Out products: DApps
Enter the decentralized world.
Join the growing community of developers and businesses on Goldencoin.
Goldencoin will allow developers to create trading marketplaces, peer-to-peer trading platforms, exchange mechanisms and much more.
Goldencoin DEXes swaps
There are pros and cons to both centralized and decentralized exchanges. The former is more convenient but less secure, and the latter, vice versa.
Goldencoin is offering its own Decentralized Exchange (Goldencoin DEXes swaps) that will link independently-governed blockchains, using the GDC coin.
In its initial phases, the GDC DEX will serve as the base layer for a collection of venues that perform order execution outside of the GDC Network consensus, with provable on-chain settlement on the GDC network.
We first need to identify and define what characteristics or dimensions we consider important for an exchange mechanism that is fast, fair and safe.
Users should be in control of their own assets: they should not need to trust a third party, nor should they need permission from a third party in order to access or use their funds. While the GDC Network will initially have an operator (Goldencoin) rather than a distributed validator set, and venues will initially be operated by central parties, there are layers of security such that users are not trusting any single party to remain honest. If a venue tries to steal user funds, an honest operator will block the misbehavior. Conversely, if the operator misbehaves, an honest venue will bypass the operator and exit user funds to Ethereum.
We consider protection of user funds to be the most critical concern in the design of a decentralized exchange. During the time that venues have custody of user funds on the GDC DEX, user funds are still secured either by the operator or by the blockchain consensus. This actually reduces risk for venues as well as its customers. Centralized exchanges expose themselves to operational risk, and potentially legal risk as well, when they take responsibility for the safety of user funds.
By restricting the conditions under which the venue takes control of funds, the total value for which the venue is responsible at any given time is drastically reduced; while the additional layer of security provided by the operator or blockchain consensus means that a hack or other attack on the exchange is much less likely to result in loss of funds since there is no single point of failure. We anticipate existing centralized venues will be interested in connecting to the GDC DEX in order to both tap into a wider liquidity pool than is available within a siloed channel, and significantly reduce their own operational risk.
Exchanges should also be fair and transparent. Here transparency refers both to transparency of venue and user behaviour, as well as transparency of market information such as pricing.
Everyone should be able to access services that allow them to exchange any digital assets, whether tokenized property, cryptocurrencies, or other tradable tokens. There should be no individual that has the ability to block access to exchange services. Put simply, access to a decentralized exchange should be permissionless.
It will be impossible to run all the world’s decentralized applications on a single blockchain, scaling has to occur on Layer 2. It would be absurd to try to run the Internet’s 100 most popular games and social apps all on one giant supercomputer. Likewise, it’s absurd to assume all the world’s decentralized applications in the foreseeable future will run on one blockchain.
The solution is obvious - these applications will need to be split up across multiple blockchains.
We realized this early on at Goldencoin, when we presented the idea of application-specific sidechains. We foresaw that eventually some decentralized applications would grow popular enough to reach even 1/10th of Facebook’s scale, and the only possible way to run them would be on their own dedicated chains.
Of course, if you put these DApps that require thousands of transactions per second on their own standalone blockchains, they would be vulnerable to the same issues.
But if you put them on a sidechain to a blockchain that is sufficiently decentralized (like Ethereum) - you get the best of both worlds.
Facebook experiences 30,000+ Likes / Comments per second
The Nasdaq sees 20,000+ trades per second
MMO games like PlayerUnknown’s Battlegrounds handle over 1M concurrent users updating game state
Goldenchains provide higher scalability without sacrificing security
A goldenchain can use a different consensus algorithm (like DPoS) optimized for DApps that require low-latency, while storing any tokens or data requiring a high level of security on the main chain.
The amount of trust required by users is minimized, since they have the option to move anything of real value to the main chain for safe keeping. (Even more so if you secure the Layer 2 assets with Golden Plasma).
By putting your DApp on a goldenchain to a decentralized mainnet, you get all the benefits of higher scalability offered by a faster blockchain, while maintaining the same trust and security guarantees provided by the decentralized base layer.