CoinXP Unveiled I: Introduction
The Infrastructure For Next Generation Crypto Exchanges
Exchanges — the Eye of the Storm
Consensus and liquidity are two cornerstones for the value of digital assets. Exchanges of digital assets — especially centralized ones(CEXs), which not only improve the market liquidity but also lower the threshold for common people to enter the market of digital assets, play an important role in the whole ecosystem. As one of a few applications that has actual revenue and a huge amount of assets, the scope of exchanges has been boosted rapidly with a lot of new attendances and has drawn great attention for different purposes. However the fast expansion and fierce competition brings about new issues, challenges as well as opportunities. Currently the pain points of the market can be summarized as two major issues. One is a lack of the trust and confidence of investors due to their concerns about the safety and security of their assets and the transparency and fairness of the personal ledger book and trading data. The other is about the low market liquidity and related issues because of the isolation of so many exchanges.
Powered by the blockchain technology, which has features of security, transparency, decentralization and tamperproofing and can be naturally applied for the trading scenario, decentralized exchanges (DEXs) can partially solve the issue of security and transparency and are considered as the future trend of the exchanges. Currently, however, most DEXs sacrifice the advantages of CEXs which introduce other issues with bad user experience. Focusing on these two major issues, CoinXP combines the advantages of CEXs and DEXs and provides a complete set of solutions to the trading of digital assets.
Fundamental Design of CoinXP
The philosophy behind the design of CoinXP public chain and ecosystem contains two essential keys:
1. Layering and decentralizing the functions in exchanges.
2. Applying either centralization or decentralization that is suitable for each function.
In a nutshell, CoinXP builds up a public chain as the bottom layer infrastructure, which provides security and safety of personal assets and transparency and fairness of trading. Beyond the CoinXP public chain, CoinXP provides APIs and softwares accessing to the backend decentralized services for individuals, organizations and entities to establish centralized exchanges that can provide centralized functions and improve user experience.
Major Features and Innovations
1. CoinXP — An public chain in the vertical field of the trading of digital assets.
Unlike most general public chains that provide infrastructure for various kinds of applications, CoinXP chain is only built for the application of the trading, and the performance and throughput can be optimized specifically for the trading. This is similar to the situation of BitCoin mining. ASIC miner has much higher efficiency and hash power than PCs with a general CPU.
2. Essential trading data on CoinXP chain
Essential data, such as personal ledger books, orders, and matched deals will be recorded on the CoinXP chain, to ensure the safety, security, tamperproofing and transparency of the trading. This will strongly increase the trust of investors to exchanges.
3. Aggregated order book and liquidity service
CoinXP provides aggregated order books from all exchanges in the ecosystem and has the cross-exchange match engine. These can greatly enhance the market liquidity and overcome the disadvantage of isolated exchanges
4. Centralized entities in the ecosystem
In the ecosystem, the users are still trading via centralized exchanges/entities. These centralized entities can provide geographic specific and customized services, such as KYC, user education, customer services and so on. It will greatly improve user experience and bring more investors into the field.
5. Distributed custody of digital assets
CoinXP uses threshold signature technique to protect custodian assets which secured by all super nodes in the ecosystem. Meanwhile, the custody make it easier and more smooth to do cross-chain trading such as BTC/ETH, BTC/EOS and so on. This is also the major difference between CoinXP and most DEXs that only can trade ETH and ERC20 tokens.
About CoinXP:
At CoinXP, our mission is to empower crypto exchanges to come up with the best trading experience to their users by providing a systemic solution of manage and trade of digital assets.
Telegram: http://t.me/cxp2dm
Twitter: https://twitter.com/coinxpofficial
Email: info@coinxp.io
