The number of crypto users and traders is growing exponentially, with a recent report indicating that more than 106 million users are active on various DeFi trading platforms. This represents a 16 percent increase as of January 2022, compared to the number of active crypto users in 2021. What’s more exciting, digital asset trading is also attracting a majority of baby boomers, who are mostly accustomed to traditional stocks.
However, despite the promising growth rate, all traders, including experts and amateurs often face sticky challenges that limit them from leveraging the full potential of decentralized blockchain technology. These challenges range from unreasonably high trading fees, slow transactions, to limited control of their digital assets, which can cause a lot of concern among traders branching out into decentralized trading.
So, what’s the solution? Marry the best of both worlds–in particular, the familiar trading experiences already used by millions of traders worldwide, along with the full transparency of decentralized exchanges.
The need for full transparency in digital assets trading
Currently, centralized crypto exchanges hide a lot of sensitive and rather critical information from users. This clouds information on whether the trading volumes are real, as centralized exchanges can potentially manipulate them at will. In the end, traders get hurt because they have less control and confidence in the order books shown.
On the other hand, decentralized exchanges (DEX) such as Dexalot take an entirely different approach to solving this transparency issue. They are redefining the crypto trading landscape for new and experienced users, who can now enjoy more transparency with Dexalot’s central limit order book (CLOB) exchange. Typically, the CLOB trading system matches orders based on the user’s preferred price and amount. Moreover, traders can also see all bids and offers in real-time, while trading peer to peer, as opposed to relying on intermediary dealers.
“In a bid to enhance transparency as much as possible for users who need a clear view of trading digital assets, we are merging the powerful CLOB system with decentralized Web3 technologies. This allows users to own their trade with complete transparency, without sacrificing on the user experience that they are already comfortable with,” says Dexalot Co-Founder and CTO Cengiz Dincoglu.
Balancing user-friendly experiences and decentralization
The majority of baby boomers, especially those accustomed to traditional stock trading are branching out to decentralized trading. For these people, they often become confused trying to understand the nature of how decentralized crypto exchanges work.
The brighter side is that ex-wall street veterans are changing this through an intuitive interface that a user desires in any trading platform. “The Dexalot team’s deep experience from Wall Street and TradFi has sparked innovative ideas such as Dexalot Discovery which combines the advantages of decentralization, transparency and evolves crypto forward by solving real-world challenges – listing of new assets safely and fairly – without compromising on the user experience,” says FireStorm, Dexalot Advisor.
Traders can now truly “own your trade”
Although the DEX idea is gaining traction, there is an information gap among traders, since most of them don’t even understand why or whether they have true control over their assets. Moreover, centralized financial service providers can halt a user’s account without sufficient warning, since in most cases traders don’t understand what policies they might violate unknowingly in the first place.
“We are providing traders with full control over their digital assets as opposed to traditional centralized exchanges. All trades, asset ownership, order books and related data are all completely transparent on the public Avalanche network, the fastest smart contract platform in terms of finality speed,” says Tim Shan, Dexalot COO.
Tackling the scalability question
Despite the proven economic value of DEX trading, the trading fees, or commonly known as gas fees, can go beyond the roof for most users. This is not only a hindrance to mass adoption but also a critical roadblock to solve at scale. Typical fees on Uniswap for example, a popular decentralized exchange on Ethereum, can hover above $122 per trade.
Powered by Avalanche, Dexalot is drastically reducing the gas fee issue with far cheaper fees that are competitive with centralized exchanges. As the Web3 ecosystem continues to grow, Dexalot aims to utilize the Avalanche Subnet, or mini blockchain networks, to improve transaction speeds by 10-fold. Moreover, ultra-fast transactions with Subnets allow Dexalot to offer extremely low fees.
“You need the right scalable solutions to build a system that is aiming to serve millions, if not billions of users. Avalanche of all the available blockchain solutions has the right vision and technology to deliver that,” says Nihat Gurmen, Co-Founder & CEO of Dexalot.
Web3 is proliferating to the mainstream
Although there is still an education gap among new users as far as decentralized finance is concerned, there is clarity on what could spark mainstream adoption.
“The inevitable shift towards Web3 will increase the need for practical solutions to quickly onboard Web2 users. Merging the most useful features of centralized and decentralized exchanges can be the key to mass adoption for Web3-based crypto trading. For active market participants, this is a clear win,” says Jonathan Ackerman, Dexalot CMO.
As history often rhymes, one is better off adopting new technologies rather than going against it. “In Web3, owning your trade and owning your assets are crucial steps in this digital evolution,” concludes Ackerman.
The Human & Machine podcast is dedicated to inform and demystify the crypto, DeFi, GameFi, NFTs and blockchain industries for the average person.
Tlahui is a man in love with words and blockchain. His storytelling and passion to communicate led him to co-host The Human & Machine, a podcast and YouTube channel. Where he rightfully plays the role of an average-minded Human trying to understand and explain in layman terms, the lingo and complexities thrown at him by The Machine, his heartless, yet brilliant co-host.
Hikaru is a blockchain lover with a weakness for cooking. His outstanding understanding and experience in blockchain technologies, plus his unhuman work ethic have earned him the nickname of The Machine. In the show, he plays the role of a hybrid all-knowing robot that goes out of his way to explain blockchain concepts to The Human while trying not to lose faith in humanity.
Kenny Au, aka The Brain, is a #Web3.0 #FutureofWork #DistributedOrganizations Outerspace OG. His brain functions in spacetime. Plus his innate visions and strategies in Web 3.0 have developed him the nickname of The Brain.
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