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From P2P payments to truly decentralized cross-chain trading
Yellow Network is a project in development. Not all solutions presented in the following (sub)sections are implemented at this stage. The current, and all subsequent sub-pages, are subject to change.
"Today, trading and speculation are the #1 use case for cryptocurrency, but most trading does not use any benefits of the blockchain. This is about to change."– Louis Bellet, CEO of Yellow
Since the emergence of Bitcoin and Binance, many engineers and traders have worked together to develop the cryptocurrency industry. While most traders only use CEXs (centralized exchanges), the trading occurs in silos. Each CEX and DEX (decentralized exchange) has its list of markets, but unlike traditional finance, those markets are not global.
Blockchain has brought decentralized computation but has been far from being able to scale to what traditional finance is today due to the consensus algorithm mechanisms that require nodes to agree on the version of the state channel. This process, although secure, is slow and hinders the scalability of crypto trading.
The Yellow Network solves the problem of genuinely decentralized trading by allowing participants to swap assets across different exchanges without having to rely on block creation. This brings all parties, exchanges, blockchains, and trading firms together, creating a network of brokerages and allowing for a more efficient trading infrastructure.
The Yellow Network embodies a decentralized Layer-3 peer-to-peer mesh network allowing brokers to communicate, trade, and aggregate the liquidity of connected nodes.
Powered by state channel technology, it enables real-time settlement between brokers on top of a blockchain, thus enabling cross-chain trading without the need to bridge assets.
State channels improve public blockchain throughput by reducing the computational load placed on nodes when processing and storing transactions. This makes it easy to run a node, which decentralizes the process of certifying the miners' work.