​WHITE PAPER 
 
 

Lightning fast decentralized 

Introduction 
 
Cryptocurrencies has exploded in the past few years, reaching its peak over $700 Billion dollars 
in valuation. Coupled with its growth are alt coins, which are intended to solve many other 
problems such as security, privacy, scalability, cost, or specific domains such as IoT, business, 
mobile, etc. As of this writing, Bitcoin makes up only 33% of a total $585 Bil market cap, wherein 
the rest are made up of hundreds of other alt coin cryptocurrencies. (1) There are dozens more 
ICO every month. It is clear that cryptocurrency has democratized investment, and more and 
more startups have chosen to raise money for their idea through cryptocurrency. We believe in 
the center of this new world economy, a cryptocurrency exchange will play a critical role. 
 
Cryptocurrency exchange currently is dominated by legacy companies such as Bitfinex, Bittrex, 
Poloniex, GDAX, and Binance. Though security has gotten a lot better in the days of Mt Gox, it is 
not without its imperfection. Hacking incidents, whether it’s from internal and external, are a 
constant threat. Just to name a few recent hacks, in 2016, $72m were stolen from Bitfinex, and in 

 
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2018, $400m were stolen from CoinCheck [7]. The inherent flaw, as many have observed is that 
traditional cryptocurrencies exchange are centralized​, which are managed by transactional 
databases. Centralized databases are inherently weak, in that, if single person have access to it, 
can re-write the any user, trade, and balance records. In other words, records are mutable which 
makes auditing a challenging problem. Recently, decentralized exchange has been on the rise 
such as Waves, and 0x. The security problems go away in decentralized exchange (DEX), 
however most of them limits to trading its own tokens such as only ERC-20 tokens and have its 
own performance limitations. For this reason, many users still prefer centralized exchange for 
more cryptocurrency choices. We intend to introduce a solution that is both DEX, with all the 
security benefits, and still offer wide range of cryptocurrency choices. 
 
Reliability is often an issue with centralized exchange. During heavy trading time, some 
exchanges become inaccessible for a period of time, causing trading loss. In centralized 
exchange, the configuration tends be much more complex, and the recovery time such as a 
database failure requires a lot of time to manually recover. Decentralized exchange benefit from 
the ability to deploy a new node with minimum amount of configuration, and it begins to 
synchronize and contribute to the network immediately. There’s no central authority which 
means there is no central point of failure. A single node failure does not impact the accessibility 
of the network. Our decentralized solution will address the much needed reliability issue with 
cryptocurrency exchange. 
 
 

Related Work 
Ethereum provided a flexible and scalable support for token based (ERC20), and the next logical 
idea is to provide a way to exchange across them. 0x proposed a smart contract on Ethereum to 
facilitate an exchange, and create ERC20 tokens for those tokens that are not already an ERC20 
token [2]. Performance issues of operating on a blockchain both in transaction cost, and delays in 
execution has been well documented in “The cost of decentralization in 0x and Etherdelta”[3]. A 
new approach has been proposed by Neon exchange [4], and 0x, to decrease cost, and delays 
by introducing a relay node to aggregate orders in an off-chain, and allow takers to pick out a 
matching order, and execute on the smart contract. Stellar provides an token system similar that 
of Ethereum, and an on-chain decentralized exchange with significant faster block time of 3s, 
compared to 15s on Ethereum [8]. However, Stellar on-chain limits itself at a 3s submit 

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order/cancel order/fill which can be limited for real-world trading. Trading data on Ethereum and 
Stellar are also exposed which may give an asymmetrical advantage. 
 

 
Quanta Blockchain 
In a decentralized cryptocurrency platform, user manage their own public/private keys, which are 
used to sign transactions such as trades, withdrawal, and etc. As a decentralized exchange 
(DEX), we would not retain any of this information, such that not even we can make or modify 
trades, withdrawal on your behalf. Trades are executed on a decentralized network, and agreed 
by consensus at a set quorum, and written into an immutable blockchain. Past trades can not be 
altered by any entity, thus ensuring the integrity of your trades, and balance for all the coins you 
store on our system. 
 
Scalability, performance, security, and flexibility are the most important attributes of a 
decentralized exchange. We explored many major blockchain technologies and settled on 
forking Stellar as our base code. We have added significant features to the platform to facilitate 
lightning fast trade operations. 
 
Below shows the important attributes of the Quanta blockchain:  
 
1. Distributed 
All transactions, and trading data are recorded on a blockchain. Blockchain is synchronized 
across network, and globally distributed around the world. 
 
2. Token Model 
The blockchain maintain the history of all your coin balances as a token model. 
 
3. Consensus 
All trading decisions will be individually on each node, and recorded by consensus. As such, 
security can be assured even if there are few bad actors in the network. [8] 
 

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4. Immutability 
Like blockchain, once an order, or a trade has been recorded, it can never be changed. This 
assures your trading balance is correct at all times. 
 
5. Low Latency 
Our network is based on Byzantine consensus (as opposed to PoW), and guaranteed to scale 
at low latency. Since our network is globally distributed, our API  
servers will transmit your trades to the closest server by proximity & latency 
 
6. Anonymity Features 
Anonymous trading history is a must for an industry-grade platform. 
 
7. Scalability 
The exchange scales up with more nodes added to the network. 
 
 

 
High Performance Matching Engine 
We implement an on-chain FIFO matching engine in C++, capable of handling 1M+ trade 
operations per pair. Designated Quanta Node is responsible for running an order book & 
matching engine for a specific pair. Other designated nodes are responsible for running 
replication node which provides redundancy, and safety for the order book. 
 
Quanta blockchain maintains security end-to-end is to encapsulate the original matching trades, 
and the user’s ed25519 signature. The buyer, the seller, and the exchange signatures are verified 
on the blockchain before the transactions can commit into the ledger.  
 
 

Settlement Comparison 
Settlement is referred to the time it takes write to ledger and reach consensus, also known as a 
block confirmation. For on-chain matching, the settlement time would be the time it takes to 
make one trade request, including modify and cancel request. Typical decentralized exchange 
built on Ethereum network suffer from a 15 sec block time. It is becoming more popular to 

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process trades on off-chain matching, the settlement time is still the greatest common 
denominator. We opted to use a modified fork of Stellar, which achieves 3 second block time. 
Our modification includes support for a new transaction to validate buy, seller, and matching 
engine ed25519 signature, record the trade on the blockchain. 
 
 

Funding Model 
All trade-able assets are represented as a token on the Quanta Blockchain. An account will have 
pre-generated receiving addresses where the user will send their coins. The exchange trust 
wallet acts as a Trust which holds on the money, then issue the credit onto the Quanta 
blockchain. When the Quanta tokens are deposited back to the exchange, signed by the user, 
containing the memo of the receiving external account, the exchange trust wallet will transmit the 
money back.  
 
 

 
 
Components 
The frontend client is built on React and Quanta JS client. The server component systems are 
written in Play/Scala [5]. The WS server is powered by Akka [6], a concurrent distributed 
framework, capable of handling massive amount of connections. The exchange and blockchain 
are written in C++. 
 

 
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User Interface 
 

 
Community Driven 
 
We intend to build a community driven decentralized exchange, and eventually achieve full 
autonomy. We will establish Quanta Foundation, which will be a non-profit organization with the 
goal to nurture, and promote the decentralize exchange. While limited in resources, we will be 

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launching a beta under a private blockchain for simplicity and security. Following the ICO, we will 
work toward making public blockchain, allowing anyone to participate in the network, and 
strengthen the network. Those who run the network will be incentivized.  
 
Network Operator 
Earn % of trading fee based on the volume & the latency of trades executed on their server. 
 
Voters 
Listing and delisting will be driven by the community voting process. 
 
Coin holders 
Trading fees are distributed back to the network. Fees will accumulate to a minimum threshold in 
a holding account, and re-distributed at approximately 12-24 hrs interval. 
 
 
 

ROADMAP 
 

 
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TECHNOLOGY  
We have implemented a fork of Stellar as described in this paper, and will release these publicly 
in Q3 2018 before our ICO. We have also begun work on prototypes for the trading interface and 
matching engine. We strongly believe in a transparent development process where possible, and 
will be open sourcing much of our early work to benefit the Quanta community. See our Github 
account for updates and more information: https://github.com/quantadex. 

 
Formation  
We will establish the Quanta Foundation in Singapore. We are currently working with a law firm in 
Singapore to ensure full compliance. 
 
 

QUANTA Coin (QNT) 

Allocation 
Founding Team  40,000,000  20% 

Advisors & Investors  10,000,000  5% 

QUANTA Foundation  50,000,000  25% 

ICO  100,000,000  50% 

All vesting period for founding, advisors, and investors extend for 4 years, with 1 year cliff period.  
 

 
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Funds Usage 
 
● 55%​ of the funds will be used to build the QUANTA platform and perform upgrades to the 
system, which includes team recruiting, training, and the development budget.  
 
● 25%​ will be used for QUANTA branding, marketing and legal, including continuous 
promotion and education of QUANTA and blockchain innovations in industry mediums. A 
sufficient budget for various advertisement activities, to help QUANTA become popular 
among investors, and to attract active users to the platform.  
 
● 20%​ will be kept in reserve to cope with any emergency or unexpected situation that 
might come up. 
 

 
References 
 
1. Coinmarketcap 
https://coinmarketcap.com/charts/#dominance-percentage 
 
2. 0x whitepaper 
https://0xproject.com/pdfs/0x_white_paper.pdf 
 
3. The Cost of Decentralization in 0x and EtherDelta 
http://hackingdistributed.com/2017/08/13/cost-of-decent/ 
 
4. Neon Exchange White Paper 
neonexchange.org/pdfs/whitepaper_v1.1.pdf 
 
5. Play Framework 
https://www.playframework.com/ 
 

 
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 6. Akka 
https://akka.io 
 
7. Coincheck confirms Crypto hack… 
https://www.coindesk.com/coincheck-confirms-crypto-hack-loss-larger-than-mt-gox/ 
 
8. Stellar Consensus Protocol 
https://www.stellar.org/papers/stellar-consensus-protocol.pdf 
 
 

Follow us on 
 
● TWITTER > ​https://twitter.com/QuantaDex 
 
● LINKEDIN > ​https://www.linkedin.com/company/quantadex 
 
● FACEBOOK PAGE > ​https://www.facebook.com/quantadex 
 
● FACEBOOK GROUP >​ ​https://www.facebook.com/groups/780414542153157/ 
 
● MEDIUM > ​https://medium.com/@quantadex 
 
● CRUNCHBASE >​ ​https://www.crunchbase.com/organization/quanta 
 
● ANGELLIST > ​https://angel.co/quanta-2 
 
● TELEGRAM > ​https://t.me/QuantaDex 

 
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