The Bottlenecks That DACX Aims to Overcome

Ebubuemma
Ebubuemma
Nov 5 · 3 min read

Introduction

The exchange market has made a lot of achievements, but it still suffers a lot of challenges. This is the reason why DACX has been putting in a lot of effort and resources. Businesses and traders have a lot to gain in the new exchange.

Here are some of these challenges that the exchange would solve.

  • Serious theft and hack: One factor that has grossly impeded the adoption of digital assets and exchanges is insecurity. Since the beginning of cryptocurrencies, there have been records of security breaches. Most of the times, these breaches result in a lot of client funds and trust.
  • Inadequate infrastructure: A lot of the exchanges are based on single-threaded architecture. So in the event of system overloads and high volatility, the exchange is unable to perform execution adequately. The overload occurs when the amount of the orders exceeds the capacity of the trading matching engine. The system ends up polling the trading orders in queues. At such, it becomes difficult for traders to maximize market opportunities leading to loss of money.
  • Uncertainty of funds: a lot of exchanges are unregulated, and they do not segregate the funds of the customer as they should. This approach affects the exchanges’ compliance with specific regulations like AML and CFT. In cases like these, the funds of the customers are primarily at risk.
  • Market Abuse & manipulation: There have been several cases of abuse in a lot of exchanges, especially in the rogue markets. Market members go around the rules to make profits for themselves. Other forms of manipulations include: Quote stuffing, Momentum Ignition, Hammering, Churning and Wash Trading.
  • Spoofing and Layering: spoofing is a way traders manipulate the dynamics of the market to their advantage. Spoofing revolves around falsely creating trade optimism and pessimism. So a lot of these spoofers time their trade based on the manipulation. It is an illegal practice of making bids and offers with intentions of not seeing them through.
  • Digital Money Laundering: This form of laundering is a way of covering the tracks of digital assets or money obtained illegally. The money or asset goes through a lot of complex sequence of tumblers and exchanges. The trader intentionally loses the money to another specific trader. Indirectly, the money later finds its way to the original trader.
  • Financial Exclusion: A lot of persons are unable to access the financial services and products needed in the mainstream market. This inaccessibility is mostly dependent on the weak market structure. The difficulties come from both the demand and the supply side.
  • Lack of Liquidity: Liquidity is a significant factor in the risk level and the probability of slippage in the market. Thin market liquidity will strongly affect most users.
  • Poor customer support: You cannot overemphasize the importance of customer service in any business. Competition is usually so much that users have a lot of options and they switch patronage immediately they experience bad service.

Conclusion

As stated above, users face a lot of challenges in most exchanges. DACX is here to change this and expose traders and users to a productive and secure trading platform.

USEFUL LINKS

Website: http://dacx.exchange/

Bitcointalk Link: https://bitcointalk.org/index.php?topic=5197112.0

Telegram: https://t.me/OfficialDacx

Facebook: https://www.facebook.com/dacx.io

Twitter: https://twitter.com/dacx_io

AUTHOR'S DETAILS

Bitcointalk Username: Ebubuemma

Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=2568952

    Ebubuemma

    Written by

    Ebubuemma

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