How to Make a Decentralized Exchange Software Script?
How to Make a Decentralized Exchange Software Script?
The script for decentralized exchange is a computer algorithm serving the exchange of digital assets between equal parties without the participation of third parties. Such algorithms are created for decentralized cryptocurrency exchanges (DEX), and they are usually quite complex because they link several elements together (site, trading terminal, wallets, liquidity pools, etc.).
A trader, like any other businessman, has a set of individual needs that generally fall into one of these categories:
The security issue affects the safety of funds. Hacking and leaks on cryptocurrency exchanges are very common. In 2018, the total amount of stolen finance from stock exchanges is approximately $ 927 million. Accordingly, the approach to ensuring internal and external security must be completely professional.
The meaning of the term "asset diversity" is revealed as follows: it means the variety of tokens available on the exchange. Most traders prefer to have a well-trodden path where a step to the side threatens with the wreck. Some people choose to trade small-cap tokens, which leads to the annoying need to constantly switch between exchanges to exchange pump-ready, less common tokens.
By participating in the exchange on a decentralized exchange, the user fully controls the process, his funds and personal data and does not pay a third party for the services of the guarantor. Integrity and reliability of transactions provide blockchain and smart contracts.
Authentication process. The site generates a one-time key for entry, which will be valid for a certain period of time, after which the key becomes inactive. Logging in, the user can make the exchange. Some sites may require a KYC procedure if the amount of user transactions exceeds a certain limit. It is not necessary to register.
Exchange process. Decentralized cryptocurrency areas, as a rule, use atomic swaps to automatically exchange one cryptocurrency to another. Transactions are carried out in accordance with the concept of PLUG & PLAY, that is, everything happens here and now, without having to connect a cryptocurrency wallet to the platform or transfer the required amount to the exchange deposit.
If the exchange on the selected trading pair cannot be carried out by means of atomic swaps, the exchange may conduct the transaction using bilateral depositing. This is done through a smart contract that takes the assets of both parties and then exchanges.
If there is a desire to create an exchanger that will maximally meet the requirements stated by the customer, then the best solution would be to develop software with the help of an outsourced company. The result will be a unique solution, the quality of which will be guaranteed by the contractor.
There is nothing easier and at the same time more convenient than an out-of-the-box solution, which is quite simple to choose and buy. Subsequently, the development company independently carries out installation, configuration and testing. An even easier way is to buy a ready-made site and rebrand it (renaming).
Adapting the finished product to a specific brand is often an excellent solution. A cryptocurrency exchange on a standard basis, as a rule, becomes either a temporary alternative or an additional service for customers. The main activity of a buyer of such a product is not related to cryptocurrency, but the topic is quite similar. The presence of a cryptocurrency platform is dictated by trends and demand. This approach saves money and development time, since the script, in fact, has already been created, and its implementation is the installation, configuration and testing steps. At the same time, in contrast to the purchase of the finished product, the setting in the white label solutions is quite wide, so you can create a product that will stand out among competitors.
You can create software for a centralized cryptocurrency exchange inside the company. To do this, you need to find good specialists, buy equipment, rent (allocate) a room and organize the development process. All this is very burdensome and far from always justified, especially if speed and quality assurance are important.
Some systems, for the sake of advanced traders, allow you to place stop-limit and stop-loss orders.
To create a trading engine, you need immersed programming skills and an understanding of blockchain technologies, that is, creating it is long and expensive. But here you can save if you use open source software, which is spread on GeekHub. True, not the fact that this software will be of high quality and reliable.
By atomic swaps is meant a kind of peer-to-peer exchange of virtual assets without the participation of third parties, including exchangers. Usually, with their help, people exchange one cryptocurrency for another, but there may be options with the exchange of data, certificates and other.
Advantages of atomic swaps:
Features of DHT order books:
The choice of specific payment services should depend on geography:
To ensure full-scale communication, the messenger must be embedded in the script, that is, it must not be a buffer between the platform and the mail or stand-alone messengers. The rest of the requirements for the messenger are a decentralized way of messaging and independence from blockchain networks
For support, you can use exclusively live operators, and a hybrid system: a neural network is dealt with simple questions in the form of a bot, and in case of complex questions, it switches the user to an operator.
Even according to the most conservative estimates, launching a cryptocurrency exchange will be very expensive. Even if programmers are hired from post-Soviet countries, Africa or Asia, which, as a rule, implies much lower production costs, the terms (even if a specialist has the proper qualifications) vary from a couple of months to six months, and in terms of financial costs - from 50 000 to 240,000 euros in Europe and from 65,000 to 310,000 dollars in the United States. Below is a more detailed analysis, taking into account the costs of the work of each specific specialist.
#1. How does decentralized exchange work
#2. How to create a script for a decentralized cryptocurrency exchanger
#3. Hiring a development company
#4. Ready software
#5. White label solutions
#6. Development within the company
#7. What to look for when developing
#8. Trading engine
#9. Atomic swaps
#10. Order book
#11. User interface
#12. Payment instruments
#13. Internal messenger
#14. Admin panel
#16. Customer Support Channels
#17. Potential costs and efforts