Explaining TomoChain’s new products: TomoX, TomoDEX, and TomoSwap
Differences between them and how they work together
Most likely, decentralized exchanges (DEXs) will be the future of cryptocurrency exchanges. DEXs allow users to control their assets while transacting, thus making them significantly safer and more secure than CEXs.
“I definitely hope centralized exchanges go burn in hell” — Ethereum founder Vitalik Buterin
The most widely used DEX based on Ethereum is IDEX, where most ERC20 issued tokens can be traded.
Building a decentralized exchange and operating it to provide enough liquidity is difficult in different aspects, including technicalities, marketing strategies and financial resources. TomoChain introduces TomoX Protocol to address this problem by providing a Relayer-Masternode architecture.
Compared to the current state of the art DEX architecture, TomoX Protocol has more advanced features and will allow for enhanced DEXs.
TomoX is a protocol for building decentralized exchanges (DEXs). TomoX is integrated directly into the core layer of TomoChain blockchain, benefitting from the high performance and fast confirmation time of Proof-of-Stake Voting (PoSV) consensus. TomoX has a Masternode-Relayer architecture.
DEXs working with TomoX will be more powerful than traditional DEXs.
TomoX is a decentralized cryptocurrency exchange (DEX) protocol on TomoChain blockchain
TomoX Protocol offers:
- Better Performance: TomoChain can handle 2'000 TPS (and potentially more), which is 100x better than traditional DEXs on Ethereum. All current Ethereum-based DEXs are layer 2 solutions which rely on smart contracts. In contrast, TomoX will be integrated into the core blockchain layer where the high performance and fast confirmation time properties of the Proof-of-Stake Voting (PoSV) consensus will be beneficial
- Liquidity: With the Relayer-Masternode architecture, there is potential for better and targeted marketing strategies to attract more traders
- Full Decentralization: Most of the existing DEXs are semi-decentralized. For example, IDEX requires traders to deposit tokens to their centralized server and all orders are stored on this centralized server. There is a single point of failure — the centralized server. TomoX Protocol, on the other hand, is fully decentralized: the orderbook database, matching engine and trade execution mechanism are decentralized to all the masternodes
- More Security: In decentralized exchanges users generally have complete control of their assets, but some DEXs (like IDEX) may require to deposit funds. TomoX does not require to deposit funds, which is an advantage over other DEXs
- Lower Cost: TomoChain provides near-zero transaction fees, which significantly reduces trading fees compared to most existing DEXs
- Interoperability: TomoX will support cross-chain exchanges so that traders can interact with and exchange other native tokens of other blockchain infrastructures — such as ETH and BTC. Atomic Swap techniques will be used for improving interoperability
- Accessibility: Fiat integration has been missing in most existing DEXs. While TomoX Protocol does not directly support exchanges between fiat currencies and cryptocurrencies, Relayers have the potential to provide this service
TomoX is a unique combination of a decentralized order book database and matching, PoSV consensus and exchange integration. With this unique combination, TomoX’s order confirmation will be almost instant, just as is provided by TomoChain’s PoSV.
TomoX will allow companies to create their own relayers (exchanges).
The first Relayer will be TomoDEX, which is supported and operated by the TomoChain company. Later on, any company can claim to have their own relayer where users can trade a set of specific trading pairs (TOMO/TokenX).
TomoDEX is TomoChain company’s relayer (exchange), that interacts with TomoX
If the semi-decentralized IDEX exchange is popular in the cryptocurrency community, TomoDEX is more powerful than IDEX on multiple aspects, including supported functionalities, performance, security, decentralization, liquidity, and the ability to trade with other coins not issued on TomoChain/Ethereum. This latter point is supported by TomoSwap that is explained as below.
TomoSwap is a decentralized token swap platform. TomoSwap will focus on both user friendliness to end users and liquidity for future financial applications.
TomoSwap will play as the transactional layer to allow assets on TomoChain to be converted seamlessly between end users and other applications.
TomoSwap is a P2P decentralized token swap platform
TomoSwap is “the fastest, simplest and most secure way to exchange tokens”.
TomoSwap is motivated by KyberNetwork protocol — a well-known on-chain liquidity protocol built on Ethereum which “allows instant exchange and conversion of digital assets and cryptocurrencies with high liquidity”. Suitable modifications are added to TomoSwap token swap platform, to be compatible with TomoChain platform as well as to maximize its strengths.
[In a nutshell] Differences between TomoX, TomoDEX and TomoSwap
TomoX is the protocol that companies /exchange builders can use for building relayers (DEXs) and interacting with TomoX on TomoChain. This way, companies can save a lot of development time and maintenance costs and can focus on liquidity and marketing. This protocol provides the flexibility for others to create and design their own UX/UIs.
TomoDEX is the first relayer on TomoChain blockchain, using TomoX protocol. The company that operates TomoDEX exchange is the TomoChain team. On this exchange people can trade: buy or sell their tokens.
TomoSwap is a token swap platform. With TomoSwap, users can exchange TOMO and tokens issued on TomoChain with each other.
How do TomoX, TomoDEX and TomoSwap work together in TomoChain
TomoDEX is a decentralized exchange, like IDEX — operated by the TomoChain company. TomoDEX and other future DEXs (relayers) will interact with TomoX protocol to enjoy high performance, less trading fees, more security, full decentralization, and more advantages from TomoChain blockchain Masternode Proof-Of-Stake Voting (PoSV) architecture. Each masternode has a copy of the order book.
TomoX will initially support TOMO/TokenX trading pairs, with TokenX being TRC20 tokens, similar to ERC20 but issued on TomoChain. More standards will then be gradually integrated into TomoX.
TomoSwap is a peer-to-peer token swap platform, like KyberSwap. Users can exchange TOMO and any token issued on TomoChain for any other tokens issued on TomoChain.
TomoDEX supported functionalities, performance, security, decentralization, etc come from TomoX protocol. TomoDEX will also be able to trade with other coins not issued on TomoChain/Ethereum, supported by TomoSwap.
TomoChain is an innovative solution to the scalability problem with the Ethereum blockchain, and other blockchain platforms. TomoChain is EVM-compatible and features a 150-Masternodes architecture with Proof of Stake Voting (POSV) consensus for near-zero fee, and instant transaction confirmation.
TomoX architecture is based on decentralization, having multiple Relayers (exchanges) and multiple masternodes.
With TomoChain’s current masternode architecture and ideology of the token economy, the decentralized exchange will become a very important part of TomoChain’s ecosystem and TomoChain’s masternode-based economy.
The Relayer-Masternode architecture will gradually build up a strong relayer-based decentralized exchange around TomoChain’s masternode architecture, which again strengthens the TomoChain ecosystem and token economy that the company aims to achieve.