Blockchain technology allows everyone to truly own digital assets that are not controlled by centralized institutions, and realize distributed and trust free asset transaction and circulation. However, limited by the performance, the current digital asset trading is not a real point-to-point transaction, but focuses on the centralized platform.They provide efficient matching and sufficient liquidity for users, but asset security issues cannot be fully guaranteed. The existing decentralized trading platform ensures the security of assets in the form of smart contract escrow funds, but restricted by the blockchain network, the transaction efficiency is difficult to guarantee.The “Impossible Triangle” problem of security, efficiency and decentralization is highlighted in the digital asset transaction.
To address this pain point, Lotus exchange adheres to the original intention of “out of the mud but not stained, clean but not evil”. As the world’s leading decentralized digital asset exchange, Lotus exchange has avoided the limitations of smart contract technology on the basis of maintaining the asset security and transparency of the decentralized exchange, and avoiding the limitations of smart contract technology itself. The design of contract custody settlement ensures the security of user assets, supports real-time high concurrency transactions, retains the core advantages of decentralized transaction mechanism, and realizes the trading experience of centralized platform at the same time.
Lotus decentralized digital asset exchange, All transaction operations are carried out on the blockchain to ensure the openness and transparency of all transaction data. In addition, there is no need for KYC authentication to ensure the privacy and security of users. Secondly, during the whole transaction process, users always hold the ownership of assets, and their assets are hosted in smart contracts. Once the funds are included in the smart contract, only those who have the private key of the account can be contacted as long as the user keeps the private key well and is not known by the malicious third party, it can ensure the security of the fund.When the funds are transferred, the smart contract is operated automatically according to the instructions without manual approval.
Although the decentralized exchange is very good in security performance, it is still insufficient in trading efficiency, mainly because each order needs to be confirmed on the chain. In addition, all operations of the decentralized exchange on the main chain will generate higher transaction costs. This experience is obviously not in line with the needs of users. From the perspective of user needs, Lotus exchange tries to change this situation. If it is just like other decentralized exchanges, then the creation of Lotus exchange is just another ordinary one. However, the Lotus exchange is not aiming to allow users to achieve trading speed close to that of a centralized exchange, while achieving low transaction fees.
First of all, from the perspective of trading pairs, Lotus exchange will plan to cooperate with hardware and software wallet merchants such as imtoken and ledger to provide a more user-friendly multi-entry user experience, and create DAPP applications on potential public chains such as Ethereum, wave field and EOS, so as to form more extensive cross chain trading pairs, and improve the types and trading speed of coins.
Secondly, through the transaction flow between the main chain, Data Side Chain (DSC) and Computing Side Chain (CSC) of Lotus exchange across the whole system, let LTS examine the communication protocol at a high level. Through the innovative Blockchain Multi Tunnel (BMT) protocol, Hyper Exchange Axis, Indicator, high-frequency matchmaking mechanism and other advanced technologies, LTS realizes the high-frequency trading mode of dual channels on the chain and off the chain.The trigger process of matchmaking mechanism does not involve user assets. In addition, the mechanism of smart contract audit is absolutely fair, resulting in poor mobility. On the contrary, some malicious users will make false demands to affect normal trading. Therefore, Lotus exchange avoids the limitations of technology itself, and it reduces the design of data side chain matching and intelligence contract custody settlement. The cost of gas is also reduced to the minimum by batch up chain mode. At the same time, there will be no cost for the operation of registering and canceling orders, which is also a major advantage.
Finally, the Lotus exchange does not hold the user assets, which are managed by smart contracts.The transaction operations of users are all point-to-point transactions. The order operation requires the trader to sign with the private key. After the matching is successful, it is verified by the smart contract.The intelligence contract code and design documents of the platform are open-source. Once deployed, the intelligence contract runs on the chain and has irreversible characteristics. No one, including the Lotus exchange itself, can modify it.The Lotus exchange has open source all the smart contract code since its inception. Users can verify the intelligence contract code and everyone can view it.
Such a technical architecture ensures that no one, no matter Lotus exchange or cyber hackers, can control and transfer the assets of traders.The platform does not collect or store user private keys.The private key is only controlled by the trader, and the security of the user assets is in the hands of the user. Of course, if the trader private key is leaked or lost, the asset will be lost, which is a common feature of all cryptocurrencies. Because the platform does not store the private key and does not provide the function of “forgetting the private key” to help users retrieve it, this is where traders need to manage themselves.