The cryptocurrency exchange niche looks like is moving away from centralised exchanges. In the latest development, Bithumb introduces new DEX platform built on Ethereum blockchain network. According to Bithumb, the new decentralised exchange (DEX) comes with one month worth of free transactions and an airdrop event.
Bithumb will deliver the new platform with input from One Root Network. In addition, the decentralised exchange will make use of the R1 protocol. The Ethereum-based decentralised trading agreement is the brainchild of One Root Network.
Sharing liquidity and relevant data
Basically, the protocol separates order matching and order execution. The protocol will allow the new DEX together other R1-basedexchanges share liquidity and other relevant data. This implies the presence of a large liquidity pool at the disposal of the new exchange, the BitcoinExchangeGuide reports.
At the root of a decentralised exchange is the inability for hackers to get access to user accounts. This is quite a relief since cryptocurrency exchanges are at risk of rampant cybercrime. As of now, close to $1 billion in investor cryptocurrency disappeared from exchanges due to hacking activity. Interestingly, Bithumb is a recent victim with a major hack in June, 2018. Hackers made way with approximately $30 million in cryptocurrency.
More security certainty as Bithumb introduces new DEX platform
Particularly, decentralised exchanges put users in charge of their own money. This is to say that users hold their cryptocurrency all the time. Since the platform utilises a peer-to-peer (P2P) framework, users do not have to entrust their crypto to third parties.
The movement to decentralised platforms seems to be becoming a trend. According to Sludgefeed, Bitfinex launched two DEX platforms, EOSfinex and Ethfinex Trustless. Based on EOS blockchain and Ethereum blockchain respectively, the exchanges offer more security.
Furthermore, Binance will release its own DEX platform built on its very own Binance Chain blockchain platform. Therefore, as Bithumb introduces new DEX platform, it joins industry peers in a journey that promises more trust in exchanges. The exchanges will finally be able to guarantee deposits security for investors’ funds.