Cryptocurrency

Bithumb: Plans For Expansion By Decentralization

bithumb-expansion-decentralization-dex

Bithumb is one of the largest crypto exchanges in South Korea. Now the company is announcing the launch of a decentralized exchange.

Decentralized exchanges are on everyone’s lips. The idea of no longer hosting exchanges on a central server brings with it some interesting advantages:

On the one hand, there are significant regulatory differences between different countries. This makes the expansion of crypto exchanges across national borders more difficult, as companies in each country have to comply with different requirements. However, the regulation of decentralized exchanges is more difficult. It is in the nature of things that decentralization means that no operator can be tied down. This could significantly accelerate the international expansion of trading venues.

On the other hand, the security level of decentralized exchanges is higher than that of traditional exchange exchanges. Since central crypto exchanges generally act as trustees of traded tokens, wallet hacks can lead to the total loss of the coins stored. Past thefts at Zaif, Coincheck or “good-old-Mt.Gox” show that this is a serious concern for investors. In contrast, decentralized trading centers are as far as possible immune to hacks because they do not have a single point of failure.

Smart Contacts ensure that users can trade their crypto assets directly via a blockchain. The Exchange is no longer responsible for managing the coins; it simply provides the infrastructure required for trading. This saves traders the hassle of having to go through middlemen and enables them to trade directly with each other.

What is Bithumb DEX?

In June, Bithumb itself fell victim to a hacking attack. According to reports, up to 31 million US dollars have been lost. This could have been the reason to strengthen the ambitions to develop our own decentralized exchange.

In keeping with the zeitgeist, Bithumb DEX also plans to store all assets and transactions on-chain. The company advertises on its website with the associated security and promises the highest possible transaction volume thanks to Relay Service Technology. This enables users to trade cryptocurrencies directly between their wallets, regardless of where they are. As a result, Bithumb DEX can also integrate users outside Korea and thus generate considerable growth potential.

In the competition for market leadership in decentralized crypto exchanges, Binance is also taking up a position. As early as March, the company announced its move towards decentralization.

However, nothing is yet known about the launch date of Bithumb DEX. It should be an exciting race.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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