Cryptocurrencies and blockchains are considered to be the tools that could help decentralize the world and make it trustless. A trustless world is one where there are no dependencies on centralized banks or authorities. When centralized exchanges and authorities are the biggest and the most important constituent of the industry, this trustless world must come soon. Traditional cryptocurrency exchanges have failed to create trust and a sense of safety among its users. The situation with centralized exchanges has been such that Vitalik Buterin — co-founder of Ethereum — had criticized them to “burn in hell”.
Problems of Centralized Exchange
Centralized exchanges currently own the top spots in the crypto world. Even though these crypto exchanges deal with decentralized digital assets, most of these exchanges face the same issues as other centralized exchanges that trade financial instruments. In fact, due to their adolescence, even centralized exchanges have their fair share of problems. Nearly all exchanges that operate in the crypto space have failed to provide comfort to the trader or investor and have failed on the following parameters:
- Personal Documents: Centralized exchanges often require personal information and proof of identity (IE: passport, selfie), in order to deposit or withdraw on their platform.
- Security: Most centralized exchanges have a single server or single point of entry which makes it easy for hacks to attack and loot the digital assets present in the hot wallets of these exchanges. Any security lapse and the exchange will lose all its assets.
- High Trading Fees: Many well-known crypto exchanges charge between 0.25% to 3% in fees, which are way higher compared to DEXs.
- Trust: Just like other centralized businesses, centralized exchanges are also run by individuals who have easy access to data and who can manipulate their inputs at any given point of time. Hence it is difficult for a centralized exchange to develop the trust among its users
While these are just a few issues, there has been a variety of explanations why current business models of many exchanges do not seem like true exchanges but more like ForExs such as Travelex. As these exchanges are just filling in gaps, for now, they would be easily replaced once there is a real exchange that would thrive of superior technology, speed, and distribution.
Interplanetary Crypto Token Exchange (ICTE.io)- A Game Changer
Understanding the issues that exist in the industry today, the founders of ICTE came together to create a decentralized and distributed exchange network that gives users access to global liquidity. They created a procedure to do all of this with a 10-minute automated service that gives users their exchange technology and an easily personalizable website and mobile app.
ICTE has a fairly simple model: to pool in liquidity, ICTE has divided their exchanges into various types, such as Alpha Exchanges and Satellite Exchanges. Alpha’s are large, regional, exchanges and are direct partners to ICTE. Satellite Exchanges are smaller exchanges which, as members of the larger exchanges, would be hosted by ICTE Alphas. Under this model, Alphas will be responsible for managing Satellite Exchanges (their pool-members).
Alphas summarize the output of their members and obtain rebates for their contributions which they distribute to members based on performance. By this ICTE will be allowing summarize the output of their members and obtain rebates for their contributions which they distribute to members based on performance.
ICTE plans to fill in the existing gap in today’s exchanges and differentiate itself on the basis of:
- Platform Speed: ICTE plans to introduce the low latency processing of global orders using a proprietary blend of its own in-house messaging system, cloud computing technologies, and blockchain architecture which enables matching across global exchange nodes on the ICTE platform- a platform much faster than currently existing crypto exchanges.
- Superior Security: ICTE plans to keep the exchange data highly confidential — even away from its own staff — so there is no interference in the exchange operations and data. The exchange has deployed a highly professional security team that is persistently testing against the hacking attempts.
- High liquidity: ICTE has worked on creating an ecosystem of exchanges running a single, and global, liquidity book. With multiple exchanges communicating and sharing liquidity needs, ICTE would be able to bring the best prices and pool the best liquidity for every participant.
- Custody: ICTE is built to handle multi-blockchain matching, peer-to-peer wallet trading, and trading in the name of a custodian or Prime Brokers. ICTE supports multiple order types and algorithmic and institutional trading.
- Economical: ICTE is charging a small fraction of the fees that most centralized exchanges charge today.
ICTE is hitting the markets with a superior roadmap and some key qualities that differentiate them from the competition. If ICTE is able to successfully execute what it plans, it can grab a major market from leading centralized exchanges and create a truly trustless ecosystem that is quick, secure, liquid, and highly economical.
Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Originally published at https://coingape.com on September 9, 2019.
