Korean , Korea’s leading digital asset trading platform, has announced plans to operate DEX in the coming months.
Bithumb DEX is expected to target the global cryptocurrency market, which will be launched by Bithumb’s overseas subsidiaries. DEX is currently being developed with the help of One Root Network (RNT), which has deployed a decentralized exchange in early 2018.
A source close to Bithumb DEX told local media that Bithumb had a medium-term plan to expand its international user base and plans to fully deploy a decentralized exchange in the coming months.
In terms of trading, Bithumb is one of the world’s leading exchanges, but most of its users are Korean. The latest decision of the exchange Korean seems to be the company’s strategy. It hopes to open up a decentralized exchange to attract attention in the global market and compete with other leading exchanges around the world.
Coin and Bithumb
Centralized cryptocurrency exchanges, including Bithumb and Coin, have made huge profits through transaction costs. Each time a user initiates a transaction at an exchange, the transaction must be paid for the processing of the order.
In decentralized exchanges, the ability to centralize managers to handle cryptocurrency transactions and orders is further limited by the elimination of third party service providers or intermediaries.
However, in order to motivate developers and financial operations, it is possible for relevant developers to hardcode transaction costs into smart contracts so that each transaction of the user can provide ongoing development incentives for the decentralized exchange’s development team.
Prior to this, Champion CEO Zhao Changpeng said in an interview with Ran Neuner on CNBC’s Crypto Trader website that he firmly believes that decentralized trading is the future of the cryptocurrency market.
Bithumb believes that its main competitor will be the currency, because the currency is currently dominant in the cryptocurrency market.
Bithumb’s decentralized exchange can attract local investors
CCN has previously reported that the US Securities and Exchange Commission (SEC) Hester Peirce has said that investing in the encryption market through digital asset trading platforms requires market expertise that many investors lack.
Investing through DEX is more complicated than investing in a cryptocurrency exchange, because when a potential problem arises, the user cannot find a service provider that can be relied upon. However, given Bitumum’s poor record of security breaches and hacking attacks, the launch of DEX may be positive for its users.
