Hackthons are events where tech minds come together to brainstorm ideas and come up with solutions to issues in their industries. Hackthons have always been there even before cryptocurrencies emerged.
However, in the past few years blockchain industry has not been left behind by this wave. Most of the blockchain hackthons have been in the form of contests that invite teams and individuals to come up with solutions of blockchain technology challenges. Coinbase, B2X. Hyperledger and Kharagpur are some of the platforms that have organized hackthons in the past.
The newest blockchain platform to announce a hackthon is Binance. The company via its medium account made the announcement on 16th March 2018. The hackthon will be called the Binance Dexathon, and its goal is to enable the development of Binance decentralization exchange (DEX) that will be used for the trading of cryptocurrencies.
The coding competition is set to attract talented programmers and experts in the blockchain technology platform. They will be expected to submit implementation protocols that will enable the establishment of a functional DEX. The company will accept external prototypes that will be a compliment to the internal research and development being done by programmers at the company.
The company further provided the parameters that are essential for the development of the DEX. The participants should also focus more on speed and simplicity when developing the prototype rather than on fancy features that can be a hindrance to the user experience. The proposal implementations should also not be developed using virtual machines but should use programming languages and smart contracts.
The protocol implementations can be developed from scratch or already existing blockchain implementations. The latter can be modified to meet Binance requirements. However, this must be in line with licensing and copyright laws. The interested participants should submit their entries by 30th June 2018. Teams can also submit entries before the deadline and continue making changes on them until the deadline date.
The prize money that will go to the winning individual or team will be $1 million. The prize money will be paid in the form of BNB tokens that are the cryptocurrency of the exchange. Additionally, the winner might also be offered employment by the exchange. The exchange encourages university teams to submit their entries as any team that qualifies will get a $10,000 grant whether they emerge as the winners or not.
Most of the existing DEX platforms are difficult to use compared to centralized platforms. Different challenges including limited liquidity and lack of intuitive systems have led to the unpopularity of DEX platforms. Despite this, many organizations are putting up an effort to develop DEX platforms that are fully functional to move away from centralized exchanges.
Centralization of exchanges means that investors have to entrust their crypto, fiat currencies, and funds to third-party intermediaries to trade their coins, digital assets, and tokens. This is an irony considering the philosophy of blockchain that seeks to do away with intermediaries in commerce.
Centralized exchanges are also prone to hacking as evidenced by a few hacks in the cryptocurrency industry. The DEX platform has an advantage as it is set to have robust security measures.