WaykiChain(WICC) Decentralized Exchange is Coming Soon, Stay Tuned!
As one of the significant breakthroughs in the industry application prospects and actual scenarios, WaykiChain decentralized asset exchange will be released together with WaykiChain stablecoin WUSD in the near future!
The decentralized asset exchange built on WaykiChain will not only inherit some of the advantages of the traditional centralized exchange, carry the same large transaction volume as the traditional exchange, but also address the industry pain points that are prevalent in centralized asset exchanges.
So, what are the pain points in centralized exchange industry? And what are the business solutions of WaykiChain decentralized assets transactions?
Pain Points in the Global Centralized Assets Exchange
(1) Traditional centralized assets exchange’s security risk
The traditional security market is developed around the exchange. The transaction system in the exchange guarantees the normal procedures of all transactions. Once the system is attacked or doesn’t work, the whole network may be compromised, and all transactions must be halted. When the centralized assets exchange suffers loss because of outside malicious attacks, all users on the platform normally suffer. Famous examples include Mt. Gox, MF Global, and Bitfinex exchanges. Users must bear the loss when the exchange is attacked by hackers or the exchange goes bankrupt; Sometimes, the inside job occurs.
(2) Unfairness of traditional centralized assets exchange
Because users’ transaction information is visible in the exchange, the scandals of insider trading in major exchanges can be seen frequently. Besides, the transaction speed is not very fast in the exchange. If some traders can always execute their transactions more quickly, they can gain benefits by means of computing advantages and transaction proceeding speed, which is called high frequency transaction. This is very unfair to other traders. And to compete for faster transaction speed requires more investment, hence increasing the cost of transaction.
(3) Rules limits in traditional centralized assets exchange
In traditional centralized assets exchange, such as NASDAQ, and in the emerging digital currency exchange, such as Coinbase, users are required to follow the rules as stipulated by the exchange, including limited trading time, quota of cash withdrawn every day and even the proof of user’s assets income as required by some exchange.
Moreover, the assets products that can be traded in traditional exchange are limited too. The traded assets registered within the exchange must pass various kinds of inspections and supervisions, which causes legal compliance costs and time cost as well. Many quality assets are thus refused to be traded by the assets market.
(4) Time cost and high transaction fee caused by traditional centralized assets exchange
The foreground system in the exchange is responsible for matching transactions, while the background system is responsible for settlement and delivery. There are many procedures and links in the two systems, which leads to time and fund cost. Moreover, according to rules, real time settlement cannot be made on the date of transaction, which also brings about potential risks to assets.
Business Solutions of Decentralized Assets Transactions
The blockchain technology helps to realize the concept of the decentralized assets exchange. The decentralized assets exchange built on WaykiChain system will inherit all the functions of traditional centralized assets exchange, such as stock trading, rare metal trading, commodity trading, etc. The decentralized exchange can not only bear the load of the same or even bigger trading volume compared to the centralized exchange, but also solve the pain points that are common in centralized assets exchanges.
Firstly, blockchain technology utilizes many distributed nodes and high-performance servers to support peer-to-peer networks. The overall operation will not be affected by attacks or problems on some nodes, which will increase the high availability of asset transactions.
Secondly, decentralization of blockchain technology means that no stakeholder groups or organizations can control decentralized exchanges, thus keeping their justness, fairness, openness and transparency. At the same time, users don’t have to worry about the credit of the exchange, because the object of trust has transferred from traditional centralized organizations to blockchain smart contract.
WaykiChain decentralized assets exchange empowers users so that they don’t have to worry about the time and high cost in traditional centralized assets exchanges. The blockchain technology can simplify and automate lengthy trading procedures, so that assets publisher and investor can trade with each other directly, reducing interactions between the foreground and background and save a lot of manpower and material sources. Moreover, the limits often seen in traditional exchanges do not exist in decentralized exchanges. Users can trade at any time freely. Cash withdrawal is not limited, every user has full power to dispose his properties.
WaykiChain decentralized assets exchange adopts blockchain technology’s consensus algorithm, irreversibility and distributed ledger, so it can help traders share data easily. Every user’s transaction is recorded in block browser and cannot be altered. Meanwhile, the exchange allows anonymous transaction. Users don’t have to worry about that their information will be spied by others or the dealers will trade against users due to their information advantage.