Kamis, 19 Juli 2018

bZx

bZx
Introduction
Hi dears, another interesting project is being started. First of all, for who missed previous entry, what's a cryptocurrency? To be fast and concise, it is a digital medium of exchange. And the next question would be... What's your use? It is also easy to guarantee the security, integrity and balance of your financial statements by means of a network of agents (segmented file transfer or multisource file transfer) that verify (untrust) each other called miners, which are, for the most part, general public and actively protect the network (the web) by maintaining a high rate of algorithm processing, in order to have the opportunity to receive a small tip, which is distributed randomly.

All this racket of cryptomoney has been increasing exponentially, however, most people know nothing about how blockchain technology works, what a smart contract is and how it could be used. For this very reason, I will first of all carefully introduce this type of block chain technology.
Blockchain is a decentralized general ledger. It is a computer network that has an identical copy of the database and changes its status (records) to a common agreement based on pure mathematics. All this means that there is no need for any central server or any entity we trust (e.g. central bank, notaries, banks, paypal, etc.). The blockchain is the technological basis for all cryptomontages, whether Bitcoin, Ethereum, Hyperledger, etc.

An important part of the blockchain is the smart contracts, a piece of code that is stored in the blockchain network (in each participant's database). It basically defines the conditions to which all parties using the contract agree. Therefore, if the required conditions are met, certain actions are executed. Because the smart contract is stored on all computers on the network, everyone must run it and get the same result. This way users can be sure that the result is correct.

After this brief introduction to the broad topic of Blockchain and Smart Contracts, we can already see that this technology opens many doors to new decentralized businesses and eliminates the need for expensive third parties. Many new companies are now working on this technology, and large companies are testing it in closed networks to collaborate directly with each other without the need for intermediaries. For that reason, there is a lot of projects that are starting to use this new technology. However, not all of them are worth it. We have to read well what each project is dedicated to, what is its whitepaper, its qualified advisors, etc. As I said, blockchain technology has gained popularity due to the hype about cryptocurrencies which has shaken many startups to launch their own cryptocurrencies even without convincing fundamentals. This trend has emerged because new entrants have been more agile in adopting emerging technologies compared to incumbents who are hampered by legacy systems. However, this competitiveness and this advantage enjoyed by the new players may be short-lived, as no economies of scale are taken into account.
For this reason, that is why I choose the best of them through an exhaustive study of the main characteristics. Today, the project I am going to present you is the Instant Assets Tokens, a better way for make property investment easier through the digitization of assets.

Presentation

What is bZx? bZx is built on Ethereum and integrated with the 0x protocol. It is the first fully decentralized, peer-to-peer margin funding and trading protocol. bZx is not itself an exchange, but a protocol that can be integrated into the current exchange infrastructure. Exchanges and relays are incentivized by fees denominated in the BZRX protocol token (BZRX) to offer decentralized margin lending and margin trading services.bZxOracle is fully decentralized and operates partially off-chain. When creating an order, an oracle provider must be specified. 

If the bZxOracle is specified, then anyone can call the liquidateTrade contract method and receive a bounty when the proper conditions are met. Support is provided at the protocol level to allow third-party oracles to impose whatever constraints necessary on when the liquidateTrade method can be called. With bZxOracle, bounty hunters keep track of all open trades taken using bZx, determining whether any have gone below margin maintenance. This pushes the most computationally intensive tasks off-chain. When a bounty hunter has determined that a position has gone below margin maintenance, they call into bZx to liquidate the trade with bZxOracle.

bZx Makes Decentralized Exchanges Practical

Decentralized exchanges need functionalities like margin lending and clearinghouses. bZx makes these possible through trustless smart contracts.


The fees collected by bZxOracle will be tokenized and distributed to its users. Lenders and borrowers will receive Sugar (SUGR) tokens to compensate them for taker fees and gas. Bounty hunters will receive Sugar tokens as their bounty. This token will be used to decentralize governance of the oracle, giving the individuals invested in the network a vote in proportion to their usage. SUGR tokens are backed by Ether and redeemable for a fixed percent of the bZxOracle reserve. As bZxOracle collects more fees, the Ether reserve grows along with the value of the SUGR token. The distribution of the SUGR token will take strong inspiration from Ethfinex and their Nectar token. The SUGR token roll-out will be incremental, with the oracle initially distributing Ether to the lenders, borrowers, and bounty hunters.

The volatility of cryptocurrencies create a high risk that a cascade of margin calls could cause a flash crash. Part of the fees collected by bZxOracle will be set aside into a decentralized insurance fund denominated in Ether and BZX token to protect lenders in the event of a black swan event. If many lenders have lost principal due to abnormal market circumstances, the holders of the Sugar token are incentivized to use the insurance fund to restore the principal of the lenders. This maintains the reputation of the network as a safe place to loan funds and safeguards the future revenue of the Sugar token. Part of the task of governance of the oracle is to decide what loan order parameters are insurable.

The BZX Token
  • The BZX token is a utility token with two main functions:
  • The incentivization of order book aggregation by relays.
  • Governance of the bZx protocol.
  • The BZX token functions for the bZx protocol much like the ZRX token functions for the 0x protocol. 
  • Both tokens coordinate networks of rational economic agents around a protocol. Both are used to facilitate continuous, decentralized updates to the protocol.

Token Governance

The most common directions for governance in the space are Aragon and multi-signature wallet arrangements leading to a DAO. It has become clear that multi-signature wallets represent an unnecessary attack surface. On this issue we will continue to solicit feedback from the community. We are currently investigating the use of an upgradeable DAO.

bZx is built on Ethereum and integrated with the 0x protocol. It is the first fully decentralized, peer-to-peer margin funding and trading protocol. bZx is not itself an exchange, but a protocol that can be integrated into the current exchange infrastructure. Exchanges and relays are incentivized by fees denominated in the BZX protocol token (BZX) to offer decentralized margin lending and margin trading services. Assets are valued and liquidated via competing oracle providers. By decoupling the valuation and liquidation of assets from the protocol, the oracle marketplace approach allows competition to drive the oracle provider fee to its marginal cost while encouraging experimentation and flexibility.

Decentralized exchanges have two big issues: low liquidity and large spreads. Low liquidity means that there is a low volume of buyers and sellers. This can result in worse prices or difficulties filling large orders. Large spreads are caused by large gaps between bids and asks. This imposes large costs for entering and exiting positions. bZx bridges centralized and decentralized liquidity pools using tokenized margin loans. With bZx’s Universal Liquidity, you get access to the entire margin lending market. This means less slippage and tighter spreads.

For More Information:
Website: bZx.network

author:salsa24

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