More crypto enthusiasts are thinking twice about using centralized exchanges. Just this year, more than $700 million of crypto has been stolen by hackers in various attacks on centralized exchanges. Security breaches, tech failures, freezing legit user accounts and more made a more substantial part of the cryptosphere agree to Ethereum’s Vitalik Buterin’s statement: “centralized exchanges, go burn in hell.”
The rise of decentralized
On the other hand, at the beginning of 2018 decentralized exchanges have already become one of the most famous words in this new era of finance. They’re the safest, fairest and the most reliable options in the market.
Decentralized exchanges are the best solution for traders who have been dealing with various inconveniences with the currently centralized exchanges.
Your digital assets can finally be secure without sharing them with any third-party wallet and traders can finally avoid waiting until an administrator approves their requests.
Decentralized exchanges are exchange portals that don’t depend on any third-party services to control digital funds.
They increase trust and security and provide 100% privacy, and these are three of the main elements that sustain the new era of the financial world.
2019 will definitely be the year of decentralized exchanges, and with big players such as Binance tapping into related projects, we expect that through 2019, a rapid growth occurs in the industry in line with the strong ideology that overall decentralization rules.
DEx.top triggers a breakthrough for decentralized exchanges
The decentralized DEx.top exchange is incubated by mining hardware makers Bitmain, and its primary target is to address all the main issues that decentralized exchanges have been facing, especially security and hacking risks.
The team behind DEx.top created a trading mechanism that guarantees both high security and speed. It’s called the Replayed On Chain (RoC) mechanism and allows trades to be off chain which results in lightning speed.
Security without precedent acknowledged by the Swiss Federal Institute of Technology
In order to guarantee the highest level of security, DEx.top implemented the RoC mechanism that mixes speed and security. The exchange did not stop there and also launched the Bug Bounty program, hiring HackerOne, ChainSecurity and Sentinel Protocol initiatives to scan their code for potential hacker vulnerabilities.
As a result, the Swiss Federal Institute of Technology in Zurich has classified the decentralized exchange as very secure.
For instance, on June 16, “security experts from HackerOne’s 100,000-strong white hat hacker community were invited to subject DEx.top’s site to security testing (used by security experts to identify security vulnerabilities and their potential impact),” DEx.top’s blog post notes.
“At the conclusion of the HackerOne Challenge, three hackers found a total of five vulnerabilities (one high-risk, one medium-risk and three low-risk). All five vulnerabilities were patched within two days of receiving the reports.”
After the tokens are offered for exchange, they’re tied into a smart contract and you’ll be happy to find out that a trust never manages your assets, but they’re exchanged straight into your wallet. It’s recommended that you use the browser plug-in MetaMask which enables the exchange of ETH and ERC20 coins on regular websites. In the future, access to more similar wallets will be unlocked.
Technical methods to ensure the security of user assets
DEx.top details the ways in which the platform makes sure to provide high security to users:
- top doesn’t ever perform any custodial functions.
- The trades are utterly peer-to-peer on the DEx.top off-chain ledger. Each order must be signed with the user’s private key, and it’s verified by smart contracts and a successful matching. The platform doesn’t collect users’ private keys.
- If any attacks occur on the DEx.top off-chain ledger, the platform will temporarily halt trading activity to prevent hackers from transferring assets and placing funds.
- In extreme cases, the Release Function will be triggered. This will result in shutting down the on-chain ledger and returning assets to users.
Lower gas costs
All transactions and completed Smart Contracts require a small amount of Ether that is sent to miners. The higher the data load, the higher the amount of Ether will be. In this context, Ether represents the fuel that keeps the network going and this is the point when gas makes its entrance. Users who trade tokens via a remote exchange don’t have to pay any fees to the staff, but instead, they use smart contracts to trade on the blockchain. Sometimes this triggers high gas costs.
Gas costs play an essential role in the long run for each Ethereum-based Dapp. DEx.top uses various hands-on techniques to help users’ Dapps cut the associated gas costs. These techniques include Bit-compaction, Batching, Separating writes to storage struct, uint256 and direct memory access, Assembly Optimization. You can read further details about how all of these work on DEx.top’s blog post here.
Central exchanges are a contradiction of the basic idea which stands behind cryptocurrencies. That’s why the goal is towards decentralization. DEx.top understood this very well, and it marks the first time that an exchange manages to perform safe and cheap trades. DEx.top is currently writing the history of decentralization.
DEx.top can benefit multiple industries, while dramatically reducing the risk of loss posed by cybercrime and hacking.
The exchange is helping build the data-driven world for a more secure and revolutionizing future. Enter the financial revolution now and find out more about DEx decentralized exchange by heading over to their official website here.