The wide adoption of bitcoins paved the way for other millions of cryptocurrencies to pour into the market and due to this action the need for an exchange platform came into view and also important because with an exchange platform one can easily trade/swap a cryptocurrency into fiat and vice versa.
There are two different forms by which an exchange can take which are;
Centralized Exchange and
Distributed Exchange
So, with this a cryptocurrency exchange platform must fall under one of these forms of exchange.Distributed Exchange:This is a type of exchange that makes use of the distributed ledger technology, it works and runs on its own making it an automated type of exchange since it requires no that party member or person to handle its operations. An exchange of this kind does not have any access to a trader/user's account, a traders fund is held in his account. This type of exchange has a friendly user interface that allows for peer-to-peer trading to be possible and due to the exchanges underlying technology, the trade executed is guaranteed to go through cleared and correctly settled.
Benefits
- Maximum security of a traders fund is highly guaranteed.
- Low trading fees.
- Anyone, anywhere can freely trade with others who also use the same form of exchange.
Demerits
The distributed exchange face serious issues in terms of liquidity, flexibility and matching speed which is slow.
Centralized Exchange:This type of exchange is the exact opposite of a distributed exchange, there is a third party member in charge of maintaining the system and matches traders to one another, it also holds traders assets in its own storage.
Benefits
Provision of strong liquidity, flexibility and matching speed is fast.
Demerits
- Traders assets are exposed to internal and external risks.
- Exchange operations are non transparent.
- High trading fees.
With these problems outlined the blockchain and cryptocurrencies faces major problems and the need for a well advanced clearing service is highly required and here comes the solution. DAEX.
What is DAEX?
DAEX (Digital Assets Exchange); is an open and distributed cryptocurrency clearing service that aims to provide clearing solutions for cryptocurrency exchanges.
AIMS OF DAEX
DAEX aims to provide better amenities for the cryptocurrency exchange industry by collecting the collecting the reasonable parts of the mainstream securities trading industry and also by taking advantages of new opportunities introduced by the distributed ledger technology.
Trading and clearing will be separated into different bodies, with the current centralized exchange still controlling the trading aspect while the clearing aspect will be handled over to a general clearing service based on the DAEX solution and the solution itself is based on the distributed ledger technology.
With the DAEX solution to exchanges, it will both have the trading benefits of a centralized exchange and the automated mechanism of a distributed exchange. The advantage of DAEX is that it will provide security to traders assets, Transparency and trust among its participants.
THE DAEX ECOSYSTEM
DAEX ecosystem is made up of a clearing service built on the distributed ledger technology, centralized exchange and user wallets. To execute a trade, traders uses their wallets to perform trades on exchanges and after these trades are matched, the matched trades are then sent to clearing service which will be performed by smart contracts on the distributed ledger technology.
DAEX will provide clearing services for cryptocurrency traded on exchanges by merging the trading service of a centralized exchange with the automated service offered by a distributed exchange thereby giving customers what they want and guarantee the sustained growth of the crypto market.
The DAEX Wallet: This is an unmanaged and distributed wallet that supports differences types of cryptocurrencies and possess unique characteristics such as;
- Multiple part private key: The DAEX wallet makes use of 3 private key and requires any two parts which can be used to access assets in the wallet, and these three parts are;
User part; which is stored on the users mobile client.
Wallet part; which is stored in "hot wallet mode" on DAEX servers.
Backup part; which is stored on the clearing chain in the cold state and does not take part in any transaction, it is only used for recovery purpose.
For further research on this amazing project see to the links below;
Website: https://daex.io
Whitepaper: https://daex.io/whitepaper.html
Telegram: https://t.me/DAEXOfficial_en
Medium: https://medium.com/daex
Twitter: https://twitter.com/DaexBlockchain
Reddit: https://www.reddit.com/r/DAEX_Blockchain/
Bountyox Username: Jude07
DISCLAIMER
“This article was created in exchange for a potential token reward through Bounty0x”