QUANTA THE DECENTRALIZED EXCHANGE (QUANTADEX).
The QUANTA Chain is built with key revolution featuring cross-chain order architecture, fast order-book based on distributed memory ledger, and a DLBFT Consensus. The classic flow is as follows: the user deposits native tokens into the cross-chain wallet, and the blockchain will issue one-to-one credit tokens into the user’s QUANTA wallet. With the QUANTA credit issued, the user has unlimited access to fast trading on all trading pairs available on the chain.
QUANTA is different for two primary reasons:
1) deliver near-immediate, on-chain order matching (5M tx/s at <1 sec latency)
2) enable cross-chain transactions.
After taking my time to read through the QUANTA whitepaper i was able to understand the problems they intend to solve in the crypto world using ultimate problem solver technology ,THE BLOCKCHAIN technology.I will list the problems,define them then we discuss how QUANTA intend to solve these problems.
PROBLEMS WITH DECENTRALISED EXCHANGE
-THEY’RE NOT ACTUALLY DECENTRALIZED.
-THEY’RE FAR TOO SLOW.
-THEY LACK SHARED LIQUIDITY.
*THEY’RE NOT ACTUALLY DECENTRALIZED.
A decentralized exchange also known as DEX is an exchange market that does not rely on a third party service to hold the customer’s funds,they facilitate crypto-assets trading on a distributed ledger. Trades occur directly between users (P2P) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or crypto currency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed.This can arguably have profound long term consequences to macro-economic and geopolitical landscape.
A centralized exchange is an exchange with a structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various crypto-assets listed on the exchange represent the only price that is available to traders seeking to buy or sell the specific asset.
Instead of visiting an exchange that offers a central meeting place for traders, the emerging style of decentralized exchange work by connecting traders directly to each other to trade(P2P). This decentralized exchange model is achieved by running a peer-to-peer trading program on a computer.
QUANTA SOLUTION-ON-CHAIN ORDER BOOK DISTRIBUTED MEMORY POOL.
On-chain order books are more difficult to manipulate.
When offers are off-chain, traders can deposit funds and make it look like tokens are traded at any price they like. You can’t make exclusive or private deals.
On-chain order books are fast, efficient and easy to use.
Because you do not need to deposit your funds before you can trade, you can buy tokens with a single transaction directly to your wallet. This means less waiting and paying for the blockchain gas. To buy a token on an off-chain trading system, you have to pay and wait three times. To buy a token on-chain, it’s a single transaction. It’s a myth that on-chain order books are expensive.
On-chain order books have less frivolous offers and cannot spoof offers.
Because making an offer requires paying gas traders won’t make tons of pointless offers. With off-chain systems, these offers can jam up trading software and cause issues. Likewise you cannot make offers without committing funds.
On-chain order books can prevent front running.
Front running occurs when someone on the trading platform knows you are going to trade before anyone else, and takes advantage of it. By publishing to the blockchain, every trader has an equal opportunity to take an offer. Only miners through major effort could front run, or gain an advantage in a trade.
The QUANTA Chain which is a public decentralized blockchain forms a peer to peer mesh network of distributed memory pool. Further, order book is logically hashed, and stored by using consistent or distributed hash table (DHT).
Nodes act as proxy, traffic router, coordinator, and gossiper for the order-book ledger. A set of k-servers are bench-marked against criteria such as latency and memory size. Depending on the volume of traffic, we scale distributed memory servers in or out.
*THEY’RE FAR TOO SLOW.
Most of the existing exchange are slow in processing trades,deposits and withdrawal of tokens but here QUANTA has a better solution to such problem.
QUANTA SOLUTION-DUAL-LEDGER BYZANTINE FAULT TOLERANT CONSENSUS.
Byzantine fault tolerance (BFT) is the dependability of a fault-tolerant computer system, particularly distributed computing systems, where components may fail and there is imperfect information on whether a component has failed. In a “Byzantine failure”, a component such as a server can inconsistently appear both failed and functioning to failure-detection systems, presenting different symptoms to different observers.
Because you do not need to deposit your funds before you can trade, you can buy tokens with a single transaction directly to your wallet. This means less waiting and paying for the blockchain gas;it must be immutable and secure on the blockchain infrastructure.
DLBFT as a two-stage consensus to handle the order-book ledger and push to the general ledger for settlement. BFT is a class of consensus algorithm that is not reliant on heavy computation to reach consensus. We use a variant of BFT called Federated Byzantine Agreement (FBA) mainly for flexibility,
We introduce two types of ledgers: 1) An order-book ledger stored in a distributed memory, and 2) a general ledger which stores accounting information for each user. The order ledger is
capable of closing at a much faster rate (e.g. 250 m/s), while the general ledger is disk-based,closing at a rate of 1 sec. The Dual Ledger BFT Consensus works as follows: all of the order-book ledgers between ti and tj where j > i, will be pushed to the general ledger at time tj.
*THEY LACK SHARED LIQUIDITY.
Liquidity is a challenge for the whole crypto market. When the public decries its volatility, low liquidity is partly to blame.At the exchange level, low liquidity causes price slippage that pushes traders away to expensive, more liquid platforms? usually a centralized exchange with poor security and worse service.
Liquidity refers to how easy it is to buy or sell an asset, at a fair price, whether it be cash, a house, or a crypto token. In the crypto market, high liquidity is always desirable. Low liquidity, on the other hand, creates a ton of mischief.
QUANTA SOLUTION-CROSS-CHAIN ARCHITECTURE.
Crypto-assets are transferred on centralized exchanges to exchange assets from one blockchain to another blockchain. Here is the cross-chain trading architecture;In any ecosystem such as hardware, software, or telecoms, it is always demanding to solve for compatibility through adjustment because often different organizations have different goals, and different, and conflicting interests.On a cross-chain architecture that truly decentralizes the keys and the trust, without requiring variations to other blockchains to support the transactions with the QUANTA Chain. The basic idea of the cross-chain architecture is that the wallet is tied directly to the blockchain; once achieved, the QUANTA Cross Chain Wallet can participate in the same consensus process. As a result, only the blockchain can control the flow of money and messages signed by the user — thus providing unrivaled security for cross-chain trading.
DISCLAIMER !!!
“This article was created in exchange for a potential token reward through Bounty0x”
Twitter:@TheDolapoO
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