What is DEXs

Decentralized exchanges (DEXs) are cryptocurrency exchanges that operate without a central authority, allowing users to transact peer-to-peer and maintain control of their funds. DEXs reduce the risk of price manipulation, as well as hacking and theft, because crypto assets are never in the custody of the exchange itself.

DEXs also give token projects access to liquidity that often rivals centralized exchanges and without any listing fees. Just a few years ago, projects would pay millions of dollars to get a token listed on a centralized exchange.

Some exchanges implement degrees of decentralization, in which centralized servers might host order books and other features but do not hold users’ private keys. Popular DEXs in the DeFi space currently include AirSwap, Liquality, Mesa, Oasis, and Uniswap.

Let's talk about using the P2Plus network protocol to help distributed exchanges (DEX) achieve efficient and safe results.

Bitcherry Technology Implementation - P2Plus Network Protocol

At the network protocol level, P2Plus refers to mainstream VPN technologies such as PPP, PPTP, L2TP, IPSec, and SSLVPN, especially OpenVPN technology. OpenVPN is inherently equipped with many security features: it runs in user space without the need to modify the kernel and network protocol stack; it runs in chroot mode after the initial completion, giving up root privileges; using mlockall to prevent sensitive data from being exchanged to disk. In order to penetrate firewalls / routers and other devices, the P2Plus protocol bridges the link layer between the IP layer and the virtual network card.

The P2Plus protocol packages and encrypts the protocol layer data of the host-side virtual network card, and then passes the router in the form of IP protocol format After the networked device sends it out, the receiving end receives the IP format data, decrypts it through the protocol layer of the host-side virtual network card, and passes it to the application layer. Therefore, P2Plus network itself supports VPN, proxy server and other agent functions. The P2P protocol uses 4/6 bytes for addressing, and P2Plus uses 8-byte network addresses for addressing. The network target address information that can be expressed is more abundant. These additional bytes can also express the shortest network path and gateway service information between the source address and the destination address, so as to achieve decentralized and high-speed interconnection between different networks. The traditional centralized network, P2P distributed network, and P2Plus decentralized network structure with network topology nodes are shown in picture. It is important to point out that the added gateway nodes in the figure only have an acceleration effect. Removing the gateway node does not affect the 9 connectivity of the P2Plus network. If the gateway node is removed, the P2Plus network will only degenerate into a distributed network structure and the network connectivity will remain unchanged.

If users accesses the Internet through broadband or 4G / 5G, the network node does not have a fixed IP address. Therefore, whether it is IPv4 or IPv6, the node's IP address may change, which makes it difficult for the network node to provide external services. Traditional solutions are usually resolved through DDNS (DynamicDNS), that is, a centralized dynamic domain name provider such as peanut shell, to provide the analytical relationship between the domain name and the dynamic IP. To this end, P2Plus provides an 8-byte virtual IP address. When the virtual

network card program is installed, it will automatically generate a unique 8-byte IP address and the corresponding public / private key pair on the entire network. P2Plus will maintain a decentralized virtual IP address, node public key, IPv4 / IPv6 external network / intranet address, and network service provider ISP correspondence table. When nodes connect to the network, they will automatically use the Gossip of Gossip protocol to adjacent nodes and The gateway node broadcasts and updates its own internal / external network address.

Considering the high latency and low network speed caused by cross-border and cross-network operators, the role of the gateway node is added to improve the point-to-point transmission speed and connection stability in public network environment. The gateway node preferably has multiple ISPs. Into or on the backbone. P2Plus sends probe packets with the 10 smallest TTL to track the route that the data packets take to reach the target host, and uses this to build a network topology map between nodes, so as to obtain the distance relationship and smallest path between the network nodes.

Thus, BitCherry of P2Plus network protocol for the development of the DEX exchange played a great help and can do a distributed transaction.

BitCherry official website, For more information about IPv8: https://www.bitcherry.io