Atomic kidney-swap contracts to improve exchange liquidity across blockchains
If you’ve ever used a cryptocurrency exchange before you will have noticed a broad and dizzying array of new currencies. At the time of this writing there are hundreds of currencies being creating including new blockchains, colored coins, ERC-20 tokens, counter-party tokens… the list goes on. You can imagine that as these currencies proliferate it becomes harder and harder to directly match up traders on an exchange.
A standard exchange uses a limit-based order book to match up sellers and buyers by checking if the price per coin is compatible against a given currency pair. This means that limit orders can only be used to match up two traders if the currency pairs are the same so: Alice has x and wants y whereas Bob has y and wants x – simple.
This relationship works well where there are only a few major currencies but it doesn’t work well for things like commodity trading or
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