Blockchain technology is widely recognized to have game-changing advantages over other existing systems. User-controlled networks, immutability, speed, transparency, reduced fees and decentralized nature are the most crucial reasons why it is considered as the most important development in security and efficacy.
The dramatic surge in the valuation of cryptocurrencies is highly impelled by the understanding of how fundamentally these benefits can change the way we run the world. With so much of information available on the Internet, many hedge for what the future may look like through cryptocurrencies.
Regardless of the promises of blockchain technology, the marketplaces in which cryptocurrencies exchange owners do not live up to them, far from it actually. Since the start, buying cryptocurrencies is often stressful and no doubt, the biggest culprits are the marketplaces themselves.
The Problem
All big cryptocurrency marketplaces are presently centralized exchanges. These cryptocurrency exchanges are the most vulnerable to the problems that blockchain technology stands to solve. As they are centralized in nature, these cryptocurrency exchanges are susceptible to corruption with the lack of legal framework they have enjoyed over the years.
It comes as no surprise that most of the big exchanges have lost customer funds to hackers and involved in a lot of scandals like poorly handling recovery from hacks and Denial of Service attacks, imposing unfair recovery programs on its users, insider trading and market manipulation, shutting down accounts without any notice, unresponsive and slow customer service, flash crashes that wipe away customer’s wealth in seconds, recurrent website malfunctions when market prices go high and scalability issues.
Even worse thing is that the companies behind these centrally run marketplaces have true ownership of the cryptocurrency and very well someday just vanish with everyone’s funds without any chance of anyone ever getting them back. Ranging from mild to severe, the nature of centralized marketplaces leaves our funds vulnerable and despite all the security and efficacy, we stand to lose so much every step of the way.
We need to take an important step towards improving the conditions for entering into the cryptocurrency world. We really need a place where exchange of digital currencies represents the blockchain technology. We need exchanges that are controlled by the users, immutable, transparent and where the cost and speed of transacting is fast and cheap. To sum up, we need de-centralized cryptocurrency exchanges.
The Solution
Enter the second-generation de-centralized exchanges like Aphelion, developed on more secure and scalable blockchains and capable of Atomic Swaps. Aphelion which is both a DEX and wallet is built on the NEO blockchain as a decentralized cryptocurrency exchange development. It strives to be amongst the pioneers of DEX residing completely within a blockchain, requiring an open source user interface to trade digital assets between other blockchains.
This is accomplished through Atomic Swaps that allow cross-blockchain transactions without the need of vulnerable intermediaries. The role carried out by centralized exchanges or smart tokens as it is with current DEX’es.
Atomic Swaps have been slow to develop and need extensive coding for each and every blockchain. Lightning Network makes it possible for Bitcoin-derived cryptocurrencies and a swap has been initiated between Bitcoin and Ethereum. To become a complete cryptocurrency exchange platform through Atomic Swaps, Aphelion planning to step up the game by a mile and bring this capability to other blockchains.
Aphelion further endeavor to enable cryptocurrencies to exchange owners as blockchain intended. Users retain the control and exchange their cryptocurrency peer-to-peer on the native blockchains, privately and safely via a third party exorbitant fee. Furthermore, the NEO blockchain promises scalability and speed not witnessed so far in DEX’es.
It is pretty much clear that moving away from centralized exchanges will benefit not just the users but the cryptocurrency movement itself. Aphelion like projects is a priority that everyone in the crypto arena should support and help develop the exchange platform.
