DAEX : Clearing Ecosystem For Digital Assets

The blockchain technology with cryptocurrency that stands on it is a big revolution in the digitalization of the world economy. Both from the side of the currency to the transparent ledger recording system that can be seen by anyone anytime and anywhere. Since it was first introduced until now, blockchain has grown rapidly with a total market capitalization of up to 300 billion USD. This time I will introduce and discuss it with you about a blockchain developed by a company called DAEX. Clearing companies that have been operating for months and tokens can be traded on several exchanges such as Indodax, Tokenomy, etc. They plan to launch the ICO in September. Let's look at the information about them below.

About DAEX

Simply put, I think DAEX provides a combination of decentralized exchange (security and safety of their assets) and centralized exchange (volume, liquidity, user experience). Furthermore, DAEX strives to provide services that will solve problems that arise and are attached to centralized exchanges, that is, users store and manage their own assets without auditing from the public. The solutions they offer are quite numerous and complex, including building their own chains to process clearing assets (deposits and withdrawals). This time I will discuss the problem they want to solve first.

So what are the problems they want to solve?

Decentralized exchange is indeed very good in terms of security, but they are also not so perfect. As individual traders, conducting trade activities in decentralized exchanges is not as easy and unpleasant as in a centralized exchange. In terms of speed, it can be said to be slow, errors in smart contracts, high costs, etc. Although our assets are technically very safe because they are stored on smart contracts, the costs we incur are very large when trading activities compared to using centralized trading services (when activities on smart contracts are very crowded, you can spend up to 10 dollars per transaction that you run ) This might be done by large class traders. For the middle level down this is something that is very detrimental.

Not only that, decentralized exchanges are usually slow because they do not have the right infrastructure to serve many traders at the same time. Some of them experience transaction rejections when high latency. There are some who have to be patient to open their site.

The next problem with decentralized exchanges is that you can only trade coins or tokens that use the same blockchain base. Almost all exchanges are decentralized using the ethereum blockchain. So finally you still have to use a centralized exchange to trade between blockchain bases, for example from the ethereum blockchain to doge or waves blockchain and so on. You can read more about decentralized exchanges in the following article.

Centralized Exchange Issues

Now let's discuss about centralized exchanges. Those who provide centralized exchange services especially those included in the top 10 have a high level of liquidity and volume, infrastructure that is very supportive for fast trading and so on. So, what weaknesses or problems do they have or face?

First and most important is the security of your assets. If you want to conduct trading activities on a centralized exchange, you must deposit your assets with them before you can trade them. However, in terms of security and safety, your assets are not yet guaranteed because there are already many centralized stock market news hacked. Why is that? because centralized exchanges are almost like a website as usual which might be hacked when it has weaknesses.

The next problem is the possibility of volume manipulation. There are several exchanges that are accused of manipulating trade or counterfeit trade to increase their daily volume. Simply put, they create fake liquidity to attract traders to use their services.

Reading from the above review it can be concluded that we need an exchange service that can separate trade between clearing (deposits and withdrawals) to ensure the security and safety of our assets but at the same time we can enjoy fast exchange services with large volumes as well as centralized exchanges . This is where DAEX comes in to provide solutions to the problems above and the wishes of many people by offering a platform that provides separate services between trade and clearing. What are they like and how? See you in my next article about them. Hopefully useful and thank you for visiting. Don't forget to check their link for further information that I will share at the end of this section.


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