DAEX The Most Reliable Clearing Ecosystem for Digital Assets

 

DAEX is a clearing solution for centralized cryptocurrency trading exchanges. Its clearing service is based on distributed ledger technology. Clearing and settlement rules are preprogrammed into clearing smart contracts on the DAEX clearing chain. The clearing process is automatic without people’s interference. The objectivity of clearing is guaranteed by the consensus mechanism on the clearing chain. Also, customers’ digital assets are registered and stored on the DAEX’s clearing chain. No other institutions or individuals can access these assets without the owner’s permission.

The goal of DAEX is to provide a better infrastructure for the cryptocurrency trading industry by taking the reasonable parts of the mainstream securities trading industry and by taking advantages of new opportunities brought about by the distributed ledger technology. Specifically, trading and clearing will be separated into different entities. Current centralized exchanges will continue to provide trading service. But the clearing work will be handled over to a common clearing service which is based on the DAEX solution. But, different from current centralized clearing services, the DAEX clearing service is based on distributed ledger technology. The distributed ledger technology guarantees that trades are correctly and safely cleared and settled. By using distributed ledger technology, trader’s assets are kept in their own accounts on the blockchain. No one else can access traders’ assets without their permissions. This effectively removes trader’s asset risks in current centralized exchanges.

How Does DAEX Work?

The clearing solution offered by DAEX for centralized cryptocurrency exchanges is based on the distributed ledger technology. Rules for both settlements and clearing are preprogrammed into the clearing smart contracts found on the clearing chain. The process of clearing is completely automatic without any human interference. To further guarantee objectivity during clearing, DAEX uses a well-thought-out consensus mechanism on its clearing chain. For added transparency, the digital assets that customers store on DAEX are registered and then stored on the DAEX clearing chain. It is impossible for any other individuals or institutions to access assets without the permission of the asset owner.

Why is The Project Needed?

Centralized Exchange Flaws - In a decentralized exchange, you own your assets and have full control of them. In a centralized exchange, essentially all assets are barely IOU’s (I Owe You). When a user wants to withdraw the funds, the exchange is instructed to send the asset back to their wallet.

The problem is that the exchange is responsible for your funds, and there is a lot of risks involved with holding digital assets there. A lot of people believe that their funds are safe on an established exchange, but too few consider the possible consequences. If the exchange gets hacked because their security is lacking, have corrupt employees or decide to ban your account, your funds are effectively lost. This kind of situations has repeated themselves time after time to this day, and even renowned, high-volume exchanges like Bithumb and Coinrail has recently gotten their funds stolen because of an exchange flaw.

DAEX provides a solution where the trading and clearing components are separated. The exchange offers cryptocurrency trading services, but the management of all clearing services is done DAEX associated services. The main benefit of this is that the DAEX ecosystem is based on ledger technology, and therefore can provide a decentralized solution for storing assets, and thus effectively eliminates the risk of customers losing their funds.

Cryptocurrency Clearing - One of the major problems for cryptocurrency exchanges is to find authentic tokens to list on the platform. Because of the decentralized nature of many cryptocurrencies, many cryptocurrencies appear as extensive, genuine projects, when the project, in reality, offers nothing but empty promises.

DAEX will be in charge of clearing tokens listings for partnered exchanges. This process includes project background and quality checks as well as integrating solutions for integrating the token into the DAEX wallet. By doing the job of clearing and integrating wallet support, the exchange efficiently can add the token to the exchange without developing the technology to support the token on their exchange themselves. This will simplify and ease the process for exchanges to add new tokens easier and faster.

Who’s Behind DAEX?

DAEX is led by 5 full-time team members, including Benjamin Gu (Chairman), Hua Zhang (Co-Founder), Jason Tang (Co-Founder and Chief Architect), Yan Zhou (Wallet Architecture Scientist), and Bingliu Shen (Partner).

DAEX has already partnered with ACX, Star.io, Allcoin, BCEX, CoinComing, and Bitstamp.

The DAEX Foundation was founded in Switzerland in 2018.

DAEX Conclusion

Centralized and decentralized exchanges both have unique problems. DAEX aims to unite centralized exchanges with decentralized technology, creating a system where users enjoy the benefits of both.

For more information, please visit the link below:

Author: safazara

Website : https://www.daex.io/

Whitepaper : https://www.daex.io/daexPaper.do

Twitter : https://twitter.com/DaexBlockchain

Telegram: https://t.me/DAEXOfficial_en

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