5 Reasons Why Trustless DEX Are The Future

5 Reasons Why Trustless DEX Are The Future

DEXes offer strong execution guarantees and increased transparency into the underlying mechanics of trading. Trades are trackable, traceable and data is permanently on-chain. This is one of the core basics and the beauty behind the ideology of DEXes. While many have forgotten, I will remind all of you again.

Amidst talks of growing adoption and decentralization becoming the norm, the great decentralized exchange (DEX) vs centralized exchange (CEX) debate is more prominent now than ever before. This debate has many case studies for us to make reference to. The latest would be FTX. FTX owes nearly US$3.1 billion to the top 50 creditors and is estimated there to be “more than 100,000” creditors.

Let me walk you through why trustless DEX is the way forward.

1. Individual Data and Asset Control

CEX holds custody of your deposited assets and all your personal information. You have no control over how the assets and data are being used. While in a DEX environment, it is non-custodial; typically, only an individual wallet address is connected to the exchange. In other words, you have complete control over your assets.

2. Liquidity and Market Depth

3. User Friendliness

CEX provides a wide range of products, including spot and fiat on-ramps, which is most familiar to traditional and crypto traders, especially beginners. DEX products may be harder to grasp with insufficient onboarding guidelines for traders. Again, this point for DEX is changing. The user interface and experience have improved so much; some of the newer DEXes look and function exactly like CEX.

4. Transaction Costs

CEX is known for high transaction or platform costs, especially when the system is hugely loaded with trades simultaneously. An increasing number of DEXes are integrating scaling solutions that will massively increase transaction workload while keeping costs low and passing the savings on to traders.

5. Community Involvement

CEXes, oftentimes one-way, non-reciprocal communication from a central operator to traders. Individual traders are seen as clients utilizing as service that the CEX provides. While DEXes focus on community-building and involvement, where traders can become stakeholders and have a say in protocol changes or share in transaction fees on the platform.

A New DEX Era

The challenge with CeFi and CEXes boils down to a lack of trust and security. This is continually reinforced time and again; this year is clearly no different, with funds, exchanges and even established projects hitting the buffers and leaving behind affected, concerned investors and traders fearing for their assets. News of increased risk with CEXes coming into the question of insolvency and possible delays in withdrawals, causing widespread panic amongst traders.

As usual, I will end with a quote. “The answer is to return to the basics of what blockchain is supposed to be. It is decentralization and transparency. DeFi is one of the solutions, and we need to work together in the future. For now, it cannot replace CeFi completely for obvious reasons, but this will not stop us from trying.” #AnndyLian

 

Source: https://www.benzinga.com/22/11/29809200/5-reasons-why-trustless-dex-is-the-future

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Why are people earning more on blockchain?

Why are people earning more on blockchain?

Why are people earning more on blockchain? Blockchain could slash the cost of transactions and reshape the economy.

How does X-to-earn work? Take play-to-earn as an example. Through the lens of aligned incentives, the concept of play-to-earn games on a blockchain excites venture capitalists. The play-to-earn model on its own is unsustainable. Given the nature and what the business model is like, it creates an unsustainable pyramid scheme-like system where old player are given tokens that is valuable if there is a continuous stream of new players buying afterwhich.

Traditional hedge funds are slowly embracing cryptocurrency investments but are keeping their exposure limited. According to a PwC report, of traditional hedge funds surveyed, 38% are currently investing in digital assets, compared to 21% a year ago.

The following experts share their views on the topics:

– Brian Lu, Founding Partner, Infinity Ventures Crypto
– Anndy Lian, Book Author, NFT: From Zero to Hero
– Anthony Demartino, CEO, Matrixport US

00:00 – Introduction
01:34 – What’s driving the rise of X-to-earn?
09:56 – Traditional hedge funds increasing crypto exposure.

This segment is recorded and produced by The Daily Forkast on August 30, 2022, presented by Joel Flynn for the latest in blockchain & crypto news.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Why Competition Between NFT Marketplaces Is Good News

Why Competition Between NFT Marketplaces Is Good News

While crypto is in a bear market the one sector that has weathered the storm relatively well is NFTs. A new report estimates the global NFT market will be worth $231 billion by 2030, growing at a compounded growth rate of 33.7% over the next eight years. However, this quarter the NFT market has been on somewhat of a roller-coaster ride, though in terms of trading volume and sales compared to Q2 of 2021 they are up by 533% and 59% respectively. In addition, metaverse NFTs also had a good quarter, with the trading volume for ETH-based collections has increased by 101%, while Polygon collections have unfortunately declined by 26%. Overall, it has been a growth of 96%, according to DappRadar.

If that positive trend whets your appetite to get involved in NFTs trading, then you’re not alone. The recent crypto bull market was like an electromagnet for investors who flocked to NFTs. Either to try to get in early by getting whitelisted on a project and then sell once the particular project went live, or purchasing them from another user before selling them on one of the growing number of marketplaces. As reported in late 2021 by leading crypto analytics firm Chainalysis, “NFTs are far from a surefire investment” however: “Transaction data from the OpenSea marketplace shows that just 28.5% of NFTs purchased during minting and then sold on the platform result in a profit. Buying NFTs on the secondary market from other users and flipping them, however, leads to profit 65.1%of the time.” In plain English what this means is that your average NFT buyer is likely to be out of luck when it comes to turning a profit on a newly minted or a secondary market NFT trade.

If those headline figures haven’t put you off, what can help you can see the wood for the trees when it comes to trading NFTs? A little context might help for starters; namely the commercial pressure from the bear market and the competition between NFT marketplaces mean this could be a good time to up your NFT trading game.

NFTs are traded in NFT marketplaces, which are well-organized platforms for selling digital collectibles. As a rule of thumb NFTs are sold at a fixed price, while others are auctioned off. Opensea is by far the largest NFT marketplace, with a 90% market share by dollar trading volume across multiple marketplaces in 2021. But what’s changed in the last few months is that OpenSea’s market share has started to diminish. In response OpenSea has improved its service with the launch of Seaport, an open-source trading protocol which enables trading multiple NFTs at a time. And with OpenSea’s purchase of NFT market aggregator Gem, its likely they will go up against Uniswap, which recently acquired NFT aggregator platform Genie. Finally, despite the failure of Coinbase’s NFT offering, eBay has both purchased marketplace KnownOrigin and in partnership with OneOf, recently announced its first foray into the NFT space with the launch of a series of sports themed, featuring iconic athletes.

What hasn’t changed is the fact that most NFTs are released in collections. A collection is a group of NFTs that are all different but share some characteristics. Bored Ape, the most popular NFT collection, has a total sales value of approximately $2.5 billion. While the top ten NFT collections had over $15 billion in trading value in 2021, accounting for roughly 60% of the total NFT market. The fact that a few collections dominated a large portion of the market is most likely due to NFT investors’ preference to trade within collections. They do this because it is easier to value an NFT in a collection when there are “similar” NFTs to compare it to. Experienced investors know where the money is, therefore, they trade NFTs within those collections.

These NFT traders speculate and identify a specific collection with liquidity, trade, and keep flipping until they make a profit. The truth is that most speculative traders do not profit from trading NFTs. Information is key, and traders who have information on the collection with liquidity are more likely to make a profit. Instant tradability of non-fungible tokens will lead to higher liquidity. NFT marketplaces can cater to a variety of audiences—from hardcore traders to more novice players—allowing for greater exposure of the assets to a wider pool of buyers. In the same way that the ICO boom of 2017 gave birth to a new asset class driven by instantly liquid tokens, NFTs expand the market for unique digital assets.

Another factor we must consider is fraud in the NFT sector. We’ve seen a lot of bad actors sell and trade NFTs they don’t own or have access to. I believe that it is critical for every NFT trader to conduct their own research to determine the best collection to trade. In simple terms the NFT sector is still growing, and there are still certain gaps to fill.

Market liquidity is still concentrated in a few NFT collections, and a trader must be able to identify those collections where the demand is to make a profit. I am also about to publish an in-depth guide to NFTs in a new book, said I believe the NFT market was only going to get stronger in 2022. “The growth of NFTs on rival platforms to Ethereum such as Solana , and the competition with OpenSea from players ranging from DEX leader Uniswap to e-commerce king eBay, shows how dynamic this sector is. Despite the collapse of the wider crypto market with the Luna Terra collapse, the demand for NFTs shows no stopping. I was struck also by how GameStop’s new marketplace launched just a couple of days ago is already doing well, with ETH in trading volume too.”

 

Original Source: https://www.benzinga.com/22/08/28375889/why-competition-between-nft-marketplaces-is-good-news

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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