The Benefits of Transparency
By Liam Bussell
A lack of transparency is a weakness in both the CEM model and the decentralized, P2P model of exchange. Lack of open source code, questions about fractional reserves, and opaque security protocols have badly damaged the reputation of CEM’s, while on the decentralized side of the equation, limited availability of asset gateway services and low buy/sell order volume are much discussed. In the openANX platform, a key selling point of the project stems from the application of collaterized reserves deposited onto the blockchain by asset gateways. Each gateway chooses the level of its deposit and the information is transparent for all users to access. Alongside other assessment parameters, this allows for effective credit risk evaluation.