Decentralized Exchange

BarterDex Decentralized Exchange

BarterDex is a secure DEX built with atomic-swaps capability and has 105,951 atomic swaps complete on their register. With atomic swaps, traders can execute trades across multiple (and different) blockhain networks directly from their wallets.

The crypto exchange is a project of the Komodo, a public blockchain that has a token called KMD. Komodo team is already popular in cryptocurrency industry.

Advantages of using BarterDex

Apart from atomic swaps capability to trade on different blockchain networks, BaterDex decentralized exchange uses Electrum servers. Therefore, no blockchain is needed for download to use the exchange.

Electrum is a Simple Payment Verification (SPV) service on server which verifies transactions of the selected coin network without exposing the private key of a customer.

With it, users can multiply liquidity by placing simultaneous multiple orders for different coins using the same funds. It is much better than having to manually download the wallet of your coin and then synchronizing the blockchain. However, it is faster and more stable to trade with native wallets than using Electrum. Liquidity providers are recommended to use native and not Electrum.

Additionally,  the DEX exchange supports more than 100 coins and continues to add more.

How it works?

It works like many other DEX exchanges. The decentralized crypto exchange  connects users for peer-to-peer trades on the orderbook. They say their order book is an “analogue of a full relay node and a node that doesn’t relay.”

Additionally, on loading the app, you are given a twelve-word mnemonic phrase which you should copy like any other private wallet seed. You then get to access, through a popup window displayed after writing the phrase, a portfolio data and recently visited markets.

Another popup window also shows trade history, a debug menu and a settings section where you can change theme and language.

How to swap?

To swap, choose the currency you want to trade and the digital asset. Deposit the coin to a smart address in order to give an offer to peers on the network.

Once the deposit is confirmed, click the Exchange button to go to trading page. Additionally, you can peruse the list of coins to offer a trade or look for peers by populating the list of offers.

You provide the maximum price that you want to pay for the cryptocurrency and the maximum amount of that crypto that you want to buy.

You can use Zcredits to do zero confirmation swaps where you swap 2 coins in about 30 seconds instead of waiting for confirmations on the blockchain. To get Zcredits, you deposit KMD and lock it for an X amount of weeks. 10 KMD equals 10 Zcredits. Trades up to KMD are eligible for Zero confirmation irrespective of the coin in question. The DEX checks the value of the trade equivalent in KMD to check if a zero confirmation swap is possible. To do this, a price is set for the coin/KMD pair.

Because BarterDex trades UTXOs or Unspent Transaction Output (1 UTXO is exchanged for 1 other UTXO) and not balances, you need to have certain sizes to be eligible for a trade. You need to make at least 3 transactions (with sizes X, X * 1.2 and X * 0.1.) to your smartaddress to be able to trade.

Another thing, atomic swaps need you to keep running the BarterDex all the time in order to execute transactions because it requires transactions to be signed with your private key.

How to install BarterDex?

Installation defers for Windows, Mac and Ubuntu platforms. For Windows installation, see this simple guide.

You simply download files for Windows platform, extract and install, then start the DEX. From there, you can start trading as said above.

You can read information on set up here.

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David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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