GameStar.Exchange Trading Mechanics Explained in Under 4 Minutes
GameStar.Exchange is a non-custodial decentralised platform, meaning it will never ask for your private key.
The method by which users trade on the GameStar.Exchange platform is different from other exchanges. Unlike centralised exchanges, GameStar itself does not accept deposits or process withdrawals. Unlike traditional OTC service providers, GameStar itself does not hold custody of any user assets as all assets are traded and managed by a decentralised custody mechanism.
GameStar.Exchange has also applied end-to-end encryption and confidentiality technology to create a new type of online market in which the financial and personal information of its users is kept confidential. Messages between users are end-to-end encrypted, which means that even if the host is compromised, sensitive information cannot be leaked.
How to complete an ETH to Gift Card transaction on GameStar.Exchange?
The working method is as follows:
1. Michael posts a public advertisement for the sale or purchase of Ether
In this case, he is intending to sell his Ether for local currency (Example: “I am willing to buy Ether worth 800 US dollars in British pounds.”)
2. Lucy finds a sell offer and prepares to place an order to buy a certain amount of Ether
When a buyer accepts a seller’s trade terms, a transaction is initiated between the two parties. When a trader enters and confirms the amount of Ether they want to buy or sell, the exchange rate of the order is locked into the transaction. Now, Michael and Lucy can communicate with each other through an end-to-end encrypted conversation.
3. Michael and Lucy confirm and agree to the terms of the transaction
The two parties discuss the terms of the trade. The seller will inform the buyer whether there are any non-standard terms (for example, a specific transaction process or information that requires verification of their identity), and the two parties will reach a consensus on the payment method.
4. Seller Michael deposits funds into an escrow account
Once the two parties reach a mutual agreement, the seller will click the “escrow” button to escrow the Ether into an Ethereum smart contract transaction (which is hosted outside of the GameStar.Exchange platform; decentralised).
Once the smart contract is secured with the escrow deposit, the timer to which the transaction must take place begins. The buyer should initiate payment within this time-frame, otherwise the seller will cancel the escrow, which could lock the seller’s funds due to the buyer’s inaction.
5. Lucy pays the seller directly
Payment takes place outside of the GameStar.Exchange platform. Michael and Lucy have a direct encrypted communication line, so they can discuss where the buyer’s funds should be sent.
After the buyer initiates the payment, they can click “Mark as Paid” to confirm the payment. The seller can no longer cancel the escrow after this point.
6. Transaction complete
a) No dispute claim
The seller successfully confirms the receipt and releases the escrow. Transaction complete! Ether is released from the custodial smart contract to the buyer, and both parties have the option to rate each other.
b) Someone raises a dispute claim
Either party has the right to raise a dispute and ask a third-party arbitrator (explained in the next article: ‘Taurus Fair Agreement’) to resolve it. Once the order is disputed, the arbitrator will obtain two keys: one for decrypting the message and the other for resolving the escrow.
The arbitrator can require both parties to the transaction provide evidence, such as proof of payment by the buyer, to help determine which party wins the case. Once the arbitrators reach a consensus result, they can release the Ethereum in the contract custody to the winning party through the smart contract (the smart contract algorithm prevents the release of Ether to any other destination other than that initiated from the dispute).
To join the GameStar family, visit:
Homepage: https://www.gamestar.exchange/
Telegram: https://t.me/GamestarExchange
Twitter: https://twitter.com/GameStarXchange
Facebook: https://www.facebook.com/GameStar-Exchange-107641568133179/
Medium: https://medium.com/@GameStarExchange
Instagram: https://www.instagram.com/GameStarExchange/
