Bitcoin is the most popular cryptocurrency and enjoys the benefits of being the first successful cryptocurrency based on a decentralized framework. As can be seen in the price fluctuations in the crypto space, a large percentage of the top cryptos react to the price of Bitcoin; increasing when Bitcoin increases and pulling back when Bitcoin does.
Closely following Bitcoin, is the second most populous and largest cryptocurrency, Ethereum. There’s every chance that you got to know about Bitcoin and Ethereum before spreading your investment to other cryptocurrencies. Bitcoin and Ethereum are the two largest cryptocurrencies, and for this reason, they are the trading pairs of most crypto exchanges. Interestingly, there’s a new contender in town – a Ripple (XRP) based decentralized crypto marketplace.
The new crypto exchange, DCEX is based in San Francisco and has opened registration to both retail and institutional investors. The platform runs on decentralized tech developed by AlphaPoint. According to a press release by the exchange, they will start by offering 15 crypto-crypto trading pairs, using Ripple as the base currency. The trading pairs include top cryptos like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), EOS (EOS), IOTA (MIOTA), and ZCash (ZEC), etc. Other cryptos will be listed in the future.
The exchange is also expected to include all the assets in the Bloomberg Galaxy Crypto Index (BGCI). This will track the top ten most liquid digital assets and place itself as an institutional benchmark.
One question that remains in the mind of crypto enthusiasts and pressmen, is why a new crypto exchange will leave the popular trading pairs and use a less popular asset – XRP. DCEX has notes that XRP has been chosen as a base currency because it allows for high-speed transfers, which will help investors take better advantage of the rather volatile market and price arbitrage among trading pairs on various exchanges.
DCEX has claimed that its network can handle up to one million transactions per second. The marketplace will also allow users to connect to APIs, in order to use high-frequency trading strategies and margin trading.
It is almost impossible to talk about blockchain-based businesses and not talk about regulations in recent times. DCEX is registered with FinCEN and is taking steps towards becoming a regulated operator under the U.S. Securities and Exchange Commission (SEC).
I have always pointed to the irony in the fact that centralized exchanges control the funds of a supposed decentralized industry. This flaw has given birth to a new niche of decentralized exchanges (DEXs). Although the competition is stiff, considering how well some centralized exchanges are doing, DEXs are gaining traction.