Popular cryptocurrency trading platform COBINHOOD has announced plans to launch a new decentralized exchange platform (DEX) with financial backing from IDG Capital.
From CEX To DEX
Cryptocurrency exchange COBINHOOD recently released plans for a brand new decentralized cryptocurrency trading platform called DEXON. This new project has significant financial backing from investment firm IDG Capital, which currently handles over $20 billion USD in assets.
DEXON aims to become a big player in the banking industry and newly emerging decentralized application (dApp) ecosystem. The DEXON team is boasting an infinitely scalable architecture through a block latticed data structure, in which multiple blockchain systems work together in parallel. This system allows for much quicker transaction speeds than traditional linear blockchain systems.
According to DEXON’s roadmap, it aims to launch it’s consensus engine in Q4 of 2018, with a mainnet going live in Q4 of 2019.
DEXON founder Popo Chen strongly feels that speed is a top priority in the successful implementation of blockchain technology, stating:
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.
Centralized Vs. Decentralized
Decentralized exchanges differ from centralized exchanges in that users do not need to entrust their cryptocurrency to third parties, and may instead trade them in a peer-to-peer system — thus removing the “trust” factor.
The advantages of decentralization are a system that is more secure and anonymous while having lower or no fees on transactions. Many high volume centralized exchanges are currently racing to create decentralized platforms.
In March, cryptocurrency exchange giant Binance announced plans for a decentralized exchange platform.
Similarly, just yesterday, the popular Asian based exchange Huobi, whose cryptocurrency exchange is currently in the top three by volume traded, announced the launch of the Huobi Chain Project — along with 100 million USD in funding to build “a next-generation self-regulating and decentralized financial platform.”
Competition is sure to be fierce in the decentralized exchange sphere. Companies like DEXON, Binance, and HCB, will need to focus on security, speed, and interoperability as their top priorities if they are to succeed.
Are you looking forward to utilizing any of the new emerging decentralized exchanges? How do you think DEXON will fare against its competitors? Let us know in the comments below!
Images courtesy of AdobeStock.
