Yesterday it was Bitcoin Pizza Day and to celebrate I made some Atomic PIZZA swaps. I've been testing HyperDEX software for a few days. HyperDEX is a new GUI for BarterDEX. The team gets a small share of the fees. The app enables pick and click Atomic Swaps, no coding genius needed. They soft launched it yesterday and users are successfully doing Atomic Swaps with test coins, but also with real crypto. Actually, you can get lucky and trade your free PIZZA and BEER coins for KMD. The first time this happened was probably accidental and then we had some fun on Slack. One user decided to put up two KMD for PIZZA and BEER. This is when my laptop battery died... Because KMD was traded for PIZZA and BEER, the portfolio containing only test coins now shows a dollar amount.
The chain exists as a test chain but could gain value in the future.
Free PIZZA and BEER, let's moon this! LOL
I will show you how you acquire the coins and make a successful Atomic Swap. Then I'll dive a little deeper into Komodo's consensus method and try to explain Atomic Swaps. Plan of attack:
- Get a BEER and PIZZA address
- Tap the faucet for free BEER and PIZZA
- Install HyperDEX
- Restore Account
- PIZZA for BEER Atomic Swap
- BEER for PIZZA Atomic Swap
Before you can get BEER and PIZZA you need an address. This address can be made via the Agama online wallet. You have to add one coin and then pick a seed. Any seed words will do. I only used one number and still got a functional address. Pick something short for test purposes. Don't pick unsafe seeds when you're swapping real cryptocurrencies. For those purposes, you can use a 24-word seed, which the Ledger Nano and similar hardware wallets use. Actually, Ledger has a special Bitcoin Pizza day Edition:
Navigate to https://www.atomicexplorer.com/wallet/#/ Here's what I did:
After I added BEER, I copied the address. The addresses for BEER and PIZZA are the same and are both based on the seed you picked. Navigate to https://www.atomicexplorer.com/#/faucet/PIZZA and tap your BEER and PIZZA:
We finished the first two steps and now it's time to install HyperDEX.
HyperDEX is the grandma-friendly layer on top of BarterDEX, the complex system that lies underneath.
You can download HyperDEX from GitHub, there are versions for Windows, Linux, and macOS. It's quite easy to install, just navigate to https://github.com/lukechilds/hyperdex and pick the version you need. After you installed it, open the app and make a new account via the plus button. Click Restore Portfolio and here you enter the (easy) seed you used in your Agama wallet. Pick a name for your account and enter a password. This password is local to your machine and unlocks the addresses to the seed you entered. For testing, you can use a short password, but pick a safe one when you trade cryptocurrencies with monetary value.
When the app opens we click on Exchange in the sidebar and there we pick the coin we want to buy on the left and the one we want to trade against on the right. You could do it the other way around and fill in the left side, but this is my preferred method. You can click the target button to get the price for a PIZZA or click on the order book. When you scroll down there are sometimes more or less favorable exchange rates.
The PIZZA4BEER order is now pending. Not every order goes through, these are still test days. Just give it a few tries, when things don't work out wait a few hours. For an order to go through we need five sequential steps:
My fee -> Bob deposit -> Alice payment -> Bob payment -> Alice spend
If one of those fails the swap fails.
Now you know how to do Atomic Swap you can try to do a PIZZA for BEER swap as well. You can check a log of your failed and succeeded swaps. Navigate to the Trades tab in the left sidebar, then pick Swap History.
Great work, you just finished two Atomic Swaps without touching a command-line interface. If you're still interested you can read on.
What's up with that Bob and Alice stuff? This is known as Tier Nolan's protocol:
- Bail-in by Bob
- Bail in by Alice
- Bob commits to the transaction
- Alice completes the transaction
You can find it on GitHub
This video explains the whole process:
Source
BarterDEX competitor Altcoin.io put up an article about Atomic Swaps, for those that would like a little historical understanding: The Evolution of Atomic Swaps.
So what did you just swap? PIZZA and BEER are Zcash coins, based on Komodo. The coins are on asset chains. Like Komodo they rely on delayed proof of work (dPoW). A summary of what that entails:
- Bitcoin’s hashing power
- Consensus method agnostic
- Ledger snapshot every 1000 blocks
- 64 notary nodes, inspired by Bitshares/Steemit (delegated PoS) witness nodes
- Normal nodes are able to perform the critical function of block generation in isolation
You can check out their ledgers at:
At the moment the GINI-coefficient of both is abysmal, LOL:
PIZZA Rich List
BEER Rich List
If you cannot be crypto rich in real life, now at least you can be in test coins. And who knows, right. I missed out on the PiedPipercoin Airdrop, even though I read the whitepaper and prepared an article about it. I was busy doing other stuff and didn't publish it. Lot's of people made real money by trading their free PPI.
Are you as excited about Atom Swaps as I am? Decentralised Exchanges didn't really take off yet. But if they manage to provide exclusive options for trading, I think they can become major players.
How do BarterDEX exchange fees compare to those of central exchanges?
| Exchange | Maker Fee | Taker Fee |
|---|---|---|
| GDAX | 0% | 0.3% |
| Binance | 0.1% | 0.1% |
| Kraken | 0.16% | 0.26% |
| Huobi | 0.2% | 0.2% |
| OKEx | minus 0.1% | 0.1% |
| Bitfinex | 0.1% | 0.2% |
| Bithumb | 0.15% | 0.15% |
| Bittrex | 0.25% | 0.25% |
| Gemini | 1% | 1% |
HyperDEX/BarterDEX has 0% maker fees and 0.15-0.17% taker fees. Those are competitive rates. Combined with the trustless nature of a DEX and all the extra options that are in the works... There is potential for explosive growth, if and only if decentralized exchanges get the trade volume up.
Watch this space!
Disclaimer: I'm not a professional trader, just interested in cryptocurrencies and I like showing people what information is out there if you want to trade. Cryptocurrencies are highly volatile, so it's wise to only invest money you can afford to lose.
Follow me @bullhashbear