Cryptocurrency exchanges play an important role in the massive growth of cryptocurrencies. It is where people can trade cryptocurrencies for other digital currency or traditional currency like US dollars. These exchanges connect buyers and sellers and take a fee from each transaction. There are basically two typesof exchanges; the centralized exchanges and decentralized/distributed exchanges. Centralized exchanges are intermediaries such as companies that act as middlemen in order to facilitate trading on their platform. In exchange for providing this service, intermediaries collect trading fees. They often act as the first point of contact for newcomers that are interested in trading cryptocurrency due to their user friendly interface and swiftness in their operations. The operation of a centralized exchange is easy and straightforward and a matching algorithm automates this process. Unlike centralized exchanges, their decentralized counterparts do not require intermediaries for their operation. Instead of matching buy orders and sell orders in an order book, a decentralized exchange operates by matching the people behind those buy and sell orders after which they agree to a prize and finalize their trade. A pre-programmed matching exchange software facilitates this entire process, so, there is no need for intermediary involvement. Centralized exchanges however come with lots of risk such as vulnerability to downtimes and security breach as well as exposure of user’s privacy. Decentralized exchanges on the other hand does not require any disclosure of identity, also, the issue of security is also improved under the decentralized exchange model. Decentralized exchanges do not hold cryptocurrency for users, and instead, users are connected directly with each other, meaning that you do not have to worry about the security of your cryptocurrency sitting on an exchange however lots of users do not find the use of decentralized exchange interesting because the exchange often have lower liquidity compared to the centralized exchanges thus leading to longer trade times as finding an acceptable matching trade could be a difficult process. To integrate the positive features of the two exchanges and make users have an enjoyable trading experien
Daex aims to utilize the merits of a distributed ledger technology to handle the clearing aspect of cryptocurrency trading. Trading will go on as usual on the centralized exchanges; however clearing will be taken care of by Daex solution. This will ensure that trades are succesfully cleared and settled. Also, the DLT as utilized by Daex see to it that while trading is going on, funds are securely kept in traders’ account and only them can gain access to their funds thus eliminating the risks associated with centralized exchanges. In essence, Daex safely integrates the merits of centralized exchanges (CEX) with decentralized distributed exchanges; it allows users enjoy the trading experience as presented by CEX while eliminating doubts as regards the safety of their funds.
DAEX ECOSYSTEM
The Daex ecosystem is made up of distributed ledger technology (DLT) based clearing services, centralized exchange and users’ wallet. After trade orders have been successfully matched on the exchange, they are sent to Daex clearing service which is performed by smart contract on the DLT.
DISTRIBUTED LEDGER TECHNOLOGY BASED CLEARING SERVICE
The Clearing services (Caas) constitute the core of the Daex ecosystem. It is a cryptocurrency clearing solution based on the distributed ledger technology (DLT). As a result, its operation is transparent and objective and it prevents traders’ funds from the risk associated with the use of other centralized exchanges. With Daex solutions, exchanges no longer need to clear their own trades as this sensitive function has been taken up by Daex.
CENTRALIZED EXCHANGES
With the integration of Daex solution into existing cryptocurrency exchanges, the burden of having to select quality and authentic coins out of the numerous coins entering the market on a daily basis will be shifted to Daex. Daex will be saddled with the responsibility of hosting new clearing products for the exchanges to trade. Also, participating exchanges will have a competitive edge over other exchanges as they possess additional feature of a clearing service and token reward system for actively clearing users which in turn increase the customer base of the exchange
USERS’ WALLET
The Daex wallet is a multi-currency distributed wallet that supports different types of crypto assets. To enhanTce maximum security, it makes use of three-parts private keys and only be assessed when two of the three keys are deployed. The three parts include the user part, stored on the users mobile client, the wallet part stored in hot wallet mode on Daex servers and the back-up part stored on the clearing chain and used for recovering losses of any of the above mentioned key parts.
BENEFITS OF DAEX ECOSYSTEM
• The platform provides privacy and security of users’ funds and assets as it requires the authorization of users for funds to be moved. Assets are protected with the use of multi-part private key which only the user has access to.
• The Daex system offers a transparent platform of asset trading for its users. The platform allows for other existing exchanges to participate and make use of its products and services such as the clearing service and multi-currency wallet
• The use of the platform instills trust and confidence in users as they are guaranteed of a safe and secured platform for their cryptocurrency asset trading.
TOKEN
Token used on the ecosystem is known as DAX. They are built on the ERC20 smart contract and help to facilitate cooperation among the different parts of the Daex ecosystem. The tokens would serve as a form of reward for opening an account on Daex platform, for inviting others to participate and for actual participation by utilizing the clearing services during trading. They would also serve as means of payment of clearing and settlement fee.
The Dax tokens are current being traded on https://www.lbank.info/ , https://www.allcoin.com/ and https://indodax.com/.
For more information about DAEX, kindly visit:
Website: https://www.daex.io/
Whitepaper: https://www.daex.io/pdf/DAEX(EN)-NonTechnicalWhitepaper-V0.9.8c.pdf
Twitter: https://twitter.com/DaexBlockchain
Telegram: https://t.me/DAEXOfficial_en
Bountyox Username: Crypto4ruby
