INTRODUCTION
For every active and functional exchange platform, there are underlying algorithms, protocols and margins that give them their basic functionality. Both lending and trading activities are made possible through the protocols. Using the oracle protocol approach for the marketplace could imply giving more room for competition that encourages more flexibility and further experimentation.
Decentralized exchanges are the new waves of revolution sweeping the blockchain industry. This is largely thanks to the 0x revolution. With the incorporation of the 0x algorithm, the newer Decentralized Exchanges (DEXs) now have the potential to solve some of the challenges that formerly plagues the earlier versions of Decentralized Exchanges. Still, these platforms lack some of the qualities and capabilities that centralized platforms of the near past boasted of. This is particularly evident in the aspects of margin lending and margin trading.
COMPONENTS OF THE BZX PROTOCOL
The bZx protocol achieves its functionality from the combined input of three very significant components. These components include the bZx.js Library, the bZx Portal and the bZx Smart Contracts.
THE BZX.JS LIBRARY: This simply refers to a JavaScript Library that holds all functions of the bZx protocol. It thus gives the protocol its required functionality most especially in executing smart contracts. With the library at the disposal of developers, bZx Protocols can be integrated and further developed. With the library, a functionality can be created for exchanges and relay platforms to be able to operate margin lending and trading on platforms, such as the bZx protocol in question.
THE BZX PORTAL: The Portal refers to a web-based interface through which interaction can be made with the bZx protocols. It is a frontend application that is fully decentralized and enabled for margin lending and trading by interested individuals. The portal does not set any prerequisite requirement to partake but is merely serving as a gateway through which users can effectively access the exchange or relay services.
The portal would include four sections. A section would be reserved for the margin traders and lenders to carry out their loan orders transactions. Another section would be for traders who have taken loan orders to manage and handle such loans effectively. The third section would be specially for the lenders. Here, they can monitor the loans they have lent out, observing and even reviewing the manner in which it is being utilized. The final section would be for bounty hunters to get involved in open trades.
THE BZX SMART CONTRACTS: The protocol encompasses sets of smart contracts that give the exchange the enablement to carry out margin lending and trading activities on the chain. The contracts include the bZx.sol, the bzx.vault.sol and the bZx.To0x.sol smart contracts. Entry point contract would be the bZx.sol.
TOKEN SPECIFICATION
The token for circulation is the protocol is BZRX token. It is a utility token that would serve two major purposes. It would form a part of an incentive system as well as be responsible for the overall governance of the bZx protocol.
TEAM AND ADVISORS
The Team members are a dedicated lot who have contributed their years of experience into developing a set of functional exchange platform protocols. With sufficient expertise in the area of smart contract programming and development, these men are skilled technicians who are not new to the challenges that plague exchange systems.
CONCLUSION
Whilst decentralization of exchanges is adjudged as the revolutionary move of the blockchain century, it still requires further upgrade to accommodate further functionality. Such functionality that were present in earlier models of centralized systems include the margin lending and trading protocol. With the bZx protocols, exchange and relay platforms can now boast of possessing the capabilities to handle margin lending and trading.