Developer Update 6

June 3rd, 2019

What is an Atomic Swap and Why Does it Matter?

A New Formula to Help Distribute Critical Nodes

Chance of Validating Percentage (%) = My Node NDEX / Total Network NDEX * 100

Chance of Validating Percentage (%) = ( 0.5 * ( 1 / Total Nodes on Network) + 0.5 * ( My Node NDEX / Total Network NDEX ) ) * 100

NebliDex New Markets

NebliDex Becomes Fully Open-Source

NebliDex is undergoing significant changes that will make it a model decentralized exchange for trading Neblio, NTP1 tokens and most cryptocurrencies.The exchange is designed to be run fully autonomously, without the need for human arbitrators or custodial accounts, and the upcoming Neblio wallet update helps NebliDex achieve this objective. Version 2.1 of the Neblio client includes new script features that will allow for the creation of hash time-locked smart contracts. This will bring Neblio up to par with other Bitcoin script-based coins. The ultimate result of this is that now NebliDex can createbetween coins on different chains (such as Litecoin or Bitcoin). Giving us true interoperability among different similar chains with no representative tokens (like wBTC on Waves platform) and no third party custody (like centralized exchanges). Please see our updated white paper for more granular details. The features mentioned in this developer update are not yet available but will be coming soon.Essentially, in the cryptocurrency world, the phrase "atomic swap" has become associated with a trade between parties that either happens completely or doesn't happen at all. One person cannot leave the trade in the middle and leave the other person with the empty bag. For Ethereum, atomic swaps have been something that has existed for a while as the smart contracts control the balance of what happens to funds after they get deposited. With Bitcoin based coins, such as Neblio, the solutions to solve the problem of a dishonest trader are more limited. Currently, NebliDex uses 2 of 3 multisignature contracts to handle custody of the taker's fund, where each party has a key and the validator also has a key. The validator enforces the platform rules to determine which party receives these funds and when; however, the validator cannot move funds on its own as it doesn't have complete custody. This is similar to how the popular decentralized exchange Bisq operates except its validators resolve disputes via human interaction.With atomic swaps, the process becomes a lot simpler. The validators on NebliDex will no longer hold keys but become relayers of information between traders who will then create custom hash time-locked contracts (HTLC - atomic swap contract) between each other. The validation will now fall directly on the trading clients who will check the blockchain directly to determine balances and create transactions that fund the atomic swap contract and redeem them accordingly. If any of the traders fail to fund their contract, the trade will time out and traders can pull back their balance from the contract. NebliDex will bring atomic swaps to ALL its trading pairs including NTP1 tokens and any new token/coin added will utilize atomic swaps.NebliDex currently operates similar to how many Proof of Stake platforms operate, meaning the greater the amount of tokens you have, the better chance you have of earning more. Over time, it was determined that for NebliDex Critical Nodes, this led to a smaller number of nodes participating in validating. Smaller nodes disappeared because they had a significantly smaller chance of validating when compared to bigger nodes. Those who wanted to run nodes would need a large NDEX balance or risk having a miniscule chance of being selected if they do not have a balance near what the major nodes have. So even though the minimum balance required to run a node is 39,000 NDEX, when in competition with a node that has 4,000,000 NDEX, the chance of validating is only 0.97%.Below is the current formula:A new formula was developed to still reward those that have a greater stake in NDEX but help increase the amount of nodes and give those with lower balances a higher chance of being chosen to validate a trade. This is the planned formula:Now if you are 1 of 2 nodes on the network with only 39,000 NDEX and the other node has 4,000,000 NDEX, your chance of validating has increased fromto. For large nodes, although the chance of validating decreases, we expect an increase in demand for NDEX as more people will want to participate in the network and become Critical Nodes.NebliDex will always welcome new quality NTP1 tokens to its exchange for quick integration. Eventually, NebliDex will also incorporate more non-NTP1 coins. There is a demand for a quality decentralized exchange that crypto traders can use to trade their favorite coins. And with the introduction of atomic swaps, there will not be a platform more secure to do that than NebliDex. While decentralized exchanges do exists, most of them are for Ethereum and Ethereum based tokens and are not interoperable with Bitcoin based coins. NebliDex will eventually be the prime spot to trade Bitcoin based coins in a decentralized way using atomic swap technology.Planned new markets will include:The purpose of making these new markets is to add value to NebliDex and help increase its usage among the greater cryptocurrency community. As with all trades, fees will be paid in NDEX and thus a little NEBL as well.In the spirit of the cryptocurrency and open-source software that has helped develop NebliDex, the next major version of NebliDex will be completely open source on GitHub. This follows a plan that was set in the whitepaper for the project to always become open source. You can now inspect the source, look for issues and customize your experience. While being open source will overall benefit the community as other developers can learn from what was created, it does open up new attack vectors that you will need to watch out for, mainly phishing. Never download or run a NebliDex executable that you do not get from NebliDexDo not build and run source code from a code repository unless it is linked from this website or you have inspectedof it yourself for malicious content. If you become confused as to which website is phishing, you can always check a WHOIS database to see which website has an earlier creation date. With open source code, any one can make copycats of NebliDex that look similar but are not the same product. When in doubt, do not open it.The NebliDex team is excited for what is in store for the growth of NebliDex. This has been a project over a year in development and its progress is not slowing down now!