Verge (XVG) Supporter Talks About Cryptopia And The Importance Of Self Reliance
Cryptopia And The Importance Of Self Reliance
Crypto exchange Cryptopia had a terrible experience. Not only were they hacked, but they also had to use the remaining coins that were not hacked for paying off its clients. It was regrettable, and it also reinforces the claim for a small part of people in the crypto sector that desire more government intervention and regulations.
It is evident that the Verge Currency team is focused on guaranteeing complete privacy and also building a strong community. Once I saw the aftermath of that Cryptopia hack and people losing their coins, including my friends, I wanted to offer my immediate assistance.
Joining The Collective And ChainCreator
I signed up into The Collective group, which is a community of experienced ETN administrators who work to help in community management in the crypto sector.
Later, I moved to ChainCreator, which was looking for traction to make an offer for Cryptopia. The plan was to buy the crypto exchange from the assigned liquidators to allow for users to quickly withdraw their coins.
Once the group owned Cryptopia exchange, then they could optimize it to prevent such a hack from happening again. One way they could achieve that goal was to convert it to a decentralized exchange or DEX format. That would mean that the users would own the coins, rather than placing them in a vulnerable state on the servers of the crypto exchange. By storing the data across multiple services throughout the world, a decentralized exchange would make sure that the data will always remain secure and harder to hack.
Introducing The DAO Organization
With extensive experience on multiple projects in the crypto sector outside of the Verge team, I found that the self-building and self-moderation attitude was the best solution. I recommended that the most appropriate way forward to maximize the potential of the exchange and link up all the projects together was to use the DAO framework. DAO represents a decentralized autonomous company, and it would be an excellent chance for an organization within the crypto sector to have powerful self-governing and self-regulating mechanisms.
Switching to a DAO arrangement would present lots of potential benefits. For one, it means that reduced listing fees for new projects. Most importantly, it would introduce the much-needed voting mechanism. Voting would not only help to identify and eliminate bad projects, but it would allow for new pairings to be added in the exchange based on the votes of the users. The people would act as the autonomous stakeholders of the exchange and make consensus regarding any new trading pairs.
The decentralized exchange aspect would still be beneficial as it means that the servers for the exchange can be maintained at low costs. For example, a reward based system can be introduced to incentive and give awards to the people who are helping to host the exchange. At that stage, a decentralized autonomous organization that is powered by open-source software would enable the crypto sector to continue moving forward to challenge the conventional fiat currencies.