The world of cryptocurrencies is now moving from centralized exchanges to decentralized exchanges. Crypto enthusiasts have often criticized the single-point-of-failure architecture used in these platforms as it makes their funds vulnerable to security breaches and coin robberies. Using decentralized ecosystems for trading digital currencies could help in making funds more secure. Following a similar idea, Bitfinex-backed Ethfinex is set to bring more control to the users while trading digital currencies.
What Does Ethfinex Change?
In a new blog post, Ethfinex suggests that cryptocurrency exchanges create a gateway for the traditional financial world to connect with digital assets. They maintain liquidity of the tokens, but “we must trust them with control of our currencies and personal data — the very things blockchain promised to help us regain control of — and because of this, these exchanges have also gained a disproportionate amount of power.”
The exchange further suggests that withdrawals and deposits are very frustrating, and several breaches and hacks continuously target exchanges. Ethfinex Trustless, however, is touted as the medium to regain control from centralized exchanges. The exchange does not have signups or delays in withdrawals or deposits. Moreover, the platform doesn’t become the custodian of these coins. Users get control of their deposits and orders, to happen on a highly liquid off-chain order.
What Makes Ethfinex Different?
Ethfinex will be using the Bitfinex order book, which will help in creating a seamless trading experience on the platform. Bitfinex is one of the biggest crypto exchanges in the world with high liquidity and low-spread order books that could be utilized by Ethfinex users. It also allows trading via crypto wallets Ledger, Trezor, Keystore and MetaMask, helping build anonymous, trustless and high-liquidity trading ecosystem for 57 Ethereum-based tokens.
The exchange also offers instantaneous trading on all order executions. The off-chain order matching system helps in reducing long waiting times associated with centralized exchanges.
Traders will be distributed Nectar (NEC) tokens on a monthly basis, which will help in community governance and the operation of the exchange. For the first two weeks, users will have to hold at least one NEC token in their Ethereum wallet in order to trade. Initially, trading will be available in three cryptocurrencies and their pairs, namely Ethereum, OmiseGo and 0x. After the first week, the exchange will add over 40 tokens.
Bitfinex’s Ethfinex Trustless Introduces Itself to the World was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.