Newdex: Top EOS DEX Launches New Smart Contract on July 1st
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Crypto Spring Is Here
A few weeks ago during a Bloomberg interview, Founder and CEO of Digital Currency Group and NASDAQ Private Market, Barry Silbert said “crypto spring” has arrived.
With the abundance of positive news in the crypto markets these days, it certainly begins to feel this way. Just last week for example, Facebook released a whitepaper for their highly anticipated upcoming cryptocurrency – Libra.
The markets have been on the upswing recently with bitcoin touching $9,300, a level last seen in May 2018.
On the EOS front Block.one also just announced the highly anticipated decentralized social platform Voice and the plan to increase EOS transaction speed by a whopping 12x. Things are getting really exciting in a very short time frame.
Exchange Hacks Are a Major Threat
Since the beginning of blockchain technology, our crypto community has been troubled by the hacks of the centralized exchanges (CEXs). From 2014 Mt. Gox hack to the recent Binance hack and every incident in between, we are constantly reminded that no exchange is 100% secure. As all client funds are stored on just a few exchange accounts, they become obvious targets for hackers and even exchange insiders.
To this day, we believe that this is one of the weakest links in the crypto ecosystem, preventing crypto assets from mass adoption. Exchange hacks can cause losses ranging from a few thousand dollars for an average user to millions of dollars for institutions or high net worth individuals. This is particularly concerning when the lack of transparency for most exchanges.
Thankfully, what was described above is true mostly for the centralized exchanges. A solution that the crypto community have found is a concept of a decentralized exchange (or DEX).
DEXs Are Much Less Vulnerable to Hacking than CEXs
The term “decentralized exchange” is relatively new. There is no standardized definition, but generally it refers to exchanges offering higher transparency and asset security. Fearing hacking, many users believe that they should own their own crypto custody, and that crypto assets should not be stored on the exchanges. Teams around the world started building DEXs when Ethereum created smart contract. However, it is not until EOS came along offering unparalleled transaction speed that the DEXs started seriously competing with the CEXs on the user experience front.
Newdex – Best DEX in the EOS Ecosystem
While there are many decentralized exchanges operating on the EOS blockchain, Newdex is by far the most prominent and most widely used. In its early days, questions were raised regarding its legitimacy as a DEX since it required users to deposit assets to a non-smart-contract EOS address for pending trades. But in its initial design, Newdex bypassed user account system, and once the trades were completed, assets were automatically delivered back to the users. From user experience point of view, this is a noticeable difference from a traditional CEX.
Newdex took community feedback very seriously. In the following months, the team implemented smart contract, from the first function of trade cancellation, to the now full-blown smart contract handling trade matching and settlement. Newdex even one-upped some DEX competitors who are still relying on off-chain trade matching algorithm.
Another breakthrough for Newdex is the fact that its smart contract is audited by two top security firms: SlowMist and Peck Shield. This is rarely done on smart contracts due to the associated high cost. Newdex enlisting SlowMist service shows the team is in the DEX project for the long term.
Newdex Launching New Smart Contract
Several months ago Newdex announced that they completed work on the new “Matching and Settlement on-chain” smart contract. It has recently successfully passed the safety audit by the above-mentioned SlowMist Technology and is finally ready to be deployed. July 1st is targeted as the launch date. Once deployed the new contract will match and settle on-chain all of the asset trading pair available on the Newdex exchange, transparent to everyone. New smart contract will also increase the speed of trade execution.
The Future Is Bright
One might think Newdex gave up a lot by not having its own user account system. After all, what is valuable of many applications is their user base. Maintaining an identifiable user database in some form of a KYC (know your customer) is a multi-million dollar business. In fact, Facebook built a multi-billion dollar empire by knowing its users too well. If a user can just come to Newdex, execute a trade and leave without a trace, how does Newdex ensure customer retention?
Newdex crafts its own path on their way to world domination. Many prominent exchanges make sure their founders have enough face time with the community, both online and offline. Newdex team instead focuses on dedicating efforts into making Newdex the most EOS-friendly exchange. Newdex is broadly integrated into popular crypto wallets such as TokenPocket, MEET.ONE and Lynx. Not only does it have the most EOS-based tokens available, it also opened up dedicated areas for EOS-side chains, such as Telos and BOS.Quietly, but surely, Newdex has long become the top choice to trade EOS ecosystem tokens. Out of many trading pairs listed, Newdex owns that trading pair, whether from 24hr trading volume or bid-ask spread standpoint. All these are made possible by real users coming to put in real trade orders, as Newdex has promised that it won’t perform wash trades.
To reward loyal customers, Newdex takes cue from Binance, the king of centralized exchange, to issue its own token NDX. Holders of NDX will get trading fee discounts and many other perks.
So far, it looks like Newdex is doing a lot of things right. It implemented a smooth log-in process through wallet authorization where Newdex never accesses user private keys. All trading activities are transparent on-chain with lots of trade orders are coming to Newdex. Not to mention Newdex has a huge head start in the DEX scene. It has established itself as the market leader in the EOS community. We will continue to follow its future progress and development!
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