Cobinhood, a cryptocurrency services platform, has announced the launch of a decentralized platform called Dexon. The project is backed by top-tier venture capital firms including San Francisco-headquartered IDG Capital, a firm which manages $20 billion worth of assets.
The firm is claiming Dexon to be the fastest blockchain available in the market. It is optimistic that advantages like infinite scalability and low latency will make it ideal for the banking industry and other real-world requirements.
Popo Chen, the founder of Dexon, said: “Blockchain is still in its early stages, though many industries are looking to implement blockchain and talk constantly about its benefits, it has yet to reach rapid adoption. Factors like speed of transactions have been a crucial inhibitor in allowing this technology to be implemented into the real-world banking ecosystem. The innovation surrounding blocklattice architecture like DEXON will enable use cases such as everyday banking, stock and cryptocurrency exchange, micropayments and other markets.”
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To achieve a higher level of scalability, Dexon is using block-lattice architecture. Unlike traditional blockchain technology systems that build encrypted blocks linearly, this structure features multiple blockchain systems that work together in parallel, making it easier to scale automatically and energy-efficiently.
Founded in 2107, Cobinhood is a cryptocurrency service platform which shot to popularity because of zero-fee trades. Popo Chen, its founder, also founded 17 Media with the intention of shaping future economies by creating a financial center for the blockchain era. Cobinhood also signed popular American football player Richard Sherman to endorse its platform.
With the rising limitations of the centralized crypto exchanges, many old blockchain players are now developing decentralized platforms to cope up with the market competition. Major players like Binance and Kyber Networks have earlier launched native decentralized platforms and were joined by many market counterparts.
However, there are some drawbacks to decentralized exchanges. In a Bloomberg report, Binance founder and CEO Changpeng Zhao said that “on the decentralized exchange we’ll have less control. More likely anybody can list any coin. That’s the philosophy of the decentralized exchange, it’s freedom of choice, freedom of investments. But with freedom, there will be people who are scammers. That’s not something we can control.”