Cryptocurrencies keep growing in popularity by the day with the current market cap around $208B. This shows that there is huge demand and supply for these crypto assets and people are investing in it daily. Just like people like buy stocks to hold and appreciate in value, people buy crypto assets too just so they can appreciate in value and they can sell at profit. Another use of these crypto assets is trading them. People engage in buying and selling of cryptocurrencies just as they do with buying and selling of foreign currencies under the forex market.
This crypto asset trading has led to the establishment of various cryptocurrency exchanges to spring up so as to provide the platform that enables people to trade their crypto assets. Currently we have two forms of crypto exchanges which are centralized exchanges and decentralized exchanges. Decentralized exchanges has an advantage in that users funds are kept in their account and no one has access to them except the owner but they suffer from problems like lack of liquidity, low matching speed and no flexibility. Centralized exchanges on the other hand does not suffer much from the problems highlighted in case of decentralized exchanges but they are high risk for customers as these centralized exchanges control customers assets
Plus the fact that the operations of these centralized exchanges are shrouded in mysteries wich exposes customers assets to both internal and external risks. That is why it is imperative to have a platform with a better infrastructure that is safe for users in terms of protecting their funds but also provide enough liquidity for trading, more flexibility and high matching. One way by which this can be done is to have a platform that separate trading activities from clearing activities so that customers funds can be safe in their own accounts and they can trade their cryptocurrencies conveniently.
In the course of my research, I came about a platform which seek to achieve just this in the crypto space.
Introducting DAEX - An Efficient Distributed Clearing Ecosystem For Cryptocurrencies
DAEX is a distributed clearing ecosystem built on blockchain technology which aims to provide clearing services to the current centralized exchanges that we have in the crypto space. It has been stablished that there is the need to have a common clearing platform among current centralized exchanges which can further protect users funds from the prying eyes of hackers that have successfully staged attacks on some of the biggest exchanges like binance, hitbtc and DAEX provides an emphatic answer to this. DAEX has been able to build a platform that separate trading activities from clearing activities so as to further protect the market in order to drive massive adoption of cryptocurrencies.
DAEX ecosystem is composed of 3 major components. There will be a clearing service which is built on distributed ledger technology, the centralized exchanges will still perform their basic function of giving buyers the platform to buy and sell their crypto assets and there will be user wallets to store funds. Traders will make use of their wallets to perform transactions on these centralized exchanges. These exchanges matches trades for users and then send the matched trades over to a common clearing service that DAEX provides just to make sure that users funds are well protected. DAEX clearing service is executed by smart contract which has been preprogrammed using blockchain technology.
So basically under the DAEX platform, trading and clearing are two separate activities which are handled by different entities. Clearing of trades is performed by the DAEX clearing system which ensures safety of users funds because trader’s assets are safely kept in their own accounts on the blockchain until the clearing has been initiated. By introducing the DAEX clearing system into the crypto space, the internal and external risks associated with traders funds being kept with these centralized exchanges will be totally removed because DAEX is an open source platform which the activities of DAEX clearing service is open to everybody to inspect and check properly.
Advantages of The Daex Clearing Service
- Security
- Trust
- Transparency
Security
The DAEX clearing system improves the level of security in the cryptocurrency trading space. All participating exchanges are thoroughly scrutinized to ensure that they meet the technological and business requirements of the DAEX clearing platform. Traders funds are kept in their wallets which ensures that these funds are safe and not in the wallets of these exchanges which can abscond with the funds at any time. The DAEX clearing system also comes with a multi-part private key which ensures that no one can have access to traders funds except them and also comes with a recovery feature in case of lost password. Furthermore, the clearing done on the DAEX platform is executed with the use of smart contract and blockchain which ensures maximum accuracy of these transactions and an impeccable security of these funds.
Trust
The DAEX platform provides a convenient environment for both exchanges and traders to interact together. By separating trading and clearing activities, DAEX secures traders funds while also at the same time helping exchanges secure funds deposited through the insurance funds contributed by these exchanges.
Transparency
The DAEX clearing service is an open source platform which means the activities on this platform is visible for everyone to see and verify. This means that traders can be rest assured that their fund is in safe hands. The platform is also open to all exchanges who would like to participate in the DAEX ecosystem.
From all these solutions that the DAEX clearing service provides, it is quite evident that this is a very much needed service in the crypto space to provide a level of security for traders funds and also provide an insurance for the centralized exchanges. By separating trading activities from trading activities, DAEX ensures that traders can have an awesome trading experience while also being rest assured that their funds are well secured. This is a project that needs the support of everybody as it so much improves the adoption of blockchain technology.
For more information DAEX, please visit the following useful links
Website: https://www.daex.io
Whitepaper: https://www.daex.io/daexPaper.do
Twitter: https://twitter.com/DaexBlockchain
Telegram: https://t.me/DAEXOfficial_en
Medium: https://medium.com/daex
Reddit: https://www.reddit.com/r/DAEX_Blockchain/
YouTube: https://www.youtube.com/channel/UCqgUNUY8fM6-XIbweKrYL0w
Bounty0x Username: Folorunsho15