The sixth largest cryptocurrency exchange in the world, Bithumb, has announced plans that it intends to launch a decentralized cryptocurrency exchange, Bithumb DEX.
5 October 2018 – Bithumb, one of the largest world’s cryptocurrency exchanges by daily traded volume. According to a number of online media reports, the South Korean exchange is planning to open a global decentralized cryptocurrency exchange.
Bithumb plans to launch a decentralized cryptocurrency exchange
Bithumb has collaborated with Blockchain firm One Root Network (RNT), which designed an Ethereum-based decentralized token transaction protocol called “R1.” It already operates a decentralized exchange (DEX). As per the joint press release, the protocol divides order matching and order execution. RNT claims that the protocol is able to improve security and efficiency of the network.
Decentralized platforms allow users to trade peer-to-peer through an automated system. Such platforms do not store clients’ cryptocurrency, thus, they are less vulnerable to thefts that target a centralized point of attack.
However, according to local media reports, decentralized platforms feature slower trading speeds when compared to their centralized counterparts.
One Root Network R1 Protocol to Benefit Traffic Holders
Media reports cite Bithumb official as saying that the collaboration focuses on technical support, adding that “Bithumb DEX will be operated by its overseas subsidiary. The company is working together with RNT only in the decentralized exchange sector.”
As RNT further noted, its project aims to allow traffic holders to build their own decentralized platforms. They will be able to share transaction data and liquidity with other R1 protocol users as a part of a wider ecosystem.
Online reports also refer to an unnamed industry source as saying that the partnership comes as a part of a global expansion strategy by the South Korean exchange:
“Bithumb is one of the leading global exchanges in terms of transactions but it is true that most of its users are Korean. The latest decision seems to be the company’s strategy to compete with other leading exchanges in the global market by opening a decentralized exchange that receives attention in the global market.”
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