Security Solutions as a Decentralized Exchange

Operating as a Decentralized Exchange (DEX) platform, LX addresses the problems of security vulnerabilities in centralized exchange models with private key storage and performance issues in current DEX platforms. This is achieved by securing the database within the Lux Network Infrastructure. The following strategies are implemented for maximum platform security and performance:

• Critical Core functionality (e.g.: smart contracts, matching engine) is compiled into binary executables increasing computational speeds. Scripting languages (e.g.: JavaScript, Python) are restricted to non critical functionality (e.g.: UX, Social Features).

• User Interface is enforced by mandatory multi factor (MFA) authentication.

• SHA3, a quantum resistant hashing algorithm is used to secure and encrypt authenticated user data.

• Industry proven Symmetric Cryptographic Algorithms protect network traffic.https://eprint.iacr.org/2018/379.pdf

• Industry proven Public Key Infrastructure (PKI) algorithms authenticate users and blockchain nodes.

• Assets are stored in Time-Delayed, Multisignature controlled accounts.

• Benign Fill Techniques ensure key material is never stored or transmitted in an unprotected state and is never in the hands of humans in cleartext form.

• Multisignature is used on hot wallets with several independent processes/servers double-checking all withdrawals.

• Multisignature is required to whitelist accounts.

• Hardware Wallets are required for all signing, even automated withdrawals.