BCGAME - Free 5BTC Daily Bonus!The cryptocurrency market expanded rapidly after the 2017 ICO bubble, from a market capitalization of approximately $566 billion at the end of 2017 to $1,5 trillion in February 2021. This means that there must be a solid infrastructure to support the growing trade in cryptocurrencies.
Cryptocurrency exchanges are the first question to this answer. although most cryptocurrency assets are built on the foundations of decentralized architectures, most trading still takes place on centralized exchanges. In centralized exchanges, users need to hold their assets in the exchange.
While these exchanges have many benefits, such as speed, their past raises doubts about their reliability. Incidents that have happened with centralized exchanges such as currency verification, Mt. Gox, BitGrail, NiceHash, Bitfinex and Youbit force crypto users to think twice about getting involved with them.
After the introduction of smart contracts in blockchain With the launch of Ethereum, decentralized exchanges (DEXs) attempted to solve the underlying problems of CEXs by facilitating smart contract trading, removing third-party control over trader funds. But this came at the cost of a blockchain network's speed and performance.
Putting all trading activities in the chain slows down the network. So a group of cryptocurrency merchants built a solution on the middle Ethereum blockchain that provides speed without compromising the security of DEXs. They called their solution IDEX.
In this article, we will discuss:
What is IDEX Token?
The IDEX token is a decentralized exchange based on Ethereum (DEX) launched by a group of cryptocurrency traders in 2017. It claims to offer real-time cryptocurrency trading with support for limit and market orders, gas-free cancellations and the ability to fill many trades at once.
The 2017 release was the first IDEX 1.0 version of the exchange. The team released IDEX 2.0 in late 2019, which is now available to users.
The IDEX 1.0 token combined off-chain matching and validation with in-chain settlement. This combination of off-grid commerce and on-network settlement architecture provides the speed of centralization while maintaining the security feature of decentralized exchanges. In addition, IDEX 1.0 had no custody, giving traders control of the funds.
The IDEX 2.0 token also keeps this same combination out-of-chain and in-chain settlement, but with powerful new features and scaling solutions. Let's take a look at how this works?
How does the IDEX cryptocurrency work?
Before the introduction of IDEX, conventional DEXs took the term more literally, building fully chained models in which all orders directly interact with each other. This approach achieved decentralization but made commerce slow and expensive as each process from placing an order to
modifying or canceling an order incurs a network fee and depends on the time a blockchain network commits a transaction. Below are the features of the IDEX exchange.
Hybrid Design
The IDEX exchange uses a hybrid design in which trade execution and settlement take place as separate events. On the IDEX platform, transactions are executed in real time, but are settled minutes later at network speed.
To make this possible, all transactions such as deposits and trades are authorized by the end users and their private key. However, IDEX retains the property to transmit certain authorized transactions to the network.
Workflow
The diagram below describes how IDEX works.
According to the IDEX whitepaper, trading on IDEX works as follows.
- Manufacturer and recipient deposit their tokens into the IDEX contract.
- IDEX smart contracts then update the IDEX database to include customer addresses and token balances.
- The manufacturer creates and sends a signed request to the IDEX server.
- The IDEX server then confirms that the manufacturer's account has sufficient funds and that the signed transaction matches what was submitted to IDEX.
- When confirmed, the order is added to the order book.
- "The borrower sends a corresponding order, signing a transaction with the same price as the target order and an amount less than or equal to it."
- IDEX confirms that the manufacturer's account has sufficient funds.
- When confirmed, the trade is marked as matched and the order book is updated.
- The IDEX database is updated to reflect the new balances and at the same time the signed order is added to the queue to be transmitted to the Ethereum network for processing.
- "The transaction is dispatched to the blockchain by a universal shipping address, using the next nonce to ensure proper order by the miners."
- When the transaction is confirmed over the blockchain network, the IDEX smart contract is updated to reflect the transaction.
- The creator and recipient can now withdraw their funds.
Deposit Agreement
The IDEX cryptocurrency uses a deposit contract that acts as escrow and temporarily locks funds before allowing the user to authorize a limit or market order. This ensures that funds are available not only at execution time but also at settlement time, eliminating trade failures.
Deposit Agreement
The IDEX cryptocurrency uses a deposit contract that acts as escrow and temporarily locks funds before allowing the user to authorize a limit or market order. This ensures that funds are available not only at execution time but also at settlement time, eliminating trade failures.
IDEX 2.0
https://www.youtube.com/watch?v=mMKwFFq9WoQ&t=48s
The IDEX 2.0 token retains the same core design but improves on drawbacks such as excessive transaction costs, limited scalability, and limited asset support. IDEX 1.0 only supported Ethereum and ERC-20 tokens. IDEX 2.0 also supports other assets like Bitcoin.
The IDEX 2.0 token is powered by an innovative Optimized Optimistic Rollup (O2 Rollup) tier 2 scaling solution. O2 Rollup is a new open source tier 2 design to bring scalable apps to public blockchains.
According to IDEX, O2 Rollup allows unlimited out-of-chain scaling with a fixed in-chain settlement cost, removing bottlenecks and costs that have impeded DEX adoption. IDEX 2.0 was released in three phases.
Phase 1
In the first phase, a performance boost was provided when deals were still settled down the chain individually, but manufacturers did not incur gas fees, while buyers paid a small gas fee per deal. In this phase, new off-chain components were added that generated real production data while still relying on the battle-tested chain settlement mechanisms.
Phase 2
In phase 2, the tier 2 system operated alongside the chain settlement and the team tested to compare the tier 2 system using the same production data generated in phase, ensuring that the settlement methods produced the same results.
Phase 3
In phase 3, the settlement in the chain was fully transitioned to the layer 2 system, entirely eliminating the costs of the intake gas and preparing the ground for unlimited scale.
IDEX 2.0 supports batch settlement of trades through Merkle Roots , a data structure that can be used to reduce an arbitrary size data set into a short, unique set of bytes. IDEX combines the concept of off-chain balances and Merkle root proofs to support trade batch settlement and dramatically reduce gas costs
IDEX Token and Staking
IDEX is the native IDEX exchange token used in stakeout. IDEX staking allows traders, market makers and IDEX users to operate part of the IDEX infrastructure and, in the process, contribute to the security and performance of the platform.
In IDEX, stakeout is a two-tier operation.
Layer 1, Validator Stabilization: Layer 1 are validator node operators. A validator node (VN) is a stakeout client run by community members that enforces the validity of the layer 2 ledger.
To participate in the validator network, VN operators must deposit IDEX tokens in a staking contract. VN operators review all transactions published in the ledger out of the chain, confirming the transactions and Merkle root to see if they are correct and calling the fraud-proof executor functions in case a problem is identified.
They are rewarded in IDEX tokens through an IDEX seeded pool. According to the IDEX website, the Validator's bet has not yet been published.
Tier 2: Tier 2 are API node operators that maintain a real-time copy of the IDEX order book and other system data and provide compliant REST API endpoints to the public. They help IDEX reduce transaction costs by offloading popular API operations. Tier 2 nodes receive rewards through an internal audit system.
Tier2 is also replicator stakeout, where users stake IDEX tokens and run a lightweight node. They earn 50% of all IDEX business fees paid every 2 weeks on ETH and BNB.
Conclusion
Ethereum's blockchain and intelligent Binance chain, IDEX trading Exchange, is a centralized global cryptocurrency exchange with a decentralized platform. By managing user transactions with intelligent contracts, IDEX Exchange offers a seamless trading market experience on a fully integrated platform with the ease of a Metamask-enabled accounting portfolio.
In today's fast-changing world of technology and digital money, the IDEX Exchange is among the safest options to trade without having to make any deposit or withdrawal of money. It is highly secure and economical for users looking to earn more with their funds trading and staking cryptocurrencies.
