If you are familiar with the cryptocurrency ecosystem, you will observe that most of the successful exchanges are centralized. This presents a fundamental problem since cryptocurrencies are designed not to rely on third-parties in order to establish trust, just direct transactions, peer-to-peer, between the participants within the network. Many of the centralized exchanges have been subject of security breaches, even the most reputable ones such as binance. Centralization of crypto-exchanges poses a security challenge (among others challenges) and can represent arguably be one of the most important point of failure to cryptocurrencies. Subject to Government shutdowns in some locations, exit scams/exchange liquidation (Bitsane, Qudrigo, Mt Gox etc)with billions of dollars loss. There are many decentralized exchanges currently,but they are not able to meet current challenges hence the recent clamor for more effective decentralized exchanges
In this article, we will consider briefly three main points : the challenges of the current decentralized exchanges, What BankDex is and why BankDex is different from others,Finally; why you should support the development of BankDex.
The Challenges of Current Decentralized Exchanges
Inspite of the many advantages of decentralized exchanges over the centralized ones, they are often not an option for many traders because of the myriad of problems that plague most of the current decentralized exchanges.Some of these challenges are enumerated below
- Low Liquidity : This is a direct consequence of low patronage especially when compared to their centralized counter-parts. The resultant effect is that there is always a huge spread between buy and sell orders.
- Terrible User-Interface : Try introducing a newbie to using a decentralized exchange, they are likely to get confused.The UI are often not friendly.
- Limited Wallet Support: Many decentralized exchanges are often based on a single blockchain (e.g Ethereum Network, EOS Network) and there is limited support for tokens of other blockchains. Limited Speed of Transactions: This often results in delays in executing trade orders or incorrect or outdated information being displayed on the trader dashboard.Such lags are very undesirable for especially for a professional traders where every seconds is critical to making a trade profit.
- High Fees : High transaction and withdrawal fees make many decentralized exchanges undesirable for trading especially for smaller volumes.
- Security : While security challenge is more prevalent in centralized exchanges, decentralized exchanges are not totally immune to this, there can be vulnerability in the code base that can pose a challenge to users.
- Lack of Fiat Exchange : This is a more significant problem for users who would want to exchange their tokens directly into cash.
- Limited Features : There are limited tools available to traders available to traders
If decentralized exchanges are to be more accessible to all, there is need to improve on the current state of things. This is one of the main thrust of the BankDex team, towards a better decentralized exchange. Now we take a look at what BankDex is proposing
BankDex- What is it about?
BankDex is a decentralized cryptocurrency exchange built on the unique technology that allows inter-chain transfer of cryptoassets. BankDex makes it possible to make transactions across different blockchains.It therefore attains an advanced niche among decentralized exchanges. BankDex employs the use of Smart contracts to execute every of it operations and is built around the core principles of :
Here is something new, users can now trade cash, bitcoins as well as other blockchains like EOS, Tron, EOS etc on the same platform, something that was exclusive only to centralized exchanges. BankDex is leveraging on some of the best features of centralized and decentralized exchanges into its platform.
Why BankDex is different?
BankDex is building something innovative that will make it standout from the myriads of decentralized exchanges already in existence and possibly drive a new wave of traders towards using decentralized exchanges. While the project is still in development, here are a number of features I find very amazing with BankDex and I think you should consider to