Bithumb announced on October 3 that it is planning to open its new decentralized crypto exchange, Bithumb DEX through its overseas subsidiary, by the end of this month. Bithumb, which is one of South Korea’s biggest crypto exchanges, has partnered with One Root Network (RNT). RNT is a blockchain firm which has developed an Ethereum-based decentralized token transaction protocol, R1. The firm also already operates a decentralized exchange.
A decentralized exchange allows users to directly trade cryptocurrencies through an automated process. Bithumb stated that this is how it can reduce security threats such as hacking and also diversify its services. Existing crypto exchanges, on the other hand, rely on a third party service to trade cryptocurrencies.
The new decentralized crypto exchange, Bithumb DEX won’t be directly keeping cryptocurrencies. It will allow users to trade cryptocurrencies between their cryptocurrency wallets. While a decentralized crypto exchange has a relatively slow trading speed, but it has excellent security.
A centralized exchange directly keeps the cryptocurrencies of its users. Thus, hackers have often been successful in attacking exchanges to steal cryptocurrencies. Since Bithumb has also been attacked by hackers in the past, it is seeking to operate the new DEX in the safest possible manner.
While Bithumb is one of the leading global exchanges in terms of transactions, yet most of its users are Korean, remarked an official from the industry. Hence, this decision of launching a new decentralized exchange seems to be Bithumb’s latest strategy to compete with other leading exchanges in the global market, as reported on BusinessKorea.
RNT has stated that its project is aimed towards enabling traffic holders such as the Bithumb crypto exchange to build their own decentralized platforms and share liquidity and transaction data with other R1 protocol users. Recently, Binance, the world’s largest crypto trading platform has released a demo of its forthcoming decentralized crypto exchange. It did not, however, disclose an expected launch date, as mentioned in the Cointelegraph report. Bithumb recorded $326,884,871 in daily trades, at the time of writing this article, according to data derived from CoinMarketCap.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]