Let us be frank: the situation in the cryptocurrency market today leaves much to be desired. And we are not talking only about the ongoing “peak” of the majority cryptocurrency rates, and not even about the collapse of the vast majority of ICOs. We are talking about cryptocurrency exchanges.
On today’s platforms working with crypts, the most primitive manipulation schemes are flourishing (such as “pamps”, which haven’t been heard for twenty years on the stock market). Technical problems regularly arise on the exchanges, users often cannot withdraw funds to their wallets, and have to wait for technical support answers for several days. If you will get an answer at all. Here is also the full control of the exchange over customer funds, problems with platform security, strange commissions, suddenly charged without any warnings and so on.
While cryptocurrencies were growing up and it was possible to make hundreds of percent of profits a week in this market – no one care about these problems. Now people get over it. And it would not be an exaggeration to say that the problems of cryptocurrency exchanges are unambiguously among the factors that make “crypto winter” continue. Players with big money just do not want to enter the “muddy” market.
It cannot be said that they are not trying to solve the problem. Someone launches decentralized exchanges, but due to low bandwidth, they cannot adequately serve clients’ transactions. Someone is trying to get licenses of regulators and declares an increase in the level of security, but continues to tenaciously keep customers for money. But such a gradual improvement is no longer sufficient – too serious problems have accumulated in the market. We need revolutionary projects that break all stereotypes and set new rules of the game. And there is already such a project – Bistox Exchange.
The exchange uses a combined architecture: the cryptocurrency never leaves the users’ wallets and the transactions are made according to the peer-2-peer scheme, but at the same time, the entire functionality of the exchange works on centralized servers.
The exchange uses the NEM blockchain, which has outstanding bandwidth and supports atomic swaps. Coupled with the combined architecture, this allows Bistox to compete confidently in the speed of work with centralized platforms – the exchange engine is capable of processing up to 1.8 million transactions per second.
But we have already seen such semi-decentralized exchanges, and if Bistox was just a little faster than its competitors, it would not be interesting. For the first time on the cryptocurrency market, the entire internal workings of the exchange will be transferred to the blockchain (the same NEM blockchain). As a result, users will know about each step of the management of the exchange and will understand what they pay the commission for. That is called transparency.
However, Bistox also plans to use traditional methods to confirm its honesty. Every six months, one of the “big four” audit firms (KPMG, PwC, Ernst and Young, Deloitte) will conduct a full audit of the exchange, and the audit results will be published.
Also, the creators of the platform intend to undergo full licensing in several jurisdictions at once and ensure compliance with all regulatory requirements. On the one hand, all traders will have to undergo KYC / AML procedures. On the other hand, the control of regulators will make life difficult for fraudsters and significantly increase the safety of traders.
Additionally, traders’ funds will be protected by D.A.N.N.I. artificial intelligence, which will act as a consultant, giving advice on trading. It will adapt to the individual style of each trader, but will warn if a person tries to do something really stupid. However, D.A.N.N.I. will namely advise and warn – it does not have the right to forbid the trader to do anything.
Against this background, the 24/7 support center over the phone already seems to be a pleasant thing, although today’s market leaders cannot boast that way.
Bistox brings together the best features of exchanges “from different worlds” – the service standards of the oldest stock exchanges are added to the benefits of decentralization. Here is also full transparency and the latest achievements in the field of the development of artificial intelligence. The result is a trading platform that will be user friendly, safe and understandable both for beginners and professionals, and in the near future it will change the crypto traders’ perception how a good exchange should look.