Coindealers.

io

WHITE PAPER
A Fast, Secure and Scalable Cryptocurrency Exchange Platform That Puts
Traders First

January 25
 Contents
Executive Summary...................................................................... Error! Bookmark not defined.
Introduction ................................................................................................................................... 4

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 Section 1
Abstract
Both institutional investors and seasoned traders have put their weight behind crypto currencies
as a result of the enormous disruptive potential of the decentralized ledger.

In a world where every bank retains its own complex data infrastructure and unique verification
methodologies, market risk is multiplied exponentially alongside transaction costs. Add to this a
lack of transparency and liquidity and you have a recipe for a financial system in dire need of
overhaul. With Blockchain traders can securely store, and individually verify real-value
transactions of digital assets without any form of centralized oversight. This capability could very
well bring democratization and uniformity back to the world’s financial systems.

But before crypto-assets can be reliably bought and sold like currencies, stocks and
commodities, the underlying technology which supports centralized exchange marketplaces
must be developed to match up with growing demands. According to institutional investors at
Merrill Lynch, the trading platforms available right now simply “do not offer the same quality of
technology as the large global exchange groups”i

Moreover, mainstream exchange systems offered by NASDAQ and the LSE are backed by
sophisticated systems that can detect and account for market manipulation, high trading
volumes, and specialized orders. Most crypto markets are still plagued by issues such as
illiquidity, high clearing and settlement risks, cumbersome transaction processes, and numerous
security vulnerabilities.ii With over 800 altcoins crypto tokens now on the market, conversion
from one digital asset to another poses an additional set of unique problems for investors and
operators alike.

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 Section 2
Introduction to Coindealers.io
At Coindealers.io our distributed system of exchange moves away from many of the limitations
of traditional centralized and decentralized crypto trading platforms. Our interface facilitates
peer-to-peer transactions with no third party intermediation, which translates to better security
and higher transparency for traders.

Many of the transactional difficulties caused by traditional matching algorithms will also be
minimized, by virtue of our Automated Market Maker (AMM). Instead of matching buy orders
with sell orders, we’ll match the people behind these transactions, using this counterparty
software. The AMM will determine the spot price of the digital asset being traded with
reference to prevailing market forces, and the participants involved.

To prevent large fluctuations in the spot price of assets, we’ll hold internal, as well as third-party
reserves of crypto tokens, to ensure constant liquidity within the market. Conversion rates will
be determined and updated by reserve managers who will then feed the values into our AMM
on a regular basis. At no point during a transaction will private keys be held on the exchange
platform itself, funds will be held in private wallets until the current amount of credited fees
have been validated by the smart contract system.

With these features in place, we can guarantee an exchange platform that:

 Allows users to carry out trade transactions trustingly without any intermediary
intervention as the security of the transaction will be entirely in your hands.
 Offers faster transactions with less bloating and congestion on the block chain
 Supports a variety of altcoins apart from Bitcoin. The smart contract functionality allows
the integration of any crypto-asset
 Facilitates compound orders for special buy/sell orders within a certain trading window

This whitepaper will explain unique features of Coindealer.io's currency exchange platform and
the vision. The whitepaper will cover the integral elements of the system — describing both the
architecture and the functionalities of the platform.

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Section 3

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Section 4

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Section 5

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 Section 6

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Section 7
The Tests

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Section 8

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 Section 9
Bibliography

ihttps://qz.com/1120991/bitcoin-exchanges-may-not-be-ready-for-the-big-
time/
ii MtGox, Coinbase

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