We’ve all heard of cryptocurrency exchanges such as Coinbase, Coinmama, Bitpanda, Kraken etc. But there is one underlying problem with all of these exchanges. They are centralized. Hence, they are susceptible to hacks and users data and cryptos can be compromised or stolen. As we’ve all seen with the Mt.Gox exchange hack and more recently, the Bitfinex hack.
Decentralized exchanges will shape the future of cryptocurrency. Although centralized trading platforms are still very popular, they also pose major risks. DDEX is a decentralized solution which currently mainly focuses on Ethereum-based tokens. There’s some good competition in this particular space, and giving users more options is never a bad thing.
DDEX is an Interesting Competitor
It is evident there is a growing demand for decentralized exchange solutions. Although centralized platforms offer a major degree of convenience compared to their decentralized counterparts, most people dislike the idea of undergoing a KYC procedure. Additionally, centralized platforms control user funds at all times, which is not what cryptocurrency is about at its core.
Under the Hood of DDEX
DDEX positions itself as a potential contender in the world of decentralized exchanges. The team is confident their system will be as “secure as a Swiss bank account.” While that analogy sounds compelling, living up to those expectations is something else entirely. This platform heavily relies on Ethereum smart contracts, as well as the 0x protocol, which is an interesting combination that can prove to be rather powerful in the long run.
Moreover, DDEX aims to become one of the bigger liquidity providers for ERC20 tokens. Although other platforms are trying to achieve the same goal, liquidity can remain a big problem. This decentralized exchange solution mainly focuses on listing popular token pairs and allowing users to trade directly from their wallets. The concept is quite similar to sites like EtherDelta.
Perhaps the main selling point of DDEX is that it doesn’t involve a signup process. Since this is a DApp running on top of the Ethereum blockchain, users can remain anonymous at all times. It is even compatible with MetaMask and Brave for added anonymity. This latter functionality is something a lot of users will thoroughly enjoy, considering how popular both Brave and MetaMask have become in the past few months.
A Glimpse at the Markets
As of right now, DDEX offers a fair few trading markets. Although not all of them offer a ton of liquidity, it seems the EOSDAC, BRM, and HOT trading pairs are all doing quite well. There are still a fair few ERC20 tokens to be added to this list, though. It seems users cannot set up their own trading markets, which is a bit unfortunate, but perhaps that’s something that will change in the near future. This project is still in the early stages of development, after all.
The Future of DDEX
It seems DDEX also has an interesting “activity campaign” going on as of right now. Users can earn HOT tokens for using the platform and completing a transaction. It is a great way to get more people acquainted with this particular project, although it remains to be seen how long this bonus offer will remain in place. If DDEX can add more tokens in quick succession – or allow for some customization – this decentralized trading DApp can quickly gain popularity.
News piece courtesy of The Merkle