openANX, a real-world application of decentralized exchanges built on the Ethereum blockchain, today announced key technical aspects that will tackle two major problems in the cryptocurrency space: the barrier to entry for new cryptocurrency users, and risks associated with many transactions.
openANX will allow new market entrants to easily enter the space and to understand their exposure to risk on any potential deal, a feature that’s lacking in current exchanges. With openANX, customers will have greater control over their crypto-keys than on a centralized platform, helping to protect them from vulnerabilities that lead to hacks and failures.
The key technical aspects presented by openANX that address these problems include credit risk markets, transparent collateral ratings for Asset Gateways, and the use of smart contracts for memberships, Collateral Management and Dispute Resolution, Know-Your-Customer (KYC) and settlement for asset exchange, both for over-the-counter (OTC) and order book-based transfers.
“openANX’s move to transparency and smart contracts is something that’s been needed in the industry for a long while, but has yet to be effectively implemented,” said Bok Khoo, advisor to the openANX project. “By incorporating technology to secure users’ assets, transactions remain decentralized while becoming more secure.”
The addition of credit risk markets whereby the tokens issued by any Asset Gateway can be traded with any other Gateway’s tokens allows users of the platform to demonstrate in real-time market sentiment about the viability and risk of a Gateway. This feature, alongside greater protection for the customer, another first in the digital asset space, works hand-in-hand to provide consumer protection for platform users.
The platform will also protect users by having each Asset Gateway post collateral into a smart contract. These deposits are transparent and consumers can read and evaluate the creditworthiness of Gateways based on this information. In the event of disputes, an impartial party could evaluate the claim and has the potential to release a part of the collateral to cover damage or loss. These improvements aim to significantly reduce risk for all users, and are a sign that the cryptocurrency market is beginning to mature.
openANX will launch its OAX Token Sale on June 22, 2017.