Introducing Particl’s BasicSwap DEXWe are proud to announce that Particl will soon be expanding its ecosystem with a brand new distributed application: BasicSwap.
BasicSwap is a cross-chain and private decentralized exchange (DEX) protocol that allows you to swap one cryptocurrency for another without any middleman or third-party being involved. It lets you make or take orders on a distributed order book and execute swaps that are safe, trustless, unrestricted, and private. To find out what makes it a one-of-a-kind DEX, keep on reading this blog post!
Mockup of BasicSwap's UI | Work-in-progress that is subject to change
Particl’s upcoming DEX is powered by the atomic swap technology and the SMSG network, making it entirely decentralized and devoid of any central operator. No KYC, no trickery, no false promises. Just pure decentralization and privacy. And yes, in case you were wondering, it is fully compatible with Monero (XMR) and will be right from the get-go! 😉
In this blog post, we will take a deep look into this new Particl distributed application. We’ll detail how it’s going to fit in as a critical component of the Particl ecosystem and, perhaps even more importantly, ensure the personal freedom and financial sovereignty of its users.
Table of Contents The Particl Ecosystem Explained
The BasicSwap DEX Explained
List of Compatible Coins
Key Features
Monetization
How Does it Compare?
Why is BasicSwap Sorely Needed?
Open Beta Coming Soon
The Particl Ecosystem ExplainedThe first step to understanding the significance of BasicSwap’s upcoming release for Particl is to get a good grasp of what the Particl ecosystem is.
Particl is an ecosystem that gives you the ability to live completely free by cutting off middlemen entirely. It’s a platform that hosts different apps that respect your rights, freedoms, and privacy without any compromise. While it’s still under heavy development, Particl aspires to become an all-inclusive and circular economy that people can use to opt-out of the current global financial system. In other words, it’s all about personal freedom and financial sovereignty.
In many ways, the ultimate vision of the platform can be compared as a sort of “decentralized and private WeChat-like ecosystem” where you can get all the key services or products you need right at your fingertips. Alternatively, you can also see it as an OS-like platform for distributed apps. In any case, Particl is an ecosystem of distributed apps, or “dapps”, where independence from any third-party or service provider is absolute. And BasicSwap is an incredibly important step towards that vision.
In fact, as the Particl ecosystem enables you to become truly financially independent, it’s easy to understand how an equally independent, resilient, and unstoppable way to buy and sell the platform’s native currency (PART) is required. However, at the time of this writing, PART is only available through centralized exchanges or by unprotected OTC deals between two people. While centralized exchanges (i.e., Bittrex, WizardSwap) can provide many benefits and unique features, not having any decentralized option is not an option for a platform that seeks to be uncompromisingly independent. But that’s all about to change!
Now let’s dive deeper into BasicSwap and let’s see how it’s going to become a cornerstone for the entire Particl ecosystem. We'll also detail how it will become a competitive and vibrant trading platform for all cryptocurrencies that end up on it.
The BasicSwap DEX ExplainedKeeping in mind that the Particl ecosystem is your gateway into a completely independent and autonomous economy, it’s vital to be able to acquire (and sell or trade) the platform’s native currency in an equally independent, safe, fast, and decentralized way. That’s precisely what the BasicSwap DEX enables you to do, but it doesn’t stop at just buying and selling PART.
Particl Marketplace, accessible through Particl Desktop
Particl is an ecosystem that gives you the ability to live completely free by cutting off middlemen entirely. It’s a platform that hosts different apps that respect your rights, freedoms, and privacy without any compromise. While it’s still under heavy development, Particl aspires to become an all-inclusive and circular economy that people can use to opt-out of the current global financial system. In other words, it’s all about personal freedom and financial sovereignty.
In many ways, the ultimate vision of the platform can be compared as a sort of “decentralized and private WeChat-like ecosystem” where you can get all the key services or products you need right at your fingertips. Alternatively, you can also see it as an OS-like platform for distributed apps. In any case, Particl is an ecosystem of distributed apps, or “dapps”, where independence from any third-party or service provider is absolute. And BasicSwap is an incredibly important step towards that vision.
In fact, as the Particl ecosystem enables you to become truly financially independent, it’s easy to understand how an equally independent, resilient, and unstoppable way to buy and sell the platform’s native currency (PART) is required. However, at the time of this writing, PART is only available through centralized exchanges or by unprotected OTC deals between two people. While centralized exchanges (i.e., Bittrex, WizardSwap) can provide many benefits and unique features, not having any decentralized option is not an option for a platform that seeks to be uncompromisingly independent. But that’s all about to change!
Now let’s dive deeper into BasicSwap and let’s see how it’s going to become a cornerstone for the entire Particl ecosystem. We'll also detail how it will become a competitive and vibrant trading platform for all cryptocurrencies that end up on it.
The BasicSwap DEX Explained
Keeping in mind that the Particl ecosystem is your gateway into a completely independent and autonomous economy, it’s vital to be able to acquire (and sell or trade) the platform’s native currency in an equally independent, safe, fast, and decentralized way. That’s precisely what the BasicSwap DEX enables you to do, but it doesn’t stop at just buying and selling PART.
Mockup of BasicSwap's UI | Work-in-progress that is subject to change
BasicSwap is a decentralized exchange (DEX) protocol. It lets you swap one cryptocurrency for another from a different chain (cross-chain). It’s also private by nature.
Swaps are made directly person-to-person, without any intermediary, using a distributed order book. Every single aspect of the BasicSwap protocol is decentralized and open-source, so you don’t have to take our word for it; you can check the code yourself!
List of Compatible Coins Bitcoin
Monero
Particl
Litecoin
Namecoin
We are looking at adding various coins, including ETH and its ERC-20 tokens, shortly after the release of the Open Beta. Any Bitcoin-based and Segwit enabled cryptocurrency can get integrated with minimal effort. Other token issuing blockchains like Fantom, Solana, Avalanche, Polygon, or Binance Smart Chain may become available on BasicSwap as well, at a later stage of the integration roadmap.
Key Features
BasicSwap is a one-of-its-kind DEX in the blockchain industry. While it offers many benefits against centralized exchanges, it has three main distinguishing features that set it apart from other decentralized exchanges.
Distributed Order Books
BasicSwap’s first version will focus on trading with an order book. Instead of swapping your coins into a liquidity pool (like on Uniswap, SushiSwap, or PancakeSwap), you can either place an order on the distributed order book (maker), at the price that you want, or take an order that has already been placed on there by other swappers (taker). In many ways, this makes BasicSwap more akin to the typical centralized exchanges most people are used to trading on, but with a totally decentralized and private twist.
Note that, unlike the vast majority of DEXs that offer order books, BasicSwap’s order book system is truly distributed and doesn’t introduce any form of centralization. No funny business here; BasicSwap makes it truly impossible, by design, for any third-party to have uncalled influence on the platform, and that's provably verifiable through code! The order book is powered by Particl’s own P2P network, SMSG network, which is the same network that powers Particl Marketplace.
The main benefit of having an order book system is that you can swap coins at the exact price that you want to swap them for. It also attracts more traditional market makers who may not want to provide liquidity to smart-contract based liquidity pools due to the risks of rug pulls and other theoretical exploits they carry.
But there’s more coming to BasicSwap! You can expect “quick swaps” to be deployed at some point in the future. As a matter of fact, this is already being looked into at the time of this writing! We will let you know more about it as soon (™) as we can!
True Cross-Chain SwapsParticl’s upcoming DEXs is a true cross-chain trading exchange. Unlike other DEX, BasicSwap does not mimic cross-chain interoperability. You’ll exchange one native coin for another one without any unsafe trickery!
You can swap one coin (i.e., Bitcoin) for one from another blockchain (i.e., Monero). And no, we’re not just talking about swapping coins between different Ethereum forks here (i.e., ETH to BSC). Moreover, BasicSwap doesn’t require coins to be wrapped into tokens of another chain (often Ethereum, Binance Smart Chain, or other similar chains).
The World’s Most Private Trading Exchange
To top it off, BasicSwap is inherently private. But what does that mean?! Well, it means a few things. For one, you won’t need to create an account, send documents, verify yourself, or limit your trading activities to arbitrary maximum daily restrictions. It’s open to all, without any restriction, and without any care about who you are or where you live.
That’s already a major improvement over centralized exchanges that have become way too curious, but you can take things even further! You can indeed massively increase your level of privacy by swapping any cryptocurrency for privacy coins like Particl or Monero, or by using them as a gateway to add a layer of privacy between two "public coins" (i.e,. Bitcoin and Litecoin).
Indeed, all Monero transactions are inherently private, and BasicSwap lets you swap PART using any of its privacy states; public, blind (ConfidentialTransactions), or anon (RingCT). We’re planning on eventually enabling more private swap options through other privacy coins as well (i.e., Firo, Veil, etc).
But there is STILL more to come in regards to privacy! As we move forward and deploy the Taproot protocol on Particl, you can expect swaps of Bitcoin-style currencies to become indistinguishable from regular transactions. In other words, it will be eventually near-impossible to tell that, for example, a Bitcoin to Particl swap has occurred just by looking at their respective blockchains. That’s a major win for your financial privacy!
Indeed, enabling Taproot support is planned for a later stage of the Open Beta. That's one of the reasons why Particl's blockchain is always kept up-to-date with Bitcoin’s latest releases. It brings battle-hardened and reliable functionalities for your day-to-day financial sovereignty!
The combination of all these privacy-related features will make BasicSwap the world’s most private and unrestricted trading exchange, and that, in turn, will make you completely financially independent. Claim your sovereignty and live free...because, well, now you can!
Other Interesting FeaturesThere are a couple of other features that you may find interesting. As BasicSwap will become an important development focus moving forward, this list is expected to grow gradually.
True Monero support
No account, sign up, or KYC
Incredibly low and competitive fees
User-friendly interface
No third-party, intermediary, or middleman at any point
Taproot compatible
Lightning Network compatible (in later versions)
What About Monetization?As BasicSwap is entirely decentralized, no single party can earn profits from swaps made on the platform. That’d be very...centralized! But rest assured, we absolutely intend on turning Particl’s upcoming DEX into the spark that will cause the Particl project to go viral. Indeed, we are strongly confident that the DEX was the missing piece all along.
Indeed, it’s likely that a very small and competitive fee will be charged for using the DEX. But instead of having a third-party collecting them, it’s the entire Particl community who will benefit from them. All fees paid for using the DEX will be either converted into PART and burned, redistributed to stakers, or used as a liquidity incentive. A combination of these three strategies is likely to be what’s going to be deployed, although we haven’t finalized the strategy just yet and are still experimenting with different approaches.
In other words, we are working towards building BasicSwap in such a way that, as more people swap coins on the platform, the more demand there will be for the PART coin, the less available supply there will be, and the more valuable your staking rewards will be. And that’s just one application out of many others on the Particl ecosystem (Particl Marketplace has a similar dynamic as well).
Keep in mind that we want BasicSwap to provide an experience that has as little friction as possible. We also want any fee charged to remain very competitive with industry standards and, obviously, legally viable.
How Does it Compare
We know we know, there are many exchanges around, both centralized and decentralized. But we’re very confident that BasicSwap stands on its own and offers something quite unique.
In the interest of making it clear how BasicSwap differentiates itself from other trading platforms, here’s a brief breakdown of the differences with some of the other solutions around.
Lots more to read in the FULL blog post: https://particl.news/introducing-particls-basicswap-dex/