Overview
QUANTA's fast and secure digital asset exchange seeks to provide liquidity to the illiquid market of decentralized exchanges. In contrast to other projects that build a decentralized cryptocurrency exchange ("DEX"), QUANTA (https://quantachain.io/) seeks to enable the exchange across any blockchain. As such, it is not limited to the exchange of ERC20 tokens (like Kyber and 0x) or NEO tokens (like NEX). Let's have a look if this project has the potential to become the ICON of decentralized crypto exchanges.
The problem
Decentralization is the common denominator of cryptocurrencies and many blockchain projects. In fact, it is the underlying vision that has fueled the growth of the entire sector for years. Despite the remarkable achievements in this area, the majority of digital assets are still exchanged on centralized ecosystems. On the one hand, the four biggest centralized exchanges OkEx, Huobi, Binance, and Bitfinex account for 64% of all the trading volume. On the other hand, the trading volume on the biggest decentralized exchanges totals 0.4%. One major reason for this lies in the fact that existing decentralized exchanges are illiquid and slow, which renders them unusable in comparison to centralized exchanges.
Central problems competitors face
The majority of existing decentralized exchanges are built upon a specific platform, for instance, Ethereum (such as 0x, IDEX, and Kyber) or NEO (such as NEX). This, however, limits them to the exchange of tokens that are using this particular platform. In the case of ETH-based exchanges, only ERC20 tokens can be traded. The mentioned exchanges are also dependent on the block time of the underlying platform. This inbuilt latency does not enable them to compete with the transaction speed and trading volume of centralized exchanges. At the moment, ETH is able to handle around 13 TX/s. As such, it is not the most viable solution for real-time trading - a fact ETH-based DEXs currently struggle with.
At the same time, existing decentralized exchanges face the same limitations in regards to scalability as the blockchains they are built on top. However, the largest challenge existing decentralized exchanges are confronted with is low liquidity. This is the major reason why professional and institutional traders alike depend on centralized exchanges.
The solution
QUANTA (https://quantachain.io/) provides liquidity to the market by developing a fast and scalable public blockchain for the exchange of digital assets across any blockchain.
Pros
Verdict
QUANTA tackles the daunting issues decentralized exchanges are facing at the moment. In combination with their cross-blockchain trading functionality, this project is destined to receive the attention of crypto enthusiasts and investors alike. If token metrics are beneficial to investors, QUANTA has a high chance of gaining enough traction to become a successful ICO. However, the long-term success of QUANTA's DEX depends to a great degree on the team's ability to provide liquidity. This is a major challenge of the project, which is why investors may wish to see a more detailed strategy that addresses this particular issue before investing.
https://quantachain.io/
https://drive.google.com/file/d/1fZZfydUyV_HqHdrMGxGf-ldj8NBrHQkz/view
This is not financial advice. I'm just sharing my opinion. Always do your own research.
