 QUOTE OF THE DAY  |
| "Once it gets bootstrapped, there are so many applications if you could effortlessly pay a few cents to a website as easily as dropping coins in a vending machine." - Satoshi Nakamoto |
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| COIN | PRICE | 24H |
|
| BTC | $8,178.20 | +6.36% |
|
| ETH | $474.364 | +2.57% |
|
| XRP | $0.460048 | +1.75% |
|
| BCH | $861.689 | +5.9% |
|
| EOS | $8.36132 | +3.32% |
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*Information as of 9:30 AM EST
State of Decentralized Exchanges
UTOPIA
- Blockchain allows for the creation of digital tokens that are not controlled by a central entity, they are what we call decentralized
- However, the issue of trading these digital tokens without a central entity is a more difficult accomplishment
- In a perfect world, crypto traders would have a medium of exchange where they own their own private keys, are safe from hacks outside of their control, and have anonymity
IN PRACTICE
- As cryptocurrency has taken off in recent years so too has the ecosystem, we have seen many decentralized exchanges blossom and also fail
- However, no decentralized exchange has yet found all of the ingredients for the perfect decentralized exchange
Take a look at some statistics of the largest decentralized exchanges, they are now where near the magnitude of centralized exchanges:
ISSUES WITH DEXs
- Complexity
- Decentralized exchanges are confusing and much less user friendly
- Liquidity
- With so few people on decentralized exchanges, the trading volume is very low making it difficult to execute trades
- Liability
- Yes, you are in control of your own coins, but that also means you have complete liability over them, nothing can be done if they are hacked or sent to the wrong address
- Hackers are aware of this and specifically target decentralized exchanges
BANCOR HACK EXAMPLE
- A couple of weeks ago, the Bancor decentralized exchange was hacked and roughly $25 million in funds was stolen
- The hacker was able to steal these funds by compromising a wallet that was being used to upgrade some of the smart contracts on the network
- Bancor was able to freeze the stolen BNT but the other funds were not able to be frozen
- If Bancor was able to freeze the funds, how is it considered a decentralized exchange? Most exchanges that call themselves decentralized do so because of marketing, in reality they are centralized to some extent
LOOKING AHEAD
- Ironically, the most promising decentralized exchanges may be ones being developed by centralized exchanges
- In March of this year, Binance announced that it is developing its own decentralized exchange where anyone will be able to list any token
- A couple months ago, Coinbase acquired Paradex which is a decentralized exchange, Paradex is not yet open to US customers and it is not known if Coinbase has bigger plans for the DEX
126 Year-Old General Electric Makes Investment in a Blockchain Startup
GE JOINS BLOCKCHAIN
- In a press release published yesterday, Xage Security announced that it raised close to $12 million in its Series A funding round
- Led by March Capital Partners, the funding round included City Light Capital, NexStar Partners, and most notably, GE Ventures (General Electric's venture capital arm)
- This is not the first time GE has explored the use of blockchain technology to further its business
- In February, GE Transportation joined the Blockchain in Transportation Alliance among other companies to explore "industrial ledgers"
XAGE SECURITY
- Xage Security is a startup using blockchain to allow tamper-proof communication between the infrastructure and devices in the energy, telecom, utilities, building management, and manufacturing industries
- With GE on board, GE Renewables is looking to use Xage to reinvent international infrastructure with Internet of Things (IoT) technology
Duncan Greatwood, CEO of Xage Security spoke on the purpose of Xage and its support from GE Ventures:
“For IoT technologies to successfully take hold, we need to deepen and broaden the integration of comprehensive cybersecurity within industrial systems. We believe that every industry can be made more efficient and more secure. With this support, we will continue developing and implementing a foundational security solution that enables industrial innovation."
Google Will Explore Distributed Ledger Solutions in Cloud Platform
NEW PARTNERSHIPS
- In an official statement published yesterday, Google announced that the tech giant has partnered with Digital Asset and BlockApps to offer distributed ledger technology solutions on Google's Cloud Platform
- Digital Asset creates distributed ledger software for the fintech industry while BlockApps has built a platform where decentralized apps can be launched
- These partnerships will allow users to "explore ways [customers] might use distributed technology frameworks"
DLT INCOMING
- Once Google starts offering distributed ledger solutions, customers will be able to try the Ethereum protocol in the Google Cloud Platform marketplace via an open-source integration
- According to Digital Asset CEO Blythe Masters, this will "reduce the technical barriers to DLT application development"
- Through this new offering, Google has joined alongside other tech giants who have launched their blockchain-as-a-service (BaaS) programs including Microsoft, IBM, and Amazon Web Services
Confirmed: TRON Acquires BitTorrent for Undisclosed Amount
RUMORS CONFIRMED
- Rumors of Tron (TRX) acquiring BitTorrent have now been confirmed by an official statement yesterday released by BitTorrent
- With more than 100 million users worldwide, the acquisition of BitTorrent makes Tron the world's largest decentralized internet ecosystem
- Though the official amount paid for BitTorrent is unknown, many believe it's north of $140 million since that was a previous offer made for the entire business
Justin Sun, Tron's Founder, commented on its new acquisition:
"With the integration of BitTorrent, TRON aims to liberate the Internet from the stranglehold of large corporations, give data rights back to the individual, and reignite the early 21st century vision of a free, transparent, decentralized network to connect the world, because the internet belongs to the people."
MOVING FORWARD
- BitTorrent didn't provide a specific direction in its official statement but it did say that the BitTorrent team will be operating in Tron's San Francisco location to focus on global business development and partnerships
- It is also not known whether BitTorrent will be integrated with Tron's platform or how that would happen if that is the case
- BitTorrent did clear some lingering questions by stating "we wish to reiterate that BitTorrent has no plans to change what we do or charge for the services we provide"
- Unconfirmed: Binance to Enter South Korean Market – A New Dawn Set to Rise?
- Samsung Denies Partnership With Lithuanian Blockchain Start-up CoPay
- Scam or Be Scammed? Ponzi Games Are Breaking Out on Ethereum
Waves (WAVES)
"The beta stage of cutting-edge DEX and wallet on the Waves Platform will be completed on 24 of July!"
0x (ZRX)
Nifty conference and hackathon from Jul 24-26 in Hong Kong.
Today in Crypto is powered by coinmarketcal.com
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