Recently, many tokens and cryptocurrencies have been created, and the needs of exchanging or trading tokens are expanding rapidly. When trading with an exchange managed by a traditional centralized third-party organization, the trader opens a dedicated account within the exchange and moves the tokens between accounts.
Token Trader can construct exchanges that can trade various tokens without intervening management by a centralized third party organization. In exchanges built based on this system, trades are traded directly between traders' accounts on the blockchain, trading fees can be reduced, and traders don’t need to open accounts and move tokens.
The trader's account on the blockchain is managed by the unique key held by the trader himself. This prevents assets in the account being stolen by unauthorized access to the exchange.
The overall structure is as follows.
This system is developed with reference to the whitepaper on the trading protocol SWAP.
This white paper proposes a full P2P trading method. Token trader adopts a method that sandwiches the Indexer between the traders at the time of trading.
By foregoing pure P2P it is possible for the exchange to easily confirm the success or failure of trades, and for the exchange to properly update order list information.
Compliant with token standard specification "ERC20"
This system conforms to the token standard specification ERC20 advocated by Ethereum.
Therefore, all tokens issued based on ERC20 can be handled by exchanges built with this system.
Common Issues with blockchains that this service resolves
It is unnecessary for the user to hold cryptocurrency (Ether)
Normally, you will be asked to pay with cryptocurrency each time you record a trade on the blockchain. However, it is not yet common for everyone to own and manage cryptocurrencies.
Functionality is provided whereby the service provider pays for the cost of recording to the blockchain on behalf of the participants.
Traders and exchange operators (Indexers) are not required to pay in cryptocurrency. Hence a much wider audience of users may use the system.