Recent Facebook AMA with DAEX COO, Lois Shen
We have had many big things happen at DAEX recently, including several investments/partnerships between us and other blockchain projects and our DAX token public sale, which is now live and will end at 1PM September 14. We also have active Indonesian and global bounty campaigns (both will end at the same time as our sale), and we recently invested in SVPER, an innovative social media video only app. Moreover, there was an AMA with our COO, Lois Shen, and more information regarding that is below.
After our COO, Lois Shen, livestreamed a Facebook video AMA (Ask Me Anything) last Friday at 1PM GMT, September 7, we decided to compile a list of the questions asked with Lois’s answers. The stream lasted for just under an hour, and can be viewed again at https://www.facebook.com/daexblockchain/videos/447500635771658/.
We are very pleased with the results from this AMA, as it covers a lot of information about DAEX that our community wanted to know more about. We will continue to do similar AMAs in the future and perhaps focus them on topics that are more specific. Feel free to drop by our telegram with any recommendations or ideas https://t.me/DAEXOfficial_en.
Some questions and answers from the stream are listed below:
1. What is the goal DAEX is trying to achieve?
DAEX is trying to create a more transparent and open trading environment by offering centralized exchanges a clearing service for trades performed on their platforms. Currently, centralized exchanges clear their trades behind the scenes in a non-transparent way, and we feel this information should be publicly available on a secure blockchain.
We are also aiming to provide traders with complete asset ownership through the DAEX Wallet as a method for traders securely access multiple exchanges in the ecosystem.
2. What is the risk of current centralized exchanges?
Currently, centralized exchanges store their customers’ assets in their own hot/cold wallets, creating a huge target for hackers. In fact, more than 30 exchange hacks have taken place over the last 9 years, with billions of dollars’ worth of assets being stolen. Noticeable exchanges that have been attacked previously are Coinrail, Mt.Gox, Coincheck, Bithumb and Bitfinex.
3. What is included in the DAEX ecosystem?
The DAEX ecosystem includes the identity chain, clearing chain, settlement chain, partnered exchanges, and the DAEX Wallet. Progressively there will be more additions to the ecosystem.
4. Who can participate in the DAEX ecosystem?
Exchanges, traders and institutional investors can participate in the DAEX Ecosystem.
5. How does the clearing chain provide a solution for centralized exchanges?
Currently, centralized exchanges clear all trades on their platforms behind the scenes. With the DAEX Clearing Chain making this information public, it provides transparency to traders who use their platform.
6. What is the uniqueness of the DAEX wallet?
The DAEX Wallet uses a multi-segment key for added security. If another party holds a segment of the key, they are not able to initiate transactions or recover the entire key.
7. What is the DAEX Fund?
The fund plans to focus on investments related to centralized exchanges, wallets, cross-chain solutions and asset management while paving the way for greater industry compliance.
8. What is the token usage scenarios?
The DAX token is used to participate in clearing and settlement processes of trades that take place in the DAEX ecosystem. In comparison to centralized exchange tokens, DAX tokens are distributed in a transparent and decentralized way.
9. How does DAEX stand out as a project in the cryptocurrency space?
DAEX is providing clearing services for centralized exchanges using distributed ledger technology, so far there aren’t any projects that provide this service.
10. What is a clearing service?
In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing is the procedure by which an organization acts as an intermediary, and assumes the role of a buyer and seller in a transaction, to reconcile orders between transacting parties. Clearing is necessary for the matching of all buy and sell orders in the market. DAEX will be providing similar services to centralized cryptocurrency exchange.
11. Won’t it increase the trading fees if DAEX acts an intermediary between the exchanges and the user?
DAEX’s ecosystem supports atomic settlement i.e assets can be transferred between different chains directly. Regular exchanges have different wallets for different cryptocurrencies, by removing the need for having different wallets, the trading fees can be reduced. It also has a token rewarding feature for trading using DAEX, which also helps in reducing trading fees.
12. Centralized exchanges are getting hacked and exchanges are losing millions of dollars, is DAEX safer?
DAEX will provide greater security because it uses muli-part private keys
The private key is split into 3️ parts:
1️ User part: Stored with user in an unreadable format
2️ Wallet part: Stored on DAEX servers in the internal network separated by the DMZ zone
3️ Backup part: Stored in cold storage, used only for recovery purpose
When someone needs to access their funds from their DAEX wallet, they need two out of the three parts of the private keys.
This will significantly reduce the probability of the funds being stolen even if the hackers have the private keys of the user.
13. What is the difference between DAEX and decentralized exchanges?
In decentralized exchanges, private keys can be lost and is unrecoverable, but DAEX provides the ability to change one’s private key. Decentralized exchanges also have low trading volume than centralized exchanges, resulting in lower liquidity. Lower liquid liquidity increases the time taken to fill up an order and make trading slow.
14. But there are also centralized exchanges with low trading volume, will DAEX improve their volume?
A. All DAEX participating exchanges will use one clearing ledger, customer accounts are created and managed on the same ledger. This means that all the buy/sell orders from other exchanges in the DAEX ecosystem will be accessible from one single user wallet. We already have partnered with more than five centralized exchanges that will be using DAEX ecosystem.
15. Any MVP (Minimum viable product)?
At the end of July, DAEX launched the world’s first multi-asset cross-chain wallet for exchanges and corporations (www.daex.pro). LBank, SEADEX and five other exchanges are the first to be granted access to the DAEX Wallet system. DAEX team has successfully connected EOS, VET, NAS and TRX mainnet wallets to the DAEX Wallet, added enterprise-level features, including bulk addresses, transaction reporting and multi-role management and has started the DAEX Wallet beta testing with first round of trial users.
16. What consensus mechanism does DAEX use?
DAEX’s consensus mechanism is based on Clearing factor Proof of Stake (CVF-POS). In classic POS mechanism, the weight of every node is linked to the capital of the node. This can lead to Matthew Effect which makes the rich richer. In DAEX clearing ecosystem, every DAEX wallet user has equal accounting power but different accounting scores.
17. Does DAEX support smart contracts?
DAEX supports smart contracts. The DAEX system gives every user the right to issue smart digital asset using DAEX tokens. A user can create new smart digital asset such as commercial paper and personalized asset by collateralizing certain highly liquid digital assets.
There were also several questions that Lois did not have the chance to answer. Stay tuned for an upcoming article we will release on our Medium that will include those questions and answers.
On behalf of the DAEX team, we would like to thank all of you who participated!
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