The blockchain technology is unarguably a very exciting concept, opening up a new wave of excitement in computing and over the years, many amazing ideas have played out well and hence the current sophisticated technology in vogue.

Nevertheless, the idea of cryptographic currencies attached to this technology and the proliferation of blockchains with traditional cryptocurrencies, token and smart contracts have added so much to the wave and have actually attracted more people to the concept of blockchains than the technology itself.



Setting up exchanges where holders of these currencies and tokens can trade it against other cryptocurrencies and tokens of their choice and also reliable crypto to fiat exchanges which have emerged over the years have collectively added real value to these assets. Currently most prominent exchanges are centralized and thus the need to transfer the digital assets to a hot wallet before one could trade them against other cryptocurrencies listed on such exchange.

Centralized exchanges have done some great job in creating value for digital assets and also adding value to them, however, many irregularities have surrounded centralized exchanges which includes censorship, hack attacks, manipulated trade statistics, to mention a few, thus, some of the themes of blockchain technology which includes security, decentralization and resistance to censorship have been defeated in these instances. Most importantly, the stress and risk of having to transfer your digital assets to an exchange can also be tedious and inconvenient some times, thus the concept of Decentralized exchanges.



Decentralized exchanges hopes to tackle the issues faced by centralized exchanges and its users by allowing cryptocurrency holders trade their assets from the comfort of their cold wallets without giving up ownership of these wallets.



Notable decentralized exchanges have shone light on what it feels like trading cryptocurrencies on decentralized feels like, amazing!—I guess you said that too!, escaping the hassles of copying hot walle addresses and memos to enable the tracking of the deposits and also to ensure that they are correctly channeled to your personal profile on the exchange. Here we take a look at what decentralized exchanges hopes to offer and why it is poised to revolutionize cryptocurrency exchange:

Immutable trade statistics: Centralized cryptocurrency exchanges are currently being faces with the issue of trade statistics manipulations in the form of wash trades, fake volumes and also some acts of fake tokens being traded in some exchanges. The wash trade dilemma is the principal cause unreliable trade statistics from centralized exchanges, the ability of any trader to simultaneously sell and buy a particular (the same) cryptocurrency without limits have been utilized by many traders to create misleading statistics which makes cryptocurrency more tedious as decisions are hard to be made with the wrong information.

Wash trades are only possible in centralized exchanges as each assets are held in one hot wallet and tracked to individual profiles on the exchange, hence one can easily sell his own assets to himself at a certain price that allows them achieve a desired goal which might be creating a false spike in price or a false slump in price. Decentralized exchanges provides a situation where every asset is traded from a cold wallets, this makes statistics manipulations more difficult and impossible –to an extent.

Convenience and ease of use: As already stated, with decentralized exchanges, cryptocurrency exchange will be done from the comfort and security of individual wallets, this makes exchange of assets easy as any trader simply needs to enable an asset for trading right from his cold wallet and easily exchange it with available cryptocurrencies, this keeps the assets owners in total control of the transaction and relegates the need for transfer of assets to a specified address before trading could be possible. It also saves the time taken for confirmation of deposits, and also reduces cost of transactions as withdrawal fees and trading costs are saved.

Asset security: Private keys gives everyone a complete control over their individual cold wallets, security of the assets in these wallets are only compromised when the wallet owner give away their private keys, the recipient of the private key assumes ownership of the concerned wallet and the assets there in. In centralized exchanges, the traders are not in possession of any private key, these keys are rather held by the exchange and thus they are in complete control of the assets in their possession. In cases of exchange scams, or accidental demise of the holder of this key (as seen earlier this year), the assets held in these exchanges are completely lost and there are little or no chances of the holders reclaiming there lost funds. This won’t be the case in a good decentralized exchange as wallet and asset ownership is not compromised in any way, traders retain the private keys to their individual wallets and simply Conner’s to the exchange and enable their assets for trading.

Resistance to geographic regulations and KYC requirements: Most centralized exchanges sets a barrier on the amount of assets that can be traded by every individual according to their *KYC level*, at the extreme, most exchanges don’t accept trading a dime without at least completing a first level KYC verification. Certain exchanges also limits trading from some geographic locations, traders from these location are either restricted from trading completely or restricted to a certain amount of cryptocurrency value to be trade in the 24hrs, certain cryptocurrencies are also unavailable for traders from some locations for reasons which won’t be discussed in the context of this writing.

However, decentralized exchange shifts the power to the people and censorship /censorship attacks will be impossible.

How does decentralized exchanges work?



For anyone who is new to the idea of decentralized exchanges, the mode/principle of operation of these exchanges will be a bit mysterious, while centralized exchanges simply works by creating a hot wallet for each cryptocurrency and token and channeling individual assets to specific profiles through the use of memos and encryptions, decentralized exchanges works by a different technique which connects wallets and enables a time bound and hash locked exchange— The Atomic swap.



Atomic swap is a smart-contract technology that enable the exchange of one cryptocurrency for another without using intermediaries, such as 3rd party exchanges, occurring as smart-contract events within the respective blockchains involving only the exchanging parties in a cryptographically secure manner. With the atomic swap technology, the exchanging parties trade their token while these tokens are still locked in their cold wallets.



From a surface view, the atomic swap work flow is simply thus: for an exchange of specified tokens, the seller locks a certain amount of tokens in his/her wallet using a random secret number, this number must be revealed to the buyer for this swap to occur, however, to reveal this number to the buyer, the buyer also stakes an agreed amount of their own token, this token is also locked and is automatically accessible to the seller once they reveal the code to unlock the funds in their wallet. The time lock is set to a specified time after the transaction is invalid. The time lock however is not used by most decentralized exchanges currently, but on application, this allows time bound exchange.

How PascalCoin is evolving towards decentralized cryptocurrency exchange

Decentralized exchange is certainly the future of cryptocurrency trading, followings its mouth-watering prospects and what it is already giving to the cryptocurrency community via the present decentralized exchanges which are as a matter of fact still developing. Thus PascalCoin as a dynamic project is working towards equipping its blockchain with every requirement of trading on decentralized exchanges, this can be seen in its recent developments, which includes:



Development of The Atomic swap protocol: In line with the Version5 protocol implementation, PascalCoin have developed and implemented the atomic swap feature as a vital part of the V5 upgrade, the atomic swap on Pascal blockchain works in the same way as the common concept of atomic swap, thus allowing a hash-locked and time-bound cryptocurrency exchange.

Developed by Herman Schoenfeld, the atomic swap technology on the PascalCoin blockchain will enable PascalCoin to be listed on decentralized exchanges, the atomic swap feature works using the Hash-locked-time-contract smart contract. With the Time contract protocol already implemented on the PascalCoin blockchain in form of in-protocol PASA exchange , introducing the hash lockedaccount feature completes the atomic swap smart contract. This feature uses a time lock differential to ensure secure exchange of tokens on the PascalCoin blockchain and also cross-chain cryptocurrency exchange. The atomic swap feature not only allows the trading of tokens on Pascal blockchain, it enables cross-chain exchange of PascalCoin.

Listing on decentralized exchanges: In collaboration with Vgate, PascalCoin has been listed on Vite-x, Vite-x is a decentralized exchange running on the Vite blockchain, the Vite wallet is a multi-token wallet and hence supports the storage of several digital assets on one wallet protected by one private key. Assets stored in the Vite wallet can be traded against other cryptocurrencies listed on the Vite dex. Here’s how you can use the Vite dex and trade your Pascal coins right from your wallet.



1. download Vite multi-token wallet(app) and sign up;

2. open https://x.vite.net/startLogin in your browser and sign in with app;

3. go to page https://x.vite.net/assets and add PASC(optional);

4. click “receive” button shown in the image 1 and you will get an address;

5. deposit from other exchange or wallet to the address and wait for confirmation；

6. click “deposit” button shown in the image 2 and you are ready to trade.

Tokens are currently forged and development is in progress for a proper decentralized exchange on this platform.

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