The essence of the market is trading. Looking back at the development and evolution of the market is like reading a chronicle of how humans have achieved more efficient trading. Several iterations of DeFi, the most outlandish application of blockchain, have also centered around “more efficient trading.”
However, with the surge in popularity of BRC-20, while we are pleasantly surprised by the emergence of new market narratives, the congestion and high fees caused by the surge in trading volume have once again torn apart the veil of shame covering the blockchain: how do we achieve the desired “more efficient trading” under the premise of decentralization?
When problems arise, there are always pioneers in the industry who are brave enough to explore and innovate. NostrSwap, the first ecosystem-based Dex constructed based on the Nostr protocol, is one of them. After realizing BRC-20 zero-gas transactions by understanding market demand, NostrSwap’s attempts at trading did not stop. Starting with a Dex that balances decentralization and high performance, and with NRC-20 at its core, NostrSwap’s efficient, convenient, interoperable, and low-threshold financial ecosystem is unfolding.
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NostrSwap: A Dex that balances decentralization and high performance
As the first ecosystem-based Dex constructed based on the Nostr protocol, NostrSwap draws on the powerful advantages of the flexible and extensible Nostr protocol, and innovatively launches a fully decentralized off-chain P2P market, bringing high-efficiency, smooth, and low-cost trading experience to users in the global crypto community.
Exchanges are the cornerstone of the market, but after experiencing the collapse of FTX, the subsequent impact is still fermenting today, and the feelings of the crypto community towards exchanges have become more complex:
Centralized exchanges (Cex) have a smooth experience comparable to Web2, and their high liquidity brings enough trading depth, but users do not fully control their assets, and we have never stopped worrying about fund security, interest exchange, and information leakage in the black box of trust; decentralized exchanges (Dex), although they have advantages such as anonymity, security, and transparent trading, the problems caused by decentralization, such as slow transaction speed, insufficient depth, and high cost, still keep most users who pursue experience out.
It seems like a paradox of “not being able to have both fish and bear paws,” but with 5 years of rich experience in DeFi / CeFi / exchange operations, NostrSwap has deduced a win-win solution through shrewd market judgment: off-chain trading and on-chain settlement.
When a transaction occurs, the user’s original token is locked in the NostrSwap smart contract on the chain and bridged to the Nostr protocol off-chain. NostrSwap uses the Nostr protocol as the off-chain communication layer to transmit instruction messages and mint tokens based on the Nostr protocol and distribute tokens to the user’s corresponding NostrSwap account address. When the user wants to exit, NostrSwap destroys the user’s token in the Nostr protocol and unlocks the user’s on-chain token.
In terms of decentralization: every transaction carried out by NostrSwap is executed by nodes and audited by auditors, and all transaction details are stored in the relay end of the Nostr protocol. In addition, NostrSwap realizes decentralization and public transparency and protects user privacy and fund security through the IPFS protocol for data storage and rapid and efficient retrieval.
In terms of performance: Since the Nostr protocol is an off-chain decentralized protocol, its excellent performance of 5,000+ TPS not only enables transactions based on the Nostr protocol to be efficiently executed, but also all transactions except for deposit and withdrawal functions do not require gas. Taking BRC-20 as an example, the minimum cost of NostrSwap transactions is 0.1%, far lower than other solutions by tens of times.
It is worth mentioning that on the basis of ensuring decentralization and performance, the high scalability of NostrSwap further eliminates friction and realizes unprecedented multi-chain aggregation: whether it is BTC, ETH, Layer2, or other blockchains, users can easily bridge to NostrSwap, aggregate multi-chain assets, release long-tail vitality, improve fund flow, and achieve more efficient matching.
The Mutual Achievements between the Nostr Protocol and NostrSwap
When mentioning the Nostr protocol, many people first think of social networking, but social networking is just one of its application scenarios. In a wider range of application scenarios, the Nostr protocol has broader imagination space, which NostrSwap has keenly captured.
The Nostr protocol consists of two parts: the client and the relay. The client is used for signing and verifying information and is run by the user. The relay can fetch and store any information linked to its client and forward it to other clients, but the relays do not communicate with each other. Compared with other protocols, Nostr’s advantages lie in:
● Simple and easy registration: Any user can create a pair of public and private keys, reducing the entry barrier for users;
● Decentralization: The client can choose to store information in multiple relay nodes, without relying on any single relay node, and the relay nodes are only responsible for storage and transmission, and users do not need to trust the relay nodes;
● Highly value privacy and security: All data is encrypted and stored on decentralized servers, and only users can control their data;
● Extremely scalable: Although Nostr does not use blockchain, theoretically it can support any blockchain;
● Efficient: Compared with existing blockchain solutions, the Nostr protocol can achieve more efficient data transmission. For NostrSwap, which wants to provide users with a secure, efficient, and low-cost trading experience, the lightweight, anti-censorship, and highly interoperable advantages of the Nostr protocol are the best choice for NostrSwap to realize its own development vision.
On the other hand, the current Nostr ecological financial infrastructure still needs to be improved, and the lack of product support for tokens and transactions makes the important part of ecological incentives missing, and NostrSwap fills this gap.
Although the Nostr protocol integrates the Bitcoin Lightning Network, due to the limitations of Bitcoin’s audience and functionality, as well as the limitations of the form of tipping, the Lightning Network is not considered an ideal ecological support. NostrSwap helps to solve this dilemma through the NRC-20 protocol. Through NRC-20, assets from other chains such as BTC, ETH, Layer2, etc. can circulate into the Nostr ecosystem in a standardized manner and have better interaction through the NostrSwap trading platform.
The combination of NostrSwap and the Nostr protocol forms a model of complementarity between products and protocols: NostrSwap brings more possibilities for the prosperity of the Nostr ecosystem; and because of the Nostr protocol, NostrSwap’s ideals become reality, allowing more encryption communities to enjoy efficient, convenient, interoperable, and low-threshold trading experience.
Starting with NRC-20: Feel the excellent trading experience of NostrSwap
We know that while the community is still struggling with the congestion and high costs of the Bitcoin network, NostrSwap has achieved zero gas transactions for BRC-20. For BRC-20 players, this is a double leap in efficiency, cost, and trading experience.
First of all, the Nostr protocol has a performance that is hundreds of times higher than Bitcoin, and NostrSwap achieves “more efficient trading”. Secondly, the off-chain transaction and on-chain settlement method also reduces the transaction fee from 1.6% to 0.1%. Most surprisingly, NostrSwap can easily exchange ERC-20 tokens for BRC-20 tokens, and users can easily trade through the “chat trading” function of the Nostr protocol front-end (including popular applications such as Damus.io, Amethyst, Snort.social and Iris.to) in a chat-like manner, which greatly reduces the threshold for trading operations and achieves a more seamless and intuitive trading experience.
When it comes to this series of qualitative leaps, NRC-20 deserves credit.
Simply put, NRC-20 tokens are a substitutable token technology standard created using the Nostr protocol, published by NRC20Dao supported by NostrSwap. Just as the emergence of ERC-20 triggered a boom in the Ethereum ecosystem, NRC-20 also has an indispensable role in the Nostr ecosystem.
NRC-20 is equivalent to the Nostr ecosystem fund entrance, it is compatible with ERC-20 and BRC-20, and a large number of tokens can enter the Nostr ecosystem through the NRC-20 standard; at the same time, it opens up the bridge for asset interaction in various links, users can convert USDT from Ethereum to NRC-20 tokens and conduct BRC-20 transactions; many users who have experienced the NRC-20 “chat trading” function regard it as the preferred method of encrypted asset trading, because it is not only simple to use, but also has outstanding performance, and zero transaction threshold, easily breaking all prejudices against decentralized trading.
As the initiator of NRC-20, the NostrSwap team will continue to support the maintenance and development of NRC-20 through technology and funding, and will continue to operate in the way of “open source Dao”, committed to promoting its full openness and community.
Of course, with NRC-20 as the core, a series of development work of NostrSwap is also underway:
In the second half of 2023, NostrSwap will focus on building TestNet nodes based on NRC-20 to further test and optimize functional points. In addition, NostrSwap will also establish a peer-to-peer MarketPlace based on NRC-20, using the central limit order book (CLOB) mode, allowing users to bypass intermediaries and interact directly in a low-cost and efficient manner, further integrating the liquidity between various blockchains. In the near future, NostrSwap will also accelerate the construction of AMM Swap protocols and other modules based on NRC-20, bringing users an excellent experience.
After the functional modules are gradually improved, NostrSwap will also plan to build the first completely decentralized perpetual contract exchange in the Nostr ecosystem, on the basis of low threshold, low cost, high efficiency, and strong interaction, to leverage its scalability advantage, integrate multi-chain resources, and unleash the vitality of long-tail assets.
After many rounds of iteration by the community, the Nostr protocol has emerged as a decentralized protocol that can break through the blockchain impossible triangle of decentralization, performance, and security.
Undoubtedly, as a decentralized protocol that makes Elon Musk afraid, Nostr protocol has not only won 18 million users with its lightweight, scalable, anti-audit, and highly decentralized advantages, but also makes us look forward to the future of its ecosystem.
It is even more certain that as the first Dex in the Nostr ecosystem, NostrSwap can not only benefit from the ecosystem, but also its innovative off-chain P2P market model not only achieves a perfect balance between decentralization and high performance, but also the proposed NRC-20 activates the vitality of the ecosystem. We also look forward to the future performance of such a new project that captures and solves pain points.
Everything is just beginning in achieving the efficient, silky, and low-cost trading experience that the global crypto community craves. Stay tuned for the future.