(Work in progress)
There are now a few decentralised exchanges on the Ethereum blockchains, and this is a quick look at the technology behind these exchanges:
Built by yours truly, the website is a listing of three factory smart contracts (TokenTraderFactory, TokenSellerFactory and GNTTokenTraderFactory) that Market Makers execute to create their own trade contracts (TokenTrader, TokenSeller and GNTTokenTrader) with a specified buying and/or selling rates. Market Makers then deposit tokens and/or ethers on these trade contracts.
Market Takers then use their wallets (Ethereum Wallet / Mist, Parity or MyEtherWallet) to interact with the trade contracts by:
- Sending ethers to the trade contracts to purchase tokens
- Approving and then selling tokens to the trade contracts in exchange for ethers
The website collects details of the factory and trade contracts and collates them for easy presentation to the user.
Further details can be found in the TokenTrader Wiki.
Github repository: https://github.com/etherdelta/etherdelta.github.io
Webpage, loaded in Mist: https://etherdelta.github.io/
How to use EtherDelta: How to Trade on EtherDelta using MetaMask