Newdex Decentralized Cryptocurrency Exchange Issues Statement About Regionalized Trading Model
Newdex, the world’s first EOS decentralized exchange issued last week a statement. In the report, four specific highlights were cited namely; the function of the wallet and that entrusted to ‘newdexpocket’ account, the prospective growth direction of the platform and concerns about smart contracts.
The letter to Newdex made headways by responding clearly to FAQs from users in regards to Newdex decentralized exchange. Some of these concerns include the fact that Newdex doesn’t accommodate smart contracts that suit the deals signed via the chain. Besides, others involved the platform not using newdexpocket for transfers.
The claims go further to postulate that this system isn’t as decentralized of but more of a centralized exchange model.
To start with, there was also a response on the model used on the chain by Newdex. All dealings that take place on the platform or through the chain are open and highly transparent. Hence, this irons out the big difference that exists between the centralized exchange and Newdex. Also, the Smart Contracts are to be applied to the system if the technology used is appropriate and effective for use.
More On Newdex
The concerns about Newdex embezzling user assets using the ‘newdexpocket’ account weren’t left out. In the announcement, Newdex reiterated positively in the admission that ‘newdexpocket’ remains the rightly EOS officially assigned account. However, any cash flows through the entrusted account are stored on the chain eliminating any such risks to users for enhanced safety.
Despite the limitations that come with the use of the entrusted account with modern technology, it can be fixed to realize ‘dex’ technology on EOSIO base layer. The statement goes further to highlight the direction the wallet and the general platform should take. In spite of Newdex inability to fully decentralize, it runs on a different model from a centralized exchange.
The good news is that it is appropriate to carry out trade airlifts via Newdex. This is supported by a private key that is highly secure while using the wallet.
It also includes the ratification and authorization through Scatter Wallet Extensions plus the APP wallets like Token Pocket. Lately, there are about 40 exchange pairs like BLACK/EOS and IQ/EOS that are listed by Newdex. However, the system keeps improving its functionality with the introduction of new features that provide additional opportunities to assist the platform grow.
Hacking Concerns Addressed
Recently, the hacking on the Newdex Coin Exchange to steal 1 Billion Fake EOS valued at $ 58,000 in real and digital assets was noted. The dubious activity took advantage of security flaws on the decentralized coin exchange. The larceny that saw the crypto coins land in authorized hands.
This was possible after the creation of 1 billion fake EOS altcoins which were fed and flooded into the Newdex cryptocurrency exchange to create confusion in the market. They used oo1122334455 as an EOS crypto account number to issue approximately counterfeit EOS cryptocurrencies.
As a result, the illegitimate token was used to make purchases of legitimate digital assets like IQ & BLACK and ADD tokens. The fact that digital assets are highly unstable exposes them to significant unpredictable risks in the online space. As compensation kicks off to stakeholders from Newdex, the firm issued a statement apologizing for the system failures.
Impressively, all drawbacks have been identified and measures implemented to avert such incidences in the future.