How to bring 90% of the total coin market cap to distributed exchanges currently limited to tokens hosted on the same blockchain where their smart contracts are located. Actually, distributed exchanges are limited to the token hosted on the same network where their smart contracts are loc

1. Distributed Exchanges
PROBLEMS AND SOLUTIONS

2. Advantages
 No custody:
 All operations are performed wallet to wallet without any needs for custody of
funds.
 Transparency of transactions:
 Transactions are recorded into a distributed ledger
 Explicit rules
 The exchanges are performed with smart contracts, most of the time, publicly
published on Github.

3. Problems
 Restricted to tokens hosted on the very same blockchain network where the
distributed exchanges’ smart contracts are located.
 For example, actually, several distributed exchanges are hosted on the Ethereum
network. Among them, about (20) 0x protocol-based relays, Bancor, Airswap. Only
tokens hosted on the Ethereum network can be traded with these distributed
exchanges.
 Distributed exchanges hosted on Ethereum do not have access to high-value tokens
such as Bitcoin, Ripple, Bitcoin Cash, Litecoin, etc.
 They do not have access to 90% of the total market capitalization.
 They have access to only one high value token, the Ether.

4. Solution
 To move high value tokens to the same blockchain networks where the
distributed exchanges smart contracts are located. How?
 A replica token is created on the target blockchain network. This token should
have the very same characteristics as the original one.
 When a token is moved, it is burned in the source network and allocated on the
destination network.
 To keep its value identical to the original token, the moved token is redeemable
back to the original blockchain network. This implies:
 The moved token is burned in the source network
 The token is Allocated back in the destination network
 To support such mechanism, a reserve has to be created on both blockchain
networks.

5. Solution: interblockchain lab
At Interblockchain lab, we move the following tokens across the blockchains’ boundaries:
• Bitcoin,
• Bitcoin Cash,
• Ethereum,
• Ripple,
• Stellar,
• EOS
• All ERC20 based token on Ethereum
• All account based tokens on Stellar

6. Solution: Interblockchain Lab
We have a demo on testnets
The code is subject to frequent modifications,
• we recently added a real time feedback, a confirmation counter on the source and destination
networks.
• Sometimes, for test purposes, we add or remove some of the supported tokens. For example,
we are actually changing the client side with a better metaphor to select the source and
destination networks. The actual metaphor is not suited to list all the supported tokens, so we
are creating a new one.
Go to our demo page.
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