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Marketplace

What is Marketplace?

Marketplace is a SONM component, responsible for keeping order book of buy/sell orders. Functions:

  • Receive orders
  • Publish orders
  • Search orders

Marketplace is implemented in Go. Currently launched centrally, later will be rewritten to run in a decentralised manner.

Interactions:

  • Client node. All functions. Interaction over open channels, encrypted with TLS.
  • Hub node. All functions. Interaction over open channels, encrypted with TLS.

How market is working

SONM resources distribution is based on market mechanics. Hardware suppliers can offer their resources for rent. Consumers can rent the resources on market.

Market is similar to exchange:

  • Bid/ask orders. Suppliers place ask order. Consumers place bid order.
  • Offers from both sides can be matched by parameters.

Market is different from exchange:

  • Automatic match making is not executed by central trusted side. Order book is just an information service. Any party may receive information about available orders.
  • FIFO principe (first order in must be matched first) is not implemented. Instead, any Consumer side receives the list of matching counter orders with information about the hun offers. It is then Consumer client’s responsibility to contact with hub to match orders and settle a deal.

How deals are settled

When Consumer’s Client node is aware of the hub’s order, it then directly communicates with Hub. Both parties check, that offers match each other and if everything is good, they place a deal on the blockchain. Consumer makes first move and proposes a deal, Hub then accepts it.

A deal is a record inside a “Deals registry” smart contract on Ethereum blockchain.

How payments are processed

Each deal has a price in virtual currency - SONM tokens. Deal price first appears on the market as price attribute of an order. Then, when deal is proposed and accepted, price is set as an attribute of deal.

When Consumer proposes a deal, it immediately provides a deposit for the whole amount of the deal price. This deposit is made a payment towards deal record inside Deal registry smart contract. When the deal is fulfilled, Consumer’s deposit is transferred to Hub. This is the payment of the deal.

Token functions

Virtual currency used for payments in SONM is SNM token. It is a ERC-20 standard token, based on Ethereum. Token has a function of payment equivalent of computing powers.

Token is designed as an utility token (not a securities) according to Singapore law (SFA, FAA), juridical practice and MAS definitions. In the provided document please see list 8, case study 1.

DAO

DAO is not implemented at this moment. Such functionality will be considered at later stages of system development.

Network fees

No network fees, dividends or other kinds of passive income are implemented at this moment.

Such functionality will be considered at later stages of system development. Such functionality must not threaten or put under question the "utility token" status of SNM token. Current vision is a network fee, collected by trusted hubs for performing special tasks, related to maintaining the SONM network. The exact implementation way is still under research.