BasicSwap Review: A Decentralized Crypto Exchange

What is BasicSwap?

BasicSwap is a decentralized cryptocurrency exchange protocol designed to facilitate peer-to-peer cryptocurrency swaps. It allows users to exchange one cryptocurrency for another without the need for an intermediary or a centralized exchange platform.

BasicSwap is built on blockchain technology and operates using smart contracts, which ensures trust and security in the exchange process. Let's have a look at how it works.

How BasicSwap Works

BasicSwap works through a straightforward and transparent process:

1. User Starts a Swap: To start a swap, a user chooses the cryptocurrency they want to exchange and specifies the amount they wish to trade. They also select the cryptocurrency they want in return.
2. Smart Contract Creation: BasicSwap utilizes smart contracts, which are self-executing contracts with predefined rules. A smart contract is created for the swap, detailing the exchange rate and terms.
3. Funds Locking: The user sends their cryptocurrency to the smart contract, which locks the funds until the swap is completed. This ensures that neither party can run away with the assets without fulfilling their end of the deal.
4. Counterparty Joins: Another user interested in the swap sees the offer and decides to accept it. They send the equivalent amount of the desired cryptocurrency to the same smart contract.
5. Atomic Swap Execution: Once both users have locked their funds in the smart contract, the exchange occurs automatically. It's an atomic swap, which means that either both parties receive their desired cryptocurrencies, or neither does. This eliminates the risk of one party reneging on the deal.
6. Funds Release: After the atomic swap is successfully completed, the smart contract releases the locked funds to the respective parties. The users now have the cryptocurrency they initially desired.
7. Transaction Confirmation: The swap is recorded on the blockchain, ensuring transparency and security. Users can verify the transaction's completion on the blockchain explorer.

BasicSwap simplifies cryptocurrency trading by removing the need for a centralized exchange, providing security through smart contracts, and enabling direct peer-to-peer exchanges. It offers a decentralized and trustless alternative to traditional cryptocurrency trading platforms.

Who created BasicSwap?

BasicSwap was created by the team at Particl, a group of cypherpunks with a strong commitment to ensuring privacy and security in the world of cryptocurrency trading. Particl's mission is to empower individuals by providing them with the tools and solutions to regain control over their digital assets and transactions.

Particl was formed as a global and open collective who aim to shift the balance of power from corporate monopolies and other centralized entities to the individual.

They have developed a range of innovative technological solutions, and their first solution focuses on removing distortions in e-commerce and safeguarding individual privacy. This includes the creation of a programmable blockchain with robust privacy features and the electronic currency PART, all of which form the basis for the revolutionary Particl Marketplace.

BasicSwap, as a project by Particl, reflects the collective commitment to uncompromising privacy and security in the face of challenges to individual freedom. The project's code is entirely open-source (published on GitHub), reflecting their dedication to transparency and decentralization.

BasicSwap Quick Review

How To Get Started On BasicSwap

During this review I will test the BasicSwap DEX on Windows.

• Visit the home page of Basic Swap and click on the botton "Installer .exe".

• Click on the installer link on the right column.

• Click again on the installer link to start the download.

• Select the location to save the installer.

• The download will finish in a few seconds. Click on it to open the .zip file.

• Click on the .exe file and then on "Extract all" to get started.

• Extract the installer in a folder on your desktop or wherever else you want.

• Open the just created folder and click again on basicswap-installer.exe to start the installation wizard.

• You have now to "Select the installation Path".

• Navigate in the folder you prefer and then click on "Select Folder".

• Click on "Next".

• Select the crypto you wish to Swap on BasicSwap. Click on "Install".

• Wait for the installation to finish.

• The installation will take some time, but when it will be finished you will be able to click on "Next".

• Click on "Show 24 words" to see your recovery phrase.

• Write the 24 words down.

• Click on "Close" to finish the installation.

How To Swap Bitcoin/Crypto on BasicSwap

One of its distinctive features of BasicSwap is the presence of a distributed order book, enabling you to create or take offers without third-party involvement. Here's a step-by-step guide on how to take an offer from the order book:

Explore the Order Book

1. Navigate to the Order Book: To get started, go to the order books by clicking on the "Show Order Book" tab.
2. Find an Offer: Scroll through the order book to find an offer that you want to fill. You can refine your search using the filters located just under the price history graph.

Note: Prices displayed on the graph may differ from the actual trading history on the BasicSwap platform as they are obtained through APIs for convenience purposes.

Place a Bid

1. Select an Offer: When you've found an offer you'd like to take, click on the "Swap" button on the right side of its tile.
2. Review Swap Details: Review the swap details provided, and if you are satisfied with the terms, click on the blue "New Bid" button.
3. Bid Placement: By clicking "New Bid," you have successfully placed a bid on the selected offer.

Monitor the Swap

1. Automatic or Manual Acceptance: The progress of your swap depends on whether the trader who placed the offer has set it to accept bids automatically or manually.
2. Automatic Acceptance: If the offer is set to accept bids automatically, you don't need to do anything further. The swap is already in progress and will complete automatically.
3. Manual Acceptance: If the offer has been configured to accept bids manually, you'll need to wait for your bid to be accepted. In the meantime, you can monitor the progress of your swaps.
4. Bids Sent Tab: To monitor your bid, navigate to the "Bids Sent" tab, where the bid you placed will be displayed.
5. Bid Status: Pay attention to the "BID STATUS" value, which will indicate whether your bid has been accepted or not.
6. Detailed Information: Click on the "BID ID" of your bid to access more information on a new page. Here, you can monitor the bid or swap's progress, including technical details.
7. Completion: Once the offer's maker accepts your bid, the swap will automatically complete, and you will receive your coins shortly after.

BasicSwap Fees

One of the most significant benefits of BasicSwap is its fee-free nature. However, it comes with a trade-off: the market prices set by the trade maker tend to be higher. This means that, generally, prices on BasicSwap may be bigger compared to centralized exchanges. This is a common occurrence and not inherently problematic.

It's essential to recognize that the price on the decentralized exchange (DEX) reflects the actual market value, while prices on centralized exchanges (CEX) are inflated due to the compromise of your privacy.

Additionally, it's worth noting that network fees, which are variable and depend on the current mempool prices for block confirmation, still apply.

BasicSwap Opinions

BasicSwap is relatively new to the scene, having been released not too long ago (2022). Consequently, it lacks a presence on platforms like Trustpilot, and information about it is primarily available on the official website.

As a result, placing substantial trust in the platform and committing significant funds can be challenging, especially given its limited track record.

Moreover, the installation process can be somewhat cumbersome and demands a certain level of technical knowledge.

Presently, a major concern revolves around the resource-intensive nature of running BasicSwap. Users essentially need to set up a node for each cryptocurrency they wish to trade, which has contributed to the current issue of low liquidity.

To address this challenge, BasicSwap is actively working on developing light clients, which has the potential to significantly enhance liquidity and adoption. However, the progress on this front remains uncertain.

It's worth noting that the online communities associated with BasicSwap, such as its Reddit community, have a limited presence with just eight users, and they operate as closed groups, requiring permission to post. This can be seen as a significant red flag in terms of transparency and community engagement.

Additionally, there is no dedicated customer service available, and even inquiries made on social platforms like Twitter may not receive prompt responses, as evidenced by a 24-hour wait for a reply.

BasicSwap Alternatives

Bisq

Bisq stands as an exceptional decentralized peer-to-peer platform for swapping Bitcoin for fiat and vice versa, highly regarded by seasoned cryptocurrency enthusiasts. It boasts low fees and provides straightforward installation options for Mac, Linux, and Windows users. Bisq prioritizes security through its multisig escrow system, ensuring a safe and reliable trading experience.

Sideshift.ai

Sideshift.ai offers a solution without a fiat onramp, similar to BasicSwap. However, it differs by not employing atomic swaps and relying on a centralized exchange. One of its key advantages is the absence of software installation and KYC requirements, making it incredibly user-friendly. Sideshift.ai supports a wide variety of cryptocurrencies, but users should be aware of associated fees.

BasicSwap Pros And Cons

Upon review, BasicSwap presents more drawbacks than advantages, a departure from the typical platforms I've assessed on blockdyor. BasicSwap's installation process is notably challenging, and it suffers from issues like low liquidity, limited cryptocurrency options, and the absence of a fiat onramp. Nevertheless, the platform's fee structure, which is entirely fee-free, is a notable positive aspect.

Bottom Line

BasicSwap, a privacy-centric decentralized exchange, offers fee-free and trustless trading. However, its complex installation process, low liquidity, limited cryptocurrency options, and the absence of a fiat onramp may present significant challenges for users.

While it excels in terms of security through smart contracts and open-source code, it lacks robust customer support and community engagement. Users should carefully consider their specific needs and preferences before engaging with this platform.

BasicSwap Evaluation

BasicSwap is arguably one of the top choices, alongside a select few other exchanges, for safeguarding your privacy. If you prioritize maximizing privacy protection, it's a solid option to consider. However, it's important to note that BasicSwap isn't your typical user-friendly exchange.

Reputation: BasicSwap remains relatively obscure in the larger context. Its Reddit community is notably inactive, reflecting minimal liquidity.

Technology: The inclusion of atomic swaps is a significant plus, ensuring instant fund exchanges without any holding of assets. However, managing this decentralized exchange across various chains poses technical challenges. Development is ongoing, and setting up a node for each cryptocurrency you intend to trade is required.

Customer Service: Unfortunately, BasicSwap lacks a dedicated customer service channel. Inquiries, even on platforms like Twitter, may go unanswered, though Discord might yield better results.

Fees: BasicSwap distinguishes itself with a fee-free model.

Ease of Use: Ease of use is a notable hurdle. The installer doesn't effectively set up the application, necessitating the use of Docker for later usage. Furthermore, the software's resource-intensive nature complicates the user experience.

Frequently Asked Questions (FAQ) about BasicSwap