Oct 9, 2021
Not just an Exchange Platform. Crypto Exchanges have far more Legacy to be Unveiled
Every day was just a normal day until this guy with pseudonymity launched an alternative currency to the world. Back then, the view of the people was slightly blurred while focusing on the alternative coin. Only a few could see through the reality, and even some made a huge investment in it. The alternative coin is nothing but the Bitcoin, which is still staying on top of the crypto space. And the guy with the pseudonymity has only revealed his alias “Satoshi Nakamato.” Their growth line was not always pointing upward but also saw huge disasters, yet it managed to be the best and first blockchain-based alternative coin in the world. An alternative space has its own world, which is popularly known as the crypto world, where the concern towards the users is given more importance.
The crypto world has evolved with various instances, where every one of its instances is showing the real world people a way to satisfy all their needs without revealing their identity or sacrificing time or hefty funds. But only one important instance from the earliest period to till now fueling the entire crypto world or the alternative world. And that particular instance is also called “Cryptocurrency exchanges.” This has acted as one of the master control panels of the crypto’s growth, and this multi-faced platform has various utilities. The crypto exchanges have a vital role to play in the freedom from the traditional centralized controlled traditional financial systems.
Early life — Birth and emergence of Cryptocurrency exchange
We all know that the whitepaper for the BTC was released in 2008, and Bitcoin officially saw the world in the year 2009. And here, buying them in the forums had trust issues for the people who are interested in this alternative coin. So the first-ever cryptocurrency exchange emerged in the year 2010. Yep, the one who was responsible for the survival of a bigger financial market is unnoticed just to mitigate the trust issues. And it was named the Bitcoin market. Back then, with the quotes and mining energy consumption, 1500 BTC was priced for 1 $.
Easing Up the process of buying this alternative coin, the value of the coin went up from 0.009$ to 0.04 in a very short period. The bitcoin market clearly dominated without any competition, and the value of Bitcoin went up to 22$ in the year 2011 with the popularity gained.
Mt.Gox & Bitcoin market
The bitcoin market, an excellent crypto exchange, dominated the sale of cryptocurrency. It is also solely responsible for bringing bitcoin into the limelight. But when Mt.Gox made its debut in the crypto world as a cryptocurrency exchange, the field of crypto started heating up. Mt.Gox showed a clear dominance in the bitcoin trade in the market. And with the Bitcoin market and Mt.Gox battling, each rest of the platforms remained unnoticed. But here, the foundation for the crypto world and its instances are laid with greater deep foundations. But after the year 2011, things started to change. Due to various reasons, Mt.Gox had to shut down in the year 2014. The severe attacks and hacks in the famous crypto markets have slowed down the pace of the cryptocurrency exchanges.
Hacks that trembled the crypto markets
It can be Mt.Gox or the bitcoin market, and there has been severe complexity in emerging the best cryptocurrency exchanges. Though Mt.Gox has 70 % of the transactions of bitcoins, there are still many crypto exchanges that make a substantial amount of transactions with BTC. Here are some hacks that made a huge impact in the earlier stage of the cryptocurrency exchange market.
- In 2011, MT. Gox was breached by an anonymous group of attackers, and they took thousands of bitcoins that the users owned and they also revealed the privacy data of the users. This became a direct hit for Mt.Gox, as the security comprising the crypto exchange led to the loss of trustability. This is one of the biggest reasons for the people to lose hope in Mt.Gox and also for the downfall.
- Britomart was a cryptocurrency exchange that also had a reputed name for the transaction that also underwent an adversary attack, where the attacker stole about 17,000 BTC from the users. This is one of the biggest attacks done on BTC so far.
- MyBitcoin has faced one of the most serious attacks, which led to an impact of losing more than 115,000 BTC, which was almost valued at 2 million at the time of the attack. Still, now, hacks or attacks have surpassed the number that MyBitcoin made.
- Trade Hill is another cryptocurrency exchange that lost upto $100,000 of users’ money in the attack. And back then, these numbers had more value than now.
But all these terrible hacks never made a dent in the trustability of the blockchain, and the blockchain-powered services are known for coming back stronger, and in todays’ current trend, even the real world market is started depending on the cryptocurrency exchanges and cryptocurrencies. In between many crypto exchanges like GBP or BRL(Brazilian Reals) are making a noticeable transaction in the crypto industries and more than Bitcoin many other cryptocurrencies came into existence. The usability of the cryptocurrency exchanges has started broadening, and many new instances of the crypto space have started making their debut in the crypto world.
New Entity Suiting Up to save the world.
After the year 2017, only a few from the old times managed to stay alive in the crypto world. But the value of the BTC crossed 1000$ already. Cryptocurrency exchanges also started getting new forms to save the crypto world from doom. And the ignition was done by the Binance. It is now in all forms as cryptocurrency, blockchain, and a vital crypto exchange. More than the exchanges between the currencies, Binance focused on bringing more new concepts into the Binance platform. Binance supports many coins, and they help easily convert them into fiat currencies. At the same time, ICO was getting popular, and the crypto exchanges started listing the ICO in their platform, where people from anywhere can easily invest in it. Following Binance, many new crypto exchanges started focusing on launching the best cryptocurrency exchanges for the crypto world.
Crypto Exchanges — Redefined and all set.!
Crypto industries have grown in a very high ratio in recent years, more than initial stages. This is possible because of the instant liquidity and various other major perks that favored the people of the crypto-verse. The crypto exchanges are redefined where they started handling the crowdfunding for the crypto developments, offered liquidity, stayed as a medium of exchange, stayed as a medium to the stake, and more. Still, the crypto exchanges are evolving in a huge ratio. There are enormous types of crypto exchanges that came into existence just to fulfill the needs of the people of the cryptoverse.
Cryptocurrency Exchanges and their Classification
The evolution of the crypto exchanges doesn’t stop just in making them easier for the people, and they also played a role in making them more suitable for people based on their needs. There are various kinds of crypto exchanges in existence, and the below mentioned are the major kinds.
Centralized Crypto Exchanges
This type of exchange is run by the centralized group of people or organizations, where every move or transaction made will be monitored by the authority with every detail of the users. This kind of centralized exchange is more suitable for the people who need a central authority to take care of or review the transactions just to stay safe.
Decentralized Crypto Exchange
The Decentralized exchange is quite the opposite of the centralized exchange, where every information shared or any transaction made will take place in a closed medium. No centralized authority or intermediaries can interpret to see the information, and They use smart contracts to carry out the transactions, which makes them more secure. Smart contracts can’t be stopped even by the developer of smart contracts. To modify, the only way is to remodify and launch them again. The DEX is more preferred by the people in the market.
Hybrid crypto exchange
The hybrid crypto exchange is the collection of both centralized and decentralized crypto exchanges, where the perks in both the exchanges like privacy and security in the dex and architecture, infrastructure in the centralized crypto exchange are combined in order to make the best Hybrid crypto exchange. This will work in reducing the risk in crypto exchanges, and it enhances the user experience.
More than the above mentioned, there are many other crypto exchanges that are here in the crypto space, sufficing the needs of the people and at the same time making the crypto space a better and easier place for them to make a trace.
A Cryptocurrency Exchange in Another Instance
The crypto exchanges, as we saw above, are not just for exchanging currencies. They play a vital role in the survival of the crypto-verse by providing liquidity at the right time for the right people. Without the crypto exchange, the cervical many crypto instances may have seen the downfall. Such instance, the crypto exchanges supports are
- Crypto exchanges in the NFT services
The only successor for the cryptocurrency is the NFTs, and they are making noises and performing direct hits wherever they go. Their markets are already making volumes in billions of dollars. Every day a new instance is making it’s ready to be a billion-dollar market tomorrow. But cryptocurrency exchanges have a major role in this excellent crypto instance’s success. By acting as a medium for exchanging the asset or to act as a medium for keeping them collateral to provide funds. Directly and indirectly, crypto exchanges have a great part in the success of the NFT services,
- Crypto exchanges in investment
Many entrepreneurs and tech enthusiasts are moving into the DEX-based crowdfunding platform to gain trust among investors. On the other hand, offerings like IDO are more preferred by the investors as they are at a very slow and steady pace. More importantly, since they are in the DEX, they are more trustable. This makes people invest in Dex-based offerings, which helps in bringing in a new concept for the crypto space.
Crypto exchanges are one of the best developments or ideations that has been keeping the crypto space in one piece. There are many developments like wallets are directly benefited from the exchanges, and the revenue in the crypto exchanges are more options than in any other crypto aided service,
Development of the Cryptocurrency Exchanges
As you have guessed, the development of such a power-packed cryptocurrency exchange is not an easy job. The technical stack and market experience should be very high for the team that tends to develop their own cryptocurrency exchange — the need for an attractive UI that should suffice the expectations of the users. Blockchain selection and integration based on the requirements of the user, more importantly serving admin panel and much other support to make the user grow bigger. And security integration should also need a special concern in development like cryptocurrency exchanges.
Not an End, just a Beginning for Another Phase
Now you must have a vision of the potential of the cryptocurrency exchange and, at the same time, the real complexity behind the development of the cryptocurrency exchange. They have a very high scope when they are developed and deployed but excellent development teams or cryptocurrency exchange development companies. All you need to do is to find such potential partners for your development. And you are all set to dominate the crypto space.
