[Short general description]: NEX is a platform for decentralized cryptographic trade and payment service creation
Neon Exchange (NEX) aims to combine the performance of centralized exchanges with the trust and security properties of decentralized exchanges. The system consists of three main components: an off-chain trade matching engine, a smart contract where trades are executed, and a payment service where global assets such as NEO and GAS can be converted to tokens that can be transfered directly by smart contracts, making them compatible with the exchange.
[Main problems tackled]:
1) Off-chain Matching Engine - allows NEX to benefit from the performance characteristics of centralized exchanges, while maintaining a decentralized user account model based on the blockchain
2) Trusted Off-chain Matching - the off-chain matching engine follows a publicly specified deterministic algorithm. By combining this knowledge with a public ledger of the order in which trades have been sent to the exchange and fulfilled on the blockchain, any user can verify that the exchange is operating fairly
3) Centralized User Accounts - NEX aims to bring a similar user experience to decentralized exchange by storing a user’s encrypted private key client-side in a user’s browser.
4) Types of Orders - NEX supports more complex trades such as limit and market orders.
5) Exchange API - allows users to place, modify, and cancel orders on the matching engine.
6) Fee Structure - market makers who place new limit orders on the order books will pay no fee, while takers who place an order at market place, or a limit order below the current market price will pay a small fee
7) Implementation - the NEX off-chain matching engine will be built in Elixir, a functional programming language designed to build scalable, distributed, and fault-tolerant applications.
8) Smart Contract for Token Exchange - The NEX matching engine communicates with a smart contract that commits trades between users.
9) Payment Service - the NEX payment service allows NEO smart contracts to interact with assets that live outside of the NEO virtual machine
[Main contribution proposal]: Decentralized Banking - NEX offers a long term vision of decentralized banking: a smart contract based funds management service for assets on the blockchain.
Management service would be designed to provide both fund security and investment opportunities . This funds management smart contract can provide advanced security features through a dual key system consisting of a frequent use key and a large funds key. A user moving funds in NEX with the frequent key would be limited to a daily amount, and to trade above this threshold would need to provide their large funds key. If a frequent use key is compromised the user can lock their account using both keys and transfer the funds to a new account. Following the success of core exchange features, we envision this smart contract will integrate with and manage other NEX services, such as peer-to-peer lending or indexed investment accounts.