Introducing Swap: A Protocol for Decentralized Peer-to-Peer Trading on the Ethereum Blockchain
At Swap, we’ve been thinking about the best ways to grow the Ethereum token trading ecosystem. Today we are pleased to present the Swap whitepaper for community review:
Swap is a protocol to facilitate a true peer-to-peer ecosystem for trading tokens on the Ethereum blockchain.
The two forces behind our design are decentralization and peer-to-peer. Decentralization allows users to exchange value in a “trustless” way rather than depending on the security, ethics, and diligence of a central entity. Peer-to-peer allows users to quickly and privately trade with known counterparties, rather than posting orders to a public order book. We support and encourage the development of blockchain based order books, but do believe that they have several inherent limitations.
We think there’s a clear opportunity for a decentralized, peer-to-peer token trading platform:
Unlike ShapeShift, Swap users can set prices and make orders, and have the ability to fill orders from multiple counterparties. Unlike 0x, Swap users are matched on intent to buy or sell, rather than trading on a public order book.
Here’s a demo of a simple trading app built on Swap:
We’ve designed the protocol to be straightforward and extensible and we’ll open source our code soon to help kickstart app development. If you’re a developer, we look forward to working with you to build your next token-aware application.
Thanks to: Mark D’agostino, Joe Lubin, Carolyn Reckhow, Chris Lundkvist, Alex Miller, Deepa Sathaye, Rick Dudley, Zack Coburn, and James Young, for their feedback on the whitepaper.
Disclaimer: The author is a resident of ConsenSys. The views expressed by the author above do not necessarily represent the views of ConsenSys AG. ConsenSys is a decentralized community with ConsenSys Media being a platform for members to freely express their diverse ideas and perspectives. To learn more about ConsenSys and Ethereum, please visit our website.