Coinstelegram.com platform works as crypto media since Sept 2017. We are market driven company – that’s why observing of market trends is our mission. The analyst team now agreed that DEX is a new trend.
Speaking plainly, this trend got its second wind. Recently, Binance crypto exchange has been the leader. However, since the end of February, the Binance Chain blockchain platform has been tested but other exchanges are now catching up.
DEX come – Ethereum leaves?
As an exchange platform with own blockchain this represents another nail in the coffin of Ethereum. It may be so for sure. Binance Chain promises super-performance by introducing the latest solutions with a consensus Byzantine Fault Tolerant and DPoS (Delegated Proof of Stake).
CEO Binance Changpeng Zhao (CZ) had stated that every user will be able to participate in ICO projects on the network, paying with BNB tokens. And everyone can issue his own tokens, listing them on DEX independently, trade and exchange for other cryptocurrencies.
Binance Chain has already shown good performance – a block in 1 second plus one confirmation to finalize the transaction. Not surprising that Binance imitators appeared right there, as it was with the Launchpad for IEO earlier.
OKEx crypto-exchange announced that it had started developing its own blockchain OKChain. The decentralized exchange will be called OKDEX. And its own token is OKB. Everything is standard. The token is first released on Ethereum blockchain according to ERC20 standard. And later it will be moved to own blockchain. Testnet is promised to be launched in June.
Meanwhile, Binance first announced DEX development a year ago. Beta was shown in early August 2018. The development of a decentralized exchange platform is a hard process. Is it worth it?
Definitely it is. Decentralized exchanges have fabulous advantages, the most important of which is resistance to hacking. You can have now a long list of centralized exchanges that had been hacked.
Both exchanges and users suffered. DEX does not have a central platform – it is nothing to hack. Money remains in the accounts of users. In addition, decentralization means anonymity. But there are some difficulties too.
DEX is a technically more complicated solution, there are problems with high speed, they still have low liquidity. Our experts also note that the DEX interface is less user friendly.
The last remark may not be justified with Binance. CZ tried to make the interface similar for both exchanges – centralized ad decentralized.
LATOKEN outperforms Binance
Recently, the beta version of DEX is launched by Latoken. The company stated: LATOKEN has released a beta version of LADEX – an open source, fully decentralized peer-to-peer exchange which is cheaper and faster than all other players in the market!
LADEX aims to eliminate the custody problem in asset trading, making it as fast and convenient as the centralized analogs.
Obviously, the competition of exchanges in their struggle to attract funds from users is growing. And by launching their own blockchains, the exchanges are knocking out the ground from under Ethereum. This doesn’t promise a quiet development of the market. But this promises a great evolution in crypto.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.