Hybridization model of Digitex futures cryptocurrency exchange
Introduction
The idea behind the development of cryptocurrency and blockchain technology is to take power away from centralized entities such as banks via the process of decentralization. In decentralization, all transactions are validated by a distributed group of miners instead of a centralized entity that can alter and manipulate these transactions. However, the idea of decentralization which has been made possible with cryptocurrency has not been fully achieved with the existence of cryptocurrency exchanges.
The Problem
Centralized Exchanges
More than 70% of all cryptocurrency trades are being carried out on centralized exchanges. Although, centralized exchanges are well known for being scalable when it comes to matching trade orders, fast and reliable servers, and server privacy which prevents frontrunning of large orders. But they are also known for their many disadvantages such as high trading commission fees, issue of trust as regard to insider trading info, having to register KYC and security issues. On centralized exchanges, users funds are being held by the exchanges, which simply means that all users on centralized exchanges entrust their funds to the exchange. Users funds which are entrusted to the exchanges are kept on the exchange and could be hijacked by hackers as we saw in the case of Mt.Gox hack in 2014.
Decentralized Exchanges
Since the Mt. Gox hack back in 2014, decentralized exchanges have been said to be the future of cryptocurrency trading platforms because of their many advantages. Decentralized exchanges are highly secured since users funds are kept on the blockchain and not held by the exchanges. Decentralized exchanges also ensure the privacy of their users as it doesn't require them to register KYC. Despite its many advantages, decentralized exchanges still have their own flaws such as lack of privacy on-chain which will lead to frontrunning of large orders, issue of scalability of on-chain transactions and on-chain transactions which can be expensive.
Combining the advantages of both centralized and decentralized exchanges and eliminating the disadvantages, a new truthful cryptocurrency exchange came up with the idea of hybridization model of combining the strong security and privacy of decentralized exchanges with the reliability and speed of centralized exchanges.
Digitex Futures Exchange Model
The digitex futures exchange is a hybrid exchange which combines the security of storing users funds on an independent smart contract on the Ethereum blockchain with the scalability of matching orders of decentralized and centralized exchanges respectively. This hybrid mechanism of centralized matching orders with decentralized account balances solve most of the problems experienced by purely decentralized exchanges.
Other benefits of Digitex futures exchange
In addition to the high level of security and scalability of Digitex futures exchange, there are others breathtaking benefits attached to using digitex futures exchange, but I will mention a few.
The digitex futures exchange is a free commission exchange which doesn't charge traders for any transaction made on the platform. Digitex already achieved this by creating its own native currency (DGTX token) which will cover all costs on the exchange.
Unlike centralized exchanges, Digitex cannot freeze or seize traders funds even when there is pressure from regulatory authorities since the funds are not held by the exchange.
One of the problems faced by purely decentralized exchanges is poor liquidity. Digitex futures exchange, with 150K users on their waitlist solves this problem with the implementation of centralized servers which can handle thousands of transactions at a go.
Digitex also ensures complete privacy of its users. Digitex doesn't require the registration of KYC for it to be used.
Digitex cannot mismanage users funds by using users funds for other purposes because Digitex is not in possession or in control of their users' private keys.
Unlike purely decentralized exchanges which lack advanced trading tools, Digitex futures exchanges included all advanced trading tools including setting stop loss. Also, the simplicity of Digitex is amazing as the buy and sell orders are just a click away.
Exchange Launch
The Digitex futures exchange launch is stated to take place at the end of the fourth quarter (Q4) of 2018. But the first live version will be presented at the Malta blockchain conference by Adams Todd the CEO of Digitex exchange. I will make the announcement in my next post about Digitex exchange.
Join and earn DGTX tokens
There are over 150k registered users on the waitlist of Digitex futures exchange which is an indicator for the success of this project. You can also join the waitlist and stand a chance of winning 1,000 DGTX tokens worth of $35+. Click here to signup for the Waitlist.
Conclusion
The hybridization model implemented by Digitex futures exchange is certainly the solution required to solve the problems faced by centralized and purely decentralized exchanges making Digitex stand out as the future of cryptocurrency trading platform.
https://mobile.twitter.com/Donefezy/status/1049159367277367297
https://www.reddit.com/r/BlockChain/comments/9mboai/hybridization_model_of_digitex_futures/?utm_source=reddit-android
https://www.instagram.com/p/BoqKp1ulFE2/?utm_source=ig_web_copy_link
https://m.facebook.com/story.php?story_fbid=1853712014694216&id=100001663065373&ref=bookmarks
https://steemit.com/bitcoin/@tysler/wall-street-institutions-say-bitcoin-prices-already-bottomed#@horpey/re-tysler-wall-street-institutions-say-bitcoin-prices-already-bottomed-20181008t065910661z
https://steemit.com/crypto/@steemero/cryptocurrency-is-unique-and-gives-absolute-freedom-why-crypto-still-not-widely-used#@horpey/re-steemero-cryptocurrency-is-unique-and-gives-absolute-freedom-why-crypto-still-not-widely-used-20181008t064204038z
I absolutely believe that decentralized exchange is the future of crypto exchange. And that is one of the amazing features embedded in the digitex platform.
This exchange would definitely chart a new course in the crypto space.
Thanks for sharing
Thanks for stopping by and don't forget to join the waitlist 😉
Too bad trading exchanges are centralised. About Mg.tox I held from @neoxian yesterday that someone lost 500btc from that exchange, that must be devastating.
With digitex solution to make trading exchange decentralized, I like the fact that we will be the bank of our coin on their exchange.
Also it's worthy to note that all transaction are free, all Thx to their token which will be used to pay the fee.
I did their just ended 5000 steem bounty task and was paid. They are truly reliable to me.
Long Live digitex as they launch!
Nice write up horpey
Thanks for seeing the awesome future of Digitex cheers 🍻
My pleasure
So it is half centralised and half decentralised!
This hybridised model looks promising.
Yes bro! Thanks for stopping by.