DAEX (Digital Assets Exchanges) is an open and distributed cryptocurrency clearing ecosystem. DAEX aims to provide clearing solutions for centralized cryptocurrency exchanges, based on distributed ledger technology and smart contracts. The project is developed and managed by the DAEX Foundation which is registered in Switzerland.
Since its foundation, DAEX has established significant partnerships with institutes such as US Temple University, Qtum Foundation, Jenga Blockchain Capital, Sora Ventures, 8 Decimal Capital, 360 and etc. Moreover, they are currently in discussions with several exchanges including Lbank.info, Bitfinex, Bitstamp, Huobi, and Bittrex.
The goal of DAEX is to provide a better infrastructure for the cryptocurrency trading industry by taking the reasonable parts of the mainstream securities trading industry and by taking advantages of new opportunities brought about by the distributed ledger technology. Specifically, trading and clearing will be separated into different entities. Current centralized exchanges will continue to provide trading service. But the clearing work will be handled over to a common clearing service which is based on the DAEX solution. But, different from current centralized clearing services, the DAEX clearing service is based on distributed ledger technology. The distributed ledger technology guarantees that trades are correctly and safely cleared and settled. By using distributed ledger technology, trader’s assets are kept in their own accounts on the blockchain. No one else can access traders’ assets without their permissions. This effectively removes trader’s asset risks in current centralized exchanges. The DAEX solution will be an open sourced clearing service based on a public blockchain. Its code is open for public inspection and supervision.
Why is The Project Needed?
Centralized Exchange Flaws
In a decentralized exchange, you own your assets and have full control of them. In a centralized exchange, essentially all assets are barely IOU’s (I Owe You). When a user wants to withdraw the funds, the exchange is instructed to send the asset back to their wallet.
The problem is that the exchange is responsible for your funds, and there is a lot of risks involved with holding digital assets there. A lot of people believe that their funds are safe on an established exchange, but too few consider the possible consequences. If the exchange gets hacked because their security is lacking, have corrupt employees or decide to ban your account, your funds are effectively lost. This kind of situations has repeated themselves time after time to this day, and even renowned, high-volume exchanges like Bithumb and Coinrail has recently gotten their funds stolen because of an exchange flaw.
DAEX provides a solution where the trading and clearing components are separated. The exchange offers cryptocurrency trading services, but the management of all clearing services is done DAEX associated services. The main benefit of this is that the DAEX ecosystem is based on ledger technology, and therefore can provide a decentralized solution for storing assets, and thus effectively eliminates the risk of customers losing their funds.
***"This article was created in exchange for a potential token reward through Bounty0x"***
To learn more please visit this links below..
Website : https://daex.io/
Whitepaper : https://daex.io/whitepaper.html
Telegram : https://t.me/DAEXOfficial_en
Twitter : https://twitter.com/DaexBlockchain
Bounty0x ID : Aiowar