The Stellar Development Foundation is currently in the final phases of preparing the release of their own decentralized trading platform called SDEX. It is rumored that the exchange will launch next month, plans have already been made to make some changes to the core protocol.
Altering this protocol would effect a change in the way sell and buy orders are carried out on every Stellar-based trading platform like Stellarterm. Currently, offers of multiple ‘shadow,’ can be created which adds up to more than the total holdings of the wallet.
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These offers can then disappear, leading to a possible manipulation of the order books. While users of trading platforms like Binance know much about ‘fake’ sell and buy walls, at least these trading platforms require the buyer or the seller to hold the exact amount of the underlying digital currency, with users unable to sell or bid higher amounts than their wallet’s content.
The Stellar protocol’s functionality as well as all related decentralized trading platforms will be altered by the proposed update. Users can only buy or sell the exact amount on their wallets. Introducing the liabilities function, the examination of both outbound and inbound liabilities would be done, noting what is bought or sold by an account, preventing the manipulation of this kind of order book.
It may seem that these changes are relatively small, but this is a clear signal from the Stellar Development Foundation on how seriously they are taking the liquidity boost that is likely to happen, which will be experienced by their revamped trading platform and protocol in the coming months.
With the final stages of their updated trading user interface just a few weeks away from revealing to the public, coupled with the digital currency (XLM) being permitted to trade in New York by financial regulators, it seems this updated protocol and digital currency is getting set for some serious industry attention.
Stellar is an open-source protocol used for money exchange as well as tokens utilizing the blockchain technology. Github is responsible for hosting its source code. Within 2 to 5 seconds, the Stellar network can exchange tokens quickly which includes government-based currencies. The platform is a distributed ledger maintained by a consensus algorithm, which permits trust, decentralized control, asymptotic security, and low latency.
Servers run a software implementation of the protocol, and to connect and communicate with other Stellar servers utilizes the Internet. Each server stores a record of all “accounts” on the network. The ledger stores all these records. Servers propose changes to the ledger by proposing “transactions”, and by spending the account’s balance or changing an account’s property, move accounts from one state to another. Through a process referred to as “consensus”, all servers jointly agrees on which set of transactions to apply to the current ledger. The consensus process takes place at a regular interval, every 3 to 5 seconds. This keeps each server’s copy of the ledger in sync and identical. The “Stellar Consensus Protocol” is the current consensus mechanism used.
