LGO: Development Steps
By: Hugo Renaudin
Tags: Blockchain, Cryptocurrency, Ethereum, Lgomarkets, Bitcoin

We are happy to announce that we have raised more than 1000 BTC in only 11 days to reach the cap of 1500 BTC for Round 0 + Round 1 of our ICO !

With the public Round 2 opening on February 1st, we are on track to reach our hard cap of 3500 BTC raised throughout the whole LGO token sale.

In the eventuality that we raise this much, what are we going to do with it?

The hard cap was thoroughly thought and represents the funding needed to build an end-to-end premium exchange for institutional and private investors.

Here is, in order, what we’ll be building with the money gathered during the LGO token sale in order to deliver the final product of LGO.

Development steps

Step 1

Team 1: Build and deliver a secure and bulletproof multisignature wallet

This wallet will be at the core of LGO’s cryptocurrency custody services. We aim to offer to our users a cryptocurrency wallet which will allow them to store, in a secure way, all the cryptocurrencies that they bought on the platform. This custody activity will be completely separated from the exchange, so that the crypto holdings of the users are completely protected from any failure or hack of the platform.

The LGO wallet will also serve as the foundation for the Lightning wallet (see dedicated article), which will allow LGO to keep in escrow the funds which are placed in orders only.

Deliverable: A multisig wallet with the LGO custody service

Team 2: Development of a matching engine and a standard exchange infrastructure

LGO Markets is the first cryptocurrency exchange which is fit for institutional investors. As such, the matching engine will be coded with the highest industry standards, so as to provide the best service possible. At this stage, we will also focus on building a intuitive and complete user interface, as well as APIs and data connections to and from Legolas Exchange.

Deliverable: A matching engine directly plugable to the multisig wallet

Step 2

Team 1: Connect to LGO multisig wallet to the matching engine

The next step is to connect the cryptocurrency exchange infrastructure to the LGO wallet.

We intend to fill a (very large) gap in the crypto-exchange industry, by providing the first platform usable by institutional investors and compliant with their standards (see our article on why institutional investors are not entering the crypto-currency market). To do so, LGO Markets e will partner with brokers in the traditional financial industry, which will allow an immediate go-to-market amongst several hundreds of hedge funds, family office and other institutional investors. Individual and private investors will benefit from this quality of service.

Deliverable: a “traditional” cryptocurrency exchange, with tier-one fiat and crypto custody

Team 2: Build the LGO Protocol: an order-matching protocol guaranteeing transparency and fairness in cryptocurrency trading

This is the center point of the whole LGO project : an order-matching protocol that prevents front-running and guarantees the transparency and the fairness of both the order book and matched trades. The realization that most of the exchanges were opaque at best, if not shady was the starting point of the project, which is to build a clean and transparent way to buy, sell and trade cryptocurrencies.

To guarantee transparency, orders and trades are logged in a blockchain. A fully decentralized solution being inefficient (see our article on decentralized exchanges), the protocol will pool and match orders off-chain. This hybrid protocol allows LGO to bring the best of both the centralized and decentralized world to order matching.

LGO has established a technical partnership with CertEurope, one of the leading Certification Authorities in Europe. We are thus already able to have a portion of our algorithm accredited by the ANSI (the French National Agency for the Security of Information Systems). This is a first and major step towards full accreditation and insurance for our platform.

Deliverable: A front-running proof matching engine directly plugable to the multisig wallet

Step 3

Team 1: Integrate the LGO Protocol between the exchange infrastructure and the multisig wallet.

Once both the LGO Protocol and the cryptocurrency exchange infrastructures are built, we will integrate both technologies in order to bring to the market the first cryptocurrency exchange with a demonstrable and transparent anti front-running matching engine

Deliverable: A front-running proof cryptocurrency exchange, with tier-one fiat and crypto custody

Team 2: Develop the Lightning wallet and integrate it to LGO Markets

See our dedicated article on the Lightning wallet, which will allow LGO to keep in escrow only the funds locked in orders. this will leave the cryptocurrency holdings stored on the Legolas wallet completely free from any risk jeopardizing the exchange. A Mt.Gox or bitfinex hack scenario would not be possible on Legolas Exchange, as our clients’ funds would be completely segregated and protected from any exchange failure.

Step 4 (teams fusion)

Team 1 & Team 2: Integration of the lightning wallet to LGO

The fourth step of the technical development will be to integrate the lightning wallet to the whole LGO infrastructure. This last update will deliver the final version of LGO, a new generation cryptocurrency exchange, compliant with any investors’ (institutional and individual) needs.

Deliverable: A Lightning and front running proof exchange, with tier-one fiat and crypto custody

Additional Developments

Provide Liquidity on LGO Markets

Event though we intend on spending a lot of money in building a premium next generation cryptocurrency exchange, the main cost will be linked to providing liquidity on LGO Markets. Three plans of actions have been thought to do so:

25% of all the LGO tokens paid as transaction fees will be sent to the market-maker on the transaction

a dedicated incentive plan will be available for professional market maker and liquidity providers to have them operate on LGO Markets

if needed, LGO Markets will source the liquidity directly from other exchanges with no financial or market risks.

Self Insure the funds on LGO Markets

If enough funds are raised, we’ll take LGO to another level and self-insure the funds on LGO.

LGO’s philosophy is to provide proofs of its safety and fairness. The protocol itself is a proof that no front running will ever be made on the exchange, our partnership with CertEurope is a proof that the technology and cryptography is strong and will resist cyberattacks, and a self-insurance will provide an ultimate proof that the user’s funds will be safe and sound on LGO.

It is our belief that providing such proofs considerably decreases the counterparty risk associated with using LGO Markets, to the point that the platform will be the first one to allow institutional investors to enter the cryptocurrency market.

About LGO

LGO is a demonstrably fair, bank-backed premium exchange for institutional investors. It incorporates a decentralized ledger within its proprietary centralized platform in order to guarantee the inalterability, temporality and transparency of the order book and ensure a fair trading environment.

Public Sale starts February 1st !

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