| Andrew & Sule | Decentralized Exchange & Atomic Swap Demo

alright alright guys welcome back this is BTC Kyle and I have two special guests today I have Andrew guys Deki co-founder of all coin do and I have his co-founder sue Lee so welcome guys thanks cow excited to be on the show and happy to have sue Leon here with me and blow to really walk people through the decentralize exchange they were working on and yeah just talk about the importance of a decentralized exchange and just have a fun conversation here yeah I think you know the decentralized exchange idea is becoming bigger as we move you know further along in the the cryptocurrency world we're seeing a bunch of exchanges getting no coin base being audited by the FRS and we're seeing all these other exchange having security issues exchange hacks so we need we need an upgrade per se in the industry and I personally believe looking through all coined i/o it looks to be very very promising and that's that's why I wanted to have you guys on the on the show today to kind of you know tell me more about all coin to i/o and what you guys plan on doing yeah well first of all I really appreciate the kind words and I couldn't agree with you more like I have a list of just centralized exchanges that have been hacked and since 2011 there's been nearly 30 that have been hacked for hundreds of thousands of bitcoins and so what a decentralized exchange really offers users is security anonymously and there's no issues for hacks or server downtime and that's really important today because we're seeing new hacks every single month essentially and as Bitcoin continues to rise in value these hacks are just going to continue and also so are the server issues and just I think we saw it even yesterday with coin base having issues with the release of Bitcoin cash and so a decentralized exchange is basically the next evolution of cryptocurrency trading and we're just really excited to be a part of that next wave of innovation and really just bringing a better exchange environment to the community right yeah that's that's it's it's so important now because cryptocurrency is it's literally like digital cash a lot of people don't understand that it's so easy for someone to literally just log into your computer get it in get into your email address and you know steal a private key or something so these exchanges are definitely vulnerable so moving towards a decentralized version where the users are in more control of their funds rather than someone else being in full control is super important so I'm excited for that for that future so yeah so I guess some I guess I don't know if you wanted to start by talking about how users will you know I guess sign up and how their information is stored like can you go into more detail about that yeah so I do want to take that question you know I'll take this one so all users data are going to be stored in users local memory and private key and everything else so there will be no storing data anywhere else and everything that happens like sign intersections and crew intersections is going to happen inside of browser this was we showed case with our first group concept with atomic swaps and we continue to do that now we're currently focused more on making these atomic swaps instant and more convenient for user experience yeah that's that's good so your the information is going to be stored inside the web browser are there any security issues associated with that potentially or is it somehow encrypted well this it is encrypted with your password and you get to generated seed that you can use to back up your account and also what this brings is as you said it's if you have a specific target that's honeypot for hackers people are going to make an effort whatever effort it requires to find that private credit amongst the of the sense of sterilized exchange but in a decentralized exchange on a lot of places so he takes much more effort like the same effort to hack one centralized exchange is required exponentially more effort to equitable users of distance on the tree because you have to find each user and target his device and similar so it's far more secure because the bay off okay yeah that's yeah that's true I like that so yeah him once but hacking in a decentralized exchange you have to target individuals so yeah essentially you have just one giant a honeypot with centralized exchanges and what this is is just a direct bucket of billions of dollars that hackers can just go straight into that and so with a decentralized exchange essentially everyone's coins are disbursed over essentially millions of different wallets with private keys and so to hack all funds from a decentralized exchange is essentially nearly impossible that's why the concept of decentralized exchanges is is so important because again we continue to see these hacks with centralized exchanges because it is really easy as Julie pointed out where you say that's where the central repository of funds all commit now it's basically where we're gonna focus all of our effort but when it's decentralized it's all the funds are spread across millions of different user accounts and so it essentially becomes nearly impossible to hack for large sums of money that we see with centralizing changes right right so for scalability so we have so we have everyone in control of their funds right we have everyone that has their Bitcoin or the earth theorem it's their private Keys stored offline and as long as they keep that safe they're essentially safe they're not gonna have any issues with someone coming in to the exchange and hacking their funds so that's that's a really good positive with the decentralized exchange for scalability so we're you you touched upon coinbase they were lagging up there they couldn't handle the user traffic so how do you guys plan on scaling the exchange once you gain momentum in terms of volume well because they have their central servers and all of the clients are requesting to those service but in decentralized exchange don't have central servers so what it depends on is more like Bitcoin more intuitive networks inability directly dependent to debt and currently we're doing one chain of swaps but we are going deeper and we're planning to build our exchange on top of like incorporate payment channels so the intersections are going to be instant secure and there's issues like servers right that makes sense that make sense so the transactions they depend on the the availability of that blockchain right so like it for etherium as long as experience functioning the theoretically the exchange will function just as well what about like DDoS attacks what if someone starts you know DDoS seen all coined IO what what how do you guys deal with that at that point well if you wanna DDoS what it means to do it means to send this many requests for exchange for example you wanna exchange a lot of money when you will be dosing and you need to have a lot of money and you need to be ready to something well there's nothing you can do the details of an exchange and not pay you have to pay every transaction that you're doing is some funds that are that you are posting these payment channels and you're spending money on fees for the posting these funds and then after you are sending requests for border matching to put your order and to exchange your money it's basically nothing it's like a similar like broken stage okay I have money to do certain things all right okay yeah yeah I mean my answers my question so I know you guys wanted to show off the atomic swap wallet and the exchange so did you guys want to get into that yeah so I'll go ahead and share my screen and kind of dive into this so we have two products that are currently live I'll start with the first one this is our atomic swap wallet and we were one of the first to accomplish an aetherium to Bitcoin atomic swap and we built a user interface that allows you to atomically swap Bitcoin for Syria right now this is only for use on test net so it's not on maintenance and what that means is basically you don't use real tokens but the concept is still theoretically proving out and so this what I can do is I can just fill up my wallet with fake etherium and fake Bitcoin but it still processed it's over the networks in fashion and if you want to learn more about just how this works we have links at the top like our blog or contact or befe queues so if you wanted to try out this atomic swap wallet you just go to swab all coin Daioh and you can get started in the way it works is basically I would just broadcast a transaction and one play hit star right here I would basically copy this URL and send it over to someone and once this is received on the other end it would start initiating the atomic swap and one thing I want to note is we're making a lot of upgrades so right now for this to work I have to send this over this won't work because I'm sending it to myself but basically this is what the other user would see if you were sending it through Skype or a chat or telegram and you would agree to it and then the atomic swap the way it's almost folks work is essentially it's kind of like two keys turning a ball at the same time so when they receive this basically they receive your private key at the exact same time that party receives it so this transaction won't either complete or it'll fail and that's what makes so trustless and that's why we are really excited about atomic swaps really being kind of that next frontier with cryptocurrency trading if you will and so some upgrades that we've made to our atomic swap wallet is this example here so what we're doing is we're building out the ability for you to atomically swap pretty much any sort of token for any other token and a really trust of spanner in to break this down into just really simple explanation is with a typical exchange you would let's move this over to you say Bitcoin so we have kind of a an example that make sense so usually you take your Bitcoin and you put it into a central repository we'll kind of think of these arrows right here as the honey pit and then from here once your Bitcoin has been these reserves that's when you kind of go and you transact for other tokens but what we're doing here is we're removing this middleman and so what that does is that puts you fully in control of your tokens at all times it gives you full security over your tokens and the anonymous see that you can have with a decentralized exchange comparative to a centralized exchange provides a lot of value as well so just kind of running through this preview again you could fill up these wallets with all these different types of tokens and we're going to be building in a simple order matching functionality to this soon so basically be able to broadcast a transaction for any of these types of tokens for really whatever token that you want and it's atomically swap so again essentially how it works is the transaction either go through or it fails and it's entirely trustless because you're always in control of your funds and I'll bring up the issue with coinbase again has its I think it's really because there was a lot of users that bought tokens at a high of Bitcoin cache yesterday and then they halted buying and selling and you're kind of just stuck with those chickens at coinbase but with an exchange like Oakland at i/o you're always fully in control of your tokens regardless of what happens with our server infrastructure if it goes up or down which it won't from a scalability factor but if somehow it hid you're still always in control that's so important for the future of crypto currency trading right yeah that's so yeah you made a lot of a lot of points there so first I got this wallet so you can have any well not any cryptocurrency but the ones that you have already you can you can put some cryptocurrency in there Bitcoin etherium D cred any any cryptocurrency and then you can atomically swap it with someone and the first thing you did is you sent a link to someone so if you had a friend or you knew someone that wanted to do an equal transaction of hearing him to Bitcoin they they would accept that then at the same time the private keys would go into some sort of escrow and then atomically swap and then all of a sudden they have the other the other cryptocurrency is that is that kind of how it works like the the private keys going to like an escrow well you can go and take this resurrection constant committed and using the secret key generated you can pull these funds between these funds and after he redeems these funds he can not takes take his funds yet because they were worked for next stop girl and you think this transaction he did with your funds extract the secret from this transaction and then you listen to the RIP in your endo for example I give you more anything so what what basically does is you either do a swap for your fund swap the stay worked for some time until you can relieve that and so we don't change swaps the little problem in user experience is because these funds need to stay work for substantial amount of time because of their intersection formation time will be coins or I give you mainly a big point it's very it's very long cuz if you pay a very high heat and you don't get to have your intersection preferably next hour or so and it's not really practical for trading so what we're doing right now we are implementing this you know payment channels so the same mechanism secured across those SATs and work chain works in payment channels and instant so becomes much easier to trace and swap your coins also didn't have to be that big of the for example Bitcoin figure at least more than $20 if you have if you want to have it over in like next hour so okay yeah alright so so right now it's sort of dependent on the slowest blockchain for the transaction time so Bitcoin has if Bitcoin transactions are insane today and you make an atomic swap it might it might take a day let's say to get not really if the other user is participating then it's gonna finish bad but for example you gather either is not participating does something happens to these connections something like that the new funds they worked for okay Andrew and with that atomic swap walla is that eventually gonna you said it is it can be integrated into the decentralized exchange too so maybe you don't know the other end of the party but you just want to stay in your wallet and make an atomic swap with someone maybe it's someone you don't even know is that is that gonna be a functionality that's built in yeah so that that's going to be coming up likely before the end of the year and next week we're gonna be releasing that that prepaid just showed you on test net and then we're going to be moving over to main net so you can actually do real Atomics will helps but the way you can kind of think of the order matching to work it's gonna be to start a simple just maybe like a ebay style trading where you basically just the tokens that you have available and so when you go and pick a certain token that you want to swap we're able to just instantly connect you with this individual and again what's so amazing in for the comic swaps is when you broadcast your transaction and someone accepts it so you send it with a private key and there's someone over here with their private key if they accept basically your transaction you're both your private keys and it's only switch and that's why I like to bring up that analogy where you're kind of like two people at a ball a big bang fault and you know what one Keys not going to open it so both people have to turn the keys automatically at the exact same time if one guy turns it and the other guy kind of happens it the transaction fails so that's what makes it entirely trustless is because again it either works or doesn't kind of the simplest way it's a hopping swaps are my opinion one of the most innovative things to come to cryptocurrency trading this year it was a concept that's been discussed for many years now but we've just been seeing a lot of progress with atomic swaps this year but what makes them so exciting is it really just removed that middleman you're in control of your tokens at all times and there's really look no way to lose your tokens because if any issue happens on the other end both parties are funded their tokens right right yeah it's really cool I'm pretty excited to use that that functionality Andrew I know you wanted to also talk about the exchange as well and you wanted to kind of give a demo and how it's gonna function I can like move things around yeah so one thing that we really want to do at all coin dot IO is we so for one I'm I'm a trader myself ie I use plain ax and bit tricks and one thing that we're really focusing on is just the general user experience of trading and so this is kind of the preview and there's just like little things that I really like like if you're just started for talking quickly you can easily do that and also what we've done it's really slick modular exchange interface so if you like your by order boxes to be heating up at the top or on the side and this probably isn't gonna look good to start but you'll get a kind of idea but I can customize basically how epic to trade however I want my interface to look to really give you that ideal trading experiences oh is that uh is this in view interface what's that the the charting that you have there is that trading view yeah so we're definitely using trade review I'm a big fan of treatment view and that's definitely something that we're going to be having within our chinch absolutely yeah for any like new traders out there so trading views a really really nice it's really nice charting platform where you can do all your technical analysis and stuff so what all coin IO is done they actually have integrated the charting into their exchange so that that's that's really nice that's pretty cool so I'm pretty happy about that too yes you'll be able to map you know basically where you will predict a certain token to go and again I think you know one thing that's really important about exchanges regardless of technology there's also just the user experience and so really we have kind of a tagline that's built built by traders for traders and what we mean by that is we we trade ourselves we understand what really traders need because we see basically some things that you know other exchanges are lacking and that's really our focus is engaging with the cryptocurrency community and ability in exchange that we would use ourselves because it's it's faster it's more secure it has a better user experience you can execute trades faster you don't have to click through eight different pages to get to a different token because with the speed it takes – or the volatility in terms of price with certain tokens even a two minute decision can be the difference between a five ten percent gain or a twenty percent so that's where user experiences is one thing I think is a really overlooked aspect of just any exchange and that's something that we have some really really talented members on our team and I have the background and user experience myself and so when our exchange comes out it's going to be our goal is to have it as one where basically you can trade in any way that you want any way that you're comfortable with and our goal there is to allow you to execute rates faster just make better decisions faster without having to click through multiple different screens and wait long periods of time four different charts of loads so yeah we're definitely excited to be really thin these items yeah I couldn't agree more what I because as you know I'm I'm a trader you know I'm actually doing it full-time and some of the exchanges that I that I use the the clicking that I have to go through and the refreshing and it's it's overwhelming and like you said like one to two minutes of you know just just waiting can really make or break your trade a cryptocurrency trading is that volatile it's all over the place so having a one-stop shop just having it right there in front of you you don't need to refresh the screen a bunch of times it's nice and then also you can move around the interface make it how you want it maybe you have multiple monitors can you um actually when I was playing around with it can you actually like click out and make some of those boxes their own window I thought you could do that no so it's all just a one interpreter okay but this is still just like version one like some other things that iĆ­ve been thinking about adding in before we go live at this is potentially having the ability to have two charts that's typically how I trade I'm watching two tokens I would love a button where it's just sell all or buy a halt instead of like if we lose use floating in X as an example you click you know buy Bitcoin and then it just kind of moves over and I would love just sell by a few shards so the experience that I showed that's that's really just version one and we're going to be really just taking in feedback too so if you go to that and I'll just kind of show it one more time so people want to check it out you can go to this today and it's just a preview dot all coin that I oh and you can send us your feedback as well in terms of you know what would you like to see within this exchange how can we make it better because I'm a firm believer in you know the best way to build this exchange is with as much feedback as possible so if anyone has a is or you know feedback that they want to see within the exchange or if maybe after watching this video if you want to say in the comments just you know certain gripes that you have about an existing exchange that we could potentially help solve with better experience we would love to hear it yeah yeah just uh just that that one comment that you made with just a buying sell button if you wanted to just get rid of it all really quick and you don't have to like worry about like prefilling everything that's something that's really cool and to build on top of that I don't know if you guys were thinking about this but maybe making it so like a user can have some customization in that in that cell or by button where you click cell but you have it so it sells down to a certain percentage you don't want to go any Lauren and for slippage slippage reasons but something like that would be kind of cool too yeah we have we're toast around all these interesting ideas like one is where basically you can use trading view and basically build order order options and then sell options at certain points and the the way you predict that the coin is going to move through the day so if you think it's going to go up and then obviously when it goes up you typically will see dip and then you'll be able to schedule out all these different types of things we haven't built that yet but those are some items that were just kind of tossing around so we're really just trying to you know again build just the user experience that when you go to it one you immediately know how to use it and two you're just able to transact and the way that you want to transact them for me I'm kind of like an all-in type guy so there I I really like the the ability to be able to just sell all one click quickly move to the next token I'm watching but whatever reserves they have into that token and then just kind of moving back and forth so I'm definitely gonna be adding a lot of interesting items to the exchange over time cool yeah you're getting me excited I like that whole graphical buying cell prediction interface idea that gets me pretty excited there's a lot of there's a lot of things that you can do with the exchange to make it really really user friendly and I like how your your motto is like by the by the traders for the traders or something like that that's good by traders for traders and that's all about is because we we understand who is going to be using this exchange and we also want to appeal to people that are just getting into cryptocurrency trading in make it easy for them as well so it's not super complicated to set up an account register everything I think those are some barriers that are holding things back in terms of you know trading and that's something that we see as an opportunity that we have the team and the drive and the skill sets to really overcome so I mean and then yeah just being a trader it's just something that we want to build for ourselves so regardless of if anyone uses the all coin do exchanged I'm gonna be using it so cool man OS question it's kind of a fun one you know like these kiddies and now we're getting into like all these digital goods or actually I'd like some or the visual representation to a crypto maybe you're not holding it physically but you're holding it digitally are you gonna integrate something where you can buy in Salvage digital goods like crypto Kitty cards watch hand cards whatever yeah it might be something that that is the the future of crypto for the for the kids for crypto kitties and all that stuff maybe I know there are some like game items that are starting to be exchanged through the blockchain too so I don't know if you were thinking about getting into that but yeah it's ongoing it sounds like an interpretive Bayeux the team I am NOT a fan of crypto kitties I want to go on record saying that I dome one either I add a lot of people enjoy them so more power to them right cool so so guys did you have any other items or thoughts to add to this to this interview that I I guess to close it out if you want to follow us on Twitter we're just all coin underscore I I'm always pushing updates there follow us on our blog as well just block it up I'll find that or you just go to our website get all that information but we're preparing for a new release next week so definitely stay tuned that and then by the end of the year or early January if we want to really polish things we're gonna have a pretty substantial release that I think the whole community is going to be really really impressed with and we're just excited to continue to innovate and continue to really build this you know resilient trading environment that is is really the future of you know crypto trading so really excited for the coming month stay tuned yeah yeah it's I you got me excited I'm obviously I'm into this space so seeing some innovation and in the space in terms of exchanges and wallets that gets me really excited so I'm happy I'm definitely happy to have both of you on today talking about this and you know for all the viewers that are watching if you wanted to pre-register for all kinda i/o I will have a link in the description of course you know you can go to their website check them out read some more information and you know really get to understand atomic swaps a little bit better because this is this is where we're going cryptocurrency and blockchain technologies I mean we're just beginning but you know the innovation is happening now it's happening very rapidly so we're lucky to be even you know into the space now because this is this is the time to be in it it's literally just getting started here is thing we're gonna be in a whole new world nice you're so cool all right well thank you so Lee and thank you Andrew for coming on you know you guys are always welcome to come on again just give me a holler sounds good Kyle thanks for having a song definitely appreciate it and everybody watching these for dedicating your time and definitely check us out if you're Jim learn more alright guys peace bye everybody

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