To onboard the next billion users into crypto trading, the experience must be safe, simple and scalable.Building on the strengthsof traditional Centralized Exchanges (CEXes), and Decentralised Exchanges (DEXes), and leveraging advances in Layer-2 solutions, we’re laying out a practical blueprint for our ideal crypto platform, designed to lead the future of crypto trading.
Crypto’s Journey So Far
Crypto trading's landscape has evolved significantly since its early days in 2010. Pioneers like Bitcoinmarket.com and Mt.Gox laid the foundation. The turning point came in 2017 with the widespread adoption of CEXes such as Binance and Coinbase, offering highly efficient trading experiences accompanied by benefits such as reduced fees.
But within just a few short years, the crypto industry has witnessed numerous setbacks, with major platforms collapsing due to issues of malpractices and bankruptcies. Unlike traditional stock markets, where concerns about hacking or insolvency are nearly non-existent, in the crypto space, even rumors can lead users to quickly transfer their assets to safer havens. This volatility and uncertainty remain significant hurdles to widespread crypto adoption.
Enter DEXes: A Solution and a Problem and a Challenge
In 2017, Decentralized Exchanges (DEXes) arrived, offering a potential solution to the counterparty risks associated with centralized platforms. DEXes introduced self-custodial trading, empowering users with control over their assets. Users no longer needed to entrust their funds to a third-party intermediary. While this was a significant step forward in user empowerment, it brought its own set of issues: smart contract vulnerabilities, trade manipulations, and front-running due to the public nature of on-chain trading data.
Advances in Layer-2 Solutions
For improved scalability and speed, main blockchains such as Ethereum have adopted secondary blockchains built on top of them called Layer-2 scaling solutions. With the advancements in Layer-2, we’re now poised to build the ideal crypto platform that emphasizes user asset security, fast and efficient trading, and trading simplicity. The integration of pioneering L2 technologies such as zk-rollups and Validium is ushering in a new era of possibility.
The Ideal Safe and Secure Platform
As we aim to make crypto safe, secure, and simple, let’s envision the ideal crypto platform. What features would it boast? How would it ensure financial freedom and users’ full control over their funds? How would it shield users from exchange risks and online threats? Let's explore the blueprint of this innovative platform with a practical approach to enhancing safety, security, and user experience.
Decentralization of Custody
The ideal platform is a design that separates user custody from trade matching, made possible by blockchain technology. In this setup, users have complete control over their funds, akin to peer-to-peer trading. Smart contract logic manages margin and fund operations, executing transactions seamlessly. Such a centralized approach safeguards user assets from potential exchange issues or vulnerabilities, providing users with exceptional autonomy and security.
Enhanced Security Against Hacks
To make the ideal platform more resistant to hacking attempts, we use blockchain and smart contracts within a Web2 infrastructure. Access to smart contracts is limited to secure Web2 servers, essentially forming a private app chain. This setup shields against smart contract breaches because attackers would first need to breach the private network servers. Additionally, we implement simple yet powerful security measures like strong passwords, two-factor authentication (2FA), and anti-phishing protections to strengthen the platform, creating a solid barrier against unwanted intrusions.
Incorporating Know Your Customer (KYC) procedures into the ideal platform is key to enhancing security and safeguarding users. By mandating identity verification and document submission, we lower the risks of identity theft, fraud, or unauthorized access. Moreover, compliance with anti-money laundering (AML) rules helps prevent money laundering and enables us to identify and report suspicious transactions.
To build the ideal platform that’s also secure and private, we turn to Validium technology. By handling order matching and settlements away from the public blockchain, Validium helps to facilitate decentralized settlements without revealing trade details. It effectively protects sensitive trading information, including margin data, and prevents attempts to front-run user orders and other attacks from potential exploiters.
Trader Access and Multisig Authentication
To bolster security, we prioritize trader access controls and employ robust tools like multisignature (multisig) wallets and strong authentication methods. Careful management of user permissions prevents unauthorized or malicious activities, while multisig wallets require multiple authorizations for fund transactions, making unauthorized access extremely tough. Additionally, implementing strong authentication methods like two-factor authentication (2FA) further strengthens account protection.
Crypto Made Simple
The ideal platform is user-friendly, designed with an interface and language familiar to users, ensuring easy to use without a steep learning curve. As it stands, using crypto exchanges, especially in DeFi, can be daunting for newcomers. It can often feel like learning a new language, with terms like bridging, private keys and gas. And even the most straightforward DEXes can confuse regular users. Fortunately, it’s within our reach to simplify the experience.
We demystify crypto jargon and streamline the process for a more user-friendly experience. Rather than requiring users to connect their wallets and navigate external interfaces, our native user interface can offer a seamless journey from start to end. Tasks such as bridging and network selection are built in, ensuring a more straightforward experience for users.
User-Friendly Invisible Wallets
Creating a wallet isa big hurdle for many new users, involving complexities like managing private keys and understanding how wallets connect. By providing options for zero-authentication (0-auth) wallets, we can streamline this process, taking the hassle and stress out of private key management and making wallet setup a breeze.
Convenient On-Off Ramps
Swift and effortless conversions between fiat currency and crypto are paramount for the ideal platform. The process of payments and check-outs should be straightforward. By partnering with fiat payment providers, we can expedite seamless fiat-to-crypto on-ramps, ensuring simple and reliable conversions.
Gas fees, while similar to traditional commissions in stock trading, introduce a new term, and complicates fee calculations as it always fluctuates. To enhance user experience, we aim to eliminate gas fees, particularly when placing or canceling orders.
Trading Modes & One-Click Trading
Whether it's buying spot cryptocurrencies or trading options contracts, trading should be accessible to everyone. To cater to all levels, we offer two trading modes. Professional traders can utilize our ‘pro’ mode, white beginners or casual traders can opt for the ‘simple’ mode, which features innovative one-click trading, even for complex products like perpetuals and options.
Revolutionizing financial services
Beyond traditional trading, we're reimagining the very foundation of financial services, making them more user-centric. We’re democratizing access to top-tier financial expertise, allowing everyone to tap into expert trading strategies – all anchored by the security and flexibility of smart contracts.
With our intuitive smart contract templates, anyone can create, customize and invest in an extensive range of financial products and strategies.
Structured Product: Invest in specialized financial plans devised by experts and governed by smart contracts.
Liquid Fund Strategy: This proactive strategy monitors returns and, to protect users, initiates liquidations when deemed necessary.
Social Market Making: Contribute to a communal asset pool managed by seasoned market makers, sharing both profits and losses.
Copy Trading: Replicate the trading strategies of seasoned traders with real-time mirroring of the originator’s trades.
Envisioning a Safe, Secure and Simple Future for Crypto
By leveraging the best aspects of centralized and decentralized platforms, our approach is all-encompassing, involving decentralized fund custody, robust security measures, regulatory compliance, and enhanced privacy. This strategy, complemented by user-centric designs, seamless wallet integrations, smooth on-off ramps, fee-free trading, and innovative financial services, isn't just a vision; it's an actionable path to redefine crypto trading and champion financial inclusivity.