7 Questions with Korea’s №1 media TokenPost and DDEX

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Hydro Protocol

4 min readJul 25, 2018

Hydro Protocol co-founder Bowen Wang gave an interview with TokenPost on the Blockchain Open Forum last month. TokenPost is the №1 Blockchain media outlet in Korea with over 350k monthly readership. It is a leading provider of news and analysis on trends, technologies, and companies in the blockchain ecosystem and cryptocurrency market.

In the video interview, Bowen answered 7 questions about DDEX and the future of decentralized exchange. Check out the video below!

https://www.youtube.com/watch?v=G0v85-qVKiw&t=35s

1. What is DDEX and how is DDEX different from other DEX and Centralized Exchange?

DDEX is a non-custodial wallet-to-wallet trading platform for ERC-20 tokens (which account for roughly 95% of all ICO’s). DDEX runs an off-chain matching algorithm with on-chain settlement — this makes it as quick as a centralized exchange without the security risks. We settle all transactions on Ethereum’s main network directly from wallet-to-wallet to assure no other party can steal your assets from us (we never hold them!).

We are 50 times faster than the previous generation of decentralized exchanges. We support all ERC-20 tokens. (potentially around 80,000 trading pairs)

For centralized exchanges, the only point where they actually interact with blockchain is during deposits and withdrawals. A centralized exchange is like a public swimming pool where everyone puts coins in. The coins are easily mixed, but one hole in the swimming pool can drain the everything along with everyone’s assets: it is easy to be attacked. We have seen this happen numerous times in history, with centralized exchange hacks losing millions of dollars worth of crypto assets. But DEX users hold their own private keys — like each user has their own private swimming pool, and hence security is guaranteed.

2. Is their any cross-chain possibility?

Currently we operate within Ethereum’s main network, but it is easy to migrate to other public chains like EOS, NEO or Qtum.

3. Bithumb Hacking was a catastrophe. How will DEX’s prevent hacking?

Unlike Centralized exchanges, DEX’s do not hold users’ assets. Hence even if hackers attack it, no assets can be stolen. Centralized exchanges are vulnerable to both inside trading and outside hacking. Historically insiders cause most of the hacking.

4. How do you deal with regulation issues like KYC and AML in China? Are DEX’s also one of the targets for government regulation?

We will proactively work with government. We want to be the most professional team within the landscape. We are happy to work with the government to talk about how to properly set regulations. But for now we don’t deal with fiat currency or cash. Anti-money laundering doesn’t apply to us. As we don’t take custodianship, we are not money transmitter. We are well prepared for regulation but there is no regulation currently.

5. Do you have counter measures to prevent price manipulation?

Yes, our order book is still centralized. Hence we could notice weird transactions in our database. We use back-end monitoring systems to monitor the health and stability of our orderbooks.

6. Where do you see the future of exchange going?

In the future, everyone will hold their own private key and have the knowledge to keep their assets safe. The user experience of DEX will be as good as centralized exchange. Ethereum will be similar to the Internet and Ethereum wallets will be similar to browsers.

7. Do you believe that businesses and enterprises will get into DEX’s as well? Do you have plans to expand into that direction?

Yes, DEX’s are actually just a module that can be added to other applications. Especially many financial institutions want to utilize the technology.

We are currently working with one of the largest OTC traders in the world, to build his own OTC DEX, which allows only large transactions.

Build your own DEX?

For those interested in starting their own DEX, we are now accepting applications (which we are referring to as “Hydro Nodes”). The open-source code repositories will empower singular Hydro Nodes to quickly develop their own high-functioning decentralized relayers with liquidity sharing capabilities utilizing the Hydro Protocol. You can read more about “Hydro Nodes” here. DDEX is the first hybrid decentralized relayer on top of Hydro.

Feel free to contact us bd@ddex.io

We are Hiring!

Hydro Protocol and DDEX plan to further expand our team in The United States, Europe, Southeast Asia, and Japan. We are looking for skilled individuals who are as passionate about blockchain as we are. If you believe you have what it takes, please send resumes to jobs@ddex.io

Job opportunities including, but not limited, to https://angel.co/ddex-2

New to Hydro?

Hydro is a network layer protocol for high performance decentralized exchanges and marketplaces with built-in incentives for coordination. Hydro utilizes ’Federated Liquidity Pools’ (FLP) to address the issue of liquidity sharing among various decentralized exchanges.

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