Decentralized exchange (“DEX”) is a concept that has received increasing attention in the cryptocurrency domain as a result of exchanges being hacked, used as exit scams or subjected to regulatory actions. Several cryptocurrency projects exist with the intention of replacing typical centralized virtual-only cryptocurrency exchanges with a token or a blockchain. We propose an alternative to existing decentralized exchanges with the following properties:
- It facilitates exchange between only cryptocurrencies, not fiat currencies.
- It is architected as a simple client and server, without a corresponding token or a blockchain.
- Server operators never take custody of client funds.
- It uses on-chain transactions for order fulfillment and rule …