TaurusOx: A Hybrid And Reliable Protocol

TaurusOx: A hybrid and reliable protocol

Bitcoin was the first cryptocurrency, and is still the biggest, but in the eight years since it was created, others have come along. All of them have the same basic underpinnings: they use a “blockchain”, a shared public record of transactions, to create and track a new type of digital token – one that can only be made and shared according to the agreed-upon rules of the network, whatever they may be. But the flourishing ecosystem has provided a huge amount of variation on top of that.

Some cryptocurrencies, such as Litecoin or Dogecoin, fulfil the same purpose as bitcoin – building a new digital currency – with tweaks to some of the details (making transactions faster, for instance, or ensuring a basic level of inflation). Others, such as Ethereum or Bat, take the same principle but apply it to a specific purpose: cloud computing or digital advertising in the case of those two.

Derivative Trading: the existing Work

The derivative is a term used for anything – a contract, security – that gets its value from its relation to another asset such as bonds and stocks.
The majority of derivative as we currently have are centralized. The scenario that often plays out is that exchanges host their data, pairing algorithms and follow their proprietary message format.

Centralized versus Decentralized

While juggling through the crypto journey, a new obstacle pops up whether to go for centralized exchange or decentralized exchange.
As the cryptocurrency environment matures, centralized exchanges present a bevy of issues on a regular basis. The first is trust; Satoshi had earlier on said that the fundamental challenge with conventional currency is the trust that is required for it to function. Another problem is security, this is because it has a single entry point and so, easier for hackers to gain access through a single server. Also, the high trading fees – many charge between 0.25 to 3% in fees.

Blockchain technology has the potential to tackle the opacity and barriers to entry of the existing global financial system. Reducing financial exchange to a transparent and open settlement network, accessible to all parties, is one of the dreams at the heart of the public blockchain movement.

This makes sense, as the Ethereum ecosystem is itself a movement fuelled by a need for decentralized, trustless and transparent modes of operation. Blockchain has the power to eliminate unnecessary middlemen and monopolies and, particularly given the past vulnerabilities of cryptocurrency exchanges to security breaches, exchanges therefore seem to like the ideal targets for decentralization. So full decentralization reduced the risks of centralization but also came at an expense, most significantly performance and transaction costs.

Providing a solution with TaurusOx

The team behind this project sees an introductory solution, as it is currently in building different systems, that is apply decentralization where it is appropriate as to just moving suddenly from its direct opposite.
TaurusOx is a protocol that checks for conformance of derivative trading of any digital asset; not just cryptocurrencies. The protocol may be applied to both exchanges – centralized and decentralized and indeed, any dAPP. The protocol permits the issuance by any organization of contracts secured by asymmetric cryptography – any cryptographic system that uses pairs of keys: public keys which may be disseminated widely and private keys which are known only to the owner. Contracts are persisted downstream of the issuer on the Ethereum blockchain.

TaurusOx will be a reliable protocol in that it will go through a series of security testing, will also not rely on a central authority, be simple for developers and finally, be transparent which is very important.

Useful Links:      Website | ANN Thread | Whitepaper

Author Detail: 

BountyHive Referral Link:        Orangeseller
ETH Address:                            0x1461C3727dC461EfF7B32751dFf56c51c2218d5E

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