Quick Introduction to the AMP decentralized exchange
It’s been a while since the AMP team had the chance to give an update on the current state of our decentralized exchange. While our team slowly became addicted to extra-strong coffee, we’ve managed to solve a good amount of the problems we were facing building a usable decentralized exchange and made substantial progress. I’m very happy to say that we should be able to deliver the AMP decentralized exchange in the upcoming months.
In this blog post, I will be giving a simple introduction of what the AMP decentralized exchange is. Follow up posts will explain different aspects in more details (see list of upcoming posts at the end of this article).
What is the AMP decentralized exchange ?
For those who haven’t been following Proofsuite, AMP (Asset Market Protocol) is an ambitious project whose ultimate goal is to create a completely decentralized exchange protocol for tokenized assets: ERC20’s, ERC721’s, security tokens, financial derivative tokens, your-house-on-the-blockchain tokens, and whatever your imagination can come up with.
The AMP decentralized exchange is the first building block that will be needed to make this possible (the original roadmap included the Cryptodollar stablecoin which we started developing before we realized that MakerDAO’s solution was working remarkably well).
How is AMP different from other decentralized exchanges ?
IDEX, 0x, Etherdelta are all decentralized exchanges on which you can trade Ethereum tokens. We’ve taken a huge amount of inspiration all these projects (and also from existing centralized exchanges) to build what we believe is going to be the most advanced decentralized exchange on the Ethereum platform.
We realized that a full comparison between the existing decentralized exchanges and AMP requires an entirely different blog post which I will release shortly. In the meantime, here is a succinct list of some of the AMP decentralized exchange features:
- No Protocol Token
- No Token Deposit (simply authenticate your wallet!)
- Not limited to one order per Ethereum block
- Allow traders to cancel orders without sending a transaction to the blockchain
- Fast off-chain order matching
- Limit Orders, Market Orders and modern order matching functionality
Obviously, all this required partial centralization of the order book which we believe is the best solution for the time being. In an upcoming blogpost detailing the AMP roadmap, we will outline how we plan to progressively remove some elements of centralization (spoiler: plasma!).
More features!
- Compatible with a large variety of tokens and allow anyone to create their own tokens and start trading them.
As stated before, we are currently compatible with all ERC20 tokens and plan to integrate ERC721 Crypto-collectibles tokens shortly after the initial release. The main differentiator for the AMP decentralized exchange is that anybody will be able to create their own token and start trading it immediately (beware of scams!)
2. Not tied to a UI on a certain IP address.
Everybody will be able to spin up their own local version of the AMP decentralized exchange, trade from there or even fork the project to fit their needs. Developers will simply we able to authenticate their wallet and send trades from the *comfort* of their command line. No registration, deposit or API key needed!
3. Completely open-source
Most of the current decentralized exchanges only open-source their smart-contract code. While this is better than nothing, this does not guarantee that the UI executed on your browser is not faulty or even malicious. While open-sourcing code doesn’t completely solve the problem (there is no guarantee that the browser you are visiting is executing the code on the repository), it is a good first step towards more transparency. Coders from all around the world can now spot and fix potential vulnerabilities.
By open-sourcing the AMP decentralized-exchange, we also make it easier for people to contribute and build their own part of the Ethereum trading ecosystem.
How does the AMP integrate with the rest of the trading ecosystem ?
There is currently a huge number of projects working on building trading solutions for the Ethereum platform from new varieties of tokens to new trading protocols. To be honest, we haven’t been able to process all the potential integrations given the sheer amount of innovation that is currently happening in the space. If you’d like to submit some ideas, feel free to reach out!
Thanks for reading!
List of upcoming blog posts:
- Comparison between 0x, IDEX and AMP
- AMP roadmap and vision
- Solving blockchain UX problems
- Decentralized Exchange Architecture
- Developing Decentralized Applications with Golang (Technical)
- Decentralized Exchange Smart Contract Breakdown (Technical)
- Effective On-Chain Order Canceling with Hashed Merkle Trees (Technical)
So be sure to subscribe if one of those interests you!
Proofsuite is building several web applications and decentralized applications for the Ethereum platform and for the entire cryptocurrency ecosystem.
Developer ? Follow our progress on github or reach out to david@proofsuite.com if you would like to get involved.
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