TAURUS0X - PROTOCOL FOR DEDICATED DEPARTMENT OF DERIVATIVES - COINSAURUS CRYPTO

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Monday, July 9, 2018

TAURUS0X - PROTOCOL FOR DEDICATED DEPARTMENT OF DERIVATIVES


Cryptocurrency has become a new phenomenon in the financial world since a few years ago. This phenomenon occurs in any part of the world. One of the most popular types of crypto is Bitcoin. The creation of Bitcoin is the solution to the shortcomings of the cryptocurrency since it was first created by David Chaum. The existing technology in Bitcoin commonly known as Blockchain. In addition to Bitcoin, there is also another type of crypto is quite famous Ethereum. Cryptocurrency is a new innovation that can be utilized to develop the economy. In this era of advancement, almost all the existing financial systems in the world have been decentralized. Similarly, cryptocurrency, with Peer-to-peer (P2P) and Blockchain technologies can reduce the number of intermediaries in a financial system. This indirectly also reduces the risk that threatens its users.

TAURUS0X PROTOCOL

The phenomenon has made new innovations appear, one of them is Taurus0x. Taurus0x aims to be a protocol that can be used with any digital asset, not just cryptocurrency. Taurus0x allows users to transact with a decentralized system and use cryptographic techniques that are already guaranteed. Transactions will be made with the Ethereum type blockchain technology and regulated through Decentralized Autonomous Organization (DAO). Ethereum can be a medium for an organization to develop dApps in a mainstream programming language such as Java. The Ethereum Virtual Machine (EVM) is one of the Blockchain Ethereum that leads to the Oracle concept, which reduces the limitations by providing a communication mechanism between EVM and the Internet, so the risk of a centralized nature can be reduced. There is a significant additional cost for each data from the transactions performed. However, the Taurus0x protocol also built a hybrid system.

With the technology system already described, Taurus0x as a whole is:
  1. Safe has been through continuous testing.
  2. Decentralized, independent of any party.
  3. Simple, easy to use by all users.
  4. Transparent, all information about Taurus0x will be given to its users.

OPERATION MODE

The Taurus0x protocol is run in two modes: Peer-to-peer (P2P) and Exchange. In the P2P mode, signatures are an important factor to do. While in Exchange mode, there is a moderator that becomes the media for users. Moderators may be hosting order books that are responsible for the process that occurs during transaction settlement. Taurus0x also uses some smart contracts like:
  1. Proxy, the technology used is ERC20.
  2. Registry token, responsible for storing metadata of token ERC20 and can be added/removed but not edited. The proxy will depend on the Registry Token in completing its transaction process.
  3. Exchange Registry, is responsible for maintaining lists of price and cost exchanges on ecosystems.
  4. On-Chain Prices, Taurus0x will submit EIP and ERC standards to Ethereum to maintain asset prices. Price accuracy, cost, and the free market will determine the number of transactions received.

DERIVATIVE CONTRACT TYPES

Taurus0x supports three types of derivative contracts namely call, put and binary. The call is an offer provided that the future value of the asset will not exceed the strike price. The buyer will pay the premium to the seller according to predictable profit. The buyer has the right to execute the contract if the asset's value has exceeded the strike price at any time before the expiration date. Put is an offer from the seller to the buyer provided that the asset value will not depreciate below the strike price before the expiration date. The buyer will pay the premium in lieu of potential losses that may occur if not buy the offer. Binary is the most easily understood type of derivative contract because it allows users to price speculation directly from a given digital asset. In binary, the contract can be won by either the buyer or the seller. Both parties have the right to execute the contract before the expiration date.

The model contained in the token protocol assumes that decision making will be rational according to human nature. The full cost will depend on the policies of the parties involved. The free competition market among users will ultimately calibrate contract costs. Taurus0x will not cost anything, so this protocol is the real open source. For On-Chain Prices, the cost is determined by the exchange and is fully related to the discretion of anyone providing the data.

writen by : Ludmilla
bitcointalk profile : https://bitcointalk.org/index.php?action=profile;u=1064448;sa=summary
ethereum adress : 0x29ac4A201C36b7922430F0A37976C1bA1c617339

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