Transaction Authorization

Mauve, built upon the foundation of Uniswap-V3, extends its capabilities with added functionality and security measures while preserving its core ethos as a peer-to-peer platform for cryptocurrency exchanges. A pivotal aspect of this enhancement is integrating a robust transaction authorization mechanism underpinned by interoperability with the Violet subsystem.

Transaction Flow

  1. 1.
    Transaction Initiation: Whenever a user initiates a transaction on Mauve, an authorization request is automatically forwarded to the Violet subsystem.
  2. 2.
    Authorization Request: Violet carefully analyzes the user's wallet, the identity of the entity behind it, and the transaction request against comprehensive compliance criteria to ascertain the transaction's legitimacy.
  3. 3.
    Token Issuance: Violet appends an Ethereum Access Token (EAT) to the transaction data upon successful evaluation. This EAT acts as a distinctive identifier, facilitating the Mauve protocol to seamlessly recognize and authorize the transaction.

Enhanced Security

Introducing this transaction authorization mechanism significantly elevates the protocol's security and trustworthiness, ensuring that only legitimate and compliant transactions are processed. This mechanism is instrumental in fostering a secure trading environment akin to established centralized exchanges without compromising user privacy.

Comparison with Centralized Exchanges

Mauve transcends the conventional decentralized exchange model by integrating security measures typical of centralized exchanges, like Know Your Customer (KYC) procedures and advanced AML controls. Unlike centralized platforms, Mauve achieves this level of security without encroaching on user privacy, thanks to its robust transaction authorization mechanism. This innovative approach empowers Mauve to provide a secure, trustworthy, yet decentralized platform for cryptocurrency trading, blending the security features of centralized exchanges with the principles of transparency, decentralization, and user privacy intrinsic to the DeFi ecosystem.

Further Reading

For more in-depth understanding, refer to the Uniswap protocol documentation or explore our open-source repository on GitHub for technical insights into the Mauve protocol's transaction authorization mechanism. You can also check the audits that we received from specialized entities.