In 2018, the combined market value for cryptocurrency was estimated to reach a peak of more than $830 billion. Every day, the trading volume reached more than 70 billion. As more development was seen in the blockchain technology, a lot of people turned their attention to trading and cryptocurrency exchanges. As a result of the mass influx of user, there will much demand on cryptocurrency.
There are two main type of cryptocurrency exchange – the decentralized and the centralized, and they both come with their pros and cons. Centralized exchange serves as a main entity that takes care of transaction, digital assets and clearing services. As a result of the absence of the use of a private key, trust is an issue that centralized exchange traders face. Thus, they are usually targeted by hackers due to the fact that their assets are stored in the trader’s digital assets.
Decentralized exchange on the other hand is pretty secured for owners of assets. This is because wallets can only be accessed by the trader with the special private key. For trades, users make use of the distributed ledger technology as well as smart contracts to foster P2P trading. This gets rid of the need, control and effect for a middle man. The problem with decentralized exchange however is that the transaction is very slow, and often without the option of liquidity. Decentralized exchange has user Interface that are not so easy to understand. This poses a challenge for newbie’s to use.
Solution prescribed by DAEX Blockchain
In order to combat the issues presented above, DAEX brings about an infrastructure for the cryptocurrency sector. The trading industry uses this feature which brings about the benefit of both distributed and centralized exchanges. As a result, users will enjoy the following:
• High security protocol
• Strong liquidity
• Fairness
• A secured atmosphere
One of the aims of DAEX is to distinguish trading and clearing services into various categories. Thus, centralized exchanges will keep on providing their service – trading service. The clearing service and settlement service however has the backing of the DAEX prescription.
It works with solution brought about by the blockchain which is open source. As a result, trader’s assets are kept in their account. This qualifies DAEX users to benefit everything provided by the centralized exchanges. Users are also shielded from the dangers of using such a centralized model.
Values provided By DAEX Platform
• Security: There is a safe trading platform with DAEX. User’s asset are all on the public blockchain and can be moved only with permission
• Resources Allocation: With the use of the clearing service, industry’s resources are used judiciously
• Trust: the DAEX blockchain makes all assets and transaction transparent. This reduces trust between users and exchanges.
• Exchanges: Exchanges are able to focus more on their main competence. This happens as a result of clearing and trading. Asides, users can enjoy reduced operational cost by being able to select and list cryptocurrency. This gives the exchanges the ability to trade.
The Brain behind DAEX
The DAEX blockchain team has a strong backing of professionals with vast experience in the fintech realm. With background in payment and clearing, they have the right skill to bring the project to limelight.
Useful links
https://daex.io/
https://daex.io/whitepaper.html