Building a Decentralised Exchange with Don Mosites from AirSwap
Download Episode MP3 File
The file will open in new window. Click down arrow to download the file.
Exchange hacks have plagued Crypto markets since the infamous hack of Mt.Gox in 2014, which triggered a 2-year bear market. At the time, 850,000 Bitcoins were stolen at a value of over $450m, though today that would be over $8bn. Since then, other notable hacks have included the $72m stolen from Bitfinex, and $500m of NEM stolen from Coincheck, so far, the largest hack to date.
These crypto honeypots present an attractive opportunity for skilled hackers and probably the most significant fear for exchange operators. Users are at risk too, Buyers and sellers have to balance the convenience of holding coins on an exchange with the risk of a hack. Often, once a hack has been made public, you will see a flurry of Twitter posts saying "This is why you shouldn't keep your coins on an exchange."
The nature of exchange risk has led to the emergence of decentralised exchanges, such as EtherDelta, IDEX and 0x. And while not a true exchange, the team will explain they are a marketplace, Airswap has thrown its hat into the ring with the launch of their platform.
In this interview, I talk with Don Mosites, the engineering side of the co-founding team about the launch of the platform and the challenges they face with security, liquidity and market maker pricing.
SUPPORT THE SHOW
If you enjoy The What Bitcoin Did Podcast you can help support the show my doing the following:
Become a Patron and get access to shows early or help contribute
Make a tip:
Leave a review on iTunes
Share the show and episodes with your friends and family
Subscribe to the newsletter on my website
Connect with Don:
Interviews with Don:
Hackernoon: Understanding Decentralized Exchanges
The Market Mogul: How Decentralised Exchanges Can Prevent Crypto-Exchange Hackers
BREAKDOWN OF THE SHOW
00.04.55 Airswap Launch
00.06.10 Don's background
00.09.45 Why a decentralised exchange
00.16.27 How prices are supplied on the platform
00.18.29 The user experience
00.21.32 Target customer for Airswap
00.23.46 Phishing risk with allowing Airswap to exist on other websites
00.26.40 Asset pricing on the platform
00.32.37 Security challenges
00.37.11 Avoiding the issues of liquidity
00.39.12 How Airswap makes money and enterprise v token value
00.46.35 Integrations with Metamask, Ledger, and Trezor
00.49.00 Cross blockchain swaps (atomic swaps) and trading pairs
00.53.53 Future plans
00.56.35 How to get hold of Don and find Airswap