CoinXP (CXP Token): Digital Asset Management & Settlement For Exchanges?
What Is CoinXP?
CoinXP is a platform through which cryptocurrency exchanges can securely and transparently access a shred market liquidity. By connecting various trading platforms, both centralized and decentralized, CoinXP creates the largest liquidity pooling the market.
Therefore, this services enables the exchanges to access the liquidity without incurring additional cost. Furthermore, lowers the entry requirements for blockchain startups by eliminating the infrastructure service implementation layer.
Other notable features of the CoinXP network include intrusion detection and prevention, multi-factor authentication. Crypto asset storage, insurance, and so on. Unlike projects based on Ethereum’s ERC20 protocol, CoinXP is an autonomous network optimized to serve trading platforms free of charge.
The CoinXP ecosystem includes exchanges, brokers and decentralized applications. Besides, CoinXP provides education, market study and investment advisory services to its clientele.
The Current State Of The Digital Assets Market
Lately, there has been an increased interest on blockchain technology and its applications, with many perceiving it as the biggest technological discovery of recent times. Presently, most of the applications using blockchain technology are inclined towards the trading and management of cryptocurrencies.
Despite this limitation, blockchain is still appealing to many individuals. For instance, Bitcoin averages daily transactions worth $7.6 billion in spite of its volatility. Unsurprisingly, a majority of this amount is traded on digital currency exchanges such as Binance and Bitfinex.
Most of the existing digital asset trading platforms are centralized, providing features such as KYC, crypto asset custody, brokerage, asset conversion, and so on. In terms of performance, centralized exchanges are satisfactory. However, these platforms are significantly vulnerable to risky acts such as cybercrime, internal collusion, misappropriation and so on.
While these actions are infrequent, the aftereffects are often catastrophic. In summary, the major disadvantages of centralized exchanges are security issues, non-transparency and weak response to emergency.
Decentralized exchanges are based on blockchain technology and are therefore transparent, secure and immutable. The most prevalent problems associated with such platforms include:
- Complexity – such platforms are usually complicated, which is why some users still prefer centralized platforms.
- Slow processing of transactions.
- Lack of user education
- Limited liquidity resulting in high trading costs
- Inadequate features
The CoinXP Multi-Roles Ecosystem
The CoinXP multi-roles ecosystems, combines the advantages of both decentralized and centralized platforms, albeit in different layers. The lowest tier of CoinXP is a decentralized public chain. Typically, this layer facilitates the management and trading of crypto assets using smart contracts.
Above the public chain is a layer dedicated for investors and exchange relayers. Using this layer clients can build exchange platforms and customized decentralized applications. In addition, CoinXP is also compatible with third-party wallets, exchanges and so on.