AirSwap’s Cryptocurrency Exchange To Go Live In April
AirSwap, a New York and Hong Kong-based decentralized cryptocurrency exchange, has declared its platform is going live on April 25, 2018. AirSwap practices the blockchain technology to decentralize the three elements of trade (custody, execution, and settlement) to eliminate the risk and constraint that centralized cryptocurrency exchanges entail.
“Our service is essentially a searchable bulletin board, that allows those looking to trade tokens to announce that they’re trading and where they can be found. Anyone can come in and take a look at the board, connect to a counter-party, and make a peer-to-peer trade”, says the announcement.
Decentralized cryptocurrency exchanges build a secure, free-form network of liquidity provided by market makers, and connectivity offered by their search engine. Its features include on-blockchain trade clearing, the capability for users to preserve control of their funds, and receiving an order book in some decentralized manner. The various visible benefits to decentralized exchanges include giving users’ total control of their funds, excluding the risk of exchange insolvency or hacking, and creating global order books. Decentralized exchanges do not expect customers to sign up and give personal information.
The current cynical aspects of decentralized exchanges involve its low throughput and the scalability challenges linked with the underlying blockchains. Security is also an issue as these exchanges pass the responsibility to their users, but tools for that are imperfect. Fred Ehrsam, co-founder of Coinbase, explains, “They currently offer little to no support for fiat currencies. They are probably challenging to deal with for regulated entities like traditional financial institutions. Finally, the lack of a block reward-like incentive supercharger in decentralized exchange protocols may make their network effects harder to get off the ground than in some other tokens. But most of these drawbacks can be overcome with time.”
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