Improving Security and Solving Compliance Issues. How and Why We Use Smart Assets, Smart Accounts, and Keeper

April 15, 2019

Over the last couple of years, crypto exchanges faced numerous problems. The biggest problem for both centralized and decentralized exchanges was and still is the lack of regulation. When we thought about making Tokenomica, our main idea was to keep the best features of Waves DEX and combine them with regulation needed to provide the security of users’ data and their funds.

Most decentralized crypto exchanges have faced challenges related to compliance with requirements imposed by regulators. Specifically, those requirements include user identification and quality assurance of assets admitted to trading.

Tokenomica offers a solution to these challenges based on technologies already proven successful on Waves DEX, and centered on Smart Accounts and Smart Assets.

Smart Accounts and Smart Assets

Basically, Smart Account is an account with an attached transaction script, which allows to validate every transaction before confirming it. Smart Account allows to restrict any outgoing transaction based on multi-signatures and other supplied data.

On our Digital Assets Exchange, Smart Accounts are used to allow outgoing transactions only to users that were previously identified and approved, or so-called “whitelisted” users, in order to comply with relevant regulatory requirements. Smart Accounts will allow Tokenomica to make sure that any transaction made on the platform is only possible between whitelisted users.

The other thing that important for us is the quality of assets. Here is where Smart Assets come into play. Smart Assets are unique tokens (meaning that they contain a unique set of rules provided in the script) that can be purchased, sold or exchanged as defined by the script, which validates every transaction within that asset.

On Tokenomica’s Digital Assets Exchange, Smart Assets will be used to control assets pairs. Pairs will be formed by assets compliant with relevant regulations, based on applicable rules and guidelines provided by the regulators.

Keeper

Waves Keeper is the first thing every user will need to install to start trading on our exchange. If you used Waves DEX before, you know what it is. Waves Keeper is a browser extension designed to manage your keys and enable you to confirm transactions online without exposing any sensitive information to the web. Keeper plays many roles on Tokenomica: it is a personal account, wallet and a tool to confirm users’ actions.

The major benefit of Keeper is that private keys are stored securely within the extension, allowing the user to confirm transactions on Tokenomica without entering private keys or passwords. This mitigates the threat from malicious websites. The user’s account information is encrypted and stored locally on their computer.