case. MARKET Protocol is a protocol that is designed to enable trustless trading of decentralized derivatives. You can think of it as a layer on which application layers will be built on top of. Users will use applications to interact with the protocol so as to enter into trading agreements with each other. These dApps will be designed to use the protocol or the rules specified by the MARKET Protocol. The way protocol layer-based technologies develop will be the most important topic in the blockchain ecosystem. The main focus in this space should be creating systems that are able to work together in order to provide the best possible user experience. dApps and APIs With the ‘rules of engagement’ set by the MARKET Protocol, all that is needed is for its users to have a way to interact with it — and this is where applications come into the picture. According to David Johnston, author of The General Theory of Decentralized Applications, for an application to be considered a dApp, it must be completely open-source, operate autonomously with no entity controlling the majority of its tokens. The application’s data and records of operation must also be cryptographically stored in a public, decentralized blockchain in order to avoid any central points of failure. Finally, the application must use a cryptographic token which is necessary for access to the application, and any contribution of value by miners or stakeholders should be rewarded in the application’s tokens. Blockchain-based decentralized applications can be classified into three different types/layers based on their architecture: Type 1: dApps that have and run on their own blockchain, like Ethereum Type 2: decentralized applications that use the blockchain of a type 1 that are protocols and have tokens that are necessary for their function, like MARKET Protocol Type 3: decentralized applications that are built on top of and use the protocol of type 1 or 2 decentralized application. Best example is decentralized exchanges built on top of an existing protocol layer, like DDEX or Radar Relay that operates on 0x protocol, a decentralized exchange built on top of Ethereum blockchain. Figure 2: Three-layer tech stack — blockchain, protocol and dApp MARKET Protocol is a type of dApp that is a protocol that operates on top of a blockchain as its base layer. We are also in the process of creating a Type 3 dApp which should demonstrate the possibilities offered to our future platform users and Type 3 dApp creators. Those third parties will be incentivized to attract users to use their applications by setting fees to provide services. We anticipate all sorts of applications to be built that will allow participants to set the parameters for their intended trades. Users with varying levels of experience will be able to use the MARKET Protocol dApp which is designed to provide tools for contract creation, Oracle testing, and deployment. Users will also be able to browse previously deployed MARKET contracts that they would like to use as the basis for their trade. The next dApp that will be released will also be used in conjunction with the testnet environment to simulate trading and test their contracts and strategies. As new applications evolve, many developers are interested in utilizing them in their current applications. The simplest way to integrate a part of an existing app is via API. Technically, API stands for Application Programming Interface. In simple terms, API is the part of the server that receives requests and sends responses. From the users perspective, APIs allow them to complete an action without leaving a website. A good API makes it easier to develop a computer program by providing all the building blocks. The building blocks then put together by the programmer into a web-based system, operating system, database system, and computer hardware or software library. The MARKET developers would like to eventually provide an API layer to make interaction with the network easier. As an example, third-party order book hosts, called nodes, can be provided with an API that easily allows them to host an order book. Third parties that already host other trading services will be able to utilize the APIs to plug into the network and offer their users features that are exclusively available to MARKET Protocol users. Although we anticipate third-party application providers to offer trading services to their users, this does not exclude people creating contracts and trading directly over the protocol without needing to use a third party contract supplier. Decentralized exchanges It is important to be able to distinguish between two often confused notions; a decentralized exchange, and a protocol that acts as a framework that allows for the use on a decentralized exchange. We covered what DEXs are and why are they important in one of our previous articles. From a technological standpoint, a decentralized exchange is a Type 3 dApp, that usually runs on top of a protocol like MARKET and a blockchain like Ethereum as a first layer solution. A decentralized cryptocurrency exchange is one in which the architecture of the platform has no central controlling server, but rather a network of nodes, which makes them much harder to hack. The idea is that users remain in control of their private key management and wallets. If the exchange itself is compromised, the attacker should at least, in theory, not be able to gain access to a centralized database of user details or any private keys. Although the concept of decentralized exchanges is great, they mostly support the basic cryptocurrency exchange trades from asset A to asset B. More advanced trading tools and features like derivatives trading, stop loss, as well as a host of other trading features, is one of the reasons they haven’t yet achieved the same popularity as centralized exchanges. MARKET Protocol leverages all the security features of the Ethereum blockchain and decentralized exchanges. We anticipate that the entire DEX ecosystem will mature and scale to achieve all benefits of centralized exchanges, without the issues related to centralized custody of funds and settlement. To learn more about MARKET Protocol, visit marketprotocol.io, read our whitepaper, and join the ongoing discussion on Telegram.
  5. MARKET Protocol partners with MakerDAO! We are happy to announce that MARKET Protocol, a decentralized derivatives protocol enabling safe, solvent & trustless trading of any asset, is utilizing the Dai stablecoin as the base token for MARKET contracts. Using Dai as a base token in MARKET contracts lets traders create and trade dollar-denominated relationships like stocks, bonds or other crypto assets. Since one Dai is always one US dollar traders, speculators and hedgers all benefit from the price stability provided by Dai. Price stability is one of the issues limiting adoption in the cryptocurrency space. Both MARKET Protocol and MakerDAO address volatility in the blockchain space. Combining the derivative framework provided by MARKET Protocol with the stability offered by the Dai stablecoin provides trader the tools to hedge and manage risk effectively. MARKET Protocol enables traders to create and trade contracts deriving value from on-chain, off-chain or cross-chain assets. MARKET contracts allow traders to buy or sell any crypto asset without taking custody of or storing those assets. Furthermore, users can create and trade relationships like Google stock or barrels of oil while remaining in crypto on the Ethereum blockchain. Using MARKET Protocol traders and businesses can effectively manage risk by separating the price of crypto assets from their utility — a necessary step towards scaling the space. The base token in MARKET contracts defines the token for profits, losses and collateral. Although any ERC20 token can be used as a base token, we expect many relationships to utilize a stable-coin like Dai. Beginning with Ethereum and expanding to other ERC20 assets users can generate Dai on demand with the Maker Platform. Anyone who has collateral assets can leverage them to generate Dai on the Maker Platform through Maker’s unique smart contracts known as Collateralized Debt Positions. Once generated, Dai can be used in the same manner as any other cryptocurrency: it can be freely sent to others, used as payments for goods and services, or held as long-term savings. MARKET Protocol may also utilize MakerDao’s oracle to pull in their trusted ETH/USD reference price allowing contract users to incorporate this index in trading relationships. Seth Rubin, CEO and co-founder said, “Traders don’t want to win on their trade and lose on their base currency which can happen with crypto denominated trading relationships. DAI provides traders price stability.” “MARKET Protocol provides a way for holders of crypto assets to gain long or short exposure to a wide variety of assets.” commented Greg Diprisco — business development lead at MakerDao. Learn more about MARKET Protocol: MARKET Protocol is powering safe, solvent & trustless trading of any asset. We offer a decentralized framework allowing traders to establish long or short positions without lending or borrowing. Contracts are guaranteed solvent with no counterparty risk. Visit our website Join our Telegram chat and Discord Follow us on Twitter, Medium and Facebook Learn more about MakerDAO: We believe in a future that leverages the power of decentralization for trustless transactions. With Maker, we are carrying out our vision of creating a decentralized stablecoin that will unlock the unique benefits of a complete financial ecosystem on the blockchain. Join us! Check out our Website Read our Whitepaper Join the conversation on Reddit, Twitter, and Rocketchat
  6. MARKET Protocol is pleased to announce a collaboration with Shark Relay! As many token traders know, there are limited options to short crypto assets or bet on a price decline. Short selling is a fundamental piece of any efficient market and is very difficult or impossible for many participants. Further, if available, it is centralized and only offers limited products. Through smart contracts on the Ethereum blockchain, MARKET’s decentralized protocol facilitates risk transference and trustless trading. Traders are not just limited to owned ERC20 tokens. MARKET Protocol contracts allow exposure to other cryptocurrencies like Bitcoin, Ripple, and Monero. Shark Relay launched on the main net at the end of April with an easy to use and intuitive dashboard. We look forward to working with Shark Relay as they bring decentralized derivatives to their traders. To stay tuned for future announcements, follow us on Twitter, join the ongoing discussion on MARKET Protocol Telegram and Shark Relay discord chats, and visit https://marketprotocol.io and https://sharkrelay.com/ to learn more about both projects.
  7. 0*OxNOF3A1AkilnUtV.

     

    MARKET Protocol is pleased to announce a collaboration with Shark Relay!

     

    As many token traders know, there are limited options to short crypto assets or bet on a price decline. Short selling is a fundamental piece of any efficient market and is very difficult or impossible for many participants. Further, if available, it is centralized and only offers limited products.

     

    Through smart contracts on the Ethereum blockchain, MARKET’s decentralized protocol facilitates risk transference and trustless trading. Traders are not just limited to owned ERC20 tokens. MARKET Protocol contracts allow exposure to other cryptocurrencies like Bitcoin, Ripple, and Monero.

     

    Shark Relay launched on the main net at the end of April with an easy to use and intuitive dashboard. We look forward to working with Shark Relay as they bring decentralized derivatives to their traders.

     

    To stay tuned for future announcements, follow us on Twitter, join the ongoing discussion on MARKET Protocol Telegram and Shark Relay discord chats, and visit https://marketprotocol.io and https://sharkrelay.com/ to learn more about both projects.

  8. Market Protocol has been created to provide a secure, flexible, open source foundation for decentralized trading on the Ethereum blockchain. It provides the pieces necessary to create a decentralized exchange, including the requisite clearing and collateral pool infrastructure, enabling third parties to build applications for trading. In this episode of The Crunch we speak with Seth about derivatives, not just in crypto context but Seth explains us a lot about how they work and what they are. We also discuss the future of crypto market, at what stage it is compared to other asset classes and what kind of investors are there. Listen to this interview and learn: What are derivatives and how do they work What will they bring to crypto market What kind of investors are in crypto space and how will that change What is the oracle and what is its functionality https://coincrunch.io/marketprotocol/
  9. CTO of MARKET Protocol Phil Elsasser explains how will it revolutionize trading and help blockchain scale through price stability enabled by decentralized derivatives and how MARKET contracts enable cross-chain and off-chain assets exposure!
  10. MARKET Protocol, a decentralized derivatives protocol designed to deliver on-chain, cross-chain and off-chain trading, is pleased to announce a partnership with Havven — a decentralized payment network and stablecoin. Stablecoins have all the benefits of other crypto assets while adding the utility of a stable medium of exchange. They are often pegged to traditional fiat currencies or physical assets like gold. Derivatives are contracts between two counterparties denominated in a base token deriving value from a reference asset all without ever taking custody of that asset. Anyone can create MARKET Protocol contracts with dollar proxy — eUSD as a base token resulting in relationships like eUSD versus the S&P 500 index. Alternatively, contracts can be generated for cross-chain relationships like eUSD/Monero providing eUSD/Monero price exposure without ever taking custody of Monero or converting to fiat in a decentralized, safe and solvent environment. eUSD is the initial stablecoin within the Havven network, and is a major step towards the release of havven-backed nomins, the final stablecoin iteration that launches on June 11. As part of the launch of eUSD, Havven created a tool to simplify the process of converting your ETH into eUSD and vice versa. eUSD and future nUSD stablecoins can also be used as a payment method on the Havven eStore. Seth Rubin, CEO of MARKET Protocol, says, “Havven presents a unique and thoughtful stablecoin model. It’s great to see a team deliver so quickly in production.” Kain Warwick, Founder of Havven, says the partnership is a mutually beneficial one: “MARKET Protocol provides businesses and users with the framework to effectively manage risk, and a stablecoin will help combat another major risk — price volatility.” To learn more about MARKET Protocol, its partners, team members and development progress, join the ongoing discussion on our Telegram, subscribe to our newsletter and follow MARKET Protocol on Medium. More information on Havven is available on their website and for any questions about the project, join their Telegram chat.
  11. MARKET Protocol Partners with Top Decentralized Exchange - DDEX MARKET Protocol is pleased to announce a partnership with DDEX! As a decentralized exchange, DDEX plans to implement MARKET Protocol alongside their existing spot trading. MARKET Protocol was built to enable buying or selling of derivative relationships in a DEX environment without the need to borrow or take custody of the underlying reference asset. Through derivative exposure DDEX’s users are no longer limited by existing ERC20 to ERC20 relationships and opens the door for expanded on-chain, off-chain and cross-chain offerings all within a safe and solvent trading ecosystem. DDEX has focused on delivering an easy and intuitive trading experience. Seth Rubin, CEO and co-founder of MARKET Protocol said, “We have watched DDEX do a great job growing their user base and product offerings by simplifying the entire decentralized trading process and look forward to working together.” Bowen Wang co-founder of DDEX mentioned, “MARKET Protocol allows us to provide a range of unique trading relationships within our existing infrastructure. We can create many new trading opportunities for our users they can’t get anywhere else.” About MARKET Protocol: MARKET Protocol has provided the open source foundation needed to build decentralized exchanges and conduct trading activities on the Ethereum blockchain. It provides the framework enabling traders and businesses to buy and sell digital and real-world assets in a safe, solvent and trustless marketplace. More information can be found at www.marketprotocol.io. Join MARKET Protocol’s Telegram! About DDEX: DDEX is the most user-friendly decentralized global exchange for ethereum-based tokens. Currently, DDEX allows users to trade ERC-20 tokens from wallet to wallet with no possibility of theft, no withdrawal fees, and no uncertainty of deposit/withdrawal lockup periods. Working to dispel the myth that decentralized exchange are slow and hard to use, DDEX utilizes hybrid technology which makes DDEX as fast as a centralized exchange. More information can be found at www.ddex.io. Join DDEX’s Telegram!
  12. Co-founders of the MARKET Protocol, Phil Elsasser, Seth Rubin and Collins Brown, will be providing an introduction to MARKET as a company, the team behind the project, and the best ways to stay connected with us!   To learn more about the project, join our community and our social media platforms: Community Channel: https://t.me/Market_Protocol_Chat Twitter: https://mobile.twitter.com/MarketProt... Facebook: https://www.facebook.com/marketprotocol/ Reddit: https://www.reddit.com/r/MarketProtocol/ Steemit: https://steemit.com/@marketprotocol Medium: https://medium.com/market-protocol Newsletter: https://www.marketprotocol.io/#newsle... Discord: https://www.marketprotocol.io/discord
  13. MARKET Protocol is pleased to announce a partnership with the upcoming Virtuse Exchange. Virtuse Group, the parent of VIRTUSE Exchange has a rich and established history in the carbon emissions trading space with over 10 years of experience and 200 million tons traded. As one of the first implementations of MARKET Protocol, we are thrilled to have application partners with deep trading and market making experience. We are excited to see a traditional OTC/derivatives firm utilizing MARKET Protocol as a decentralized back-end for their upcoming exchange application. Leveraging their experience, VIRTUSE Exchange plans to connect crypto markets with real world assets. First expected to launch in the spring of 2018 with spot traded cryptocurrency pairs and following up with Digital Asset Collateralized Tokens (DACTs) released later in the year. VIRTUSE Exchange plans to use MARKET Protocol to trustlessly implement a number of DACTs. Through the MARKET Protocol VIRTUSE Exchange can create and trade any digital or non-digital relationship allowing them to offer new products unavailable on traditional exchanges in a safe and solvent framework. As established traders and brokers of real world commodities they can offer their existing traders products specifically designed for their needs. “We are excited to help the VIRTUSE Exchange team as they implement a solution on MARKET Protocol,” said Seth Rubin, CEO of MARKET Protocol. “This makes a lot of sense for us. MP offers a solution that isn’t available in today’s market allowing us to create DACTs, as well as, manage their liquidity on our platform,” said Ras Vasilisin CEO and founder of VIRTUSE Exchange. MARKET Protocol is advising on protocol implementation not on business strategy. To learn more, visit www.marketprotocol.io, read our whitepaper, and join the ongoing discussion on Telegram.
  14. Cryptocurrencies are the newest form of money. They are the Internet of Money — A financial revolution! However, problems exist. Security and custody of funds are still a major issue. The growing number of cryptocurrency thefts and hacks The rising value of cryptocurrencies has attracted investors, speculators and thieves alike. Many people have lost their coins to attacks with stolen valuations totaling billions of dollars. But by far, the highest number of thefts have happened on exchanges — around 80%. In 2014, approximately 650,000 bitcoin (now worth over $7 billion) was stolen from Japanese exchange, Mt.Gox, the largest recorded theft to date. More recently, another Japanese exchange, Coincheck, lost $500 million worth of NEM coins to hackers as well. Yet wallets and exchanges are not the only targets of hackers. Other crypto-related businesses requiring the storage of large amounts of coins have become targets for theft too. One recent example is a Slovenian-based mining company, NiceHash, which was hacked for 4700 BTC in December 2017. Below is an infographic of recorded thefts and hacks of cryptocurrencies from 2011 to March 2018: A list of recorded thefts and hacking of cryptocurrencies: (Source: https://bitcoinexchangeguide.com/top-cryptocurrency-theft-hacks/) Centralization comes with customer service support, convenient UI/UX, greater volumes, and instant off-chain trade executions. But all of those benefits come at a huge cost in favor of issues related to centralized custody of funds, disclosing personal information, and jurisdictional restrictions. Cryptocurrency wallets Not only have thefts taken place on hot wallets, but recently cold storage wallets have been a target as well. For example, Nano Ledger S recently discovered a vulnerability. There is also the issue of hacks that happen as a consequence of purchasing hardware wallets from third-party services like eBay. The awareness of decentralized custody of funds and its importance amongst cryptocurrency traders and investors is one of the main focuses in the industry. One widely used decentralized wallet solution is Electrum It was released under the MIT license in 2011 and is used for securing bitcoin payments. It is a free, open source software with support for all major hardware wallets and two-factor authentication. Electrum proves that decentralized software can offer a good user-experience and be reliable, however, the security issues associated with using it are still ongoing. To compound the issue, Bitcoin is just one of over 1,500 different digital assets. Securing all of them in a decentralized manner is very difficult. Many Ethereum network participants use Parity wallet to secure their funds. Unfortunately, it suffered a hack in July . It also had a critical vulnerability that resulted in locked funds for 584 wallets in November 2017. Their total balance is unknown, but outside sources have quoted that the funds were worth around 300 million dollars at the time. Decentralized exchanges Many market participants are short-term traders. They are not usually holding all of their funds in cold storage. Luckily, we are witnessing the emergence of many decentralized exchanges (DEXs) in the space like IDEX, Crypto Bridgeor Bisq. At the time of this writing, none of the top 10 most used decentralized exchanges have been hacked. But they do have other downsides. The two main issues affecting DEXs are extremely low volumes and lack of cross-chain trading relationships. In many cases, these exchanges only support the trading of ERC20 tokens. Atomic swaps could help solve this issue, but only exchanges for Litecoin/Decred and Bitcoin/Litecoin currently exist. Otherwise, there has been limited progress in the development of ERC20 token swap exchanges. Novel ways of addressing the issue of custody Smart Contract technology has empowered gifted developers with an opportunity to build products that could have the benefits of centralized solutions while enabling trustless custody of funds, trade execution, and settlement with no single point of failure. With MARKET Protocol, there is no need to take custody of an asset. Using a series of smart contracts, a trader can gain the exposure he or she wants without having to constantly move coins from wallet to wallet. The contracts are also fully collateralized using smart contracts to eliminate counterparty risk. Users can trust that their funds are secure while managing their desired market exposure. Please visit www.marketprotocol.io for more information, and join our discussion about MARKET Protocol on Telegram.
×

Important Information

By using CRYPTOCURRENCYTALK.COM, you agree to our Terms of Use.