Weekly Update #12

Hashgreen at Chia in China’s AMA

What Chia is trying to solve with its NFT standards

  • Autonomous offer trading: to trade without authorization from a third-party platform.
    Chia does not need you to authorize a third-party platform to operate for you. This could fundamentally prevent users from getting scammed.
  • Decentralized Identifier (DID): to verify the authenticity and to prove the ownership.
    Has it ever happened to you when you bought an NFT and later discovered that it was an impersonation scam? This is what Chia wants to solve with its NFT1 standard. DID is like a digital identification that confirms the authenticity. With such method, creators or project owners can have their NFTs connected with their DIDs, proving the ownership with the digital identity.
  • Royalty: to pay profit-sharing to the author of an NFT.
    How many percent of royalty payment should be given to the author of an NFT is what Chia’s figuring out and this is going to be one of the core ideas for NFT1.

Committed and Uncommitted Offers

What we think offer2 can hold for us

  • Why does my attempt to fulfill the offer fail?
    Ok, so this relates to how current offers are structured: they are not commitments on the chain to indicate token swap intentions, but merely a memorandum of understanding. The offer makers can withdraw their offers any second by spending the recorded coins in the offer, while you, the offer taker, have to check if the coin still exists beforehand.

    Can we make this process better? Yes! In fact, the offers should be on chain with two possible exit paths: either via settled swaps or clawback after some timeout. You can be assured that the offer is still 100% valid as long as you peek into the coins and you know for how much longer they will continue to remain valid.
  • Is there a limit price I can put? Partial fill?
    No limit price. No partial fills. Ouch.

    This is most of our experience with the current DEX on Chia, and we understand it so much more. We would call it lack of feature rather than a bug for offer1, as the logic for limit price and partial fills are very custom to fungible tokens. The logic for offer1 is perfect, for example, for NFTs as they need to be exchanged in whole. We think a good offer2 design should leave rooms to house some custom logic, including things like “allowing transactions to go through as long as prices are above this price” and “self re-instantiation if certain conditions are met”.

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