DECENTRALIZED CRYPTOCURRENCY EXCHANGE APPLICATION

(Dapp)

[Link] CHITESH M.S.V JAYANTH.M

COMPUTER SCIENCE AND COMPUTER SCIENCE AND COMPUTER SCIENCE AND
ENGINEERING ENGINEERING ENGINEERING
R.M.K COLLEGE OF R.M.K COLLEGE OF R.M.K COLLEGE OF
ENGINEERING AND ENGINEERING AND ENGINEERING AND
TECHNOLOGY TECHNOLOGY TECHNOLOGY
Chennai,600067
Tirupati - 517501 Tirupati – 517501
priyankadhinakar@[Link]
mchitesh7@[Link] jayanthmuddulurt2004@[Link]

➢ Abstract: blockchain networks, leveraging smart contracts to

facilitate peer-to-peer trading without the need for
Decentralized cryptocurrency exchanges (DEXs) have intermediaries. By eliminating the reliance on a
emerged as a solution to the challenges posed by centralized single controlling entity, DEXs offer users greater
exchanges. This paper explores the limitations of centralized control over their assets and transactions.
exchanges, including restricted control over crypto assets, Furthermore, DEXs aim to address issues of
barriers to entry such as KYC requirements, and the potential accessibility and fairness by providing a more
for unfair trading practices due to centralized control. By inclusive and transparent trading environment.
contrast, DEXs enable peer-to-peer trading without the need
for intermediaries, offering greater autonomy and security to
users. Through a comparative analysis of centralized and
➢ Project Focus:
decentralized exchange models, this paper highlights the
advantages of DEXs in promoting a more equitable and
transparent cryptocurrency trading ecosystem. • Leveraging ERC20 Tokens for Interoperability: In
this project, we focus on the utilization of ERC20
Keywords—smart contract , ERC20 token, Metamask, tokens, the most widely adopted standard for
Swapping tokens creating fungible tokens on the Ethereum
blockchain. ERC20 tokens offer a high level of
interoperability within the Ethereum ecosystem,
➢ Introduction: allowing seamless integration with various
decentralized applications (DApps) and smart
contracts. By leveraging ERC20 tokens, our
The Evolution of Cryptocurrency Exchanges: decentralized exchange platform ensures
compatibility with a diverse range of digital assets,
• Centralized Exchanges: Limitations and Challenges enhancing liquidity and accessibility for users.
Traditional cryptocurrency exchanges have long
been dominated by centralized platforms, where • Integration of MetaMask for Seamless User
transactions are facilitated by a single entity. While Experience: MetaMask serves as a popular
these exchanges have played a crucial role in the Ethereum wallet extension that enables users to
adoption and trading of digital assets, they come interact with decentralized applications directly
with inherent limitations. Centralized exchanges from their web browsers. By integrating MetaMask
often exercise significant control over users' assets, into our decentralized exchange platform, we
leading to concerns about security and autonomy. provide users with a secure and convenient means
Moreover, stringent regulatory requirements, such of accessing their funds and executing transactions.
as Know Your Customer (KYC) procedures, create MetaMask simplifies the process of interacting
barriers to entry for many prospective traders. with blockchain-based applications, offering
Additionally, the centralized nature of these features such as private key management,
platforms exposes users to the risk of unfair trading transaction signing, and asset management. This
practices, such as market manipulation and insider integration enhances the user experience and
trading. encourages broader adoption of decentralized
• The Rise of Decentralized Exchanges (DEXs) In finance (DeFi) solutions.
response to the shortcomings of centralized
exchanges, decentralized exchanges (DEXs) have
emerged as a viable alternative. DEXs operate on
➢ Significance: }
• Advancing Decentralized Finance (DeFi): Our project This is a simple smart contract called
contributes to the advancement of decentralized SimpleStorage that allows you to store and
finance (DeFi) by providing users with decentralized retrieve an unsigned integer value (uint256).
exchange services that offer greater autonomy, smart contract for a decentralized exchange (DEX) that
accessibility, and transparency. DeFi aims to facilitates the trading of ERC20 tokens on the Ethereum
democratize access to financial services and reduce blockchain:
reliance on traditional banking institutions by
leveraging blockchain technology and smart contracts.
solidity
By building a decentralized exchange platform, we
Copy code
support the broader DeFi movement and its mission to
create a more inclusive and equitable financial system. pragma solidity ^0.8.0;

• Promoting Widespread Adoption of Blockchain import "./[Link]";

Technology: Furthermore, our project seeks to
promote the widespread adoption of blockchain contract DecentralizedExchange {
technology by showcasing its potential to // Define a structure to represent an order
revolutionize traditional financial systems. Blockchain struct Order {
technology offers numerous benefits, including address maker; // Address of the maker (seller)
enhanced security, transparency, and efficiency, which address token; // Address of the token being sold
can significantly improve the way financial uint256 tokenAmount; // Amount of tokens being
transactions are conducted. By developing user-
sold
friendly decentralized exchange solutions and
uint256 price; // Price per token
integrating tools like MetaMask, we aim to make
blockchain technology more accessible and appealing }
to a broader audience of users and investors.
// Mapping to store the order book for each token
mapping(address => Order[]) public orderBook;
➢ Equations: // Event to emit when a new order is created
event OrderCreated(address maker, address token,
• Decentralized applications (DApps) can uint256 tokenAmount, uint256 price);
encompass a wide range of functionalities and
use cases, so the equations involved can vary // Function to create a new sell order
depending on the specific application. Here are function createOrder(address _token, uint256
some common equations or mathematical _tokenAmount, uint256 _price) external {
concepts that might be relevant to various types
// Ensure the token being sold is an ERC20 token
of DApps:
require(IERC20(_token).balanceOf([Link]) >=
_tokenAmount, "Insufficient balance");
Total Supply=Initial Supply+Tokens Minted−Toke
ns Burnd
// Transfer tokens from the maker to this contract
Equation for token distribution: require(IERC20(_token).transferFrom([Link],
Token Distribution=Tokens Held by UserTotal address(this), _tokenAmount), "Transfer failed");
Supply×100%Token Distribution=
// Add the order to the order book
Total SupplyTokens Held by User×100% orderBook[_token].push(Order({
A simple smart contract using Solidity: maker: [Link],
token: _token,
// SPDX-License-Identifier: MIT tokenAmount: _tokenAmount,
pragma solidity ^0.8.0; price: _price
}));
contract SimpleStorage {
uint256 public storedData; // Emit an event for the new order
emit OrderCreated([Link], _token, _tokenAmount,
// Function to set the storedData value _price);
function set(uint256 x) public { }
storedData = x;
} // Function to execute a trade
function executeTrade(address _token, uint256
// Function to get the storedData value _orderIndex, uint256 _tradeAmount) external {
function get() public view returns (uint256) { // Ensure the order index is valid
return storedData; require(_orderIndex < orderBook[_token].length,
} "Invalid order index");
 Electrical & Electronics Engineering International
// Get the order from the order book Institute of Information Technology, Bhubaneswar,
Order storage order = orderBook[_token][_orderIndex]; India
• Sushree Badhulika Mohanty
// Ensure there are enough tokens available in the order
require([Link] >= _tradeAmount, Electrical & Electronics Engineering International
"Insufficient tokens available"); Institute of Information Technology, Bhubaneswar,
India
// Calculate the total price of the trade • Prachi Prajita Sahu
uint256 totalPrice = [Link] * _tradeAmount;
Electrical & Electronics Engineering International
// Transfer tokens from the buyer to the seller Institute of Information Technology, Bhubaneswar,
require(IERC20(_token).transferFrom([Link], India
[Link], _tradeAmount), "Transfer failed");

// Transfer payment from the buyer to the seller ➢ Identifying the Headings:
require(IERC20(_token).transfer([Link],
totalPrice), "Payment transfer failed"); • I. Introduction: This section provides an
overview of the paper's topic, introducing the
// Update the remaining token amount in the order reader to the subject matter and outlining the
[Link] -= _tradeAmount; purpose and scope of the paper. It may include
} background information, motivation for the
} research, and an overview of what the reader
can expect to find in the paper.
Explanation: • II. Decentralized Application Overview: In this
section, the paper delves into the concept of
The contract defines a structure Order to represent a decentralized applications (DApps). It covers
sell order, which includes the maker's address, the token what DApps are, their characteristics, and their
being sold, the amount of tokens, and the price per token. significance in the context of blockchain
It declares a mapping orderBook to store the order book for technology. This section may also discuss
each token. Each token has an array of orders associated with different types of DApps, their use cases, and
it. examples of popular DApps.
• III. Design and Implementation: Here, the paper
The createOrder function allows users to create new sell goes into detail about how the DApp described
orders. It checks if the user has sufficient balance, transfers in the earlier sections was designed and
tokens from the maker to the contract, adds the order to the implemented. It may discuss the architecture of
order book, and emits an event for the new order. the DApp, the technologies and programming
languages used, as well as any challenges faced
The executeTrade function enables users to execute trades by during development and how they were
buying tokens from existing sell orders. It verifies the validity addressed.
of the order index, checks if there are enough tokens available • IV. Results and Analysis: This section presents
in the order, calculates the total price of the trade, transfers the results of the DApp's implementation and
tokens from the buyer to the seller, transfers payment from analyzes its performance, usability, and any
the buyer to the seller, and updates the remaining token other relevant metrics. It may include data,
amount in the order. statistics, and visualizations to support the
analysis. The section also discusses any insights
This smart contract provides a basic implementation of a gained from the results and their implications.
decentralized exchange for ERC20 tokens, allowing users to • V. Conclusion: The conclusion wraps up the
create sell orders and execute trades in a trustless manner on paper by summarizing the key findings and
the Ethereum blockchain. contributions. It restates the significance of the
research and its potential impact. The
conclusion may also suggest areas for further
research or development related to DApps.
➢ Authors and Affiliations: • VI. Future Directions: In this final section, the
paper discusses potential future directions for
research, development, or application of
• Anshuman Sahu DApps. It may highlight emerging trends,
Electrical & Electronics Engineering International technological advancements, or areas where
Institute of Information Technology, Bhubaneswar, improvements can be made. The section invites
India readers to consider the broader implications and
• Debani Prasad Mishra
 possibilities for the future of decentralized
applications.

➢ Figures and Tables:

Comparison among different blockchains:

PoW PoS DPoS

Metaphor City State Democratic System Capitalism System Parliamentary System
Mechanism One CPU One Vote One Token One Vote Vote for Delegates
Block Rewards To Miners Solved PoW To Token Holders as Interest To Elected Supernode Producing
Blocks

Comparison among different blockchains:

Parameters Permissionless Private Consortium Hybrid

Network Decentralized Centralized Centralized Hybrid
TPS Low High High High
Visibility & Open Restrcited Restricted Varies
Participation
System Hard Easy Medium Varies
Governance
Security Varies High High High
Examples Bitcoin, MultiChain Hyberledger Fabric XinFin
Ethereum,
EOS
➢ Acknowledgement References:

We would like to express our sincere gratitude to the • Wang, Q.; Li, R.; Wang, Q.; Chen, S.; Ryan, M.;
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a user-friendly development environment that of the International Conference on Information
significantly streamlined the smart contract Technology: Coding and Computing (ITCC’05)-
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user interface. of the Eleventh ACM Symposium on Access Control
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Finally, we extend our deepest appreciation to our
team members for their dedication, hard work, and Cai, W.; Wang, Z.; Ernst, J.B.; Hong, Z.; Feng, C.;
collaborative spirit throughout this project. Leung, V.C. Decentralized applications: The
blockchain-empowered software system. IEEE Access
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This project would not have been possible without the
support of the aforementioned individuals and
resources.