One of the main products developed through the Eidoo project is a Bitcoin wallet able to manage generic assets on Bitcoin’s blockchain, in a secure, and user friendly way.
Furthermore, we will not introduce into the wallet any solutions which neither relies on centralized authorities nor compromise user confidentiality.
We have chosen to build the wallet according to the best practices currently available in Bitcoin’s ecosystem in order to exploit not only a higher level of security, but also a greater level of interoperability and compatibility with the existing solutions and services.
The key aspects we want to address with our solution are the following: interoperability, auditability, smart contract, scalability and, in particular, confidentiality. All of this with a conservative, adversarial thinking, and security-oriented approach which is typical of the Bitcoin ecosystem.
Also, Eidoo will include a hybrid exchange to convert bitcoin.
One of the biggest and underrated problems of existing exchanges is the fact that users need to trust the counterparty, ceding to them the full control of their very own assets. Counterparty risks therefore, even when dealing with generally reliable and trusted ones, have always to be taken in consideration because a potential asset casualty may be lurking.
Bitcoin Exchange: Eidoo’s solution
Leveraging Lightning Network, we are able to get rid of any counterparty risk, due to the fact that transactions happen between users in such a way that prevents anything illicit.
Another big improvement is the fact that users don’t need to adhere to any bureaucratic procedures, such as KYC or AML, which would weaken users confidentiality. Instead everything works exploiting off-chain transaction, in a peer-to-peer decentralized environment.
Absolutely worth mentioning, the fact that Lightning will bring a huge improvement in regards to fee costs and waiting time, two of the biggest weaknesses of Bitcoin during 2017, thanks to a technology called off-chain transactions.
Taking advantage of the aforementioned mechanism, we are able to create a market nearly free of transaction fees with a confirmation time reduced by more than 10 times.
Also, the hybrid exchange for bitcoin will offer a feature known as atomic swap transactions.
Another feature, which can be created by leveraging Lightning Network, is a Decentralized Market, where EIDOO users could, instead of transferring only assets, exchange also generic goods and services in a decentralized and provably honest way using either an HSM or an escrow system.
The wallet will take care of abstracting the raw unfriendly function of Lightning Network, giving to the end user a more pleasant environment to manage their assets.