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MARKET Protocol

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About MARKET Protocol

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  1. I have been a professional derivatives trader since 2005 with experience trading in almost every asset class. This is my 2 cents on how a company I am building could have prevented the OKEx bitcoin futures fiasco!
  2. A lot of people think of their cryptocurrency wallet as merely a digitized version of a real wallet that is used for storing funds. However, it doesn’t actually store cryptocurrencies. Rather, it saves a pair of public and private keys that grant access to one’s digital belongings. In a nutshell, a public key is a string of alphanumeric characters that serves as an address that others can use to send you cryptocurrencies. Likewise, your private key is what allows you to send money to others. You basically use these two keys to sign off ownership of your coins. There isn’t a physical exchange, mind you. The transfer of funds is simply recorded on the blockchain ledger with the difference of the balance in the sender’s and recipient’s wallet. Remember: You cannot compromise on the safety of your keys; if you do, it’ll lead to a tearful goodbye to your digital assets. It is imperative to keep them safe. Always have backups! Unlike real-world wallets that store your change and old receipts, cryptocurrency wallets do much more than that. These wallets enable users to interact with the blockchain, to send and receive funds, keep track of the remaining total, and some even have swapping features to convert cryptocurrencies for another. Hence, they act as an interface to the blockchain ledger. Like cryptocurrencies, wallets are pseudonymous in nature as well. (However, since wallet addresses are stored on the public blockchain, there is a theoretical possibility to reverse engineer the identities of wallet holders.) Ever since Bitcoin came into the limelight, a number of cryptocurrencies have sprouted up. Instead of using different wallets for different coins, many wallets support a multi-coin/ multi-currency option. They can therefore store a variety of altcoins, mitigating the need to hold separate wallets for each one. (No single wallet stores all cryptocurrencies). As is the case with cryptocurrencies, there has also been a surge in the number of wallet services being offered today. Each comes with its own level of security and convenience of access. The best wallet for you depends on your requirements and your practices. (More about this in a bit!) Often called a full node/full client wallet, cryptocurrencies also offer their own official ‘’core wallets.’’ These wallets are quite secure, stable and also able to make backups (which is, we reiterate, extremely important). Examples of core wallets include Bitcoin Core Wallet, Litecoin Core, and Ethereum Wallet, to name a few. However, since they download the ENTIRE blockchain, with data containing about every historical transaction, core wallets are heavy and slow. Other types of wallets fall under a broad categorization of hot and cold storage. Hot Storage At its simplest, hot storage refers to wallets that are connected to the Internet. This type of storage is largely typified by software wallets, which in turn can be broken into four distinct categories. Hot storage has the advantage of providing quick and easy access to one’s cryptos. Some software wallets also support access through multiple devices, so cryptocurrencies can be easily be carried around. As convenient and user-friendly as they are, hot wallets are also the riskiest to use; they have a high susceptibility to hacking attacks and theft. Often private keys are stored online and are controlled by a third-party, increasing vulnerability. In addition to this, if your device gets damaged or misplaced, the wallet is lost as well. It is therefore advisable to use hot wallets, just like you use your real-world wallet: Store only a small amount of money for day-to-day spending. As mentioned before, software wallets include the following: 1. Web/ Exchange-based/ Cloud Wallets This is a web-based wallet and is often hosted by exchanges themselves. Since you have instant access to your wallet, web wallets are a very fast way to complete transactions. Creating a wallet is super easy and can be accessed from any device or server with an internet connection. Some online wallets can also manage multiple currencies and even swap one currency to another. Some online wallets are also called custodial wallets because private keys are saved on third-party servers — a feature that heightens the security risk. Since exchange-based wallets have had instances of shutting down or being hacked, it is imperative not to store ALL your assets on these wallets. Online wallets are ideal for small amounts of cryptocurrencies only. Make sure to use reputable exchanges, and to enable two-factor authentication to add an extra layer of protection. You can also spread your cryptocurrencies on a variety of exchanges to diversify your assets. Coinbase is one such popular example of an exchange-based custodial wallet, while blockchain.info is an online wallet for Bitcoin. 2. Desktop Wallets Desktop wallets are software programs installed on a computer/laptop and accessed directly from that device. The keys are stored on the hard drive and offer much better security. Two examples of desktop wallets are Exodus (which has a great interface and supports multiple currencies)and Jaxx (good privacy and security and feature-rich). A desktop wallet is still prone to malware, keyloggers, and hacks. Loss or damage to the device also causes your wallet to be inaccessible. To be on the safe side, you could opt to use a dedicated device (for example, an old laptop), or partition your desktop for digital assets. Another important point is to stay safe online! Avoid using public Wi-Fi connections, clicking unknown/phishing links, and downloading suspicious files. Last but not the least, install a really good version of an anti-virus software and firewall. 3. Mobile Wallets These wallets run as an app on both Android and iOS devices. It brings portability, ease, and practicality to serve as a great option for those actively trading or using cryptocurrencies. Mobile wallets also have a number of features such as storing keys to allow for payments on the fly, or instantly transferring funds through near-field communication. Mobile wallets are lightweight because they are only a subset of the blockchain ledger and, therefore, they work with Simplified Payment Verification (SPV) technology. Again, mobile wallets can be compromised if damaged, misplaced, hacked, or infected with malware or keyloggers. Remember to tighten your security like Fort Knox. Breadwallet, Mycelium, Coinomi, Electrum and Copay are a few examples of mobile wallets. 4. Multi-signature Wallets Multi-signature (or multisig) wallet, as the name suggests, requires more than one signature to authorize and complete a transaction — just like a shared bank account. This division of keys is ideal for use by businesses and families, creates more security, and acts as a backup in case you lose your key. Cold Storage The term ‘cold storage’ denotes storing cryptocurrencies on wallets not connected to the internet, and these are comprised of hardware and paper wallets. Cold storage is similar to a safety deposit box or vault, or a savings account. They are best utilized for long-term storage of large sums of cryptocurrencies. As improved security and reliability is, cold storage has a few shortcomings as well (theft, environmental damage and human error), so it is advisable to be diligent about such methods. 1. Hardware Wallets Hardware wallets are dedicated wallet devices, often in the form of a USB stick. Just plug it in to an internet-enabled device to transfer assets. Even though transactions are made online, the keys are stored offline. Thus, hardware wallets are one of the most secure methods of storing cryptocurrencies, in addition to being portable. Some hardware wallets come equipped with an OLED screen for displaying and verifying important details, while other features can also include the ability to be restored using seed phrases in case of damage, loss or malfunction of the device. Ledger Nano Sand Trezor are great options (among many others!) for a hardware wallet. 2. Paper Wallets A paper wallet is one of the easiest and safest types of wallets and is basically a QR-coded printout of the access keys. These can be generated via programs that randomly generate the private and public keys. But, as it’s simply a piece of fragile paper, make sure to keep it safe from environmental destruction, thievery, and human error. Your wallet is only as secure as your practices. As a rule of thumb, make multiple encrypted backups of access keys and seed phrases. Use reputable wallet services and make sure to employ updated software with the latest security enhancements. Implementation of extra layers of security protocols, two-factor authentication, and long and lengthy passwords help to dissuade potential attacks from hackers. Remember the golden rule: store just a small amount on hot wallets, keep the rest tucked away safely in cold storage. Future ways of handling custody of crypto We have previously discussed all the ways of storing crypto and issues associated with keeping your funds on exchanges, but there are many potential problems that might arise as a result of the fact that keeping custody over your funds in a sovereign way for many non-tech savvy participants might be an extremely complicated process. But why do we take ownership of the tokens in the first place? Cryptocurrency market participants are currently mostly owning coins and tokens in order to get exposure to their price movement. Many of the digital assets sold as utility tokens still require the development of the associated platforms and the ones that can be used for a certain utility at this point in time, lack a proper hedging mechanism. Due to the aforementioned factors, we believe it is very important to enable the price exposure to digital assets without having to take ownership of them. That’s why we have created a decentralized derivatives framework called MARKET Protocol. Our contracts allow you to use any ERC20 token as a base currency to settle an agreement with another market participant, where the value of your agreement depends on the price movement of a reference asset which can be any cryptocurrency, stock, bonds, gold etc. In plain English, with MARKET Protocol you do not need to directly exchange asset A for asset B to be exposed to it, so there is no risk from issues associated with transactions. But you still need a safe and trustless mechanism for custody of asset A and settlement with the other side of the trade. The solution: smart contracts! All funds that are traded using MARKET Protocol contracts are deposited into the smart contract collateral pool which is connected to another smart contract that holds any remaining funds that are not traded. Our whitepaper provides insight into the entire process: from depositing funds to contract deployment, trading, and settlement of the trade. In order for crypto assets to be used for the specific purpose they are created for, besides having a platform built that would require them as a payment or participation mechanism, we need a “tool” that would help us keep their valuation more stable. For example, if you’re using Siacoin to pay for cloud storage, you want to be sure that the value you are getting for your money is better than traditional services, which is highly dependent on the actual price of the token. Besides the hedging, derivatives are contracts that represent a good price discovery mechanism, that can help decouple token utility from market volatility. For the cryptocurrency markets to evolve and reach a higher level of mass adoption, we need to build safe and trustless frameworks for custody and trading of assets, and also empower participants that want to consume the utility of tokens and associated platforms with a way to achieve higher price stability. To learn more about how MARKET Protocol is addressing these issues, visit our website and join ongoing discussion on our Telegram chat.
  3. @Granat exactly! It's all about the trust, or better said, finally not having the need to trust anyone before you decide to transact with them. So much time and money will be saved by eliminating third-party supervision.
  4. Replacing Your Need for Tether with Decentralized Stablecoins Although cryptocurrencies have potential to be used as a medium of exchange and are observed by market participants as a potential store of value (bitcoin in particular), they are far from a perfect unit of account. This is where stablecoins, coins with a value ‘pegged’ to a stable asset like gold or more commonly the US Dollar, come in. The advantage of stablecoins is that, unlike traditional cryptocurrencies, they have comparatively less volatility. Therefore stablecoins have a more universal use case and potential for real-world applications. For instance, payment of wages or buying groceries, or in the case of recently announced project Bifrost, sending aid across the globe where it’s most needed. One such example of a stablecoin is Tether, currently the most commonly used blockchain bridge between cryptocurrencies and fiat currency. Tether is a fiat-collateralized stablecoin, and it’s pegged, or in this case tethered, to the US Dollar. Hence, one Tether token (USD₮ is the ticker) equals $1. Simply put, Tether is a digital representation of dollars held in the vaults of the issuing company. In addition to the dollar, Tether also supports Euros (EUR₮) and the Japanese Yen (JYP₮). It is an idea to store, send, and receive currency in a 1 to 1 ratio across exchanges, platforms, and wallets quickly with minimal to zero transaction fees. Tether is created by Tether Limited, which keeps these fiat currencies in reserves that are, according to the company, regularly assessed, verified by professional auditors, and then posted public. Tokens in circulation should therefore always match the reserves. Many concerns have been raised, such as Tether’s centralization, the 30 million dollar hack, the speculative nature of the relationship with popular exchange Bitfinex, release of more coins than actual reserves to back them up, and more recently, the cancellation of the very audit that was supposed to negate all these fears. These are the exact reasons why there needs to be better decentralized solutions. Luckily there are more emerging every day. Here’s a list of a few alternative stablecoins to Tether. DAI After two and a half years of development, DAI was officially launched in December 2017. Unlike Tether, Dai is a decentralized crypto-collateralized stablecoin created by the MakerDAO community. DAI is an ERC20 token whose value is soft-pegged to the USD and is backed by collateral Ether. The token offers more decentralization because it is created via smart contracts on the Ethereum blockchain. Together with currency collateralization and interest adjustments, Dai ensures stability relative to the US dollar. DAI provides the benefits of blockchain technology without the volatility experienced by cryptocurrencies. Merchants and end users don’t have to worry about the price fluctuations. In simplest terms, DAI is just a loan against Ether (ETH). Although the token can be easily bought on exchanges, the system also has a clever way of creating DAI. Using the MakerDAO platform, users can leverage their ETH holdings into smart contracts known as Collateralized Debt Position (CDP) by first converting the ETH into Pooled ETH (PETH) through a series of steps. This locked PETH enables the user to draw out DAI, which they can trade or spend as any other ERC20 token. The collateralized PETH cannot be used until the outstanding debt is paid off in DAI. Tokens used to pay down the debt are destroyed, consequently removing them from the circulating supply. It is important to note that generating DAI also accrues an annual interest fee of 1%, called the Stability Fee. Creating DAI is understandably complicated, but it reaps many benefits. For example, you can easily get a loan using your ETH or buy ETH on margin. Users are also incentivized to sell DAI on exchanges when it reaches over $1 (which essentially is free money. Woot!) When DAI is valued under $1, one can also purchase DAI and pay off the debt at a discount. Important to notice that these types of arbitrage opportunities are very rare since the system uses an ingenious mechanism of creation and destruction coupled to supply and demand of DAI to ensure that it matches the $1 peg. A demand for DAI raises its price to greater than $1, incentivizing users to create more DAI. When DAI is less than $1, the supply is an incentive to pay down CDP at a cheaper rate, thus removing DAI from the system. The system also cleverly manages ETH price fluctuations. Multiple oracles work to provide price data, and if the value of ETH goes below a certain threshold, the CDPs are liquidated. Maker auctions the locked ETH to any DAI holder who can pay off the debt on a particular under-collateralized CDP. Another token in the system is the Maker Token (MKR), which serves as a fail-safe to the entire system in case of a coordinated attack. MKR has three distinct uses: Remember the Stability Fees accrued on a CDP? This is only payable in MKR. The token is ‘burned’ when fees are paid, removing MKR from the system. This encourages the value of MKR to increase over time. Furthermore, if the collateral in the system is less than DAI in existence, new MKR tokens are automatically created and sold to raise additional collateral. Lastly, MKR holders can also vote on the governance of the system and on proposals to implement changes in the network. All in all, DAI is a promising solution to volatility. This stablecoin uses collateral to back its value and interest rate adjustments to stabilize its price, thus providing a number of financial opportunities, in addition to benefiting other ‘addressable markets’ such as minimizing risk in gambling markets, promoting international trade at minimal cost without interference, and in building transparent accounting systems. DIGIX DigixGlobal, a Singaporean based company, has brought a refreshing take on stablecoins with a new initiative called DigixDAO. Their crowdsale exceeded all expectations when it met its 5.5 million USD hard cap in just twelve hours, instead of the intended thirty days! DigixDAO harnesses the power of blockchain technology for its immutability, transparency, and security to tokenize gold. Gold has been the safest and most stable store of value since time immemorial. It is, therefore, a gold-backed stablecoin protected from the inherent price volatility of cryptocurrencies. DigixDAO is built on the Ethereum blockchain and incorporates the use of smart contracts. Digix has developed a unique protocol called Proof of Asset (PoA) verification (also known as Proof of Provenance) for proving the existence of assets and ownership. The DigixDAO network uses two tokens: The Digix Gold Token (DGX) represents 1g of physical 99.99% London Bullion Market Association (LBMA) standard gold that is stored in a custodian vault. PoA is a process that records possession of an asset. It establishes a chain of custody using digital signatures from the listed Vendor as well as receipts of purchase and deposit, which is then stored in a decentralized database. This successfully creates a Proof of Asset Card (‘Gold Asset Card’). Using smart contracts, these PoA Cards can then be minted into existence to create fungible DGX tokens. Each token equates to 1g of gold and is divisible up to 0.001 grams. DGX token provides the means to liquidate gold assets for easy spending and trade and to stabilize the inherent volatility seen in cryptocurrency. DigixDAO token (DGD) enables token holders to pledge the token, and reap the rewards, for vetting and approving proposals related to the growth of the network. DGD holders also receive quarterly rewards on the total DGX collected through transaction fees. There are 2,000,000 DGD tokens in existence, with 15% allocated to developers. Both DGX and DGD work together and are a key component to the DigixDAO infrastructure. After the partnership with DAI, Digix is also looking to expand to other metals and commodities. DGX can be used as a store of value for escrow services, in-game currency, allow wealth inheritance to be passed automatically to heirs, for crowdfunding opportunities, and P2P lending and microfinance. eUSD by Havven Havven, an Australian based cryptocurrency, is a decentralized payment network that employs the use of a stablecoin to enable day-to-day transactions. According to the company, Havven’s 30 million USD token sale, which ended in February, was the largest of any Australian blockchain-based startup. Havven uses a unique system of two tokens — The Havven token acts as collateral, while nomins serve as the stablecoin. Nomins are issued by Havven token holders who lock up Havven as collateral. Havven recently released the first iteration of Ether-backed nomins called eUSD — an ERC20 token that is designed to hold the value of nomins stable at $1 USD. The release of eUSD is intended to act as a test to allow the Havven team to observe and extract data that will assist in strengthening the network, as explained by the founder of Havven “The launch of eUSD demonstrates that we are committed to releasing a working version of the platform as soon as possible.” It is, therefore, the initial step in the launch of the next project of Havven-backed nomins (nUSD). Havven backed nomins pegged to other currencies such as EUR, GBP or YEN, to name a few, is expected to be released by the end of this year. This is how the network works: Alice uses ETH to acquire havvens. A collateralization ratio only allows 20% of the Havven tokens to be issued as nomins by escrowing the rest of the Havven tokens. These nomins are then sold for ETH by the system, and the ETH is deposited into Alice’s wallet. The value of Havven comes from the fees generated from the network that completes a transaction in nomins. The issuance system then keeps the price of the nomins stable at $1, enabling everyday payments. There is a simple conversion tool to convert ETH into eUSD, which in turn is also redeemable for ETH. This can be done through a Chrome or Brave browser and the MetaMask extension at a 0.5% conversion fee. Once nUSD is launched, there will be a window for converting eUSD back into ETH. Cryptocurrency market participants have multiple decentralized solutions to choose from when it comes to using the asset and dollar value backed tokens. MARKET Protocol team is a strong proponent of scaling the blockchain and its native assets through price stability, and therefore we have recently announced a partnership with all the projects mentioned above. We look forward to enabling the future decentralized derivatives traders with the best tools for proper risk management and decoupling price volatility from a token utility. To learn more about other use cases for MARKET Protocol, visit our website, read our whitepaper and join the ongoing discussion on Telegram.
  5. No matter how good your token incentives model is, market volatility is always able to diminish all the benefits associated with holding or using those tokens. Also, many projects don't put more than a minute into defining their token supply and creation rate based on the principles of behavioral economics in order to work towards their platform higher utilization through proper incentives. They only care about the price. But even if that's the case, they don't currently have an efficient way to protect proper valuation due to the volatility. The ability to hedge against it is a crucial feature for a higher level of digital asset adoption. By choosing the appropriate position on the derivatives market, utility token holders would have an opportunity to protect from market volatility and that way avoid potential losses associated with consuming the utility of a token. With MARKET Protocol contracts that have stablecoins like DAI, Havven, and DGX used as reference assets, traders are empowered with a very novel protection mechanism. To read the article in full, visit: https://medium.com/market-protocol/the-revolution-will-be-incentivized-f6fddb3f7c93
  6. 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
  7. @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
  8. 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
  9. 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.
  10. 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
  11. 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.
  12. 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/
  13. 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.
  14. 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!

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