Repository
https://github.com/nirvanaitsolutions/swapsteem
Introduction
Swapsteem is a peer to peer exchange for Steem blockchain. We are creating a platform for Steem users to enable P2P trading of STEEM/SBD to different Fiat and Crypto Currencies using secure escrow transactions. This post is regarding the new p2p token markets we have added at Swapsteem to enable trading EOS based tokens for STEEM/SBD securely with other steemians.
What are ERC20 Tokens
ERC20 is an acronym that stands for Ethereum request for comment 20 — a term that refers to a technical standard applicable to the tokens on the Ethereum blockchain. Developed in 2015, this standard represents a set of requirements to be met by an Ethereum token as well as functions it should be able to perform in order to be interoperable on the Ethereum platform, i.e. to be shared and exchanged for other tokens.
Broadly speaking, the main purpose behind the development of ERC20 was to harmonize the existing tokens within the Ethereum network and thereby simplify their compatibility with other platforms and decentralized applications — an objective that was achieved through the implementation of a uniform standard with which all the tokens were obligated to conform.ERC20 is by no means the only token standard existing within the realm of Ethereum network — there are others, such as ERC223 or ERC721; ERC20, however, certainly had the greatest impact on the market, given the fact that it gained wide acceptance among the projects launching ICOs from the very first day of its introduction. In fact, it would be no exaggeration to say that almost every token on the Ethereum platform is an ERC20 token: the majority of the tokens released through ICOs on the Ethereum blockchain are ERC-20 compliant, mainly due to the simplicity of its implementation.
An ERC20 token is basically any Ethereum token that conforms to the ERC20 standard and most importantly — implements the required functions. These functions — the Rosetta stone for the understanding of an ERC20 token — determine how tokens are transferred and how the data within each token can be accessed by the user, allowing to predict how an ERC20 token released through a particular platform will work on the Ethereum blockchain and how it will interact with other tokens.
RC20 was first proposed on November 19, 2015, by Ethereum developer Fabian Vogelsteller. The term itself stands for Ethereum Request for Comments, while the number 20 represents a unique proposal ID number.
Essentially, ERC20 is a set of rules for Ethereum-based tokens. When these rules are met, tokens released on Ethereum network become compatible with each other based on some common principles. Note that the developers of ERC20 assets still retain the ability to freely program various functions of their smart contracts within the Ethereum network.
ERC-20 token standard enabled the use of smart contracts.
What is a smart contract then?
A smart contract is a program that has a code which runs a set of conditions and agreements. When these set of conditions are met, the program automatically executes the contract. The importance is that smart contracts help us to exchange money, shares, assets or any valuables in a manner that is transparent, trust-free and decentralized. They also remove the need for middlemen in transactions. To this end, we can talk about smart contracts as programs that keep track of data related to a certain token. They define the token by parameters like owner addresses, token supply, and distribution.
The use of ERC20 token standard means that all tokens run the protocol function in the same way. This explains why it is possible to create a system for a token exchange involving as many tokens as possible. The implication here is wallets that support Ether (ETH) are also able to support all the ICO tokens that are ERC20-compliant. For instance, if token A to Z launched on the Ethereum network, developers can create a system that allows all the tokens to interact with each other in a smart contract and thus enable trading. The new ICO tokens are secured and their execution is managed by the embedded ERC20 smart contracts that distribute them on the Ethereum network. There is a quite big number of ERC20 token coins that launched on the Ethereum blockchain. Here is a list of the top ones.
Augur (REP)
The Abyss (ABYSS)
Raiden (RDN)
VeChain (VEN)
OmiseGo (OMG)
ChainLink (LINK)
Golem (GNT)
Iconomi (ICN)
TenX (PAY)
Basic Attention Token (BAT)
Aragon (ANT)
The usefulness of the ERC20 token standard then becomes apparent when newly launched tokens do not interfere with the existing projects on the network. This is because the projects on the system and the new tokens are designed to be compatible. The only thing that needs to happen is for the new token to adhere to ERC20 standard rules. Though not mandatory, most developers on the Ethereum network try to adhere to these rules meaning that most of the initial coin offerings launched on the network are ERC20 compliant. The use of ERC20 makes tokenization less risky as all adhere to the same standards. It also brings a kind of uniformity to the network, reduces the complexity of token interaction, and enhances token liquidity. With the ERC20 token, an ICO can trade on an exchange without having to establish communication between the ICO and the developers at the exchange. The tokenization is also very important for the Ethereum network. The use of ERC20 has meant that developers and token investors are practically assured that the new token will be trading sooner. The ripple effect is that more ICO tokens are bought, leading to an increase in the overall innovation in token offerings on the Ethereum system.
Problem Domain
ERC20 token is a multi-million market. Having a pair with STEEM and SBD will provide further liquidity and adoption to Steem blockchain.
- ** Markets:** As of now there no direct trading pairs in any market for ERC20 TOKENs and STEEM based coins. At Swapsteem, we have currently enabled BNB Tokens on the Demo, but we are planning to list more ERC20 TOKENS on the Beta as well soon.
- ** Prices:** There is no way to determine the price of any ERC20 TOKENs in terms of Steem directly as of now. At Swapsteem demo, we enable p2p trading for EOS based tokens with prices derived relative to BTC at the time of order creation. The price can NOT be changed after order creation. The prices will be made real-time once we have enough exchanges supporting those tokens listed on @coingecko since we only rely on the @coingecko open source API.
- ** Fees:** At Swapsteem, We take a fee of 2% of the trade amount for FIAT and TOKEN markets and 1% of the trade amount for CRYPTO markets, which are the current standard fees. We also give discounts to delegators as mentioned in our fundition campaign.
- ** Security:** When you deposit your funds to an exchange, you actually don't own your funds anymore. The exchange might be hacked or taken down at any time and you may lose your funds as seen in many previous cases. At Swapsteem, We respect the proof of keys movement. You never have to deposit your funds to @swapsteem. Upon creation of an Order, the STEEM/SBD funds will need to be moved into a Steem escrow transaction with @swapsteem as an agent by the Seller. Only the Seller can release the funds in the Escrow until a dispute is created. In case of dispute, @swapsteem will have authority to move funds to either the Seller or the Buyer depending upon the proofs produced by them in the Dispute resolution process. The funds in Escrow can never be sent to anyone other than the traders involved, not even to the agent account. So you can be sure about the security of your funds in escrow.
Call for Delegation
Swapsteem is an open source project, recognized and supported by @utopian-io and @fundition. Please consider delegating to @swapsteem to help us with the Development and maintenance of the application. The delegation will be used to upvote the Development and other contributions towards @swapsteem.
The delegators will be eligible to get early access to our alpha which is already live.
You can trade unlimited amounts on the alpha with discounts on trades up to the SP delegated weekly.
Delegators
@diggndeeper.com - 1000 SP
Resources
Screenshots
Series Backlinks
- Swapsteem - EOS Tokens Market is now live!
- Swapsteem - Steem-Engine Tokens market is now live!
- Swapsteem - Crypto Markets are now live!
- Swapsteem - The Fundition Campaign is now live!
- Swapsteem - Steem account creation is now live!
- How to Post a Trade Listing On Swapsteem
- A 12 Step Guide on How to Buy STEEM/SBD for Fiat on Swapsteem
- A 12 Step Guide on How to Sell STEEM/SBD for Fiat on Swapsteem