Understanding TomoX, TomoChain’s Decentralized Exchange Protocol

With this article, I will explain why TomoX is the most innovative and sophisticated exchange protocol design to date with the ability to create the best performing decentralized exchanges (DEX) once operational. I will not dive deeply into the technical aspects of TomoX, but instead broadly explain TomoX and what it aims to accomplish. For those who are interested in the technical aspects of TomoX, please read the TomoX whitepaper.

What is TomoX?

TomoX is a decentralized exchange protocol based on the TomoChain blockchain infrastructure that will be integrated into the core TomoChain blockchain consensus layer. Typically how decentralized exchanges work is they function on smart contracts that help execute actions users want to make. However, DEXs built on the TomoX protocol will be able to bypass the need to create smart contracts in order to build decentralized order books. This is because with TomoX, masternodes in the TomoChain ecosystem will be the ones managing the order book database, matching engine, and trade execution mechanism. This means that decentralized exchanges built for TomoChain using the TomoX Protocol will not need to spend time and money creating as well as auditing their smart contracts but can instead use their funds to market their exchange and build out a good user interface.

Instead of having a company create a decentralized protocol, the Relayer-Masternode TomoX Protocol will let many companies and/or decentralized business makers create their own relayers, without having to worry about the decentralized protocol. All relayers interact with the standardized TomoX Protocol directly integrated into the core TomoChain layer. This means relayers do not need to utilize substantial funds building the underlying decentralized exchange protocol, thus significantly reducing development as well as maintenance costs.

Highlights of TomoX

• Liquidity: With TomoX, there will be only ONE tradable order book for every token, no matter what exchange you are on. This means you never have to deposit your TOMO onto multiple exchanges to buy TOMO based tokens (TRC20 tokens). Whether you’re trading on the most popular exchange or the least popular exchange, the TRC20 token order books will always be the same giant tradable order book. Never again will people have to deposit their tokens into multiple exchanges to trade their tokens for the best price all while paying excessive fees.
• Full Decentralization: Most of the existing DEXs are semi-decentralized. For example, IDEX requires traders to deposit their tokens to their centralized server and all orders are stored on this centralized server. Even though the traders still have full control of their assets (because the centralized server does not know the private keys of traders), there is still a single point of failure — the centralized server. TomoX Protocol, on the other hand, is fully decentralized because the order book database, matching engine and trade execution mechanism are decentralized to all masternodes. This reduces risks that currently appear in some centralized exchanges or semi-decentralized exchanges.
• Security: One of the first things people hear when they start trading cryptocurrencies is that you should never keep your tokens on exchanges. This is because centralized exchanges generally have safety and security problems. The results of these problems can be seen in all the breaking news about exchanges being hacked. TomoX and decentralized exchanges generally solve this problem because the users have complete control over their assets. While some DEXs require traders to deposit their assets, TomoX does not impose this requirement on traders, which is an advantage TomoX has over other DEXs.
• Cost: TomoChain provides near-zero transaction fees which means that trading fees will be substantially less than 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.
• Accessibility: Fiat integration has been missing in most existing DEXs. While TomoX Protocol does not directly support exchanges between fiat currencies and cryptocurrencies, Relayers for TomoX have the potential to provide this service.

TomoChain has repeatedly demonstrated their ability to innovate in the blockchain space. Decentralized exchanges built on the TomoX protocol will be the most powerful exchanges to date. With the ability to help create liquid, fully decentralized, and secure exchanges at a low cost, TomoX is positioned to disrupt the industry. With TomoX, TomoChain has moved one step closer toward their goal of becoming a global blockchain solution.

About TomoChain:
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. Security, stability, and chain finality are guaranteed via novel techniques such as double validation, staking via smart-contracts, and uniform randomization processes.

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