Currency On-ramps / Off-ramps
The HoloDEX is a Holochain application and any currencies traded must conform to the protocols developed to have a compatible ledger system. Trading currencies that are not Holochain native require a conversion to the H-DEX standard to make it Holochain native and compatible with the exchange.
Fiat Gateways
This is the simplest of all conversions which entails the transference of accounting from one ledger to another. i.e. the ledger of the financial institution goes into negative and the corresponding HoloDEX account goes into positive balance and vice versa when funds are transferred the other way. The HoloDEX account holders accept the trusted relationship with the financial institution as an article of the smart contract. This enables a trusted relationship between the HoloDEX account and the bank. i.e. The HoloDEX account trusts the bank’s version of the ledger, and the bank trusts the HoloDEX account holders version of the ledger (Once the validation process has been applied to ensure the integrity of all transactions on the account) The financial institution will be required to perform the validation of the users account, or otherwise outsource the validation to the HoloDEX foundation to run as a service.
Blockchain Gateways
Blockchain currencies need to be converted to their Holochain equivalent. For this to happen the blockchain currency needs to be locked in a Smart contract on its own chain, and its digital twin created on Holochain. This follows the same process as any wrapped token which is commonly used for cross chain transactions in the blockchain space. HoloDEX traders shall be rewarded for validating the integrity of the ledger which ultimately provides the signature required to unlock the blockchain smart contract and release the funds. This process is more complex than the Fiat model as it requires randomised HoloDEX users, who choose to participate in the validation process, to form a trusted oracle for the blockchain smart contract; A step that it not required for fiat currencies or other centralised ledger systems.