Hybse centralised or decentralised?
There has been some confusion in the social media, wether the Hybrid stock exchange will be an centralised or an decentralised exchange. First I want to explain the difference between those two models.
A centralised exchange has everything under one roof. This makes it comfortable to take control of almost everything that happens on the servers. The control the funds that are allocated on each account is with the managers. There are many potential attack points for major hacks. Look at Mt.gox in 2011 or Bitfinex in 2016. Both were/are centralised exchanges. These marketplaces also stored their customers assets centralised on their servers. Of course, a centralised model makes it more easy to react to errors or hacking, since you don’t need approval for every change you make to the programming of the exchange.
The opposite of a centralised exchange is a decentralised one.
One of the big disruptive things in the cryptosphere in 2018 are decentralised exchanges. The idea is to manage the trades via a distributed ledger, which leaves the control over the private keys and in consequence over the funds with the respective user. This makes big scale hacking almost impossible. There is close to no need for management. And there are even some more advantages. Just ask good ol’ Google on the subject.
This takes me back to the initial question: Will the Hybrid Stock Exchange be an centralised or an decentralised one?
Taken from the old whitepaper:
“HYBSE‘s blockchain-based
platform will eliminate these hurdles, allowing issuers and investors to conduct business
on a secure and efficient platform. The platform will be a hybrid blockchain platform
since physical shares will be cryptonised in order to be traded. Trading on the platform
can be done P2P, eliminating the need for too many external intermediaries.”
This gives hints to a decentralised model.
On the other hand there is this screenshot from the technical whitepaper:
This has lead to the aforementioned confusion.
The Hybrid Stock Exchange is going to combine the best of both worlds. The quick reaction times in case anything happens and the safety of decentralised stored assets.
Here are the advantages of using HYBSE:
• Low operational costs
• Transparency
• Quick clearing
• Friendly and easy web interface
• P2P trading
• Innovative trading platform
• Highly secure
• Quality due diligence procedures
Disclaimer: This article is for educational purposes only and does not provide financial or investment advice. The reader is aware that there are special risks involved in dealing with blockchain and cryptocurrency assets.
Additional disclaimer: I am involved with DIMCOIN as a promoter. The following is my personal view and not an official communication by DIMCOIN.
