South Korean crypto exchange giant Bithumb has announced that it will unveil its own Decentralized Exchange (DEX) by the end of October 2018. Developed in partnership with One Root Network (RNT), the additional DEX offers retail users additional safety features. With multiple hacking of crypto exchanges in South Korea – Bithumb & Coinrail, additional safety features come at an important time to boost investor confidence, particularly after bearish returns from investing this year.
Decentralized exchanges typically do not provide active customer care services. But they do offer considerably less trading fees as there is no third party matchmaking contract provider, instead this is done via smart contract. The importance of DEXs in the crypto community is widely acknowledged, with exchange giant Binance also set to release its DEX by this year’s end.
Previously Binance CEO Changpeng Zhao on DEXs:
“I believe that decentralized exchange is the future. I don’t know when that future will come yet. I think we’re at an early stage for that so I don’t know if it’s a year, two years, three years, or five years. I don’t know but we got to be ready for it.”
Previously Vitalik Buterin, Ethereum co-creator, on DEXs:
“I definitely hope centralized exchanges go burn in hell as much as possible”
There are numerous cases of delay in withdrawal of tokens by retail users from various crypto exchanges, believed to be a result of this low percentage backing of reserve tokens by the exchanges. Whenever too many people queue up for withdrawal of tokens to external independent wallets, settlements get delayed with the availability of the tokens on the exchange at that particular time.
Lastly and perhaps most importantly, DEXs do not allow exchanges to engage in fractional reserve lending with user’s tokens as the tokens are locked in directly by the smart contract and not the exchanges. This is in perfect sync with the greater motto of the crypto community of ‘become your bank’. For more on this topic, information and stories to enlighten, inspire and educate – please like, share our message and stay tuned. Don’t miss the future, The Future is Now!
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