Purpose of the Article
We have received an overwhelming response from our dICO mock tests and some users have questions as to the purpose of UTXOs (unspent transaction outputs) and the inventory feature on BarterDEX. This short article will explain the role of UTXOs, inventory, and atomic swaps and how they will improve in the coming release.
Explanation of UTXOS:
Thoughts on the Complexity of Atomic Swaps
Technical progress and engineering comes with great change. Comparing centralized exchanges with atomic swaps is like comparing apples to oranges. They are completely different mechanisms and atomic swaps as the evolution of decentralized technology is complex. However, that does not mean one is easier or harder than the next. It's the complete opposite.
The development of a airplane was not met by accident. It was designed to meet a specific goal. Komodo Platform is doing the same with BarterDEX. We aim at solving decentralized financial freedom for future generations. However, the invention of an airplane was not met without obstacles and significant milestones.
The current graphical interface of BarterDEX is the first step towards streamlined atomic swaps for mainstream exchange. The features are not perfected and improvements are being made daily. Consider the current version of BarterDEX as one of the first milestones towards decentralized cross-blockchain technology. Many more versions will come in the future and each will have improvements over their predecessors.
UTXO and Inventory Explanation
BarterDEX has many moving parts. Currently the system consists of an automated order matching system, trust less atomic swap protocol, and a market-maker. However, since atomic swaps are dependent on UTXOs, we added a graphical interface to make it easy for users. Despite this, we have realized that the best way forward is to create a graphical interface that requires the least steps possible.
As the BarterDEX GUI evolves, the handling of UTXO’s will ultimately be handled seamlessly in the background using automated trade-bots. We already have implemented a process that automatically splits the user balance as necessary, to match the exact value of available orders. Note that these particular trading bots are performing the atomic swaps on your behalf! These are not average tradebots as seen on centralized exchanges, they trade through atomic swaps. Even though this approach more complex than a generic centralized exchange, ultimately it puts more power back into the hands of the users.
BarterDEX executes automated order-matching on atomic swap tech, which is an enormous step forward. Auto splitting and managing the UTXO will become easier in future versions.