Every month the market capitalization and trading involvement are growing. The rapid growth is due to investors arriving daily in the cryptocurrency market. This means the development of an alternative trading system is crucial. With the introduction of the Republic Protocol, investors can now enjoy an alternative trading system with a change. The Republic Protocol is a decentralized open-source dark pool protocol that facilitates atomic swaps between cryptocurrency pairs across the Ethereum and the Bitcoin blockchains. The protocol removes the need for a trusted intermediary to allow traders to a placed on order books and matched through an engine without exposing market-sensitive information.
How does the Republic Protocol work?
With the primary technical goal of the Protocol being to enable a decentralized network of nodes, the protocol first aims at matching orders to a network of nodes without knowing anything about the orders. The protocol uses a Shamir Secret Sharing Scheme to break orders into one large number of fragments and distribute them through the network. These orders cannot be reconstructed once they are distributed not only unless a majority of the order fragmented are recombined.
Republic Protocol features
Cross-chain atomic swaps: users of the Republic Protocol can trade crypto assets in an entirely and purely decentralized way using the cross-chain feature
Private orders for execution Infrastructure for large orders
The Republic Proto has the infrastructure to handle large orders. The infrastructure offers better execution rates for block trades by reducing the market impact using a hidden order book. Elementary components
According to the white paper, the protocol has four elementary components:
- Decentralized hidden order book
- Decentralized order matching
- Protocol token
- Atomic swap infrastructure.
The Republic protocol roadmap shows all the achievement the protocol has managed to achieve till now, and what is planning to do in future. Some of these achievements include Q1 2018: P2P overlay network, REN ERC20 contract, Atomic Swapping contracts and scripts, P2P pooling network and register contracts. Q2 2018: Private + Public Testnet, Q3 2018: Mainnet aQ4 2018 & Onwards support more chain, support for high-frequency trading, support for institutions and implementation of scaling solutions for atomic swaps.
The Republic Protocol is able to provide a decentralized dark pool to enable traders to place orders that are matched against others without the need of exposing the details. These help traders to trust that details about their order won’t be shared and the orders will be correctly matched.