DAEX — A CRYPTOCURRENCY CLEARING SOLUTION BASED ON DISTRIBUTED LEDGER TECHNOLOGY

DAEX (Digital Assets Exchange), which is a Chinese-based project implementing a clearing and settlement solution for centralized exchanges, is one such project worth taking a look at. A closer look at DAEX will show that the solution they are developing has a real demand in the current (and upcoming) cryptocurrency market.

DAEX Project Overview

• DAEX offers to solve a problem that Bitcoin and most early blockchain providers could not: the extremely slow clearing speed that made transactions unwieldy and expensive.
• DAEX is creating a clearing and settlement ecosystem for centralized exchanges. The ecosystem will include a clearing chain, identity chain, settlement chain and the DAEX Wallet.
• Fast clearing means that DAEX coins can be used as a virtual currency in an unprecedented manner. With some refinement the promise of DAEX is that it can replace the credit card or debit card entirely.

ROADMAP

The DAEX Community

DAEX’s community spreads across multiple languages and countries, including:

• Korea (https://open.kakao.com/o/gWJcHBQ)
• Indonesia (https://t.me/DAEXOfficial_id)
• Russia (https://t.me/DAEXOfficial_ru)
• China (https://t.me/daexofficialgroup)

The DAEX Team

The DAEX team can boast of considerable pedigree. They are some of the most eligible people who can be recruited in this emerging field.

• Benjamin Gu (Chairman) — Benjamin Gu has experience in the clearing and settlement field for US options-based securities. He held several management level positions and is a master graduate from the University of Science and Technology of China. Benjamin was involved in the development of ENCORE, which is the system used today for clearing of all US-based options.
• Jason Tang (Chief Architect & Co-Founder) — Jason Tang holds two patents in Mainland China related to development of blockchain technology. He used to work for China Zheshang Bank and was involved in the first blockchain project implemented across all commercial banks, and the first accounts receivables platform based on blockchain technology.
• Hana Zhang (Co-Founder) — Hana Zhang is a cryptocurrency exchange investor and a member of IDEL (International Digital Economic League). In China she is an opinion leader in the blockchain space, and has worked for fortune 500 companies such as A.T Kearney, Dun & Bradstreet and Euromonitor International.

The DAEX Ecosystem

The DAEX Clearing Chain uses ASPoS (Accumulative Signatures for Proof-of-Stake) as its consensus mechanism. APoS is an in-house developed algorithm that DAEX developed and bases each node’s stake on its deposit amount, activity levels and Clearing Value Factor (CVF).

They claim that ASPoS ensures nodes are rewarded based on how they contribute to the ecosystem, and penalizes malicious nodes by making them forfeit their deposits. Exchanges that join the DAEX ecosystem will have all trades cleared on the DAEX Clearing Chain (clearing happens after the trades are matched, and currently this part of the process is not transparent within centralized exchanges).

Another part of their proposition is allowing users to access their assets via the DAEX Wallet. Essentially, this provides access to any exchange within their ecosystem through one universal wallet. This not only transfers full control of assets from the centralized exchange (they currently store all their customers’ assets in hot/cold wallets until the funds are withdrawn) to the trader, but provides an efficient method for them access multiple cryptocurrencies across multiple exchanges.

1. DAEX WALLET — Supporting multiple assets for both enterprise and individual level customers.
2. DAEX CLEARING CHAIN — A public clearing chain supports cross chain clearing for digital assets.
3. DAEX FUND — Supporting investments of cryptocurrency exchanges and wallets, cross chain solutions and asset management projects

DAEX: Weaknesses and Threats

• The main problem is DAEX is just one of dozens if not hundreds of other ICOs that are happening. ICOs are all the rage in 2018 and everyone is trying to get into it.
• This means that there is a lot of noise surrounding ICOs. There are so many other competing products that DAEX is at risk of becoming buried amidst the crowd.
• The unique value proposition of DAEX as a revolutionary payment method is its saving grace. This is fairly unique among ICOs and will prove that DAEX will have movement as it will be traded and value will be added as it is used as a form of currency.
• One weakness of the DAEX project is that they are not established or big enough to cooperate with larger or more mature exchanges.
• Giants like Binance, Bittrex, Coinbase etc. will be much less inclined to be a part of the ecosystem, because it requires a drastic change in their operational process and infrastructure.
• Another weakness is that they are a China-based project, and China recently banned cryptocurrency trading and exchange entities. These regulations from the Chinese government restrict the DAEX project from cooperating with local exchanges and partners that could easily be accessible for them.

Website: https://www.daex.io/
Whitepaper: https://www.daex.io/pdf/DAEX(EN)-NonTechnicalWhitepaper-V0.9.8c.pdf

ANN: https://bitcointalk.org/index.php?topic=2910479.0
Telegram: https://t.me/DAEXOfficial_en