INNODEX, an upcoming decentralized alternate (DEX) by NvirWorld, plans to tackle Binance, a centralized alternate and the biggest ramp by buying and selling quantity, and Uniswap, a DEX on, amongst different blockchains, Ethereum.
In November 2022, the value of Bitcoin fell from round $20okay on Nov. 5 sliding to $15okay in 5 days. Regardless of retracements in subsequent periods, costs failed to interrupt above $20okay till Jan. 14, 2023.
Regardless of challenges, crypto stays common with extra folks keen to commerce and buy digital property through centralized and decentralized platforms.
What’s driving buying and selling exercise on decentralized exchanges?
Chainalysis, an analytics platform, not too long ago reported that in H1 2021, centralized exchanges (CEXs) have been answerable for greater than 90% of all cryptocurrency transactions.
Nevertheless, DEXs have been gaining recognition, with on-chain transaction volumes reaching $224b in comparison with simply $175b for centralized choices between April 2021 and April 2022. Forbes information exhibits that buying and selling quantity for decentralized exchanges (DEXs) elevated by 79% from October to November 2022, reaching $91b.
This pattern may be attributed to issues raised by customers in regards to the safety and transparency of centralized exchanges, equivalent to FTX and Celsius, the place the utilization of buyer property isn’t clear sufficient.
Customers more and more go for decentralized options that supply extra safety and transparency by permitting them to commerce with out relinquishing management of their personal keys. Nevertheless, DEXs have drawbacks, together with gasoline charges on each transaction and restricted transaction providers.
INNODEX is a hybrid decentralized alternate aiming to resolve the challenges confronted by each centralized and decentralized ramps. By combining their benefits and compensating for his or her weaknesses, INNODEX might change into a game-changer within the aggressive cryptocurrency alternate market.
Binance is the biggest alternate by buying and selling volumes
Whereas DEXs are gaining traction, Binance is common amongst cryptocurrency merchants. In response to CoinMarketCap, Binance’s buying and selling quantity was over $15b within the final 24 hours, surpassing competing exchanges like Coinbase and Kraken.
Binance’s interface, buying and selling instruments, and buying and selling pairs make it extra accessible for newcomers and supply merchants with extra choices to diversify their portfolios.
Apart from, after all of the financial institution run points that occurred final 12 months, Binance has additionally carried out measures to make sure the security of its customers’ funds. For instance, Binance conducts common “Proof of Reserves” audits to display that it holds adequate reserves to cowl all person balances. The alternate’s popularity and its safety measures have helped it keep its dominance within the centralized alternate market regardless of the emergence of decentralized exchanges.
Even so, CEXs additionally include a number of drawbacks that assist drive demand for decentralized platforms like Uniswap. One of many fundamental issues plaguing centralized platforms is the necessity for extra transparency and demand for higher safety of property. Latest studies from Binance’s reserve proof revealed that the alternate’s debt exceeds its property, elevating questions in regards to the true state of buyer funds.
In distinction, DEXs present a extra clear and safe various by permitting customers to commerce with out giving up management of their personal keys. Moreover, having property unfold throughout numerous addresses on a DEX makes it much less prone to hacks and cyber assaults. Whereas CEXs could supply comfort and liquidity, they’re additionally extra susceptible to authorities rules and censorship. These drawbacks encourage the creation of hybrid exchanges like INNODEX.
Exploring Uniswap and DEXs
Uniswap, dYdX, PancakeSwap, SushiSwap, ApolloX, and different decentralized exchanges (DEXs) have not too long ago gained vital consideration in crypto. This elevated recognition is because of the quite a few advantages provided by DEXs.
One of the crucial vital benefits of DEXs is their transparency, permitting customers to retailer and management their funds immediately of their wallets with out third-party intervention. This eliminates issues about withdrawal restrictions or infringement on asset administration rights attributable to CEXs. DEXs additionally supply higher safety since property are saved in every particular person’s pockets, even throughout a hack.
Nonetheless, DEXs have their limitations. As they function on blockchain know-how, each transaction is recorded on the blockchain, and customers must pay gasoline charges on every transaction. That is additionally the most important drawback of DEXs in comparison with centralized choices. Moreover, the liquidity on DEXs could also be decrease than exchanges like Binance and Coinbase because of the further gasoline charges that burden customers, leading to wider bid-ask spreads and elevated worth volatility. The interface of DEXs may be complicated for brand spanking new customers.
Regardless of these drawbacks, Uniswap and others proceed to achieve recognition, with customers prioritizing decentralization and transparency over comfort and liquidity.
INNODEX is a hybrid, decentralized DEX
INNODEX gives an answer to the inherent drawback of gasoline charges in decentralized buying and selling by permitting people to retailer and commerce property of their wallets whereas transparently recording their asset holdings on the blockchain.
The platform makes use of a hybrid strategy and permits customers to make the most of their wallets, equivalent to Metamask, with out complicated KYC processes. Furthermore, INNODEX gives multi-chain buying and selling providers for Ethereum and Solana, permitting customers to confirm their property transparently on EtherScan or SolScan.
Particularly, INNODEX gives a bonus in gasoline charges. As an alternative of charging customers for each transaction, INNODEX expenses gasoline charges day by day when property are synchronized with the blockchain. This makes the platform interesting to energetic merchants. Apart from, the hybrid DEX makes use of an order e-book, offering a wide range of order varieties, equivalent to market orders, making it extra accessible to customers aware of centralized exchanges.
INNODEX’s engine is predicated on NvirWorld’s patented “Keep Pending” blockchain know-how. It gathers transaction on-chain information and data them in bulk to cut back gasoline charges and maximize comfort. This permits the alternate to supply numerous buying and selling providers like centralized exchanges whereas securing wealthy liquidity.
As well as, NvirWorld has been creating and offering numerous patented applied sciences for commercializing blockchain know-how. The corporate has signed an settlement with Solana and formally partnered with ConsenSys.
Can INNODEX carve market share?
With every alternate having distinct benefits and downsides, customers have traditionally needed to make decisions based mostly on their priorities and desires. INNODEX combines the most effective centralized and decentralized exchanges, giving customers a brand new possibility that satisfies all their wants and shortcomings.