The Bitcoin Whitepaper was the tornado that the lifted our financial houses into OZ. Since then a lot of projects have been built that use old ideas, namely centralization to get things done. These projects are ultimately not on the Yellow Brick Road. Everybody who writes financial pieces now a days beats the decentralization drums.. and for good reason. Projects built across trustless networks will succeed.
I'm currently seeking Hive DAO funding for building a layer 2 protocol with Decentralization in mind. I want to fill in the cryptoverse where I'm currently at with my progress.
DLUX (just as easily any layer 2 token) nodes are now autonomously operating atomic swaps on a decentralized exchange with collateral and enforcement. What this means is that much like ETH or Bitcoin all the nodes are privy to all the same information. When a node comes online it queries the network for the latest state file; It now knows the last agreed upon state and processes a few blocks to catch up to the current Hive block head. These state files are put into IPFS, where if files are the exact same will have the same address name/address/locator... which is sufficient to build consensus. It is now able to automate a few transactions enabling: Trustless swaps from layer 1 tokens to it's layer 2 token with out an intermediary token or centralized liquidity provider. The network of nodes uses it's own layer 2 token to collateralize escrow transactions and transfers, which are autonomously generated and signed.
Let's see how thing's like this work right now.
- send HIVE to hive-pegged
- Hive Engine takes a fee and gives you hive pegged tokens on hive engine
- you buy a token like LEO on HIVE Engine
- you sell LEO on Hive engine
- you request your hive-pegged be converted to HIVE
- HE takes a fee and sends you Hive
-OR-
- Send ETH to Blocktrades
- Recieve Hive from Blocktrades
Additionally in HE you can set up a "scotbot" to allocate tokens based on on chain transactions. All of the above actions have single points of failure, they are not decentralized.
Let's examine how these transactions will look with DLUX
- See an atomic swap listed on the DEX
- Buy the DLUX atomic swap buy signing an Escrow Transfer(obscured by the front-end: to 2 DLUX node operators that have enough liquidity to collateralize the swap.)
- The whole DLUX network adjusts balances and tracks intermediary transactions, your tokens are available immediately
-The other side of the atomic swap-
- List your DLUX for sell with a custom Json
- A buyer sends an escrow transfer, the network processes intermediary transactions
- Roughly three minutes later Hive is deposited into your account
Additionally the Node Software for your layer 2 token can read all blockchain transactions and perform the same functions as scotbot... and more.
In the near future I'll be finishing the protocol for this network of nodes to elect accounts to sign multi-signature transactions. This is necessary to process fee's(as only one node of two currently receives HIVE fees for escrow transactions) and provide additional liquidity which can be used to:
- Buy layer 2 tokens and increase the safe amount of layer 1 tokens held.
- Be used to directly buy accounts through Hive burn(full price accounts)
- Pay for new accounts in HIVE
- Allow for partial fills of DEX transactions(no longer an atomic swap only protocol)
- Be a liquidity pool for cross chain swaps.
Cross chain swaps would require some or all of the node operators to ALSO have a blockstream from the other chain. When appropriate actions happen happen in a smart contract(or even just to declared node operator accounts in a similar atomic swap protocol) a consensus can be made that HIVE/HBD/Layer-2 Tokens should be given to appropriate accounts on the HIVE chain and vice-versa.
I hope the picture of what I'm building is becoming more clear. I know it's quite a bit but single points of failure were the old way to make things happen. Let's build the future.
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Thanks for the update on the progress you are making.
How many nodes are running at this point? Are there any other tokens being tested other than HIVE, DLUX, and HBD?
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There are 7 nodes running, but one is stale. This isn't a platform to build other tokens on, it's a portocol to build tokens with. Hive/HBD <-> DLUX <-> cross chain/oracle
!Not: Hive/HBD <-> DLUX <-> Actifit/LEO
Yes: Hive/HBD <-> Actifit <-> Workout Oracle
Yes: Hive/HBD <-> LEO <-> ETH-Bridge
Cut the middleman from your community.
Okay got it.
And where do the tokens come from?
For example, LEO, would there be a LP set up like on ETH or is it a true peer to peer where the code brings a buyer and seller together? Or are the communities setting up a node and holding their token for trading/swapping?
Posted Using LeoFinance Beta
You can bring your own tokenomics, The nodes operate in a PoS way with their level 2 tokens, at least for partial control of multi-sig wallets.
There are any number of current swap protocols that can be modeled with this, this just adds the ability to selectively smart contract within your community... as that's not a function available on hive, which is also how the fees on hive stay low.
The picture is becoming more clear, thank you for making the effort to explain. :)
Look for a video soon... not sure how technical you like but I'm gonna show as much of the inner workings as I can.
That could be very helpful. I look forward to that.
It might help to create a great deal more excitement for the project.
Posted Using LeoFinance Beta
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STOPDo not miss the last post from @hivebuzz:
It's still a lot to comprehend for my limited crypto knowledge but I'll watch this closely.
Video will be welcome of course, thank you for the update.
Posted Using LeoFinance Beta
Có thật là bạn sẽ thực hiện dự án giao thức lớp 2, tôi rất hết sức ủng hộ bạn, điều này thật mới mẻ, tôi đang trông đợi cái gì đó thật sáng tạo và có lợi ích hơn. sẽ có nhiều thứ đáng giá hơn đang đợi tôi ngoài kia và tôi cần sự giúp đỡ của bạn, Hãy nhớ tôi.https://www.publish0x.com?a=8mepgLrrdM
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Cảm ơn bài viết của bạn, bài viết rất hay và đầy đủ, Mua mã thông báo lớp 2 và tăng số lượng an toàn của mã thông báo lớp 1 được nắm giữ.
Được sử dụng để mua tài khoản trực tiếp thông qua Hive ghi (tài khoản giá đầy đủ)
Thanh toán cho các tài khoản mới trong HIVE
Cho phép thực hiện một phần các giao dịch DEX (không còn là giao thức chỉ hoán đổi nguyên tử nữa)
Trở thành một nhóm thanh khoản cho các giao dịch hoán đổi chuỗi chéo. Tôi rất tâm đắc.
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