Negotiation vs. Execution
⚠️ Disclaimer: This part of the documentation is still under construction!
This documentation section provides an introduction to negotiation and execution of a trade.
This slide gives and overview of the negotiation and execution phase when using COMIT.
Negotiation
Prior to the execution of a swap there is a negotiation phase where the two parties involved in the trade agree on what to trade (ledgers, assets) and the amounts.
In trading there are usually two roles:
- Maker: Creates and publishes orders.
- Taker: Takes the order created by the maker and initiates execution.
The COMIT protocol enables the execution of the trade through the COMIT network daemon (cnd).
Currently, in the COMIT protocol, the maker defaults to the cryptographic role of Bob and the taker to the role of Alice for the execution of the swap.
Execution
The execution of the trade is the actual change of ownership of the digital assets. The execution can be achieved with concepts like atomics swaps using HTLCs.