Every economic system has elements and variables that must be controlled so that the system remains stable and effective, given the market diversity that exists in the continents, the connection and conversion of legal, fiduciary and other assets are made through exchange houses, a very important element in the functioning of the centralized economic system. The equivalent in the crypto conception are the exchanges, they are houses of virtual changes where you can buy coins or make exchanges, even though the cryptocurrencies are not regulated by central banks or government institutions, the exchange between them requires a service that must be canceled, in short an intermediary who charges a fee for the fees, but what happens when we apply decentralization to this service? In particular, the first thing that It comes to mind is that the blockchain expands even to its own effects.
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Digitex Futures Exchange
It is a house of change that uses blockchain technology to finance its service, and as a result there are no commissions or transaction fees in this exchange, as they very well mention it on their website "it is not a temporary free trial or a marketing ploy", Digitex aims to operate with zero commissions.
To achieve this activity that seems to be utopian, Digitex developers introduce a token called DGTX, with which the costs of the exchange will be covered and much more since all the economic activity as profits and losses, the balance of the accounts is in function of DGTX, so that those who want to participate in this market without commission must own DGTX, this condition of Digitex ensures the demand, since the attractiveness of zero commissions encourages traders to buy this token.
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In the beginning, Digitex will not issue DGTX in 2 years, as a strategy to raise the value of the currency and reduce the inflationary impact of the first impressions, therefore the transactions during this time will be covered with the DGTX ICO, then later the printing of DGTX will be made considering the current price of the currency and the costs of the service needs, using a decentralized governance system that allows the voting of the operators that have DGTX with a relation 1 DGTX = 1 vote. [1]
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As mentioned, it is clear that DGTX is key and represents the heart of Digitex, given that it allows the operation of Digitex Futures Exchange, and in the hands of the operators it is The token was not devalued or the cost of transactions increased.
Decentralized Accounts
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The balances of the accounts are stored in the blockchain of Ethereum through an intelligent contract, which means that Digitex does not have access to the operators' money, in fact it does not even keep assets on the Digitex platform, so that it can be to understand as a hybrid mechanism that uses a "centralized engine and a decentralized account balance" whose background brings security to the operators, so that it reduces the possibility of losing money in an exchange or a hack. [1]
Los Futuros de Digitex
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These are future contracts for the purchase and sale of digital assets, which enjoy a number of Digitex's own benefits, some of them:
- Zero Trading Fees
- Decentralized Account Balances.
- Highly Liquid Futures Markets and Automated Market Makers.
- Digitex Native Currency
- Token Issuance Revenue Model
- Bitcoin, Ethereum & Litecoin Futures
- One Click Ladder Trading Interface
- Large Tick Sizes
- High Leverage
- No Auto Deleveraging
- Sub-Millisecond Order Matching
- Off-Chain Price Discovery, On-Chain Settlement
- Decentralized Governance by Blockchain.
Specimen of a contract and its specifications.
The launch of the contract includes 3 relationships: BTC / USD, ETH / USD
& LTC / USD.
Futures Contract: BTC/USD (Bitcoin against the US Dollar)
Tick size (minimum price increment): $5 USD
Tick value:1 DGTX
Taker/Maker Fee: 0%
Funding Costs: 0%
Initial Margin: 20 DGTX
Maintenance Margin: 10 DGTX
Contract Type: Contract For Difference (CFD)
Contract Duration: 24 Hours
Settlement Date: Daily at 00:00 GMT
Settlement Price: BitcoinAverage.com spot price of BTC/USD at 00:00 GMT,
rounded up or down to the nearest $5.
Settlement Process: Cash settled in DGTX tokens at Settlement Price.
All open positions remain open by being rolled over into the new contract which
opens at 00:00 GMT.
Futures Contract: ETH/USD (Ethereum against the US Dollar)
Tick size (minimum price increment): $1 USD
Tick value: 1 DGTX
Taker/Maker Fee: 0%
Funding Costs: 0%
Initial Margin: 20 DGTX
Maintenance Margin: 10 DGTX
Contract Type: Contract For Difference (CFD)
Contract Duration: 24 Hours
Settlement Date: Daily at 00:00 GMT
Settlement Price: BitcoinAverage.com spot price of ETH/USD at 00:00 GMT,
rounded up or down to the nearest $1.
Settlement Process: Cash settled in DGTX tokens at Settlement Price.
All open positions remain open by being rolled over into the new contract which
opens at 00:00 GMT.
Futures Contract: LTC/USD (Litecoin against the US Dollar)
Tick size (minimum price increment): $0.25 USD
Tick value: 1 DGTX
Taker/Maker Fee: 0%
Funding Costs: 0%
Initial Margin: 20 DGTX
Maintenance Margin: 10 DGTX
Contract Type: Contract For Difference (CFD)
Contract Duration: 24 Hours
Settlement Date: Daily at 00:00 GMT
Settlement Price: BitcoinAverage.com spot price of LTC/USD at 00:00 GMT,
rounded up or down to the nearest $0.25.
Settlement Process: Cash settled in DGTX tokens at Settlement Price.
All open positions remain open by being rolled over into the new contract which
opens at 00:00 GMT.
[1]
Some of the characteristics already mentioned as decentralized governance democratically allow operators to have power and control over the issuance of the DGTX token, in order to make decisions collectively and beneficial to operators.[2]
The large tick sizes, this is related to the tick, the minimum price increase that a futures contract can raise or lower, that is, for example, the size of the tick in the futures contract BTC / USD is $ 5, this eliminates fluctuations allowing contracts with more defined prices. [2]
The complete privacy, in Digitex the operators do not require to provide personal information to participate in the exchanges, so that this information is protected in the discretion of the users raising the security and confidence on the part of the operators in the platform [2]
Last comments
Although I have little experience in crypto it is clear to me that the project proposed by Digitex has a potential and innovative, it is ingenious the idea of applying the blockchain technology to the exchange, allowing this benefit of zero commissions that can be seen as win win.
With digitex you can squeeze the profits from the crypts, by eliminating the intermediaries we can say "The cryptocurrencies were made to decentralize the economy", this is perhaps the most relevant and general point that can be appreciated, to make more concrete, Digitex allows to have a market with maximum liquidity, privacy and security for users.
These motives are undeniably positive for those who live in crypto, and there is nothing left but to wish the Digitex team a lot of success with the exchange and congratulations for their hard work.
For more information watch this short video!
More Information & Resources:
- Digitex Website
- Digitex WhitePaper
- Digitex Blog
- Digitex Telegram
- Digitex Reddit
- Digitex Facebook
- Digitex Twitter
- Digitex YouTube
Reference:
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Digitextwitter
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