Trustless? Yes, But No Worries!
Every conventional transaction requires trust. Trust on an individual, trust on organizations, banks, companies, and so on. It is based on trust and what ou have on account that enables people to trade, especially when it comes to large amount of money. This also happens in exchanges, specifically, cryptocurrency exchanges. We have known some of the biggest cryptocurrency exchanges like Binance, CoinEx, Kraken etc., where traders put their trust on. Because of the trust for the enterprise, trust on what they have to offer, people trade in their platforms. Vice-versa, these exchanges will also require each trader to submit KYC (Know-Your-Customer) requirements such as passport to ensure the credibility of this trader. But now, I would like to introduce you to a new exchange who have a rather unique idea about trading, DexAge.
DexAge is an Decentralized Exchange, that enables Peer-to-Peer crypto exchange, crypto-fiat trading, and Peer-to-Peer Crypto lending. So how do they operate? To make it simple, they are a platform that enables two parties to meet according to their need, whether it is trading or lending, and binds them using smart contract feature where the terms and condition of each parties is stated. For example, client A is an investor and he wants to lend his money with certain number of interest. While client B is the one who needs loan, and agreed to the interest offered by client A. They will be bound by a smart contract with terms and condition. Client A will submit a collateral to Client B and Client B will proceed with giving the loan. The smart contract then will hold the collateral until client A has paid the entire sum he had borrowed from client B. This way, it is based on the promise made by both clients through smart contract and there is no need to reveal any identity. This is what it means by the trustless.
As DexAge is a decentralized platform, it means that there is no single governing body to store entire information in one server. Therefore, it enables all the users to trade and lend by themselves. Think of it as a crypto marketplace, where seller and buyer meet directly. One thing that is very important when it comes to peer-to-peer transaction is communication. In order to ensure smooth communication between users, DexAge is also having in app chat features, where users can chat and negotiate directly. It is one of the features it has for its foundation as a decentralized exchange that is based on social web.
Overall, it is a very interesting project. It makes exchange process easier, transaction security better and market fluctuation lesser. As it is decentralized, it is becoming harder for hackers and cyber crime criminals to breach the system. And as there are many users selling and buying with their own rate, there will be lesser market manipulation, which stabilize the market fluctuation. With the chatting features, it makes the communication between traders easier and faster. Therefore. this project is worth the support.
