The cryptocurrency economy is the future trend of finance industries. The past year, cryptocurrency exchanges have gone viral around the world. According to its operation mode, it can be divided into two types: centralized and decentralized.
Centralized exchanges have many advantages such as completed customer service, easy-manipulated interface, high-speed turnover rate, and so on. Users only need to invest funds, and other complicated procedures can be manipulated by the exchanges on behalf of them. Some famous exchanges such as Bitfinex, Bittrex, Binance, BitMEX, GDAX, OKEx are all centralized examples.
However, the advantages of centralized exchanges are its disadvantages as well. The identity information and assets of users are stored in the exchange’s database. Once the database been attacked, all the information and assets might be hacked and stolen.
YouBit is a famous centralized exchange in South Korea. It had been hacked twice since April 2017 and lost over 40% of their assets and nearly faced bankruptcy. Coincheck is another case from Japan. They were hacked and lost approximately 510 million USD in January 2018. From above, even though centralized exchanges are highly convenient, it’s still very risky. That’s why the decentralized exchanges are going to rise.
The characteristic of decentralized exchanges is its transaction mode, wallet to wallet. STAR BIT exchange is based on the 0x protocol which uses off-chain matching and on-chain settlement. Additionally, we don’t keep users’ assets in our database. Therefore, users no longer need to worry about losing their assets even hackers attack our exchange.
STAR BIT is more advantage compared to IDEX.Bancor because users need to transfer their coin/token into the smart contract when trading. In this model, if the smart contract has vulnerabilities, users’ asset is possibly being hacked and stolen. However, at STAR BIT, all the transactions are wallet to wallet. It means you are trading at your own wallet address and we don’t keep your assets. Obviously, we provide a more secure way of trading.
Experience now -> https://www.starbitex.com/
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Blockchain entrepreneur since 2013 and founder of AirdropAlert.com. “Crypto has changed my life and I’m here to share my knowledge, experience and enthusiasm with you.”
Favorite cryptocurrency: Ethereum, Stellar & Litecoin
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