[Editor’s note: This is a guest post from Exchange Union. Exchange Union is a bronze sponsor at LendIt Fintech USA 2018, which will take place on April 9-11, 2018 in San Francisco.]What is Exchange Union?
Currently the process required for trading digital assets is a logistical nightmare at worst, and an exercise in patience at best. It requires customers to manually search for exchanges which have the Altcoins they wish to purchase listed and then find a trading pair with enough liquidity which allows them to make the trade. They often must create accounts on multiple exchanges and go through the often-lengthy process of waiting for KYC verification.
Exchange Union was created to solve this complexity.
Designed as a ‘meta-exchange’ the Exchange Union network is a layer on top of the existing centralized exchanges. It is essentially an exchange of exchanges.
The customer is able to view all trading pairs across the union from their preferred exchange and make a secure and instant trade for their desired coin at the best market price across all exchanges in the union.How is this Achieved?
There are three key technologies which allow Exchange Union to provide the world’s first instant, decentralized, and secure cross-exchange network:
Payment channels, atomic swaps, and a decentralized order book.
Payment Channels are an instantaneous method to transfer digital assets off-chain between two parties. It scales well even at large volumes of transfers, as the transactions are only recorded on the blockchain when the channel is opened and closed, keeping unnecessary information from bloating the blockchain.
Payment channels are trustless, which means that no trust is required between the two parties. Any disputes or attempts at fraud are resolved automatically through cryptography by inheriting the security provided by the underlying blockchain. The two biggest current examples of payment...