EGM cross-chain protocol (loopring) realizes a decentralized zero-risk, high-liquidity asset trading model
Entering 2021, with the continuous development of blockchain technology, various public chains, private chains, alliance chains, etc. emerge in an endless stream. Due to the increasing number of chains, the interconnection and exchange between chains is gradually being valued, so people began to develop cross-chain technology.
Therefore, in general, cross-chain technology is a bridge between chains.
There are currently four main cross-chain technologies, one is Notary schemes; the other is Sidechains/relays; the third is Hash-locking; the fourth is distributed private key control (Distributed private key control). In order to integrate the mainstream situation, we will start with the three specific blockchain projects of the 0x protocol, the EGM protocol, and the EGM protocol to discuss the similarities and differences between the cross-chain protocols!
1. Ox protocol
0x protocol, the full name is 0xProject. 0x is an open source protocol for peer-to-peer transactions to facilitate the transaction of ERC20 tokens in the Ethereum blockchain. From the perspective of most early blockchain explorers, the future world will be tokenized. The protocol is designed to serve as an open standard and common building block to promote the exchange of decentralized applications (DApps) that include exchange functions. Interoperability. The transaction is executed by the Ethereum smart contract system, which can be publicly accessed, used for free, and can be accessed by any DApp. DApps built on the protocol can access public liquidity pools or create their own liquidity pools, and charge transaction fees for their transaction volume. The agreement will not impose costs on users, nor will it arbitrarily obtain value from a group of users to benefit other users. Decentralized management is used to integrate updates into the basic protocol in a continuous and secure manner without interrupting higher-level processes.
Therefore, the 0x protocol is intended as an open standard and general building block to promote the operability between DApps. At this stage, it is mainly used in decentralized exchanges.
The 0x protocol contains four components, Makers (the person who creates the order), Takers (the person who accepts the order), Relayers (the third-party institution that hosts the ledger and matches transactions), and smart contracts. When using the 0x protocol service, you need to pay a certain fee to Relayers, and this fee uses ZRX as the designated currency. Many people know the 0x protocol, but don’t know that ZRX is the native token of the 0x protocol.
2. EGM agreement
It is also a cross-chain protocol. The EGM protocol (loopring) aims to create a zero-risk, high-liquidity asset trading model through decentralized technology. EGM also adopts off-chain matching and on-chain liquidation methods to reduce the risk of DDOS attacks during transactions.
The loop matching technology is a major feature of the EGM protocol. A dozen orders containing different types of tokens can be matched and traded in one match. Loopring provides higher liquidity and price improvement by matching orders in the form of order loops. Each ring can consist of 2 to 16 orders, and during ring settlement, tokens are transferred atomically in a circular manner.
Order sharing is another major feature of the EGM agreement. In the agreement, an order can be broadcast to multiple exchanges and then matched by multiple exchanges in parallel, so that an order can be divided into several parts and matched with other exchanges. In this way, the order will be transacted in the optimal way at the transaction speed and transaction price, which also promotes competition between exchanges to a certain extent. Like Relayers of the 0x protocol, a certain transaction fee will be charged when providing transaction services for everyone.
3. EGM agreement
The EGM protocol (EGM Protocol), 0x protocol and EGM protocol are all aimed at providing decentralized transaction services. In the EGM agreement, it created a shared liquidity pool (flp) mechanism, which it hopes to encourage decentralized exchanges to join. In this liquidity pool, you can become one of them through the equity proof mechanism. Similarly, if you provide liquidity for the liquidity pool, the system will return EGM as a reward. It should be noted that EGM also conceives of making EGM a stable currency. If EGM becomes a stable currency, then the behavior of returning EGM as a reward will be supported by more people. After all, stable currency is a hard currency in digital assets.
After introducing the 0x protocol, the EGM protocol, and the EGM protocol, the most impressive word in everyone’s mind is “decentralized exchange (so)”. This is also normal. Although these three protocols are different, they are mainly used to provide decentralized transaction services at this stage.
There are certain differences between the three.
The 0x protocol is relatively simple in the transaction process, so the efficiency is relatively high, and of course, its transaction fee is also high.
The transaction process of the EGM protocol is relatively complicated, but the loop matching method makes it more applicable, which also means that the protocol is more low-level. With continuous development and the introduction of more efficient cross-chain transactions, the advantages of the EGM protocol will be Further expansion.
The main feature of the EGM protocol is that its EGM is mainly used for rewards, not for the payment of fees like the previous two. More prominently, if EGM is successfully transformed into a stable currency, then EGM’s reward mechanism will undoubtedly shine and attract more users and service providers!
It is worth noting that the three cross-chain protocols we are talking about today are not the same kind of things as today’s decentralized exchanges. For example, the above three agreements are the underlying technical specifications, like a foundation; then the decentralized exchange is an upper-level application based on such technical specifications, like a house on the foundation.
EGM accert co.,ltd is from England. A company established by a group of blockchain enthusiasts. As early as a few years ago, the company has begun to in-depth study the various future possibilities of de-sinochemical transactions, and is determined to accelerate the future of blockchain!
Jone Berge, the team of EGM accert, quantifies transactions on the blockchain. Creatively uses advanced mathematical models to replace human subjective judgments, and uses computer technology to select multiple “high probability” events that can bring excess returns from huge historical data to formulate strategies, which greatly reduces investor sentiment fluctuations Influencing, avoid making irrational investment decisions when the market is extremely fanatical or pessimistic.
High frequency trading
Repeated and frequent transactions. Quantification The application determines the volume of each transaction. High-frequency trading is generally used in two-way trading markets. For example, during the 2015 stock market disaster, Russians used high-frequency quantification procedures to trade stock index futures, frequently doing long and short positions to obtain explosive profits.
High frequency, frequent trading. Quantify the amount of each transaction the application makes. High frequency trading is generally used in two-way trading market. For example, during the 2015 stock disaster, the Russians used high-frequency quantitative procedures to trade in stock index futures, frequently doing long and short to obtain explosive profits.
EGM and DEX
What is DEX? The full name of DEX is Decentralized exchange (decentralized exchange) is a blockchain-based exchange. It does not store user funds and personal data on the server, but only serves as an infrastructure to match buyers who wish to buy and sell digital assets. And the seller. With the help of the matching engine, such transactions occur directly between participants (point-to-point).
The centralized trading platform, because the transaction data is not on the chain, as long as there is a matching counterparty, the transaction speed is extremely fast. At the same time, the centralized trading platform has simple operation steps, low threshold for use, and can provide a wealth of trading pairs, so more users will choose centralized trading platforms, and more users will have better trading depth, which further promotes centralized trading The transaction speed of platform orders.
Because DEX transaction data needs to be chained, transaction confirmation needs to wait for miners to pack and broadcast, so the transaction speed is slow. The operation steps of DEX are relatively complicated, and the threshold for use is higher. When it comes to transactions of different blockchain assets, such as Bitcoin and Ethereum transactions, more complex cross-chain technologies are required. Many DEX trading platforms cannot be implemented, so there are fewer transactions supported than centralized trading platforms.
The EGM protocol came into being to solve this pain point. The EGM protocol is almost perfect to solve various cross-chain, and various two-way reverse confirmation, crossover and other problems.
EGM comes for the future.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No News Postbox journalist was involved in the writing and production of this article.