Cryptocurrencies are all the rage today. These currencies are perceived generally as secure, and in addition, it is impossible to counterfeit them. The consensus among investors and industry analysts… Click HERE to find out ⭐ Bithumb Announces Integration With Blockchain-Based Digital ID Organization MyID Alliance. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more. The Binance cryptocurrency exchange has gone offline due to an issue with its DNS provider
Cryptocurrencies are all the rage today. These currencies are perceived generally as secure, and in addition, it is impossible to counterfeit them. The consensus among investors and industry analysts is that crypto will continue to evolve, eventually becoming the de-facto standard for trade the world over. Its security features and accessibility are two of the main reasons why crypto is predicted to eclipse traditional forms of currency.
This ongoing explosion in the prevalence of crypto necessitates a corresponding increase in cryptocurrency exchanges to facilitate their buying, selling, and trade. In order to establish well-established trading, a cryptocurrency exchange usually supports upwards of 20 different currencies. There are two major types of cryptocurrency exchanges that this article will be exploring. They are centralized and decentralized exchanges, respectively.
A centralized cryptocurrency exchange functions as a modern-day bank. They are owned and are generally safe and well-regulated. These exchanges, however, are not without their drawbacks. Currency stored in a centralized exchange can be susceptible to compromise, as currency stored by a third-party is ultimately not yours. These centralized exchanges are also prone to be hacked as they function around a concentrated point of failure, control, and/or regulation. It is a lot easier to gain control over something once you know where a major part of it is concentrated. What’s worse is the fact that the entire exchange can disappear overnight.
Decentralized exchanges, however, firmly establish you as the owner of your currency. There are usually no elaborate registration or KYC requirements for decentralized exchanges. Withdrawals and deposits are not necessary. P2P transactions are managed by programmatically, secure smart contacts. One of the primary advantages that decentralized exchanges have over centralized exchanges is that they do not function around a concentrated point of control and/regulation. This drastically reduces their vulnerability to compromise, in comparison to centralized exchanges.
Decentralized exchanges facilitate trade in such a way that currencies are exchanged from and in between user wallets, over wallets operated by the cryptocurrency exchange. It is not unusual for these exchanges to offer escrow services in order to ensure that fraudulent activities do not take place.
- To exchange their assets with some other assets that are available on DEX, the owner of the token places an order.
- Following confirmation of a selling order, other users can enter bids by indicating a buy order.
- Upon expiration of the time set by the seller, the bids are reviewed and executed by the owner and buyer.
- Using your wallet address — login to blockchain decentralized exchange
- You enter a sell or buy request
- The transfer of assets is completed upon execution of smart contracts
- You disconnect
The fact remains that decentralized cryptocurrency exchanges have not picked up in popularity, quite yet. Coinbase, Bittrex, and Binance are examples of popular centralized exchanges; centralized exchanges are dominant in today’s scene, being responsible for 99% of total cryptocurrency transaction volumes.
We just took a brief look at decentralized vs centralized exchanges, and some of the benefits and drawbacks associated with them — in addition to gaining basic insight on how they function. The following criteria also need to be considered when evaluating decentralized exchanges.
When using conventional platforms, customers have to pay a per-trade fee. In centralized exchanges, a set percentage of the fee is charged for every transaction. The setup in a decentralized exchange can be compared to the per-trade fee concept.
As specified earlier, elaborate registration processes and KYC requirements are not a part of decentralized exchanges. This anonymity, in addition to simplifying, permits access to utilities that are usually unavailable.
Unlike centralized exchanges, decentralized exchanges provide owners with complete control/authority over their assets.
Price discovery becomes difficult to achieve without liquidity. This is one of the prime arguments against decentralized exchanges.
As crypto grows into its own, cryptocurrencies have to assume center stage in the ever-expanding crypto ecosystem. The choice between centralized and decentralized exchanges completely boils down to personal preference. With decentralized exchanges, a greater degree of accountability is required to protect your assets.
Decentralization is poised to introduce a new world, a world without boundaries.
Author: Scott Macy
Bithumb Announces Integration With Blockchain-Based Digital ID Organization MyID Alliance
South Korean cryptocurrency exchange Bithumb announced on Tuesday it has integrated with blockchain-based digital identification organization, MyID Alliance. Bithumb claims it is the first Korean virtual asset exchange to implement the distributed identification (DID) service performed by the organization. Bithumb Korea will notably participate as a Growth Partner. The exchange stated:
“MyID is a blockchain based authentication platform which assists users in bypassing the tedious procedures involved with submitting proof of identity by storing identification data in personal devices, and retrieving select data at the time of authentication. In addition, MyID is built on blockchain and biometric authentication technology, thereby enhancing security.”
Bithumb further explained that the MyID Alliance consists of nearly 60 partners, which range from large corporations including Samsung Electronics and Posco, as well as financial entities such as Shinhan Bank and IBK Bank. A Bithumb rep formerly revealed the partnership with MyID Alliance for distributed identification (DID) allows for streamlined personal IDing and authentication, reinforced security and improved convenience for virtual asset trading. They then added:
“Moving forward, the company will keenly adopt innovative blockchain and IT based solutions, as it evolves into a comprehensive, digital finance platform.”
Bithumb is a digital asset exchange that was launched to meet the “diverse needs” of users from around the world. The platform uses deep resources and technology to provide a range of services, including digital asset exchange, digital asset issuance, blockchain project incubation, and decentralized financing.
Author: Samantha Hurst
Crypto Exchange Binance Goes Offline. Here`s What Happened
The Binance cryptocurrency exchange has gone offline due to an issue with its DNS provider
Binance, one of the leading cryptocurrency exchanges, is currently offline.
According to a tweet posted by Binance CEO Changpeng Zhao, the downtime was caused by an issue with their DNS provider.
Back in May 2019, the exchange suffered a $40 mln hack due to a security vulnerability.
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.
Author: Wed, 04/15/2020 – 13:22