Decentralized Multisignature Exchange:
Your Keys, Your Crypto!

Multisignature, often referred to as "multisig," is a security feature used in cryptocurrency transactions that requires multiple private keys to authorize a transaction. In NightTrader Exchange's context, it's a crucial component of their decentralized multi-signature exchange. Multisig enhances security by distributing control among multiple parties, reducing the risk of unauthorized access or theft. For example, a 2-of-3 multisig setup would require any two out of three designated keys to approve a transaction. This technology not only protects users' funds but also enables NightTrader to offer non-custodial trading, allowing users to maintain full control of their assets while trading on the platform.

Decentralized refers to a system that operates without a central authority or single point of control. Instead of relying on a centralized entity to manage transactions and hold funds, NightTrader's decentralized platform distributes control among its users. This approach enhances security by eliminating the risk of a single point of failure, which is often a vulnerability in centralized exchanges. In NightTrader's decentralized system, users maintain full control of their assets through non-custodial trading, meaning they retain possession of their private keys and funds at all times. This decentralized structure not only increases security but also promotes transparency and reduces the risk of manipulation or censorship, aligning with the core principles of blockchain technology.

The nodes in NightTrader can be anyone! The users themselves, dedicated community members, investors and reliable individuals in the cryptocurrency community. These nodes sign the second half of the transaction validating the trades. Each one checks transactions and data independently verifying trades go where they are supposed to. They all sign part of an elliptical curve combining into a single signature which is also called a "threshold signature". This is how NightTrader maintains decentralization.

Unlike other exchanges, NightTrader uses something called "checklocktimeverify" also called "dead mans switch". This is native to Bitcoin which allows a time lock that after some time the ownership of funds changes. Since NightTrader nodes hold the second key, if they don't sign off on a trade or withdrawal there is a time lock that after a certain number of months, the funds safely return to the user automatically. This is built into Bitcoin so no trust is required, the deposit account script is there for you to see on the blockchain and validate! Imagine if a large exchange like Binance disappeared, what could the users do? NightTrader is different, you keep control of your funds at all times.