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Decentralized BCH Exchange and a New Giveaway in the Weekly Update From Bitcoin.com

May 5, 2019 |

Decentralized BCH Exchange and a New Giveaway in the Weekly Update From Bitcoin.com

Decentralized exchange Bisq gets forked for bitcoin cash (BCH) and the r/BTC subreddit reaches 250,000 subscribers. In addition to learning about the latest developments, you can also take part in a new giveaway in this week’s video update from Bitcoin.com’s Youtube channel.

Also Read: Memo Is a Decentralized Social Network Built on Bitcoin Cash

Special Giveaway in Bitcoin.com’s Weekly News Update

This week’s show covers the subreddit which was created to support free discussion of Bitcoin in the face of censorship in other forums, r/BTC, reaching a milestone of over 250,000 subscribers. This follows an interview with a former r/bitcoin moderator explaining how r/bitcoin became filled with censorship and manipulation.

In bitcoin cash development news, the show looks at how the decentralized exchange Bisq was forked to support BCH, the latest advancements with the Cashshuffle protocol which have already mixed millions of dollars worth of the cryptocurrency, and a new open source platform that uses smart contracts to allow users to auction SLP tokens for BCH.

As for the giveaway, Bitcoin.com is handing out tickets to the Malta AI & Blockchain Summit coming up later this month. Three lucky winners will get full access to the expo, workshops and all of the conferences, with the tickets valued at €799 each. Details on how you can enter the giveaway are outlined at the end of the show.

Make sure to subscribe to the Bitcoin.com Youtube channel and leave a comment on the latest video.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Decentralized BCH Exchange and a New Giveaway in the Weekly Update From Bitcoin.com appeared first on Bitcoin News.

Bitcoin News

Memo Is a Decentralized Social Network Built on Bitcoin Cash

May 1, 2019 |

Memo Is a Decentralized Social Network Built on Bitcoin Cash

For a while now, the established social networks have been steadily cracking down on groups of users they find to be problematic, sending many people to look for alternatives where they can ensure their voice is heard. One emerging alternative platform is Memo, which is built on bitcoin cash and thus popular among BCH users.

Also Read: How to Monetize Your Blog or Website With Bitcoin Games

BCH-Powered Twitter Alternative

Memo.cash is a decentralized social network powered by the Bitcoin Cash blockchain and which launched a year ago. It gives users the ability to create a profile and post messages, images and videos using hashtags as well as to give tips instead of just likes. The platform added a mobile app for Android devices in January and the developers have promised that an iOS version is coming soon too.

Memo Is a Decentralized Social Network Built on Bitcoin Cash

All posts are visible to anyone on the BCH blockchain, with each Memo account being associated with a BCH wallet address. Native tipping on the network is also supported by bitcoin cash.

What do you think about this decentralized social network? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Memo Is a Decentralized Social Network Built on Bitcoin Cash appeared first on Bitcoin News.

Bitcoin News

A Bitcoin Cash Fork of Decentralized Exchange Bisq Is on the Horizon

April 29, 2019 |

A Bitcoin Cash-Supporting Fork of the Decentralized Exchange Bisq Is on the Horizon

Two Bitcoin Cash (BCH) community members recently offered up a bounty for someone to fork the decentralized trading platform Bisq using BCH as the native currency. Now it seems a programmer has started the project in order to port Bisq over to BCH with help from BCH developer Pokkst’s Bitcoincashj implementation. The project is still in the midst of development but the platform works on Intellij and the programmer says Bitcoin Cash is very close to getting its own decentralized exchange.

Also read: Bitmain Aims to Leapfrog Competition With Its Next-Gen Bitcoin Miner

This Developer Forked the Dex Bisq and Bitcoin Cash Will Be the Native Currency

Bitcoin Cash supporters were not pleased a few months ago when the Bisq exchange dropped support for BCH after the November blockchain split. Bisq is a noncustodial and decentralized exchange (DEX) that uses a multi-signature escrow system in order to execute settlement without the need for a third party. The DEX phenomenon has recently started to gain more attention after centralized exchanges continue to drop the ball and lose millions of dollars in cryptocurrencies. After the delisting of BCH on the Bisq DEX, two BCH community members on Reddit called u/ftrader and u/7e62ce852 offered up a bounty for someone to fork the Bisq protocol for use with BCH.

A Bitcoin Cash Fork of Decentralized Exchange Bisq Is on the Horizon

Following the two offers, many other BCH proponents put up sums of BCH to fund the bounty as well and there’s now close to $ 5,000 in bitcoin cash up for grabs. Since then, developer Emilio González from Mexico announced he has proceeded to fork the Bisq software and has used the anonymous developer Pokkst’s Bitcoincashj framework, a Java implementation of the Bitcoin cash protocol.

“The project uses Bitcoincashj and, well, that’s pretty much everything so far,” the programmer detailed on April 28. “I got school to attend and exams to take, so it’s been kinda slow, but the good news is that as of now ‘Bisq-Cash’ (re-branding maybe?) does work and we are much closer to get a dex of our own.”

A Bitcoin Cash Fork of Decentralized Exchange Bisq Is on the Horizon
The developer of the Bisq fork Emilio González.

The developer also noted that the forked project is currently hosted on the Bisq Github repository and located at the “cash” branch. In a few days, after exams, the programmer intends to change the price nodes to BCH instead of BTC, alongside adding the Cashaddr address format instead of legacy addresses. The developer Pokkst explained that it was great to see his Bitcoincashj fork being used in the wild and offered to help the DEX development move forward while the creator was busy with exams. The community member u/ftrader, who originally offered a large sum of the bounty money, said it was great to see some progress with the fork. He also suggested that the developer change the name from Bisq to something else and said it would be “a good idea to raise an r/btc post to brainstorm some good new name for the project eventually.”

BCH Supporters Hope for Cashshuffle Support

The developer of the original Bisq application, Manfred Karrer, also asked the programmer of the fork to change the name so it won’t “cause confusion to users.” Another BCH user said that he believed Bisq was the only fiat-to-crypto DEX he knew of and noted that “it’s worth porting.” “With Bisq you usually pay a premium when you buy bitcoin, and BTC fees make it worse — BCH low fees plus Cashshuffle would make Bisq better,” they added. Other BCH supporters tipped the developer small fractions of BCH using the Tippr bot after he announced the forked protocol was ported to BCH.

A Bitcoin Cash Fork of Decentralized Exchange Bisq Is on the Horizon

A flurry of Bitcoin Cash development continues and the latest Bisq fork announcement is just one of many on the horizon. Cashshuffle is one of those developments, an application that was recently launched via the Electron Cash wallet and will soon be implemented on other light wallets. With the Cashshuffle project being at the forefront of people’s minds, some BCH supporters commenting on the Bisq fork announcement thread asked the programmer to implement Cashshuffle into the platform. They believe adding an extra layer of privacy to the application like Cashshuffle would be a positive step. “This use case begs for mandatory Cashshuffle, thankfully BCH makes this completely affordable — a couple of cents for anonymity on a DEX seems like a no-brainer,” another commenter remarked. Overall, most of the BCH proponents who commented on the subject seemed delighted to see the DEX forked for the Bitcoin Cash network.

What do you think about the Bisq DEX being forked for the BCH protocol? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Pixabay, Reddit, and Github.


Did you know Bitcoin.com will soon be launching a peer-to-peer trading platform called Local Bitcoin Cash? The service will allow for direct exchange with people trading BCH all around the world. At Bitcoin.com we’re excited and it’s coming soon! If you want to stay notified for when the hottest new trading platform launches – Sign up here today!

The post A Bitcoin Cash Fork of Decentralized Exchange Bisq Is on the Horizon appeared first on Bitcoin News.

Bitcoin News

PR: Switch.ag Releases SwitchDex – a Decentralized Exchange

April 10, 2019 |

Switch.ag Releases SwitchDex - a Decentralized Exchange

This is a press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Switch.ag is a new kind of token exchange. Switch not only gives users the ability to seamlessly “switch” between other assets, but you can buy gift cards, donate to non profits, gamble & more.

As an extension of the Switch brand, the team recently released SwitchDex.ag, a fully decentralized exchange that runs on the Ethereum blockchain.

The release of SwitchDex has seen support among many prominent people in the crypto space, including John McAfee. In a recently release video John said, “the most amazing decentralized exchange in terms of speed and utility is SwitchDex”.

The CEO of Switch, Josh Case said, “We want to have the lowest fees, and the best trading environment on SwitchDex. We are really “pro trader”, and want to develop the tools, and features traders need to be successful.”

There are no fees to list a token on SwithDex, no restrictions on trading limits, no restrictions on jurisdictions, and no user information is collected.

SwitchDex charges a .2% taker fee. There are no other platform fees.

SwitchDex offers users a one time flat fee amount to remove this platform fee forever. From April 1st through April 30th this fee is $ 20. This fee will increase $ 10 monthly, and will top out at $ 100 in December 2019.

100% of all fees collected by SwitchDex (trading fees + whitelist fees) are airdropped to ESH & SDEX token holders.

* 50% are airdropped to ESH holders, the native token of Switch.ag
* 50% are airdropped to SDEX holders, the native token of SwitchDex.ag

For more information about Switch and SwitchDex you can visit or websites or email us at contact@switch.ag

www.switch.ag
www.switchdex.ag

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post PR: Switch.ag Releases SwitchDex – a Decentralized Exchange appeared first on Bitcoin News.

Bitcoin News

Decentralized Networks Aren’t as Censorship-Resistant as You Think

April 5, 2019 |

Decentralized Networks Aren’t as Censorship-Resistant as You Think

Censorship resistance is a much-touted attribute of decentralized networks. They allow anyone to permanently store anything onchain without seeking permission. While this is technically true, the reality, for many supposedly decentralized blockchains, is anything but. As the fate of controversial dapps has shown, even decentralized app stores aren’t immune from censorship and deplatforming.

Also read: How to Create and Send Cryptocurrency Invoices

Decentralized Networks Aren’t Immune to Deplatforming

Somesing is a karaoke app that’s popular in South Korea. The k-pop app, which is currently available on the Google Play store, is poised to be complemented by a Somesing dapp. Once readied, this decentralized app will be browsable on the likes of Dappradar and State of the Dapps. Essentially the Coinmarketcap of dapps, these sites track metrics such as daily average users, developer activity, and onchain transaction value. As an inoffensive karaoke app, Somesing is unlikely to test the limits of what’s acceptable to host on a blockchain. Other dapps, however, have run into trouble.

Decentralized Networks Aren’t as Censorship-Resistant as You Think

On Tron and EOS, the most popular dapps are overwhelmingly for gambling. Tronvegas, Tronbet, and Eosbet have over 100,000 weekly transactions apiece and impressive onchain volume; Tronbet alone has witnessed $ 350K pass through it in the past seven days, during the course of over 460,000 transactions, while Coincodex records Tronvegas as having close to 3,500 daily users. Betting is big business in dapp land, thanks to the permissionless networks the apps are hosted on, which enables anyone to play, regardless of location or age.

Decentralized Networks Aren’t as Censorship-Resistant as You Think
The most popular Tron dapps according to Dapp Radar

For the architects of blockchain networks that have witnessed significant dapp adoption, the boom in gambling presents a problem. Poker EOS wasn’t the sort of dapp that EOS overseers Block.one envisaged as the killer use case for their zero-fee network. Indeed, gambling dapps receive scarcely a mention from EOS ambassadors, who would rather not draw attention to the blockchain’s most popular use case to date. Tron that has taken this approach to new levels, moving to censor dapps that don’t meet with approval.

Tron Teams Up With Japanese Government to Enforce Censorship

Irony appears alien to the architects of many decentralized networks, who are prone to announcing partnership agreements at the drop of a hat. The latest deal closed by Tron, however, has elevated this juxtaposition to bizarre new heights. Tron has confirmed it will be “collaborating” with the Japanese government to prevent gambling dapps from being accessible within the Pacific island territory. The Tron Foundation has encouraged blocking gambling dapp users with Japanese IP addresses.

Just because something can be stored onchain doesn’t mean it can be accessed.

The inability of a few Japanese citizens to access some mediocre dapps might not seem like a big deal. But the decision strikes at the heart of the immutability and censorship resistance that blockchains are supposed to possess. If a few troublesome dapps can be blocked at a government’s request, where next? As David Morris observes, “If the Tron Foundation is capable of ‘discouraging’ illegal uses of the Tron network in specific jurisdictions, you can bet many governments will want help ‘discouraging’ piracy over the [Tron-owned] BitTorrent network.”

Deplatforming Can Take Many Forms

Conventional mobile apps listed on the Play and iOS stores are at the mercy of Google and Apple respectively. These giants enforce strict rules, and can permaban apps deemed to be in contravention at a moment’s notice. Dapps, in comparison, are not reliant upon a centralized entity to host and feature them: their backend code runs on a decentralized peer-to-peer network. Nevertheless, just because something can be stored onchain doesn’t mean it can be accessed.

Decentralized Networks Aren’t as Censorship-Resistant as You Think
The Opera dapp store

Without conventional web platforms to serve as the front end, the onchain data stored by dapps might as well not exist. Dapp stores drive significant traffic to decentralized apps, including the one built into the latest Android version of the Opera browser. Take a browse through the dapps that grace the Opera store, however, and you’ll find one category to be conspicuously absent – gambling.

Dapps don’t need to be deleted from the distributed web to effectively disappear: they just need to be deplatformed or omitted by the curators of dapp stores, who are themselves subject to the law. Storing a dapp onchain is one thing. Getting it into the hands of the people is quite another.

What are your thoughts on the Tron Foundation enforcing censorship in Japan? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Decentralized Networks Aren’t as Censorship-Resistant as You Think appeared first on Bitcoin News.

Bitcoin News

Nash Is a Decentralized Exchange for Cross-Chain Trading With Fiat Integration

March 19, 2019 |

Nash Has Created a Decentralized Exchange for Cross-Chain Trading With Fiat Integration

90% of all cryptocurrency trading takes place on centralized exchanges. Nash is part of a new breed of exchanges determined to change that. The next generation of decentralized exchanges (DEXs) promise to improve the UX and simplify the trading experience, empowering users to retain custody of their funds without suffering the trade-offs that are normally commensurate with DEXs. News.Bitcoin.com was shown a walkthrough of the Nash platform ahead of its imminent public release.

Also read: Bitmain Releases Equihash Miner 3x More Powerful Than Its Predecessor

The Battle to Build a Better DEX

Better decentralized exchanges are on their way, and this week news.Bitcoin.com will be previewing a couple of the leading contenders so readers can form an early impression of the decentralized trading experience they have to offer. Nash promises a fast and user-friendly platform for decentralized financial services, with the goal of bringing distributed finance to a wider audience. News.Bitcoin.com spoke to the team behind Nash to gain an insight into what differentiates it from current DEXs, and why traders should favor it over the competition, including centralized exchanges.

Nash Is a Decentralized Exchange for Cross-Chain Trading With Fiat Integration

“You have a setup where the possession of the digital asset is held by smart contracts on the blockchain and the ownership is still retained by the original owner,” explained Nash cofounder Fabio Canesin. The Nash protocol utilizes this principle to facilitate noncustodial trading. To perform onchain actions, explained Canesin, “you need more than [just] a private key. Sometimes you need to interact with a protocol, you need multiple parties and multiple features, and you can have keys with different features.” This is what Nash provides: a series of smart contracts under the hood, wrapped in a front end that mirrors that of a conventional exchange.

Nash Is a Decentralized Exchange for Cross-Chain Trading With Fiat Integration
The Nash dashboard

Nash Will Offer a Range of Assets Across Multiple Blockchains

Unlike a conventional ERC20-based DEX, Nash will facilitate cross-chain trading of a variety of assets. Eventually, this will encompass tokens operating on the BTC, ETH, NEO, WAVES, and LSK networks. The platform combines an off-chain marching engine with onchain smart contracts that open up state channels for trading purposes and oversee the transfer of assets between user wallets.

Upon signing up for Nash, the setup process entails creating a 12-word passphrase, much like initializing a hardware wallet. The user is prompted to back this up to a safe place, as without it, it will be impossible to access the assets that are locked on the exchange in smart contracts. When the private key is generated, Nash will automatically generate user wallets for NEO, ETH and other assets. Users will also be prompted to create a password, to save having to type in the 12-word seed every time they log in. They can also enable 2FA for added security.

Nash Is a Decentralized Exchange for Cross-Chain Trading With Fiat Integration

Thanks to fiat gateway integration, users can fund their account via methods such as bank transfer if desired. The main dashboard provides a clear portfolio breakdown, detailing balances that are stored in a personal wallet as well as in a trading account. The performance of individual assets can be tracked, and staking performance can also be viewed, if this feature has been enabled. Initially, the platform will launch with a selection of ETH, USDC, and NEO markets, before expanding to incorporate other chains.

With a community of 11,000 already in place, formulated when the platform began life as Neon Exchange in 2017, the Nash team is confident of having a solid userbase from day one, which will provide the desired liquidity. Within the next few weeks, the exchange will be rolled out to the first 1,000 users, before opening up to the wider crypto community. Nash will face competition from a number of other DEXs scheduled to come onstream this year including Binance DEX and Block Collider, which will be previewed by news.Bitcoin.com later this week.

Do you think DEXs will eventually be able to compete with centralized exchanges in terms of user experience? Let us know in the comments section below.


Images courtesy of Shutterstock.


Disclaimer: Bitcoin.com does not endorse nor support this product/service.

Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

The post Nash Is a Decentralized Exchange for Cross-Chain Trading With Fiat Integration appeared first on Bitcoin News.

Bitcoin News

How to Create Your Own Decentralized Prediction Market

March 16, 2019 |

How to Create Your Own Decentralized Prediction Market

The decentralized web is hard to use, complain its critics. And to be fair, they’ve had a point up until recently. With improved UX and new layer two solutions built on top of Web3 protocols, however, interacting with these technologies is getting easier. This is particularly evident in the case of prediction markets, where new features from Guesser and Veil have opened up these services up to a wider, less technically accomplished audience.

Also read: Cboe Discontinues Bitcoin Futures for Now

Decentralized Prediction Markets Keep Getting Better

“What will be the market capitalization of Cosmos Atoms (ATOM) in USD on April 30, 2019?” asks Veil. “Will a second referendum on Brexit be announced in the UK before 29 March 2019?” ponders Guesser. Technically these markets originate on Augur, but people are increasingly now placing their bets via secondary services that bolt a user-friendly interface onto Augur’s protocol and simplify the betting options.

How to Create Your Own Decentralized Prediction Market in Just a Few Clicks

Guesser’s recently introduced Bet of the Week has been going down well – this week’s question was “Will the base price announced for the Tesla Model Y be $ 39,000 (USD) or lower?” Bettors who went with over, at odds of 1.26, were vindicated. The only significant downside to Augur-based markets, including Guesser, is the length of time it takes for them to resolve. Last week’s featured Guesser bet, for example (“What will the total value locked in Defi be on Monday March 11, 15:00:00 UTC, according to defipulse.com?”) is still awaiting results, even though its outcome is not contentious.

How to Create Your Own Prediction Market

Creating an Augur-based prediction market got significantly easier this week thanks to Veil’s new interface that removes much of the complexity. Users can potentially earn revenue when people participate in their market by placing a bet. The process works as follows:

  1. Choose whether to create a binary (yes/no) or scalar marker (one with a range of values).
  2. Create a draft market.
  3. Be sure to include clear rules regarding scenarios that will determine its outcome.
  4. Publicly share the market, while it is still in draft form, to generate interest in it prior to activation.
  5. Activate the market. This calls for making a deposit in ETH and in REP, but Veil can automatically exchange the former for the latter using Uniswap for convenience.
  6. Report the outcome of the market once the event has concluded.

“Start by creating a draft market for free,” urges Veil, “then see if the community is interested in betting in it. If they are, activate it and get paid when people participate.” To help keep track of draft markets proposed using Veil, a Twitter bot has been set up. Newly devised markets cover Donald Trump, cryptocurrency price predictions, sporting events, and music releases.

How to Create Your Own Decentralized Prediction Market in Just a Few Clicks

A World of Predicting Possibilities

The number of users of Augur and of the third party markets that connect to it remain low, as does the maximum stake that can be placed. With virtually zero geographical restrictions on who can participate however – a Metamask wallet and an email address is all it takes – the barriers to access are low. Moreover, while the majority of markets currently revolve around simple bets that make Augur little more than a decentralized sportsbook, in future its potential use cases could expand significantly.

As Ben Davidow notes in “The Three Powers of Augur,” the market “can be used to hedge risk or insure against undesired outcomes and thus prepare for the future.” He also opines that it could one day be used for things like “filtering out fake news, and creating accountability for public figures.” Just as people are still discovering new applications for Bitcoin, 10 years on, it’s same to assume that decentralized prediction markets will gain significant utility and usability in the months and years to come.

Have you tried using Augur, Guesser or Veil? Let us know in the comments section below.


Images courtesy of Shutterstock.


Disclaimer: Bitcoin.com does not endorse nor support this product/service.

Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

The post How to Create Your Own Decentralized Prediction Market appeared first on Bitcoin News.

Bitcoin News

The Crucible of Privacy: Why Decentralized Exchange Is the Only Way

February 5, 2019 |

Decentralization is a core principle of blockchain-based technology. It’s the most important and unique property of the many cryptocurrencies that have launched since the birth of Bitcoin. Decentralization facilitates a move away from centralized control and differentiates crypto from government-backed fiat currencies. It is the crucible of security and privacy. So why, if this concept is so important to the foundations of the crypto ecosystem, are the overwhelming majority of cryptocurrencies traded on centralized exchanges?

Also read: Cryptocurrencies Have Spawned an Eclectic Underground Art Movement

What’s the Attraction?

The immediate benefits of centralized crypto exchanges are clear. The most popular centralized exchanges are generally easy to use and provide liquidity for a large number of coins.

For many people, the idea of taking those first tentative steps into crypto can be daunting. The media is rife with horror stories — from ICO scams to illicit marketplaces. So, when it comes to trading, it’s not surprising that most users automatically go for the easiest option.

Think about it for a minute. Most users probably have no experience trading fiat currencies, let alone digital assets.

In general, centralized exchanges make it easy for users to trade crypto and the larger ones rarely suffer from liquidity issues. Sadly, the same can’t be said for first-generation decentralized exchanges (DEXs).

But despite these benefits, centralized exchanges are fatally flawed. As well as making it difficult for users to trade privately, they require users to entrust their funds to a third-party, and as a result, the creation of a single point of failure, making centralized exchanges a prime target for hackers.

In recent years, hundreds of millions of dollars worth of cryptocurrency has been stolen by cybercriminals and malicious insiders. In my opinion, the benefits of centralized exchanges do not outweigh these inadequacies.

Understanding the Fatal Flaw

The number one problem with centralized exchanges is security. The list of massive hacks is constantly growing and it’s users that face the consequences.

We’ve already witnessed the first major hack of the year after Cryptopia lost $ 16 million in ethereum and ERC20 coins. The problem is this isn’t an isolated incident. Here’s a little reminder of some of the others.

In 2014, $ 470 million worth of bitcoin was stolen from Mt. Gox, while two years later, $ 72 million worth of bitcoin went missing from Bitfinex. These are two well-publicized events. But there have been many more.

Centralized exchanges force users to hand over their funds to a third party so trades are always overseen by a middleman. Not only does this go against a fundamental principle of cryptocurrency, but it leaves user funds vulnerable to theft.

As history has shown us when an exchange doesn’t have the security measures in place to protect its users, this is exactly what happens. With a centralized system, it only takes one mistake to jeopardize the security of every user.

DEXs tackle this issue head-on. They eliminate the security flaws that plague centralized exchanges by allowing users to trade safely, peer-to-peer (P2P). There is no middleman and users are never required to relinquish control of their funds. Assets aren’t kept on the exchange so there is no longer a single point of failure.

Privacy Is Not a Priority

Privacy is a human right but one that many centralized exchanges don’t appear to uphold. Users are required to share personal data with the exchange and every time they complete a transaction the details of it are recorded.

Anyone with administrative access to an exchange can identify the individuals sending and receiving payments. This trading data could be taken by malicious persons and sold on, or used in other unethical or criminal activity.

The first-wave of decentralized exchanges, although not perfect, did provide a greater deal of privacy. The absence of a registration process or a centralized authority meant trading data was neither shared nor stored, while the P2P trading mechanism took away the possibility of a crooked middleman abusing user information.

Decentralized exchanges tackle the key issues that afflict their centralized counterparts, but it would be wrong of me to claim they didn’t require improvement.

New Wave DEXs

The next generation of DEX platforms need to develop ways to tackle the issues that have held back their predecessors.

Firstly, there’s liquidity. Users need to know that if they log on to an exchange with currency to buy or sell, there will always be someone at the other end prepared to trade with them.

Although privacy has, by default, entered into the DEX debate, more needs to be done to give users the option to trade in private.

Finally, and most importantly, it’s vital that DEXs offer a fluid, simple user experience. Before now, DEXs were platforms designed by experienced users for other experienced users. If DEXs are to succeed, and reinstate decentralization as the driving force behind crypto trading, then they need to attract novice users too.

To compete, they need to be just as easy to use as current leading centralized exchanges.

Do you think first wave decentralized exchanges will help solve some of the problems of centralized exchanges? Is this the future of exchange technology in the crypto space?  


Images courtesy of Shutterstock


OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Anthony Khamsei is CEO of Resistance, a privacy-focused decentralized exchange and blockchain. He is a highly experienced cybersecurity professional, cryptography expert, and entrepreneur with a proven track record in tackling complex cyber threats and developing innovative security solutions.

The post The Crucible of Privacy: Why Decentralized Exchange Is the Only Way appeared first on Bitcoin News.

Bitcoin News

Decentralized Protocols Are Making It Easier Than Ever to Gamble With Cryptocurrency

February 4, 2019 |

Americans wagered $ 140 million on the 2017 Super Bowl, but if sports betting was legal nationwide, that figure would have been closer to $ 5 billion, it’s believed. Save for a handful of states such as Nevada, sports betting is outlawed in the U.S., though a Supreme Court ruling last year looks set to change that. In the meantime, decentralized protocols are making it easier than ever for cryptocurrency users to bet on a range of events including the Super Bowl.

Also read: New Hampshire House Subcommittee Approves Bitcoin for Taxes Bill

Bitcoin and Betting

Decentralized Protocols Are Making It Easier Than Ever to Gamble With CryptocurrencyAfter drugs, gambling is the vice most commonly associated with cryptocurrencies. While bitcoin has a wealth of applications, it is no coincidence that bitcoin’s first “killer app” was hi-lo betting site Satoshi Dice. Because of its statelessness, suitability for cross-border transfers, and pseudonymity, cryptocurrency is a natural fit for online casinos. Many web-based sportsbooks and casinos accept digital assets such as BTC, BCH, ETH, and DASH, and there are dozens of platforms that exclusively accept cryptocurrency.

The size of the black market for sports betting in the U.S. is difficult to estimate, but is believed to be worth upwards of $ 80 billion a year. For U.S. bettors seeking a means to wager on their favorite sports, various offshore gambling sites will take their custom. Using a credit card for such purposes heightens the risk of detection and data-loss however. Cryptocurrencies can mitigate some of those risks, but customers are still obliged to sign up to a centralized online sportsbook and disclose their personal information.

Decentralized prediction markets are an alternative solution that is beginning to gain traction. While not ostensibly designed for gambling, they effectively serve as surrogate sportsbooks, enabling cryptocurrency users to wager on the outcome of major sporting events.

Decentralized Protocols Are Making It Easier Than Ever to Gamble With Cryptocurrency
Augur

Prediction Markets and Decentralized Sportsbooks

A string of supposedly decentralized sports betting sites has sprung up over the last 18 months, many of which were funded with ICO money at the peak of the bubble. Projects such as Wagerr will soon be joined by the likes of Block Sports, while the popularity of gambling dapps, which account for the majority of dapp usage on the Eos and Tron blockchains, attests to the lure of crypto-based betting. Decentralized prediction market Augur and the platforms built upon its protocol are the best known examples of borderless betting that’s virtually impossible to censor.

At the time of writing, 330 ETH have been staked on Augur for the question “Will the Patriots defeat the Rams?” 54.6 percent of participants have the Patriots triumphing in the 2019 Super Bowl.

Guesser, a more user-friendly version of Augur, is currently in closed beta. It enables anyone to wager with ETH in just a few clicks using the Metamask browser. Its Super Bowl market is also seeing action, though more serious sports bettors may prefer Veil. Yet another Augur-based derivative, it offers the ability to go long or short on the outcome of the Super Bowl as well as to wager on a host of other events including the Academy Awards.

Decentralized Protocols Are Making It Easier Than Ever to Gamble With Cryptocurrency
Veil

For cryptocurrency users accustomed to using browser wallets such as Metamask to access the decentralized web, the ability to discreetly gamble in a couple of clicks can be tempting. Without the safeguards that licensed betting platforms offer, including the option to self-exclude to prevent problem gambling, the convenience of decentralized prediction markets calls for self-control. With great financial freedom comes great responsibility.

What are your thoughts on decentralized gambling platforms? Let us know in the comments section below.


Images courtesy of Shutterstock, Augur, Veil, and Guesser.


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Bitcoin News

Bibox Buys 100% Share of Decentralized Exchange Dex.top

December 17, 2018 |

Bibox, a Chinese digital asset exchange, has acquired 100 percent of shares in Dex.top, a decentralized ERC20 exchange that also operates from Beijing. Officials refused to discuss the price of the deal, saying it was “private.” Bibox, which handles $ 236 million of trading volume daily, said Dex.top will help expand its product offering.

Also read: U.K. Cryptocurrency Exchange Cubits Shuts Down After $ 33M Scam

‘Trying Something New’

Bibox Buys 100% Share of Decentralized Exchange Dex.top

The Beijing-based Bibox exchange runs 10 operation centers in countries such as the U.S., Canada, Singapore and South Korea, allowing users to trade BTC, BCH, ETH and other cryptocurrencies. The latest acquisition is Bibox’s second in five months. In May, the Chinese exchange bought Chain Capital, a Swiss company which owns a special license to conduct digital currency business in Europe.

“This acquisition [Dex.top] signifies that Bibox is now trying something new in the field of digital assets,” Bihui Lin, spokeswoman for Bibox, told news.Bitcoin. She said the deal will “not only improve Bibox’s ecosystem establishment in blockchain but also provide users with more trading options.”

According to data from Etherscan, Dex.top is the world’s second largest decentralized exchange by trading volume, accounting for 21.3 percent of the global total. IDEX is the largest, with 46.4 percent of all volume. Launched in May, Dex.top promises cross-chain trading, “a mechanism that leverages synchronized off-chain and on-chain ledgers to enable instant trading while ensuring the security of traders’ assets.”

‘Meeting of Minds’

Dex.top said it had “discovered a meeting of the minds in Bibox.” In a statement on Dec. 17, the company stated:

Both projects share a common vision of developing an outstanding trading experience with robust trading features while ensuring transparency and the security of users’ assets and data.

It added that “this acquisition will create synergistic relationships that will help both projects go further.”

Bibox Buys 100% Share of Decentralized Exchange Dex.top
Jeffrey Lei

Bibox has developed into one of the most popular exchanges in the world just a year after it was founded by Jeffrey Lei, the co-founder of Okcoin. With over one million users, the company is planning to open fiat-to-crypto exchanges in Seoul, South Korea, and Europe, supporting trading pairs such as the Swiss franc, English pound and euro among others.

Digital currency exchanges are looking for growth in new areas or to consolidate existing positions to help boost revenue and minimize risk from an uncertain regulatory environment in their home economies.

What do you think about Bibox’s latest acquisition? Let us know in the comments section below.


Images courtesy of Shutterstock, Bibox and Dex.top. 


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