Exchanges are one of the most important elements of the blockchain ecosystem, and provide cryptocurrency investors with a platform on which they are able to trade. Despite the necessity of exchanges, there are a number of issues that plague most modern exchanges, namely their centralized nature.
The cryptocurrency market attributes the greater part of its success and popularity due to the decentralized foundation of the digital currencies that are traded on it. While cryptocurrencies themselves may be decentralized, however, the places in which they are traded are not, which leads to a number of issues.
The price of Bitcoin, the largest and most successful cryptocurrency in history, has been rocked over the last few years due to high profile exchange hacks. More recently, trading platforms such as Coinbase have come under fire for freezing customer assets in geographic locations in which they cannot legally operate without significant reserve capital, such as Wyoming or Hawaii.
Relying on a third party centralized exchange means trusting an exchange platform with the security of your currency, as well as custodianship of said capital. A new ERC20 exchange based on the 0x protocol, however, aims to provide traders completely decentralized trustless trading.
In this article, we’ll take a look at the soon-to-launch Paradex.io platform and find out what it offers to help you determine whether it’s the right exchange for you.
What Is Paradex?
Paradex recently announced the impending launch of their innovative decentralized exchange solution, which is a peer-to-peer ERC20 exchange built on the simple and concise 0x protocol. The Paradex platform allows for exchange settlement without the need for user accounts or needing to take control of user funds.
Decentralized exchanges are just now beginning to hit the market with viable platforms that provide a solution to the ongoing issue of centralized third party exchanges. The nature of decentralized exchanges completely eliminates the risk of hackers targeting a platform to siphon funds.
Paradex Features & Functionality
The Paradex platform allows users to retain control over their cryptocurrency until the point at which trades are finalized, without the need for an account. The Paradex team has likened the current cryptocurrency trading environment to the wild west, stating that centralized exchanges present a constant security issue, with unreliable order matching and slow trading speeds inconveniencing traders.
The 0x protocol is intended to handle the heavy lifting for the platform, while peer to peer trading is managed by a robust and powerful matching engine. Overall, the Paradex platform is designed to streamline user experience, optimizing the entire trading process.
The Paradex team commented on the development of the project, indicating that they are aiming to create the ideal trading platform:
Leveraging our background in financial markets and emerging technologies, the Augment Partners’ team is building the token trading tool that we want to use but doesn’t currently exist — where the speed & power of traditional trading meets the safety & trustlessness of decentralization.”
The Paradex platform is one of the most promising upcoming decentralized trading platforms in the crypto ecosystem, and is definitely worth a look upon launch. The Paradex team are currently aiming for the roll out of a private beta test in mid-october, with the fully functioning platform going live on the Ethereum Mainnet in November.