Hello folks, we meet again in a new article. As usual, I'm going to write a review about cryptocurrency project. The lucky one this time is AXNET. Have you heard about them before? Spoiler: they're a licensed centralized and decentralized exchange that already have a daily volume up to $17 million according to CoinGecko. If this is the first time you heard about them, then be sure to read this article until the end. You'll know the details about AXNET in just 5 minutes. I'll describe what kind of problems that they wanted to solve and how they will solve it, alongside with my own opinions about their approach. That is why you should read it very carefully.
Without further ado, happy reading!
The Backbone of Every Exchange is the Technical Architecture
As I already told you above, AXNET is an exchange, so the problems that they wanted to solve is related to how an exchange operate to satisfy their consumer. One thing that every exchange should have is a solid technical architecture. This is because they have to process every order from the buyer/seller as soon as possible. Slow website speed, failure to put on orders because of a technical glitch, web server error and many other things is what we can see on most exchange nowadays.
Source: CCN
A solid technical architecture is important, and that means the developer or coder of the exchange must be professional too. It is impossible to provide a solid technical architecture even if you have a great hardware when your developer can't code properly. Therefore, both human resources and hardware needs to be excellent. If those conditions are fulfilled, then they should be able to tackle a DDOS attack that causes an exchange running unproperly[1].
AXNET said on their whitepaper on page 5, that they will provide a high-performance engine as the background for their matching orders process. This means, every buy/sell orders, or the exchange in general, will be backed up by a hardware that has great capabilities to process up to 2 million orders per second efficiently. This should be backed up by experienced and skillful programmers, of course.
2 million orders per second are quite a big number. I personally think that this could handle up to 2 million users trading activities per second (assuming that everybody only needs a millisecond to decide how they trade). In one minutes only, this means AXNET can handle up to 120 million orders, which is an excellent performance. Forget the experience of trading slowly, you can trade with AXNET as fast as you want.
Easy Liquidity for New & Existing Crypto Users
As new users that want to buy cryptocurrencies, most of the time, they have to go through the hassle of converting their currency into other forms of fiat currencies that are accepted by the exchange. Most of the time, they have to convert into USD or EUR. This is not a problem for somebody who has that money, but for those who don't this is a serious problem.
Not only that, another major problem for every exchange users is about liquidity, especially a DEX[2]. They have to wait for hours or days before their fiat withdrawal is being processed by the exchange. This should not be the standard. Every new user should be able to deposit his currencies and withdraw at any time with ease. Luckily, AXNET realized this crucial problem that has been considered as the top 3 problems crypto users currently face[3].
According to their whitepaper at page 4, AXNET will try to solve those problems by providing multiple fiat currencies on their platforms, and therefore reducing the hassle of users who wanted to buy a cryptocurrency for the first time. As a licensed cryptocurrency exchange, we can expect a high-standard service and liquidity. If this promise is achieved, we can expect a tremendous growth of AXNET exchange.
Customer Services, Because of Customer Matters the Most
What is the most annoying problem that you've ever encountered when using a cryptocurrency exchange? Slow website speed? A limited trading pairs? Slow deposit/withdrawal? As for me, I guess you can add a ridiculously slow, incompetent, time-consuming customer support. I'm an active user of Bitcointalk, and I can see many threads are created because to complaints about how slow or incompetent a customer support from cryptocurrency exchange is.
Source: Forbes
A customer support is as important as a solid technical architecture in almost every business[4]. You can't expect your customer to be loyal and always use your service when you don't give them good customer support. There are a lot of cases when customer leave a service (including a cryptocurrency exchange!) because they don't get a proper support that they always expect. A customer always expect that they'll get help from the exchange as soon as possible, even waiting for hours is already a pain for them!
AXNET seems to understand the importance of customer services or support perfectly. As what they've said on their whitepaper on page 4, they realized that most exchange has poor or bad customer services[5]. Not only that, they're giving a guarantee of 1-day responses for all support tickets! This is a very promising idea, but in order to make it happens, they also have to exert extraordinary efforts. They should have at least hundreds human resources as customer services who understand how the exchange works and can redirect the customer problems to the appropriate section, as well as continuously synchronizing the problems of every user that they've accepted before.
However, if this can be executed and delivered properly, there will be more and more users that will use the exchange. Let's see how they will do it!
DEX & CEX in One Place
Another interesting feature from AXNET is the option to switch from DEX to CEX or vice versa. You got it right, AXNET will give you an option to use a decentralized exchange or a centralized exchange. This is an interesting feature, and probably the first exchange to do so (Binance, you lose!). You can see it for yourself, visit their website and then you'll find the slider where you can change from DEX to CEX or vice versa.
AXNET mobile apps. A very attractive UI. Source: AXNET Whitepaper
This option will bring benefits for every user. When they wanted to trade directly with other users, they don't have to use the DEX that is slow and bothersome to access. AXNET will provide you the same technical architecture (in terms of powers and performance) so that you can enjoy direct trading with others user without any lag.
This options can bring benefits, especially if you love both DEX and CEX. You can opt to trade in their DEX if you're using a lot of money, while you can use their CEX to trade for other currencies which are not available to trade on DEX. At this moment, they plan to list Ethereum and EOS DEX, but it is possible that more platform will be available later on.
Additional yet Important Points
Alright, so we've discussed some problems and how AXNET aims to solve them. I'd love to add an additional point that is not related to what we've been discussed before, but I think it is worth mentioning here. This is related to AXNET tokens holder benefits, the lock-up period, and the buy-back and burns programs.
You can read the details about the program on their whitepaper starting on page 11. So I won't repeat the details here. However, I'd love to mention that judging from how they the tokens benefits and the buy-back and burn programs, it is highly possible that you can get a lot of ROI if you contribute on their token sale, IF AND ONLY IF AXNET can deliver what they promise.
How is that possible? First thing first, they aim to lock the token for their founders up to 4 years. At least, this shows that the team is confident about the future of their token and the platform. A good sign for a start. Add this with the additional benefits for tokens holder, starting from trading discount and a regular revenue share which is a good source for passive income. With the additional buy-back and token burn, the supply of AXNET will greatly be reduced while the demand will undoubtedly increase. Because of this, this project should worth your time.
Who doesn't like such benefits, after all?
Bottom Line
While I don't cover every aspect from their whitepaper, I think I already showed you what makes AXNET a potential game-changer in the current cryptocurrency market. With the potential of DEX/CEX combination, seriousness from the team that is reflected from their lock-up period, and their will to share their profits with the token holders, AXNET should be one of the projects on your notable list. Don't forget to read all the details on the white paper, and don't forget to try their apps which already exist on the Play Store and Apps Store. Visit their site too, you'll find many pieces of information there.
See you in the next article!
Resources
[1] https://bitcoinist.com/bitfinex-suffers-ddos-attack-hours-infrastructure-outage/
[2] https://www.coindesk.com/solving-liquidity-challenge-decentralized-exchanges/
[3] https://hackernoon.com/survey-top-3-biggest-problems-trades-experience-using-crypto-exchanges-54f01ddb0124
[4] https://www.forbes.com/sites/steveolenski/2014/09/10/could-this-be-more-important-than-price-and-product/#277efebe107e
[5] https://blog.xtrabytes.global/exchanges-trading/rating-cryptocurrency-exchanges-for-customer-support/
Disclaimer
#1 This article is not a financial recommendation. The author, AXNET and other parties mentioned in this article is a separate entity. The author writes this article based on his own understanding of AXNET. Readers should read the original document of AXNET by themselves. The author shouldn't be responsible for any actions taken by the readers, including but not limited to: joining the AXNET bounty program, participate in the AXNET token sale, and etc.
#2 This is a promotional article. I'm writing this article as part of my contribution for Bounty0x AXNET bounty. My Bounty0x username is joniboini16. Readers are suggested to read AXNET whitepaper by themselves to ensure the validity of data written here.