
0x Launch Kit – Launch your own cryptocurrency exchange or marketplace - tomhschmidt
https://0x.org/launch-kit
======
leoplct
Why should I launch an exchange when there are already hundreds of existing
exchange?

As a entrepreneur: Exchange services is very difficult to differentiate. It’s
a commodity service. Why should I invest in marketing to promote my new
exchange?

As a customer: Why should I buy tokens? \- Most of existing tokens have not
active project behind \- Many times the token is useless for the project and
it will not increase in value if project succeed (just see ZRX token. It’s
down -76% from 52wk high while your team is working actively on the project.
Why investors have to buy tokens?

~~~
tomhschmidt
If you want to list the same assets as everyone else with the same interface
in the same markets, then yes, it's hard to compete. However, we see a world
of tokenized assets coming online that will need unique markets for exchange.
Something like Radar Relay ([https://radarrelay.com/](https://radarrelay.com/)
for ERC-20 commodities) is totally different from Veil
([https://veil.co/](https://veil.co/) for prediction market shares) is totally
different from BoxSwap ([https://boxswap.io/](https://boxswap.io/) for trading
collectibles). Even within ERC-20 commodities exchange, there are many
different models of exchange within different markets that are sufficiently
differentiated.

We think of 0x more like Stripe: an under-the-hood technology that allows
entrepreneurs to move more quickly and easily add exchange to their product.
The concept of "tokens" and "exchange" will become very abstract in the near
future.

~~~
toomuchtodo
> We think of 0x more like Stripe: an under-the-hood technology that allows
> entrepreneurs to move more quickly and easily add exchange to their product.

One’s velocity should always be slightly less than their SEC defense attorney.
If you're legit, take the time to make sure your paperwork is legit.

[https://news.ycombinator.com/item?id=18185701](https://news.ycombinator.com/item?id=18185701)
(Top comment by Animats should draw your attention)

~~~
amingilani
Launch Kit is not an ICO or promoter, it's a platform for crypto exchanges.
Could you elaborate why you're referring to a comment detailing the SEC going
after ICO scams?

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tomhschmidt
Tom from 0x here. Happy to answer any questions about Launch Kit or 0x more
broadly!

~~~
flyGuyOnTheSly
How do you overcome the inevitable "I don't trust an exchange that was
launched within minutes by an amateur" stigma?

~~~
tomhschmidt
You don't have to trust! 0x Exchanges are non-custodial -- you hold onto your
funds and atomically execute trades through the 0x smart contracts, which are
open source and audited.

[https://www.youtube.com/watch?v=WSxphhWcLxk](https://www.youtube.com/watch?v=WSxphhWcLxk)

~~~
flyGuyOnTheSly
So ultimately the users have to trust the smart contracts then, yes?

~~~
profalseidol
Remember that the smart contract is committed to the blockchain and can never
be changed.

Just like when you push your code to a git repo. It's guaranteed immutable,
tamper proof. Data side is handled by appending to the blockchain as well. But
this doesn't mean it's bug-free.

You have essentially a tamper proof Database with Stored Procedures that
doesn't need DBAs. I imagine it as a giant growing BitTorrent file that is
maintained (and rewarded) by many computers worldwide. Any tampering to this
file, it's immediately detected via hashing (just like in BitTorrent).

The only way to break this is by branching out like you do in git. But in
Blockchain, you will have to convince those computers to maintain your fork.
And on this note, a Blockchain is technically not controlled by 1 entity, it
is the choice of every individual blockchain maintainers (aka miners).

~~~
root_axis
None of that is really true though. It can all be changed on the whim of
influential thought leaders within the eth community.

~~~
profalseidol
Yes, the thought leaders in the eth community are indeed influential just like
Linus Torvalds is to the Kernel project. But that doesn't mean you can't fork
Linux should you disagree with him.

What you are saying is not a technical problem. But a problem in Human
Society. Or even just an inherent due to it's novelty. This issue is present
to almost anything that is not yet widely adapted.

With that said, giant evil mega corporations have grouped up to work on an
'enterprisy' version of Ethereum with a standard spec for interop. We're on a
good track to get more 'thought leaders'.

~~~
root_axis
Whether it's a technical problem or a human one, the bottom line is that
"guaranteed immutable, tamper proof" is not true. It doesn't matter that Linus
Torvalds is influential on the linux kernel project because the linux kernel
is not claiming that it is "immutable and tamper proof".

------
joosters
How does this manage to connect the real world to a blockchain? The
fundamental problem with the promises of insurance/bonds/stocks/whatever on a
blockchain is that it doesn't matter what the blockchain says, people's real-
world actions aren't tied to it, so it's not trustless. And so the blockchain
part is pointless.

Only if all the related elements are all virtual and on the blockchain can it
do anything - so we're stuck with gambling and cryptokitties for real world
usage.

~~~
dangero
Another related issue is that tokens are bearer instruments controlled by
whoever holds the right private keys.

Most investments regulated in the US cannot legally be bearer instruments.
This means there must be a ledger listing who owns what with real names
attached. For public companies they must use a registered transfer agent to
keep these ownership records. Private companies can keep their own records,
but in most cases cannot use bearer instruments. What happens if I transfer
you the token if there is a master ownership ledger with names and addresses?
Nothing happens. The token record becomes out of sync with reality is the only
thing that happens.

~~~
homakov
Isn't onchain here a transfer agent? Bearer is more appliable to cash, because
it's physical. A token movement is still recorded onchain, i.e. there is a set
of transfer agents and consensus among them. It can be tuned to support some
regulation.

~~~
dangero
Bearer has nothing to do with physicality.

Anything controlled by a private key is a bearer instrument by definition
because the person bearing the private key has custody of the asset.

You're making up your own definition of transfer agent, not the one used by
the SEC. They have specific requirements and responsibilities.

~~~
homakov
An account is controlled by a key AND the validators who choose to record
their transaction. One cannot just share the key with others. First, they need
to record it with ledger keepers. How is it not like transfer agent?

~~~
dangero
Yes, the transfer agent can ask for a key signing before moving funds, but
they also need to be able to transfer _WITHOUT_ the key. Examples would be a
key loss or transfer of ownership due to court order. I don't know what the
key is doing since it's optional and highly fallible proof of transfer intent.

At best the key signing is providing a partial audit trail with no case law to
support any liability transfer created by its use. Typically transfer agents
take very little liability by requiring a medallion signature before allowing
a transfer.

~~~
homakov
In a custom blockchain it can be configured to have admin method to transfer
without a signature. But the question is why.. Why assets cannot be bearer?

~~~
dangero
Bearer instruments are linked to money laundering and we largely outlawed in
the US in the 80s in relationship to securities.

------
throwaway2016a
This looks great but I'm not sure if the title is accurate. For most of the
world the barrier to running an exchange is four fold:

1\. Technology

2\. Regulatory

3\. Trust

4\. Critical mass

This looks like it only address 1. Which is certainly a big hurdle but I would
have loved to seen something explaining how to get 2 - 4 done.

From some of the answers bellow:

> You don't have to trust! 0x Exchanges are non-custodial

That's great. There should be a writeup on that front and center of the how
and why.

------
dstick
Is it pronounced “ox”, “zerox” or “zero x”? :)

~~~
CyrusL
We pronounce 0x as “zero-ex,” but you are free to pronounce it however you
please. [https://0x.org/faq](https://0x.org/faq)

------
afro88
Forgive the potentially dumb question but I'm pretty green in the crypto and
finance spaces. What's the business value here? As in, why has this been
funded so heavily? Does 0x take a cut of all trades on 0x powered exchanges
and marketplaces? Or is the data that holds the value?

------
gregorymichael
Site looks great. Nice design.

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monkeydust
Looks interesting will give it a whirl. At work we have semi-jokingly been
discussing idea of a internal currency as a mechanism of getting one team to
do work for another when there is no obvious mutual benefit for said work. Its
increasingly becoming an issue for us.

~~~
nradov
Chargebacks have been used since forever in corporate accounting systems for
that purpose. They work fine, no cryptocurrency or exchange needed.

~~~
willio58
Hmm I think the whole point of using cryptocurrency is to not use actual
dollars to incentivize work between parts of the company. Maybe you could use
it to negotiate a promotion within a company, etc.

~~~
nradov
There's no point to using cryptocurrency for that. Regular dollars work just
fine. It's just entries in an internal corporate accounting system.

------
mgraczyk
When 0x was conceived, there were far fewer crytocurrency exchanges than there
are today. It aimed to solve a real problem that still exists in some ways.

Since 0x is a blockchain project, it has moved at a snail's pace compared to
the multitude of centralized and web-based "decentralized" exchanges that have
sprung up since. These newer exchanges have largely solved the needs
identified by 0x.

~~~
nostrademons
There's still a big problem with many of the centralized exchanges that have
sprung up: a bunch of them are exit-scamming, or otherwise have had incidents
that make your funds inaccessible.

That's the reason to do this on the blockchain: you don't need to trust that
the exchange operators will keep your funds safe, because they don't have your
funds.

~~~
homakov
An even better solution is to transform exchanges into channel hubs, and
settle trades instantly without ever touching blockchain. I.e. trade dynamic
remains the same, but now each party holds a balance proof and redeemable
onchain collateral.

------
homakov
Are orders settled onchain? If so, this is too expensive/not scalable. I'm
looking forward channel/HTLC based exchanges.

~~~
willwarren89
Yes, trades are settled onchain.

Too expensive for who? 0x protocol allows you trade digital assets with anyone
in the world, trustlessly, through the internet, for $0.10-$0.25 per trade.
While this isn't perfect for all use cases, it is an incredibly powerful
capability.

Scaling is indeed a limitation for decentralized networks. You can learn more
about our scaling R&D efforts here:
[https://blog.0xproject.com/0x-roadmap-2019-part-2-scalabilit...](https://blog.0xproject.com/0x-roadmap-2019-part-2-scalability-
r-d-c0fc2d5101e5)

~~~
homakov
It's $0.10 until it isn't. Average crypto exchange has hundreds of automated
tx per second, once it is attempted onchain the fees go up. Atomic swaps
onchain are good for large amounts and rare trades, but not for retail
traders.

------
patricklorio
Given the limitations of 0x, I never thought of it as a good protocol for
real-time exchanges (ie Coinbase Pro). For me, it's always fit more into a
decentralized Over the Counter (OTC) trading alternative.

~~~
tudorconstantin
The speed of execution limitation is not because of 0x, but because of how
fast a tx can be registered on the block chain. It can't compete (they say for
now) at settlement speed with a high performance centralized exchange.

But you have to trust those centralized exchanges with your funds. While with
0x you don't have to. One could say centralized exchanges can't compete on
trustlesness with decentralized ones.

~~~
patricklorio
I completely agree. Until the blockchain can confirm transactions at lower
latency I don't think the 0x protocol can provide a stand in replacement for a
centralized exchange. I'm currently working on a project that goes about
settlement a different way so trades can be confirmed instantly given a little
trust. If you're curious, here's some details on how it works
[https://merklex.io/blog/decentralized-clearing-
network/](https://merklex.io/blog/decentralized-clearing-network/)

------
progval
This website takes 50 seconds to load on a modern laptop with an ADSL
connection. 7 seconds once it's cached.

------
raidicy
All demos crash Chrome Dev Version 76.0.3800.2 (Official Build) dev (64-bit)

------
vasilipupkin
great product from technical point of view, no product/market fit.

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LAMike
The next Fortnite could sell VBucks through an exchange like this

------
thehazard
0x is seriously the best project in the crypto space right now.

~~~
TylerE
What’s the bar for that? Not having actually scammed anyone elsewhere? Crypto
is a sewage dump.

------
steveharman
Does the planet _really_ need any more crypto exchanges?

Hardly a week goes by without a couple of new ones starting. Surely we must
have more than enough by now?

~~~
jandrese
Hardly a week goes by without one folding due to hacking, mismanagement, or
outright criminal activity. Seems like they need someone to keep up the churn
or they might run low.

~~~
woah
You can’t steal the tokens if you are running a 0x exchange.

~~~
wolco
Only 0x can steal them

~~~
xur17
That's not true. Nostrademons [0] explains it better, but in short, trades
occur atomically, so the assets never leave your possession.

[0]
[https://news.ycombinator.com/item?id=20044091](https://news.ycombinator.com/item?id=20044091)

~~~
wolco
They do leave you and go into the relay. The swap happens on finished
contracts.

The stealing occurs in the relays not in the contract.

~~~
polezo
I think you have a misunderstanding of how the protocol works. At no point do
your assets "go into the relay." The relay only takes your signed orders (not
the actual assets), and the tokens literally do not leave your wallet until
the time the trade is executed. No trades can be executed unless they have a
signature generated by your private key.

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hhorsley
Incredibly cool

------
detritus
I'd perhaps add something like 'crypto' to the headline - I thought this was a
marketplace for physical items, somehow - like a local goods exchange.

~~~
jldevops
Agreed, just a small change, otherwise awesome to see something like this out
there.

Just curious, does anyone know of a kit like this for digital marketplaces for
goods or services (not crypto)?

~~~
joshfraser
Yes! At Origin we built a Marketplace creator that allows you to create a
decentralized marketplace for buying and selling anything in a matter of
minutes.

https:/www.originprotocol.com/creator

