How DAEX can be a reliable financial and technology partner of digital asset exchanges?

Preface
Through “Fast establishment of technical barriers is the only way to dominate the market.”, We could understand that the exchange is still one of the core step in the development of the blockchain, and also feel the DAEX team’s pursuit of technology and persistence. So How DAEX can be a reliable financial and technology partner through technological revolution? Let us show you via a video——

DAEX is not an exchange platform, but a professional technological service company

Q1. Can you please briefly introduce the DAEX ?

Lois: DAEX is a distributed digital asset clearing ecosystem. We have our own clearing chain and DAEX full-asset wallet designed for exchanges, fund institutions, DApps, etc., providing a full range of asset settlement and wallet solutions for exchanges, institutions and individuals, enabling exchange assets to be carried out. The service can operate Distributed clearing and settlement, while avoiding the risk of being stolen by hackers. Therefore it solves the main problems of credit, efficiency and security in the digital asset ecolosystem. In fact, DEAX is not an exchange platform, but a professional technical service company.

DAEX is dedicated to protect exchange from becoming the ATM of hackers

Q2. What is the value of DAEX in the respect of digital currency?

Lois: Before I was interviewed, I participated in a Meetup in Seoul and did some survey. I learned that there are many Korean exchanges that have been hacked and stolen, which is actually a very serious problem. The user keeps the assets in the exchange based on trust, but the exchange is vulnerable to hackers due to technical or other problems, causing internal losses and incompetency of protecting the interests of the users. This is actually the problem what we always want to solve.

In addition, the centralized exchange is too concentrated, and it manages the assets of all users, and the user does not have a private key, so there is no actual ownership of user’s assets. This is also a phenomenon we want to change. Some people may say that decentralized exchanges can achieve real secure assets of users , but decentralized exchanges also have problems of efficiency and liquidity while maintaining the security.

So DAEX’s solution is actually looking for a balance between centralization (efficient and centralized) and decentralization (fair and inefficient), such as the combination of centralized integration transactions and decentralized custody and clearing trading system.

Q3. But such problem does not solve the hacking problem ?

Lois: Indeed so. Although we can’t solve the problem of hacking and stealing coins for 100%, in DAEX’s clearing ecology, everyone’s private key is kept by the person, which means that the individual has exclusive ownership of their own asset.

For security mechanism, DAEX enterprise-grade Wallet has a customized asset risk control model, which allows the users to establish the risk control model based on the user’s demand, for example, it helps users to immediately response when the risky situation occurs, and it helps to protect user’s assets from loss, through dynamic charging and withdrawal monitoring methodology.

Imagine if there were 10,000 BTCs in an exchange and the hacker has successfully stolen the exchange’s private key. This means that all assets will be transferred. But after applying the DAEX clearing ecology, assume that the 10,000 BTCs belong to 10,000 different private keys and correspond to 10,000 individual users, unless the hacker can simultaneously hack more than 10,000 users’ computers or mobile phones and successfully obtain the corresponding 10,000 private keys , only after he can transfer the 10,000 BTCs. This means that when encountering hacking coins again, the exchange will no longer suffer such a huge loss, and can prove by itself that this is not the internal manipulation of the exchange.

DAEX solutions effectively avoids the internal manipulation problems of the exchange.

Q4. In fact, some of the exchanges claimed that the coin stealing incident is not done by real hackers, but for internal reasons. What do you think?

In fact, there is indeed a such situation. The exchange claims that hackers steal money, but it is actually internal personnel transferring assets for investment. In this case, if all assets can be chained (on the DAEX clearing chain), exchanges and internal employees will no longer abuse power, because all transaction records will be open and transparent.

At the same time, DAEX enterprise-grade Wallet provides a full range of asset custody solutions, helping to complete bulk chain transfer and separate cash withdrawals in the wallet of the transaction, which can reduce the loss caused by manmade mistake.

As for the hacker stealing coins, the exchange will no longer hold the user’s assets, the assets will be hosted in the DAEX wallet, and the DAEX wallet is a distributed wallet and has exclusive security measures, which is the main reason that using DAEX will greatly reduce the hacker intrusion and loss of assets.

DAEX is dedicated to become the bank-grade assets management in the respect of digital assets

Q5. How to ensure the professionalism of the DAEX solutions?

Lois: In spite of the DAEX wallet and clearing system technology just mentioned, our core team is also from the securities, banking, consulting, Internet industry and financial technology fields, so I think we are very professional in this area.

Especially for some small and medium-sized exchanges, they may be excellent in business development and marketing, but they may not have a professional technical team to protect the security of assets. In my opinion this is the most important and most user-focused. So, what the DAEX team really wants to do is effectively address the issue of digital asset security, not just the security of personal assets, but also the security of the assets of the exchange.

In addition, the asset custody and clearing services we provide can significantly reduce the operating and maintenance costs of the exchange.

Imagine that you are planning to open an exchange, and you may need to hire and form your own team, including the technical department, the finance department, the risk management department, and so on.

However, if you cooperate with DAEX, you may no longer need to set up relevant departments and pay so much labor costs. We will help you build professional trading services and business processes for the trading system and wallet system of the exchange. Further, we will also optimize the business management process.

The DAEX wallet system can provide very systematic and professional financial management services, and is committed to becoming a bank-level asset management of the digital assets.

DAEX helps enterprise users reduce operating costs through optimized business management processes. It covers multiple operations such as multi-asset and multi-account model, financial approval report, and wallet bulk management, which substantially improves users’ effectiveness of digital assets management. Financial personnel no longer need manual analysis and calculation, and can manage assets, transfer, withdrawal and other assets management in the system and generate corresponding reports.

Furthermore, if you are the CEO of the exchange, you can set the operational permissions between different roles, adjust the risk management control levels in different periods, and view financial approvals as well as risk reports.

DAEX is a reliable partner of the exchange

Q6. If the exchange cooperates with DAEX, what it would be like?

Lois : There are two main ways for the exchange to cooperate with DAEX:

First, if the exchange itself has its own mature wallet system, you can choose to directly connect to our clearing chain and become one of the nodes of DAEX clearing ecosystem;

Second, for some small and medium-sized or emerging exchanges, if you want to build your own wallet system and public chain, you can trust DAEX, enjoy the shared ecosystem of DAEX wallet, and access our clearing chain in the future to become our Ecosystem Alliance Partner. Of course, we can provide more than just these, if you seek more cooperation, welcome to talk to me.

Q7.If the exchange uses the DAEX Wallet, how the transaction would be done ?

Lois : In the first version of the DAEX wallet service, we have accessed with BTC, ETH, EOS, BCH, ETC, LTC and other main chains to support the cross-chain operation and related services between more than 300 mainstream digital currency assets in the market. Even if the exchange is connected to our wallet system, all transactions are still executed by the exchange. As our wallet function continues to improve, users can complete the transaction directly in the DAEX wallet, but this does not mean that we will execute the transaction. In the process, we are only partners of the exchange and not the exchange itself.

Q8.Does it mean that users can directly transfer the assets of the exchange to other exchanges through the DAEX Wallet?

Lois : It depends. If both exchanges are the exchange partners in the DAEX clearing ecosystem, users only need to pay very low DAX fees to directly transfer assets, which achieves cross-chain interoperability of all assets that is simple and money-saved. Instead of transferring assets from the exchange to the wallet and then from the wallet to other exchanges as before, if the exchange performs transaction outside the ecosystem, then it is the same as a normal transfer, which requires ETH fee and the same small amount of DAX fee. However the transfer process is simplified accordingly, and the security of the asset is improved.

Q9.Why the exchange would choose DAEX? When DAEX would cooperate with greater exchanges?

Lois: In fact, at this stage, our main service customers are small and medium-sized or newly emerged exchange partners.

Because if there are large and mature exchanges, some will choose to complete their wallet and public chain deployment independently. Some have no plans for this, so we will try to cooperate with them in the long run.

For small and medium-sized exchanges, first of all, if they want to stand out in the fierce market competition, they need to have their own characteristics and strong technical support. And that’s what we can offer, including full-asset wallet services, enterprise-class scenarios, security and matured technology.

In addition, enterprise-grade customers accessing to DAEX wallets will enjoy the fast and low-cost cash withdrawal service within the ecological environment. It is expected to save about 40% of the handling fee; automatically generate reports, automate risk control and other functions, reduce error rate and save manpower investment.

At same time, DAEX has professional Exchange Technical Services team, which can provide products and services such as blockchain-based application consulting, digital asset trading systems, exchange risk management security solutions, compliance solutions, as well as clearing and custody systems.

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