GMO Internet Group
GMO Internet, Inc.
GMO Internet Launches Exchange Builder System “Token Trader”, the 2nd Phase of GMO Blockchain Open Source Software Project
 Tokyo, Japan – August 7, 2017 – GMO Internet ( ), as part of the GMO Blockchain Open Source Project (GMO Blockchain), is releasing programs using blockchains (* 1) as open source (freely available and modifiable). As the second phase, GMO Internet offers Token Trader ( ), today on Tuesday, August 8, 2017.
 Token Trader is a system that allows you to create an exchange that can trade various tokens (* 2) without the need to hand over the tokens to a third-party organization. Exchanges based on this system only mediate the trading contract of the token, and the token exchange processing is executed in both accounts on the blockchain upon receipt of the contract between the traders. As a result, traders can realize a secure trading environment without having to open dedicated accounts on each exchange or move tokens unnecessarily.
(Each program of GMO Blockchain OSS is built on Cloud Blockchain.)

(* 1) Blockchain technology records and holds data distributed on multiple computers, and makes data fraud extremely unlikely.
(* 2) A token is a digital asset that can be issued independently. By providing actual associated value, tokens may assume roles such as purchase points or regional currencies.

<Transaction image by Token Trader>

①A trader who wishes to sell a token (Maker) decides sell conditions and transaction volume and posts the information to an exchange (Indexer).
  (Example: [Token A] 5 pieces, [Token B] 15 pieces)
②Trader who wants to buy tokens (Taker) checks sales information gathered in Indexer via the Order List.
③Taker chooses an order from the Order List, signs the buy order, and sends it to the Indexer.
④Indexer forwards buy order from Taker to Maker.
⑤Maker confirms the buy order from the Taker and accepts it if there is no problem. Now Maker and Taker have both signed the trade.
⑥Indexer posts the trade established between Maker and Taker to the blockchain ( Cloud Blockchain).
⑦The trade contract is executed, and the exchange of Maker and Taker's tokens is complete.

[ The Token Trader System ]

 Recently, many tokens and cryptocurrencies have been created, and the needs of exchanging or trading tokens are expanding rapidly. When trading with an exchange managed by a traditional centralized third-party organization, the trader opens a dedicated account within the exchange and moves the tokens between accounts.
 Token Trader can construct exchanges that can trade various tokens without intervening management by a centralized third party organization. In exchanges built based on this system, trades are traded directly between traders' accounts on the blockchain, trading fees can be reduced, and traders don’t need to open accounts and move tokens.
 The trader's account on the blockchain is managed by the unique key held by the trader himself. This prevents assets in the account being stolen by unauthorized access to the exchange.

<Features of the Distributed Trade System>

1) Developed with reference to Ethereum's distributed trading protocol SWAP
 This system is developed with reference to the whitepaper (* 4) on the trading protocol SWAP (* 3). This white paper proposes a full P2P (* 5) trading method. Token Trader adopts a method that sandwiches the Indexer between the traders at the time of trading. By foregoing pure P2P it is possible for the exchange to easily confirm the success or failure of trades, and for the exchange to properly update order list information.

2) It is unnecessary for the user to hold cryptocurrency (Ether)
 Normally, you will be asked to pay with cryptocurrency each time you record a trade on the blockchain. However, it is not yet common for everyone to own and manage cryptocurrencies.
 Functionality is provided whereby the service provider pays for the cost of recording to the blockchain on behalf of the participants. Traders and exchange operators (Indexers) are not required to pay in cryptocurrency. Hence a much wider audience of users may use the system.

3) Compliant with token standard specification ERC 20
 This system conforms to the token standard specification ERC 20 advocated by Ethereum. Therefore, all tokens issued based on ERC 20 can be handled by exchanges built with this system.

(* 3) Ethereum is a blockchain platform. It features smart contracts (contracts) and allows fully distributed applications.
(* 4) Announced by ConsenSys Inc. in May 2017 ( )
(* 5) P2P is an abbreviation of peer to peer, a network architecture where nodes communicate directly without going through a central server.

[ About GMO Blockchain OSS ]

 At GMO Internet, we are taking advantage of know-how garnered through working in Internet infrastructure services for more than 20 years. We are currently developing new blockchain based technologies. As part of this, in December 2016 we began offering beta versions of Cloud Blockchain and ConoHa blockchain services. These can be easily used to build distributed blockchain applications. Such as the Cloud Blockchain based Home Delivery Box, which has already been developed.
 Based on the knowledge gained through such work, GMO Internet is developing GMO Blockchain OSS, an open-source project enabling real service deployments. Our aim is to foster and disseminate new services based on blockchain technology. In July 2017, we launched Medical Record Sharing System, the first such open source project.
 Under GMO Blockchain OSS, we will be continually sharing open source programs that meet various needs in the future.

GMO Internet Group

GMO Internet Group is an Internet services industry leader, developing and operating Japan’s most widely used domain, hosting & cloud, ecommerce, security, and payment solutions. The Group also includes the world’s largest online FX trading platform, as well as online advertising, Internet media, and mobile entertainment products. GMO Internet, Inc. (TSE: 9449) is headquartered in Tokyo, Japan. For more information, please visit

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