There are many different trading-related protocols under development in the cryptocurrency world. MARKET Protocol is trying to make a name for itself in this regard, although doing so will not be easy. What makes this concept so interesting is how it provides secure and flexible trading of any asset on the Ethereum blockchain. This includes real-world goods as well as commodities.
The Idea Behind MARKET Protocol
In the cryptocurrency world, most trading protocols focus on the same things. In virtually every case, they are only applicable to cryptocurrency, token, or asset trading. That also means those assets are usually related to cryptocurrency projects and companies in one way or another. MARKET Protocol is looking well beyond this niche industry by developing a trading solution usable for real-world assets and products as well.
How Does it Work?
Developing a protocol designed to trade real-world assets in a decentralized fashion is not easy by any means. MARKET Protocol offers a wide range of solutions, including decentralized exchange, clearing and collateral pool infrastructure, and third-party application development services. There is quite a lot going on in this particular ecosystem, even though most of the features are still under development as we speak.
All of the trades taking place on the MARKET Protocol will be fully collateralized. This is achieved by making use of smart contract technology, which will also aid in decentralizing the accounting process. Establishing a trustless ecosystem to globally trade assets related to both the real world and cryptocurrency will not happen overnight, but so far, the progress being made seems rather solid.
There are some other features to take note of as well. Unlike what one might expect, MARKET Protocol will also let users short cryptocurrency assets without borrowing. There’s also cross-chain exposure without having to use multiple exchanges and wallets. Moreover, there is an option to recreate off-chain relationships using stablecoins such as Tether or Maker Dai.
Putting Users in Full Control
As one would expect, MARKET Protocol is all about empowering the end user. It is possible to create new contracts through the project’s DApp. These contracts are then used to define which ERC20 token will be used as collateral. Once contracts are deployed, they can be used immediately for trading in a trustless manner. Positions can be exited once the contract expires or a trade with another user is completed.
What Comes Next?
The MARKET Protocol is currently still in the relatively early stages of development. With partners to be onboarded pretty soon, this concept will continue to grow and attract a lot of attention. Third parties will also be able to build their own applications on top of this protocol, which will be interesting to keep an eye on. More competition in the world of decentralized trading and related activities can only be considered a good thing.