CRYPTOMARKET

Resistance Reimagines the DEX Experience

The rise of the distributed exchange has long been predicted by a wide range of leading industry figures. Changpeng Zhao, CEO of Binance has been quoted as saying:


“I believe that decentralized exchanges are the future. I don’t know when that future will come. But we’ve got to be ready for it.”

However, not all exchanges nor DEX’s are created equal. When using cryptocurrency trading platforms users can face many issues from complicated interfaces and slow transaction speeds to a lack of privacy, security, and freedom.

Currently, the vast majority of trading occurs on centralized exchanges such as Binance and Coinbase. Users must rely on trusted third parties, escrow services and derivatives which makes it almost impossible to trade privately. The centralized nature of these platforms exposes users to serious security risks too. It only takes a single breach to jeopardize the assets of all users on these exchanges.

Decentralized exchanges are now challenging the hegemony of the centralized behemoths by allowing users to retain their own private keys and, in turn, ownership of any crypto assets held on the exchange. However, the first-generation of DEX’s have been plagued by issues. They are often slow, indirect, only moderately secure, and offer very little support for users concerned about privacy.

Introducing Resistance

Winner of best ICO at the 2019 World Economic Forum in Davos, Resistance is a decentralized exchange, ResDEX, driven and supported by its privacy-oriented blockchain which uses the Resistance privacy coin, RES, as an intermediary to facilitate private trading.

ResDEX is a distributed exchange unlike any other. It is the first DEX designed with a privacy-orientated blockchain powered by a democratic and easily accessible mining operation which utilizes multiple reward mechanisms.

Created by a team of experienced developers with a background in cybersecurity, the Resistance core team includes the founder and core developer behind the Linux operating system Whonix, as well as the founder of Openwall, who is also responsible for creating the hashing algorithm yescrypt, and the newly released yespower CPU-optimized hashing algorithm, which is used by Resistance. Ivan Liljeqvist (AKA Ivan on Tech), is onboard as an advisor. Also on board is David Kravitz, a cryptographic mastermind with 35 years of experience in the sector, Vice President of Crypto Systems Research at DarkMatter, former IBM researcher, key contributor to the Linux Foundation Hyperledger Project, and inventor of the Digital Signature Algorithm (DSA).

A Wide Appeal

Resistance appeals to a wide community because it incorporates the best aspects of many different blockchain technologies. The simplicity of the Resistance Desktop Application ensures Resistance is not limited only to advanced users and can be easily adopted by the masses without sacrificing usability.

Their focus on privacy and anonymity attracts individuals that are passionate about the ongoing : development of blockchain technology. Anyone, anywhere in the world, regardless of skill level, can use ResDEX and it’s not even necessary to have a bank account.

ResDEX makes use of atomic swaps which enable fast, direct and private trades without the need for a trusted third party. ResDex and its accompanying blockchain facilitates privacy through the use of its native RES coin which acts as an intermediary and validates transactions using zero-knowledge proofs.

Utilizing Resistance InstantSwap enables you to perform trades on ResDEX in under a minute. Normally a ResDEX trade requires both sides to wait for confirmations on the underlying blockchains that the trades occur on. The amount of time can vary significantly with a Bitcoin transaction taking on average 10 minutes to confirm.

ResDEX InstantSwap negates the need to wait. This is achieved by allowing users to deposit RES coins into a time-locked contract for a certain period, this decentralized collateral is locked in Resistance masternodes. The funds remain inaccessible until the time-lock is released. Whilst the RES coins are locked in the user is able to trade amounts less than the equivalent market value of the deposits immediately. This dramatically increases the speed at which trades can be completed on ResDEX without compromising security, because there is no need to wait for block confirmations.


The Resistance team has already been granted developer access to the Ledger Nano S, the world’s most popular hardware wallet, by the company’s founders and a limited edition Resistance version of the wallet is now available. This integration will give users the option to transfer funds from ResDEX into one of the most secure and easy to use multi-currency hardware wallets available today.

Unlike most public blockchains, including Bitcoin and Ethereum, that store publicly visible personal data on an immutable and distributed ledger, Resistance gives users the option to shield their Personally Identifiable Information (PII) by using private transactions. The EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Acts are now in effect and cryptocurrency exchanges and blockchains are under pressure to uphold each individual’s right to alter or delete their own personal information. Resistance was built with a fundamental principle of the GDPR in mind: the user’s ability to control their PII. Users are therefore free to decide if any PII is to be used on the blockchain.

Democratic Mining

The Resistance CPU-optimized miner makes it easy for anyone with a standard laptop or desktop computer running MacOS, Windows or Linux, to mine on the Resistance blockchain. Block rewards and transaction fees are split between masternodes, supporting further project developments, Proof of Work mining, and Proof of Research on whitelisted BOINC projects that advance scientific research for the benefit of humanity.

As with Bitcoin and Litecoin, the Resistance blockchain is built upon a fast cryptographic hash for performance. The Resistance blockchain also utilizes yespower as a separate Proof of Work hash, similar to how Litecoin uses scrypt. Yespower is based on scrypt and the newer yescrypt. The blockchain is specifically designed for CPU mining and favors the standard CPUs you’ll find in regular laptop and desktop computers and offers no benefit to FPGAs or ASICs. This means that anyone can mine on the Resistance blockchain without the need for the high-spec mining rigs required to mine on other blockchains such as Bitcoin, Ethereum, and many other cryptocurrencies.

If someone did decide to build an ASIC for Resistance, the gains in efficiency would be orders of magnitude smaller than an ASIC built for coins that are not CPU-optimized. This makes mining fairer.

ResDEX has low fees and the typical 0.15% exchange fee is paid for by the taker. A proportion of these fees are used to support and develop the platform further.

Currently, ResDEX has a functional wallet, testnet and a one-way Simplex fiat gateway confirmed allowing users to buy Bitcoin on ResDEX using VISA or Mastercard in USD, GBP, and EUR. In addition, ResDEX has dedicated market makers who help ensure liquidity stays high on the exchange and lets users perform trades quickly at competitive prices. Anyone can become a market maker on ResDEX and provide liquidity to the market. Resistance has dedicated a lot of time and resources to developing the REST API that makes this possible. As an added bonus, makers don’t pay fees on ResDEX.

Masternodes

Unlike regular nodes, masternodes do not participate in mining. Instead, they perform vital services and, as a result, receive a significant percentage of the block reward. On the Resistance platform, masternodes will play a pivotal role in ensuring the security and fluidity of the decentralized
exchange. Masternodes will speed up the Resistance network. Each masternode will host a full copy of the Resistance blockchain and help achieve consensus quickly and efficiently. Furthermore, masternodes enhance security on the blockchain by helping to deter individuals who set out to falsify transactions. Masternodes stabilize the Resistance network, and the more of them there are, the more stable it becomes. That’s why they receive such a large portion of the block reward as an incentive – 30% of every block reward.

Right now, Resistance masternodes fulfill a number of key roles including:

1 . Incentivizing people to run full nodes on the Resistance network
2 . Incentivizing users to hold on to their RES thus stabilizing the currency

3. Holding the collateral used in InstantSwaps

4. Voting on governance issues after ownership of the Resistance platform has been decentralized

It is crucial that many Resistance users run full nodes that contain the entire current Resistance blockchain. As Resistance grows and mining becomes more competitive, many users will choose to join mining pools rather than mine Resistance directly. When users start mining in pools rather than on their own full nodes, the number of full nodes on the network decreases. This pushes the network towards centralization, which is a threat to blockchains that solely rely on Proof
of Work.


It is also essential that the Resistance cryptocurrency maintains a stable and accurate value, and that it isn’t used by wealthy individuals to “pump and dump” the Resistance coin supply. “Pumping and dumping” is the process by which perpetrators acquire a large number of coins at a low price, then
artificially increase the value of that coin to create hype and, in turn, drive up prices.

When other potential buyers see these huge price spikes, they are encouraged to purchase coins. At that point, the perpetrators “dump” their coins for a huge profit and the price tumbles. To help mitigate this issue, and to control the stability of the coin, Resistance masternodes are required to hold a certain number of RES at all times to maintain masternode status. This helps motivate users to hold on to their coins instead of trading or selling them. By supporting masternodes, Resistance is laying the foundation for future improvements to the network. Further down the line, ownership of Resistance will be decentralized and handed over to the Resistance community. The community can use the masternode framework to add support for additional functionality, such as governance (voting), real-time double spend protection, and platform development. Prior to this, as mentioned, masternodes will also play a crucial role in InstantSwaps, by holding the collateral used to execute these lightning fast peer-to-peer trades.

10,000 RES is the expected minimum stake required to be rewarded for running a masternode. Investors will have the opportunity to receive proportionally greater rewards (approximately) for larger stakes by running multiple nodes and/or, possibly, larger node types. When active, nodes provide services to clients on the Resistance network and, in return, are paid for their efforts.
As this rewards program operates on a fixed percentage, and the number of masternodes will fluctuate, expected rewards will vary according to the current total number of masternodes in operation.

Proof of Research

Reward splitting is a key feature of the Resistance consensus algorithm. In addition to Proof of Work and masternodes, participants can allocate their computing power to Proof of Research for block rewards. When enabled, users contribute computer time to Resistance’s whitelisted BOINC projects. This allows users to receive a percentage of the block reward whilst making a positive contribution to humanity. The share of block rewards allocated to Proof of Research are split between the members of the Proof of Research Resistance Pool (respool). The more computational power an individual contributes, the greater the share of the block rewards they receive. As the block reward split is 30% to miners and 30% to researchers there is an incentive to perform both these actions. Users can also specify that they wish to partake in the option that has the fewest participants. This should ensure an even distribution of miners and researchers.

BOINC is the world’s largest and most powerful distributed computer network. They host a wide range of research projects helping solve problems in astrophysics, medicine, climate change, humanitarian causes and more. Resistance’s whitelisted projects will focus on causes such as cancer and Alzheimer’s research, nanotechnology, clean water technology, molecular biology, and solar power.

Tackling Liquidity

Resistance recently confirmed a partnership deal with Huobi, the world’s leading blockchain company with an accumulative turnover in excess of U.S. $1 trillion.

The deal will ensure liquidity on ResDEX and allow for fast and reliable trading. In turn, the partnership opens new possibilities for Huobi by giving the organization access to new markets.

The partnership will eventually give the Resistance exchange access to over 150 cryptocurrencies and 350 trading pairs. Initially, the digital asset pairs available will include Bitcoin, Ethereum, and the USD-pegged stablecoin Tether with more coins added as soon as they are included on the Huobi platform.

Poor liquidity has been the weak link for most of the DEX platforms currently operating. With slow adoption, many first-generation DEXs have struggled to achieve the levels of liquidity required. Low liquidity can also lead to issues like price slippage, where the value of a currency changes over the period of time it takes to complete a trade; unfair or uncompetitive pricing; instability; slow transaction speeds; and more.

Resistance has already secured a number of other important partnerships too. As well liquidity on the exchange provided by Huobi and hardware wallet support from Ledger, market making is facilitated by GSR, and TLDR is responsible for assisting and mentoring the core team.

Privacy Focus

When a user wants to initiate a trade on ResDEX, they open the ResDEX interface in the Resistance Desktop Application and enable the coins they are interested in trading. The user can then deposit coins into a special exchange address derived from their exchange secret seed phrase that only they know. This address is specific to the coin they are trading and each coin has its own unique derived address.

A useful additional feature is that users can add privacy to almost any cryptocurrency, including Bitcoin, even if that currency doesn’t support private transactions natively. Through the use of the Resistance privacy-oriented blockchain, users can enable the privacy feature at the click of a button. ResDEX will then automatically trade the coin of your choice to RES and send RES in place of the original currency, thereby adding a layer of privacy to the trade.

Bitcoin cannot be considered truly fungible as it does not provide users with sufficient privacy and anonymity. The transaction history of every Bitcoin is publicly available on the blockchain for anyone to scrutinize. Older coins may be associated with illegal or unethical transactions and effectively become devalued in comparison to a new coin with a fresh ledger. Centralized exchanges like Coinbase, for example, have been known to block funds based on the coins’ previous transactions. With zk-SNARKs, a form of zero-knowledge proof used to facilitate private transactions on the Resistance blockchain, it’s possible for RES coins to have no public record or history. If users choose to send a coin through a private transaction, its history is completely obfuscated.

The Token Sale

Resistance is in the closing stages of its Private Sale. The platform’s Initial Exchange Offering (IEO), a process similar to an ICO but conducted through an exchange, will begin as soon as the Private Sale has ended.

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