Recently, there are major changes in the crypto industry. Many news such as major companies dropped off from the exchanges, traditional exchanges running off, etc., are spreading in the market. Fortunately, there was a small rise yesterday, which temporarily calmed down the investors. Personally, I believe the loss stated by these major companies is a joke, especially in the crypto industry. This is because no one in the industry will sympathize them. After all, who hasn’t lost money? As the major investor in the market, the 30% loss seems like nothing. While these major investors were accusing the OKEX and Blockvc with blood and tears, the industry was triggered. People commented that, “How dare you make a fuss with such a small loss”, “You can make a fortune, but can’t afford the loss?”, “Get a taste of your own medicine”. However, there seems to be a curse in the crypto industry. There was a platform incident happened during every round of bull market. For example, the Mt.Gox hack in 2013 and the OKEX halt in 2020.
Let’s take a look at the drawbacks of centralized exchanges and how the decentralized exchange of NGK overcomes these drawbacks.
There are two main reasons why centralized exchanges can do whatever they want or even run away. This is because the ultimate loss is borne by the users. The analysis shows that the crypto industry lacks effective supervision, especially the crypto exchanges. There is no complete regulatory framework. Therefore, some platforms which supposed to protect the user data and assets, acted like a theft and maliciously used these data and assets. When these incidents occurred, the users could not take any legal actions to protect themselves.
Besides, when we put our assets on a centralized exchange, our assets are not in our own hands. They are hosted in a digital wallet fully controlled by the platform.
This is because most DeFi projects are released through ETH. However, NGK will be the world’s first DeFi project run by DPOSS!
Let us take this NGK-DeFi project as an example and analyze how decentralized exchanges can overcome the disadvantages of centralized exchanges.
First of all, users’ assets stored in a centralized exchange are placed in the platform wallet for custody, while in the NGK decentralized exchange, the users’ assets are in their own wallets. When trading, the users are not required to register on the exchange. They can login to the decentralized exchanges through NGK wallet.
Therefore, the exchange could not access and control the users’ assets. This prevents the malicious transaction from the operating mechanism. In the centralized exchange, users must register an account in the centralized exchange and reload their token assets into the platform. After the reload is completed, the assets are in the hands of third party. The users can still view their assets, but that is just an interface and numbers designed by the exchange. Their real assets may have been diverted.
Furthermore, the trading on a decentralized exchange does not required a deposit and withdrawal of assets like a centralized exchange. The decentralized exchange uses its own digital wallet to connect to the exchange, and the transaction is done through user’s wallet. After the transaction is completed, the corresponding digital assets will be automatically transferred to the user’s digital wallet without withdraw the money, which greatly shortens the period of user’s assets at outside and further improves the security.
When NGK decentralized exchange conducts a transaction, all operations are performed on the chain, even the matching of user orders. This DeFi project is operated with DPOSS. All transaction data can be queried and rolled back to the chain which solve the shortcomings of opaque data in centralized exchanges. Therefore, the decentralized exchange has overcome some of the drawbacks of the centralized exchange, making the users’ assets more secure. This is because the assets are now stored in their own wallets, and the private keys are also kept by themselves.
In addition, this upcoming DeFi project is built and launched by NGK Spirit Stone team from Silicon Valley. The team has extensive experience and some of them previously served the top technology companies such as Oracle and Amazon. Its technology has been strongly affirmed by the crypto expert, Ken Huang (in Chinese: 黄连金) and other experts. Hence, this NGK-DeFi project is bound to create a new decentralized trading platform, a star rating project. Stay tuned!
(Syndicated press content is neither written, edited or endorsed by ED Times)
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