Exchange Matrix, the Future of CEX
In Feb. 2018, the official website and white paper of the BIT.GAME project as the first blockchain game exchange project in the world were published. We can perceive the future trend of the centralized exchanges from this project.
Now there are more than 7,000 digital token exchanges in the world, wherein more than 95% exchanges are the centralized exchanges. The centralized exchanges are superior to the decentralized exchanges in the user experiences such as transaction rate and transaction cost, but the security of the centralized exchanges is inferior to it of the decentralized exchanges. Distribution of transaction users and scale makes global digital token exchanges face to some problems such as insufficient transaction depth and lack of mobility, including some mainstream transaction pairs such as BTC/ETH, BTC/USDT, and ETH/USDT.
To view K line graphs of mainstream transactions of any exchange, if the long upper shadow or long lower shadow frequently occurs, it indicates that this exchange includes some severe problems in transaction depth and mobility.
E.g. for OKEX, the ETH/USDT transaction pair instantly fell to the ratio (1ETH=0.002USDT) on Jan. 14.
When the market price experiences big movements, most of the exchanges are difficult to charge and withdraw the tokens due to internal control mechanism triggered by mobility problem.
The exchange service solution EaaS (Exchange as a Service) provided by the BIT.GAME project aims to solve the pain points of insufficient transaction depth and lack of mobility and provide the front-end exchange entrance deployment and back-end technical support service for the traffic entrance, project entrance, and platform entrance in the ecology of the blockchain.
EaaS can help all parties in the ecology chain of the blockchain establish exchanges to share the transaction depth and mobility in an innovative manner and explore the new development pattern of the centralized exchanges.
All exchanges sharing the transaction depth and mobility will compose an exchange matrix, which is managed via the intelligent contract called as Main Pool. Each exchange in the matrix will store certain margin in the Main Pool.
Exchange margin = margin coefficient * daily average transaction amount of exchange (average in 7 days)
The intelligent contract of the Main Pool is composed of two aspects:
Transaction amount monitoring in the clearing cycle: total turnover from this exchange shall not exceed 120% of the 7-day average transaction amount of this exchange in single clearing cycle. Otherwise, the margin shall be added. If the margin is not added, the transaction depth and mobility sharing will be broken.
Transaction amount monitoring in the time cycle: the total transaction quota from this exchange shall not exceed 100%/25%/10%/2% of the margin amount in the unit time(1Hour/15Min/5Min/1Min). Otherwise, the margin shall be added. If the margin is not added, the transaction depth and mobility sharing will be broken.
Transaction amount monitoring in a single transaction: single transaction quota from this exchange shall not exceed 1/50 of the margin amount in single clearing cycle. Otherwise, the margin shall be added. If the margin is not added, the transaction depth and mobility sharing will be broken.
The members of the exchange matrix shall deliver the digital tokens by a certain period (6 hours). The exchanges, which delay delivery, will directly deduct the equivalent digital tokens from the margin.
The margin coefficient of this exchange will be determined by the qualifications and daily transaction amount of the exchange.
|Qualifications of exchange||Daily transaction amount||Margin coefficient|
The exchange matrix can be established based on the intelligent contract EaaS-Main Pool advocated in the BIT.GAME project, which can effectively connect global large-size, medium-size and small-size centralized exchanges and construct the new transaction platform with the maximal transaction depth and full mobility.
Official website: https://bit.game
Images courtesy of BitGame