🏗️Technical Architecture

The P2P exchange within 1FUEL is powered by smart contracts and a decentralized order-matching engine. The key components of this architecture include:

Order Matching Engine

Decentralized Matching: The P2P exchange uses a decentralized order-matching engine that operates directly on the blockchain. Users can place buy or sell orders, which are matched by the engine without the need for an intermediary.

Order Bookless Trading: Unlike traditional exchanges that rely on centralized order books, the P2P exchange operates without one. Orders are broadcast to the network, and the matching engine finds suitable counter -orders based on predefined conditions.

Smart Contracts

Escrow Mechanism: Smart contracts act as an escrow during trades, holding the assets securely until all conditions of the trade are met. This ensures that both parties fulfill their obligations before the assets are exchanged.

Cross-Chain Trading: The P2P exchange supports cross-chain trading through the use of atomic swaps and cross-chain bridges. These technologies enable the secure and seamless exchange of assets between different blockchain networks without needing to rely on wrapped tokens.

Dispute Resolution

Decentralized Arbitration: In the event of a dispute, the 1FUEL platform employs a decentralized arbitration system. Arbitrators, selected from a pool of trusted community members, help resolve disputes based on the smart contract terms.