This week, C3's co-founder Michel Dahdah spoke with Arabdha from cybersecurity firm Halborn. They discussed C3's inspiration, its upcoming launch, and its innovative approach to trading and security.
Get ready to discover how C3 is set to revolutionize trading while maintaining top-notch security.
Interviewer (Arabdha): Thank you, Michel, for joining us today for this insightful conversation. Let's begin by learning a bit more about you.
Michel: Thank you, Arabdha, for having me here. I'm excited to share more about our work and vision. My name is Michel, and I've been actively engaged in the blockchain space since 2016. Currently, I'm a co-founder of C3. Most of our team members are from Latin America; I myself am originally from Venezuela. I'm currently speaking to you from Lebanon, which is also my family's place of origin. These regions have experienced the need for crypto firsthand, which fuels our drive to build C3 and address these needs.
Interviewer (Arabdha): Your background adds a unique perspective to the conversation. Now, let's dive into the heart of the matter: C3. Could you provide us with an overview of C3 and the solution you're developing?
Michel: C3 is a self-custodial exchange that offers the same functionalities as traditional exchanges but with a distinct advantage – it operates entirely trustlessly. Users don't need to place their trust in C3 with their funds. Every operation necessitates user approval. We've achieved this through a groundbreaking approach that retains full exchange functionality, including API access, choice of wallets, compatibility across various blockchains, and the freedom to withdraw to any global address. Our goal is to empower users to have full control over their funds within the exchange environment.
Interviewer (Arabdha): The trustless model certainly sets C3 apart. In a landscape of non-custodial solutions, what sets C3 apart from its counterparts?
Michel: That's an excellent question, Arabdha. When we assess other decentralized exchanges, we find that many offer self-custodial trading options, but they often come with limitations. Some provide basic functionality like AMMs, enabling simple swaps but sacrificing control over pricing and exposing users to inefficiencies. On the other hand, more advanced decentralized exchanges compromise on performance or accessibility. Furthermore, these alternatives often require users to relinquish control over their funds, undergo KYC procedures, and adhere to permission-based systems. C3 aims to tackle these issues by offering a comprehensive solution that strikes a balance between performance and security.
Interviewer (Arabdha): Your commitment to addressing these challenges is evident. Can you share the inspiration behind initiating the development of C3?
Michel: Certainly, Arabdha. Around a year and a half ago, my team and I were dissatisfied with the direction the industry had taken. We noticed that a few entities held disproportionate control over the market, which contradicted the core principles of blockchain technology. Recognizing the potential of the technology, we saw an opportunity to create something different. We set out to build an exchange that aligned with our vision and needs, regardless of what conventional success looked like. This determination led us to conceptualize and build C3.
Interviewer (Arabdha): Your journey from dissatisfaction to innovation is quite inspiring. Can you share the anticipated timeline for C3's launch?
Michel: We're making significant progress and are on track to launch the public testnet next month. This milestone is just around the corner. Following the testnet phase, we're aiming to launch the mainnet roughly a month later. Exciting times are ahead for C3 and its users.
Interviewer (Arabdha): The upcoming launch is eagerly anticipated. Now, let's explore C3's architecture, which integrates on-chain and off-chain components. Could you explain the rationale behind this hybrid approach and its significance for the C3 ecosystem?
Michel: C3's architecture is a cornerstone of our platform's design. We've ingeniously merged on-chain and off-chain components to create a holistic system. Off-chain, we employ a server-side exchange that processes operations like trades, order cancellations, and order placements. This off-chain processing ensures high performance and accessibility, allowing users to engage through APIs and websockets. Crucially, users are not burdened with gas fees for every operation; they experience a gasless environment.
On the flip side, the trustless foundation rests on-chain. Smart contracts on the blockchain validate every operation, ensuring the system remains trustless and self-custodial. This synthesis enables us to provide a user experience akin to centralized exchanges while upholding the security aspects inherent to decentralized systems.
Interviewer (Arabdha): The architecture's duality indeed offers a balanced solution. Security is a critical concern. Could you delve deeper into C3's security strategy?
Michel: Security is at the core of our approach, and our architecture underpins our security strategy. We've implemented a multi-layered defense strategy. Server-side security practices fortify the off-chain components, while on-chain smart contracts uphold trustlessness. Even in the event of server compromise, smart contracts verify every operation using user-signed transactions, creating a formidable barrier against exploitation. This robust security model safeguards against various attack vectors and instills confidence in our users.
Interviewer (Arabdha): Your multi-faceted security approach is reassuring. Regarding security audits, you mentioned collaboration with a third-party. Could you elaborate on the significance of this partnership in ensuring C3's security?
Michel: Our collaboration with a seasoned third-party for security audits is pivotal. These audits encompass both smart contract and server-side evaluations. This partnership holds immense value as it brings expertise across various layers of our technology stack. We recognize the importance of comprehensive evaluation and continuous enhancement of our security measures. Working with professionals who grasp the intricacies and challenges of securing a project like C3 is indeed reassuring.
Interviewer (Arabdha): Your comprehensive approach to security is evident. Michel, thank you for sharing valuable insights into C3 and your journey. It's been an enlightening conversation.
Michel: Thank you, Arabdha. I'm grateful for the opportunity to discuss C3 with you.