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How the Crypto Market Is Moving Away from Traditional Exchanges

Element Zero is a great solution for managing the risk associated with running a cryptocurrency exchange. 

The cryptocurrency market is relatively new, yet it’s already seen huge developments indicative of a major trend developing. It’s hard to tell where this will all end up, and how long it will take for things to stabilize properly. But one thing is certain at this point – cryptocurrencies are here to stay, and they’re not going anywhere.

They’re certainly not the passing fad that some people tried to portray them as in the past, and they have proven to have strong potential for transforming the market and pushing it in the right direction. And yet at the same time, some people remain skeptical about the crypto market and some of its implications. And rightly so – it’s not perfect.

The Problem

The current, traditional way of dealing with cryptocurrency exchanges is clearly proving to be outdated in many aspects. Centralizing all assets in one place is a recipe for disaster, and we’ve actually seen incidents of that type in the past. If we don’t make some real changes soon, things will likely keep getting worse too.

Putting so much trust in a single point is asking for trouble, yet at the same time aiming for a completely decentralized market can be difficult given the current state of affairs. With that in mind, what can we do to address the situation?

Proposed Solutions

Decentralization is the most critical issue that many have been trying to address with varying degrees of success. The most important thing is to ensure that transactions can still be carried out in a safe, controlled manner, while at the same time avoiding the kind of situation where a single entity controls a large portion of the market, and the main volume of assets on it.

Systems similar to escrow have been proposed in the past, but it wasn’t until recently that we actually saw viable implementations of those ideas. Element Zero relies on the idea of using smart contracts to lock the value of the trade until the completion of a trade, something which has immediately set it apart from the majority of its competitors.

The Benefits of Element Zero

The fact that transactions are rooted in smart contracts brings many benefits to the table, and we’ve already seen some interesting discussions about the implications this will have on the market. Most importantly, it means that people’s funds are secure from external interference and control over them is exclusively limited to the ones involved in the transaction in the first place.

Element Zero also offers more stability than its alternatives in various ways. The platform is designed to remove the volatile nature of the cryptocurrency market, and to offers a stable solution to the most commonly encountered problems by users of these currencies using SmartSwap, a value locked Atomic Swap.

Managing Risk Effectively

Element Zero is also a great solution for managing the risk associated with running a cryptocurrency exchange, and exchanging finances on one in the first place. The system is designed to offer significant value in this regard, taking control away from centralized entities and ensuring that all transactions are properly overseen and can be reversed in case something is wrong.

Many crypto exchanges have been eyeing the offer brought forward by Element Zero and it looks like the platform might have a real chance in the near future, if the people behind it keep pushing it as much as they have until now. Element Zero is currently engaging in a bug bounty and encouraging white hat hackers to try and manipulate the protocol by changing the value of the trade on the testnet.

It will take a while for a project like this to mature fully and to reach a mass adoption rate. But this doesn’t mean that people should shy away from it just because it’s new. Quite on the contrary, those who get involved with Element Zero now stand to benefit the most in the future once it takes hold over the market. There’s a lot to be said about the potential impact of a platform like this, and the people behind Element Zero have made it clear that they have the best intentions when developing and running the project, even setting up as a not-for-profit entity, especially considering its long-term implications.

 

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Amy T

Amy T

Sales & Marketing manager

Sedate technology

Member since

28 Sep 2018

Location

Barcelona

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This post is from a series of posts in the group:

Blockchain Observations

Being a forum for blockchain ideas


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