NIX Platform and ChainZilla Bridge The Gap Between Exchanges
Blockchain service provider Chainzilla and cryptocurrency exchange operator NIX have partnered to provide a bridge communication between digital currency exchanges.
Fourth-generation Blockchain-as-a-Service provider ChainZilla and creator of first privatized decentralized exchange NIX have formed a partnership to bridge communication between external decentralized exchanges to create privacy elements among all and any compatible ecosystems.
In an e-mail to Cryptovest, Chainzilla CEO Charles Gonzales said NIX’s DEX Manager will be a dApp, leveraging NIX’s unique privacy protocols, that will solve privacy layers among DEX trading, creating a security layer for any protocol and tradeable asset through a multi-tiered trading structure.
“An improved version of zero-knowledge proofs known as bulletproofs is in development,” Gonzales said.
He explained that as cryptocurrency use increases, exchanges become the main point of entry for many first-time users. As a consequence, even though cryptocurrencies are inherently decentralized, most of the trades are taking place in centralized exchanges. If cryptocurrencies are meant to give financial independence, then the reliance on traditional exchanges presents a weak link in the philosophy of decentralization.
“Recently however, there have been various projects focused on bringing a fully-fledged decentralized exchange or ‘DEX’ to market. Some of the most advanced exchanges according to inDEX include IDEX, BarterDEX, OpenLedger, and Crypto Bridge. Other larger, established players such as Binance and Coinbase are either building or buying a DEX capability. While these exchanges represent an important milestone towards decentralized trading of digital assets and even though most of these exchanges are operational, they nevertheless lack liquidity and most of all they lack privacy,” he explained.
He added ChainZilla’s role in the partnership is to be a facilitator between tech communities. In that spirit they have brought NIX and Komodo together in order to implement NIX into the BarterDEX ecosystem. NIX has already implemented Blocknet’s protocol layer and they continue to further DEX integrations which will increase the capacity of the DEX manager. These advances make NIX the first platform to successfully bridge the gap between multiple DEXes to increase their usability and privacy.
NIX Platform combines Atomic Swaps and privacy using their unique, innovative Ghost Protocol to provide a truly anonymous and decentralized transfer of assets for cross-chain transactions. In general, privacy for payments are separated into two properties: anonymity, hiding the identities of sender and receiver in a transaction and confidentiality, hiding the amount transferred. While some digital currencies are privacy-focused, most of them lack any confidentiality. This is a serious limitation and could be prohibitive for many use cases.
NIX provides a unique key scheme called Commitment Key Packs. This allows users to conduct in full two-way ZK (zero-knowledge) proof anonymity on-chain using an address-less ecosystem via a one-time ZK proof deposit system. With these developments, Bulletproofs add additional layers into NIX’s privacy protocol that enhances many features.
Bulletproofs are a new ZK proof integration of creating confidentiality and scaling ZK transactions, as so, they do not require a trusted setup. The outlying solution which Bulletproofs bring is designing a trustless setup that creates transaction output privacy for users, and helps NIX scale. With the developments of Bulletproofs along with the integration of the Zerocoin Protocol and Commitment Key Packs, a user will now have access not only to the locational privacy of their coins, but also value privacy. All these features play a powerful role in the NIX ecosystem to provide users with total privacy without compromising decentralization and security.
“There are more decentralized exchanges than ever, but their current implementations are plagued with inefficiencies that have prevented their widespread adoption. A fully fledged DEX has many moving parts including relays, order matching, settlement, and it relies heavily on connectivity. Since users are trading wallet-to-wallet it is a different experience than traditional trading,” Gonzales said.
Ease-of-use and higher volumes are the missing catalyst to the mass adoption of the DEX. While there are many strong players that have entered the battle for the best DEX — there is yet to be a clear winner. What is certain is that tools like NIX’s DEX manager which will bridge supported DEXes are a step forward to the liquidity and interoperability issues facing decentralized exchanges, thus making mass-adoption more likely. Added to this, NIX’s ghost protocol will provide users of these DEXes with completely private transactions as well. NIX is tackling the challenges faced by all DEX platforms and their efforts will result in the increased usability and privacy of decentralized trading.
In related news, Kelly Loeffler, the CEO of Crypto Exchange Bakkt said the right level of regulation could help the digital currency market flourish. He made the remarks at the recent annual Commodity Futures Trading Commission (CFTC)’s conference which discussed the opportunities and challenges presented by new technology, such as digital currencies and blockchain.