As a significant step towards the launch of the decentralized exchange, Blocknet (blocknet.co) is ready to end its temporary wallet and launch the service that serves the intrinsic value of its tokens.
Since the ICO in October 2014, the temporary wallet has served to secure its own tokens until the launch of the first intermediate blockchain application. The main focus in the development was on the application as a decentralized exchange: the start of the final blockchain is now the next step towards the application as a decentralized exchange, which offers the user the same functions as a central exchange, but with full data protection, freedom and the security to keep control over one’s own values.
With the successful testing of more and more trades on the decentralized exchange – now already with Bitcoin, Litecoin, Dash, Syscoin, Digibyte, Vertcoin, Duality Solutions, Viacoin, and Bitbay – Blocknet is now ready to close the preliminary wallet and create the basis for the emerging token ecosystems, with the core services of the decentralized exchange, control of blockchains and data exchange between different independent blockchains.
What is the business model of a Bitcoin formula?
Every service between the Bitcoin formula requires an impeccable cryptoeconomic architecture to ensure security and to guarantee the maintenance of the value of its network; but to be decentralized it is necessary to create a system without acting as an intermediary. This becomes very clear in the case of the use of Bitcoin formula as a decentralized exchange, which explicitly aims to exclude intermediaries or traders from trading tokens. Blocknet’s solution not only aims at creating the value of the own protocol for tokens, but also at the representation and pairing of the orders, while the user manages all the time his coins/tokens on his own system on his own responsibility. The key to this is called service node (in the following technical term service node).
Start of the Bitcoin trader Service
Service nodes receive trading fees on the decentralized exchange without having any control over the Bitcoin trader coins and without mediating between buyer and seller. They ensure the quality of the application on the decentralized exchange (Quality of Service, QoS), mainly by preventing unwanted spam requests – the structure will be explained in more detail in the soon to be published White Paper. In return, service nodes receive trading fees in the form of Blocknet tokens, which also increases the intrinsic value of the Blocknet tokens, mainly because each Bitcoin trader on the exchange generates buying pressure on its own tokens through a continuous stream of micropayments. With the launch of the Blocknet product blockchain, the technology of the service nodes will also move from the test network to it, enabling for the first time those wishing to offer such a service node to earn balancing fees. The development of the service nodes is not finished with the start on the main blockchain. Your development will be further developed as with any good software.
The start of the final blockchain offers several strategic advantages. First of all, it serves to switch the code base to one that is properly branched with the Bitcoin core, significantly simplifying the implementation of BIP´s (Bitcoin Improvement Suggestions), which leads to an improvement in development time.