Decentralized Exchanges Will Be The Future of Cryptocurrency Trading
Posted By : Chandan Lunthi | 04-Jan-2018
As of now crypto coin market has reached $700 billion, so exchanges are the places where the coin and really currencies get interchanged and vice versa. Exchange owner keeps the data on the behalf of the user and makes them trust that their data and their money is saved and secured by them for this they charge money and commission. But keeping trading exchange will always have security risk as these are very highly used by the customers and always been in the target of the hacker.
As we already know that blockchain itself is behind technology for the cryptocurrencies like bitcoin, litecoin, ethereum etc. So what if we can make same technology to use to build trading exchange to make them secure from hackers, data lost, highly available and produce immutable data. The only problem is with these exchanges is that liquidity, as of now these are not conventional exchanges so liquidity is very less compare to traditional one. But soon these have to migrate to decentralized platforms to make things more secure so we don't have a single point of failure.
This can open doors for the real-life business application to use the power of blockchain technology in real. Using or taking reference from these platform one can try to replicate such solution to there business application to make them very secure, risk-free, cost-effective, scalable, maintainable and useful.
Here are some of the popular decentralized trading exchanges which are using similar concepts and can be used for the reference.
Bitshares is most popular decentralized trading exchange with has the daily volume around $6 million. It also provides developer guide to build things on these platforms. It uses some interesting concepts like a smart contract, fiat currency, and asset exchange.
Open ledgers are built upon bit shares and serve on bit shares blockchains. It has a good community and has around $3million volume daily.
The counterparty is decentralized exchanges which use bitcoin blockchain and its protocol works as decentralized escrow services. Its daily volume is around $3000.
Technology used: Java
There is another decentralized application too working on and quite famous. We at oodles create very highly scalable, cost-effective decentralized application for our customers business needs. Our team is doing continues research on this to make blockchain technology to integrate with real-time business need.