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P2P Order Book

The VladSwap order book is a distributed, peer-to-peer (P2P) database of all open orders on the marketplace. It is maintained by a network of vladswap-node relays, which are responsible for validating and propagating orders to all participants.

How it Works​

When a user creates a new order, the PSBT is broadcast to the subp2p network. Each vladswap-node that receives the order then validates it to ensure that it is well-formed and that the user has sufficient funds to complete the trade.

If the order is valid, the node then adds it to its local order book and propagates it to all of its connected peers. This process continues until the order has been disseminated throughout the entire network, ensuring that all participants have a consistent and up-to-date view of the market.

Order Matching​

Once an order has been added to the order book, it is available to be matched with other orders. When a user finds an order that they would like to accept, they can create their own corresponding PSBT to complete the trade.

The two PSBTs are then combined and broadcast to the Bitcoin network, where the atomic swap is executed in a single transaction.

Benefits of a P2P Order Book​

There are a number of benefits to using a P2P order book, including:

  • Censorship Resistance: Because the order book is distributed across a network of nodes, it is much more difficult for any single entity to censor or manipulate the market.
  • High Availability: If one node goes offline, the rest of the network can continue to operate without interruption.
  • Transparency: All orders are publicly visible on the network, providing a high degree of transparency and accountability.
  • Low Fees: Because there is no centralized exchange to maintain, the trading fees on VladSwap are much lower than on traditional exchanges.