Smart-Contract Protocol for Cross-Chain Cryptocurrency Trading

Summary

The paper presents a decentralized exchange protocol intended to let users trade across different cryptocurrencies without relying on a centralized exchange. It frames the motivation as the security risk created by centralized platforms and the difficulty of directly exchanging assets across separate blockchain systems. The proposed design uses smart contracts on Ethereum to coordinate transactions.

The authors report implementing trades between individual users as well as transactions involving multiple users, then deploying the system on the Ethereum test network. Their experimental evaluation describes the transaction cost as acceptable, but the supplied summary gives no cost figures, security analysis, or comparison with other exchange designs. The evidence therefore establishes a prototype and a broad cost assessment, rather than demonstrating production readiness or measured resistance to attacks. The paper focuses on protocol architecture and implementation; it does not describe a trading signal, investment strategy, or market-performance study.

Key ideas

• The protocol aims to support exchanges between different cryptocurrencies without a centralized intermediary.
• Ethereum smart contracts coordinate the proposed decentralized trading scheme.
• The implementation covers both individual-user and multi-user transactions.
• The prototype was deployed on the Ethereum test network.
• The authors characterize its cost as acceptable but provide no figures in the supplied text.

Tags

# Enabling Cross-chain Transactions: A Decentralized Cryptocurrency Exchange Protocol


# Enabling Cross-chain Transactions: A Decentralized Cryptocurrency Exchange Protocol









Inspired by Bitcoin, many different kinds of cryptocurrencies based on blockchain technology have turned up on the market. Due to the special structure of the blockchain, it has been deemed impossible to directly trade between traditional currencies and cryptocurrencies or between different types of cryptocurrencies. Generally, trading between different currencies is conducted through a centralized third-party platform. However, it has the problem of a single point of failure, which is vulnerable to attacks and thus affects the security of the transactions. In this paper, we propose a distributed cryptocurrency trading scheme to solve the problem of centralized exchanges, which can achieve trading between different types of cryptocurrencies. Our scheme is implemented with smart contracts on the Ethereum blockchain and deployed on the Ethereum test network. We not only implement transactions between individual users, but also allow transactions between multiple users. The experimental result proves that the cost of our scheme is acceptable.

Shown in full with attribution under the source's licence. Licence: abstract CC0

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.