This press release was orginally distributed by ReleaseWire
Hong Kong, China — (ReleaseWire) — 11/22/2020 — At 17:18 pm on October 20th, major mainstream financial portals pushed a message.
“Today, as an invited guest of major exchanges, ZB.com CEO Omar pointed out at the Block Global ECO Summit “New Transactions, Digital Assets Take Advantage of the Trend” roundtable: “Currently, there are 300,000 daily active chat users on the ZB.com APP. Among them, the current proportion of DeFi group chats has dropped to less than 20%. However, DeFi is still a track that continues to be worthy of attention. At present, ZB.com’s ZAPP (similar to APP Store) plans to launch DEX wallet address services. Investors can conduct centralized and decentralized full-scene trusted asset management in the ZB.com APP. “
This message can be said to contain a lot of information, let’s first introduce what DEX is.
DEX stands for Decentralized Exchange. In DEX, the funds are fully controlled by the user in the user’s wallet address or transaction smart contract. When a user initiates a transaction, the exchange executes a smart contract to complete the transaction, and the asset transfer is completed on the chain. The transaction record chain can be checked, open and transparent.
Next, look at the difference between DEX and CEX.
1. From the perspective of asset security, CEX wallet stores all users’ funds. Due to the huge amount of funds, it is easy to attract hackers. Once a problem occurs, almost all users will suffer losses. In the DEX platform, users’ assets are not managed by the platform side, but managed by smart contracts. During the transaction, the platform party does not touch the user’s assets, and the user’s assets do not need to be recharged to the platform. The user’s transaction operations are all point-to-point transactions. Order operations need to be signed by the trader with a private key. After the match is successful, the assets will be verified by the smart contract. There is no need to withdraw cash to the account wallet, and the platform is only responsible for transaction flow.
2. From the perspective of asset control rights, in CEX, user assets will be controlled by the platform, and users need to recharge their assets to the wallet of the trading platform. The asset custody function of a centralized trading platform is just like a bank. The user deposits the money in the bank. The bank gives the user an account to record the user’s funds. The bank has absolute control over the user’s funds. In DEX, users’ assets are completely under their control. DEX does not provide fund custody services, so it cannot control and transfer users’ funds.
3. From the perspective of transaction speed, in CEX, because transaction data is not on the chain, as long as there is a matching counterparty, the transaction speed is extremely fast. DEX is fully supported by the blockchain. Every transaction order and every state change will be recorded as a transaction in the blockchain network, which often leads to problems such as poor liquidity, high cost, and slow speed.
According to the newsletter, ZB.com CEO Omar only stated that ZB.com will launch DEX wallet address services. From this point of view, ZB.com is not simply launching a DEX, but integrating DEX and CEX. In my opinion, this is undoubtedly a very good thing. At present, CEX and DEX have their own advantages and disadvantages. And ZB.com’s doing so is undoubtedly an orderly integration of these two exchanges. This has also increasingly confirmed the viewpoint of various well-known figures in the cryptocurrency industry that “centralization and decentralization should be integrated with each other for better development”.
I believe that this change made by ZB.com this time will definitely point out a direction for all exchanges in the currency circle. There is still relatively little information revealed by Omar, what will it be like in the future, let us look forward to it together.
For more information on this press release visit: http://www.releasewire.com/press-releases/the-dex-of-the-mainstream-cryptocurrency-exchange-zbcom-is-coming-1317372.htm