BasicSwapDEX Review: A Cross-Chain, Private, Decentralized Exchange Protocol & Trading App

A few days ago, we, that means the teams of LunarDAO and Navcoin, were happy to announce the inclusion of BasicSwapDEX into our Private Finance Syndicate (PFS). The PFS, established earlier this year as a non-profit organization, is dedicated to strengthening the bonds among reputable privacy-focused projects in the industry and promoting increased collaboration among different teams.

Our shared mission is to build technological solutions that enable users worldwide to safeguard their financial privacy. Instead of considering each other as competitors, we view ourselves as cooperative partners.

In this review I’m pleased to introduce BasicSwap as a new member of the PFS - a cross-chain, private decentralized exchange protocol, and trading app.

What is BasicSwapDEX?

General: Recently, centralized exchanges (CEXs) have proven their unreliability. They can engage in fraudulent activities, suffer from security issues, often require KYC verification, and ultimately place your coins under their control.

However, it doesn’t have to be this way. BasicSwapDEX enables anyone through atomic swaps to swap one cryptocurrency for another, without the involvement of any third-party, and of course without any KYC needed.

Users can create or accept orders on a distributed order book, allowing for secure, trustless, unrestricted, and private swaps, all without incurring trading fees. Their protocol can be integrated into any Layer-1 blockchain that supports atomic swaps. 

Currently, the following cryptocurrencies are available: XMR, BTC, PART, DASH, PIVX, FIRO; with more to be added over the next months. 

Trading Platform & Protocol: The underlying BasicSwap protocol, developed by the Particl project, is open-source. This enables developers to create their own DEX with unique features or services on top of it, or to seamlessly integrate the swap and trading features into decentralized applications (dApps).

Benefits: Using a solution like BasicSwapDEX has numerous benefits. Users can have confidence that their funds are secure, as well as their personal data, as no sensitive information is required for usage. Funds cannot be frozen, and all transactions occur with complete privacy. If you align with the original vision of what cryptocurrencies should be, BasicSwapDEX is a must-try solution.

The Technology 

Let’s take a look at the technologies that power BasicSwap, namely atomic swaps, the SecureMessaging (SMSG) protocol, the scriptless scripts technology, and the TOR Network:

Atomic Swaps:

While atomic swaps are not a new technology and have been around for multiple years, they are a crucial part of a lot of decentralized exchanges. They facilitate the peer-to-peer (P2P) exchange of cryptocurrencies and digital assets, eliminating the need for a central intermediary. If you are further interested to know how atomic swaps work in detail, here is a great resource.

SecureMessaging (SMSG) Network:

The Secure Messaging Network (SMSG) built by Particl functions as a P2P messaging network that was inspired by the BitMessage protocol. It is a mixnet acting as a decentralized storage network (DSN) in which data is stored and transferred across different nodes. This process ensures privacy through End-to-End Encryption and operates without the reliance on a central server. This technological component is essential for the distributed order book and matching system used in BasicSwap, particularly for handling (cross-chain) orders.

Scriptless Scripts:

Typically, DEXs facilitate trades through smart contract technology. However, not all cryptocurrencies are compatible with smart contracts, especially privacy-oriented coins like Monero (XMR). To still accommodate such cryptocurrencies, BasicSwap uses 'scriptless scripts,' which are an off-chain form of smart contracts offering enhanced privacy and scalability compared to on-chain alternatives. Through those scripts, XMR outputs can be spent without third-party involvement.

TOR Network: 

When using BasicSwap, you have the option to access it through the Tor network, a free and open-source network designed for anonymous online communication. This network is made up of worldwide volunteers who operate Tor nodes, through which your connection is routed; making your IP address anonymous and protecting your privacy.

Getting Started

If you are interested in trading on the BasicSwapDEX, here are tutorials on how to set it up: 

Video: 

Text: BasicSwap Installation Guide

Links

• Website

• GitHub

• Twitter

• Discord