The controversial crypto exchange Bitfinex publicized its plan to launch a new decentralized cryptocurrency exchange, dubbed EOSfinex. In an industry where cryptocurrencies are typically decentralized, it comes as a surprise that more marketplaces don’t also represent this characteristic. Further, centralized exchanges can charge exorbitant fees for transactions and are prone to hacks.
Decentralized Exchange for Decentralized Cryptocurrencies
The introduction of EOSfinex exchange is the first of hopefully many exchanges soon to spring up and mitigate these issues via decentralization. It will also be the first exchange to employ EOS‘s powerful infrastructure, thus positioning the cryptocurrency well beyond a number of other top-performing virtual assets. The novel exchange will naturally leverage the Bitfinex brand, and the swift blockchain platform, where the latter provides a fast and scalable infrastructure to host applications, and the former attracts new and veteran crypto traders.
According to Coinmarketcap, at time of publishing, Bitfinex is the fifth largest marketplace by trading volume in 24 hours. Surprisingly, Bitfinex has also traded the highest amount of Bitcoins in the same period.
On the official Bitfinex blog, Bitfinex CEO J.L. van der Velde, affirms that EOSfinex will purvey a fast, transparent and trustless platform to trade virtual currencies. Velde explained the following:
“We are excited to leverage EOS.io to further advance the field of high performance and trustless on-chain exchange. Block.one continues to display an unwavering dedication to improving blockchain scalability through the EOS.IO platform and it is our hope that this collaboration will allow significant advancement for all decentralized exchange.”
Block.one, the company that developing the EOS protocol, believes in “decentralizing everything,” and with this latest move, exchanges are the next target in the firm’s crosshairs.
Brendan Blumer, the CEO of Block.one said:
“Existing blockchain platforms are unable to meet the high performance requirements demanded by decentralized exchanges. We believe EOSfinex will be an ambassador for the capabilities fundamentally enabled by EOS.IO.”
According to Bitfinex, the reason why EOS.io was the right match, was due to its capability to process thousands of transactions per second at a low cost and in almost instantly.
Threat to Current Exchanges
Decentralized exchanges offer more security than current exchanges which many have argued operate akin to banks. Not only that, but the variety of exchanges will increase competition and force further innovation.
The forthcoming decentralized exchange will force existing exchanges to restructure and rethink their approaches to maintain their existence in the crypto space. As a fact, a decentralized marketplace will be more secure than centralized exchanges. Measuring this feature may provide slightly different points of argumentation, but in principle, EOSfinex should avoid such pitfalls.
Recently, crypto enthusiasts denounced Bitfinex’s link with Tether, a digital token claimed to be backed by the US dollar, and for having failed to provide evidence of this fact. In response to the announcement of EOSfinex, tech junkie Alexander v Trijffel tweeted, “Funded by the Tether scam. Keep up the good work!”
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