🔀Hybrid wallet

The code in this documentation is just a sample and not a complete code, don't implement without making research about the code context.

Hybrid is the New CEX

Hybrid Wallet Concept

Hybrid Wallet is a pioneering solution designed to address the imbalances inherent in centralized exchanges. It leverages smart contract technology and the emerging web3 ecosystem to provide users with centralized exchange services like trading and margin trading while eliminating the need to entrust their funds to the exchange. This approach ensures security, transparency, and user control by utilizing Cardano's blockchain and its advanced smart contract capabilities.

How Does it Work

Sample Code Implementation

Here's a simplified example of how the smart contract for the Bitearthswap Hybrid Wallet might be implemented on the Cardano blockchain using Plutus, Cardano's smart contract development platform. Please note that this is a conceptual representation and not a fully functional code snippet

-- Define a data type for the Hybrid Wallet
data HybridWallet = HybridWallet
    { user1Key :: PubKeyHash
    , user2Key :: PubKeyHash
    , lockedFunds :: Value
    }

-- Define the smart contract endpoint for funding the Hybrid Wallet
fundWallet :: Value -> Contract w s Text ()
fundWallet value = do
    let wallet = HybridWallet
            { user1Key = pubKeyHash $ walletContractAddress walletContract
            , user2Key = pubKeyHash $ walletContractAddress walletContract
            , lockedFunds = value
            }
    void $ mustPayToTheScript wallet value

-- Define the smart contract endpoint for executing exchange services
executeExchange :: Contract w s Text ()
executeExchange = do
    wallet <- endpoint @"executeExchange" @()
    let signedByUser1 = txSignedBy (user1Key wallet)
    let signedByUser2 = txSignedBy (user2Key wallet)
    when (signedByUser1 && signedByUser2) $ do
        -- Execute the exchange services using the locked funds
        -- Transfer BIES tokens to the users' addresses
        logInfo @String "Exchange executed successfully"

Problems with Existing Solutions and How Hybrid Wallet Solves them

  1. Security Risks: Existing centralized exchanges require users to entrust their funds, making them vulnerable to hacks and mismanagement. The Hybrid Wallet concept eliminates this risk by using multi-signature smart contracts to control fund access.

  2. Single Points of Failure: Many centralized exchanges operate as single entities, increasing the risk of failures or fraudulent activities. The Hybrid Wallet's multi-signature mechanism reduces the reliance on a single point of control.

  3. Lack of Control: Users often lose control over their funds once deposited on centralized exchanges. The Hybrid Wallet empowers users with full control over their funds while enjoying exchange services.

  4. Transparency and Accountability: Centralized exchanges might lack transparency and accountability. The Hybrid Wallet's smart contract on a public blockchain ensures transparency and auditability.

  5. Cross-Chain Hybridization: The Hybrid Wallet's future expansion to hybridize other blockchains, especially blockDAG projects, demonstrates Bitearthswap's commitment to innovation and interconnectivity.

Bitearthswap's Hybrid Wallet represents a forward-thinking solution to the challenges faced by centralized exchanges. By combining smart contract technology, multi-signature security, and Cardano's blockchain capabilities, the Hybrid Wallet empowers users with control, security, and access to centralized exchange services without compromising on the principles of decentralization.

Last updated