What does Ethereum need? Rainbows, Glitter and Uniswap

10 November 2018 12:30

Last Friday, 2 November, the Uniswap protocol was born on the Ethereum network. It works like an automatic token exchange, consisting of a series of distributed code contracts executable from ETH to ERC20 (ie smart contracts) to allow users to easily exchange their ERC20 coin. There is one to contract for every ERC20 token; if a contract does not exist for a particular resource, anyone can create one using the Uniswap factory.

The the protocol was "designed with simplicity in mind" and eliminates unnecessary intermediaries, thus allowing a faster and more efficient exchange. It is an open source public good for the Ethereum community; no token or commission is associated to use the interface; is free to list any token on the platform; and the first investors, adopters or developers do not receive any special treatment. Indeed, the project is committed to being an accessible resource for merchants and liquidity providers.

Some Twitter users have compared Uniswap with other solutions like bancor. However, the creator of Uniswap, Hayden Adams, said that the platform was different because the tokens are coupled with ETH, not a cryptocurrency native of a specific protocol (like BNT on Bancor). Furthermore, he states that the formula is simpler and more efficient.

Another Twitter user compared the platform with 0x, although Adams said that Uniswap is "an alternative approach" to the exchange that is "more decentralized and resistant to censorship". In general, followers were enthusiastic about the launch of the protocol.

In August, the project received $ 100,000 during the third wave of grants from the Ethereum Foundation, in the "construction for the end user" category. The funds have helped make the protocol a reality.

Daniel Putney is a full-time writer for ETHNews. He holds a degree in English at the University of Nevada, in Reno, where he also studied journalism and queer theory. In his spare time, he writes poetry, plays the piano and dances on fictional characters. He lives with his partner, three dogs and two cats in the middle of nowhere, Nevada.

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