1.DEX or EX? — the Best of Both Worlds
The debate over Decentralized Exchanges vs. Centralized Exchanges has been one for the ages, but I find it to be one of the most misunderstood. Each has its own advantages and disadvantages, and we will discuss these in details.
Decentralized exchanges provide users with the benefit of trading of truly owning their own currency(ies). By using their own wallets, they are the sole owners of these funds. However, that is not to say that decentralized exchanges solve the problem of stolen funds. Hackers can (and do) still try and hack into private wallets. Furthermore, user error is still one of the most prevalent ways to lose money. Whether that be losing your password or your ledger USB key, you are still your own worse enemy when it comes to losing your bitcoin.
Decentralized exchanges have until recently typically had much slower matching algorithms than centralized exchanges, meaning that transactions are typically performed at a much slower pace. This isn’t a problem for HODLers, but any trader knows how important this can be.
Quality Centralized exchanges such as Gate.io can process up to 10,000 transactions per second. The advantages don’t stop there though; any additional trading functionalities such as margin trading, derivatives trading, interest or staking collection are currently available only on centralized exchanges.
These functionalities are only available due to the centralized nature of the exchange [for the time being], however many misinformed users automatically qualify centralized exchanges as deceitful. This couldn’t be any further from the truth.
Whilst there have been cases of exchanges stealing user funds, any trustworthy exchange encourages its users to store their crypto savings on a wallet and use their exchange only for trading purposes. Since exchanges do not make any money on funds that are not being traded, untraded user funds are in fact a liability for us.
At Gate.io, we have encouraged users since our inception in 2013 to store their funds on their own personal wallets. In fact, we even created Wallet.io to make this process all the more easier and automatic for our users. Just as any company that has been around for such a long time, we have been through our share of hacks, but it has been our policy to fully reimburse hacked funds when possible (and so far, it has always been possible).
Combining both decentralized and centralized exchanges provides users with the best of both worlds: privacy and functionality, and that’s what we’re striving for with the launch of our new DEX.
Retrieving Private Keys and Revoking Stolen Funds — How did we do that？
Our incredible tech team has been working on this solution for the past 2 years, and I’m so proud to share it with you today.
On our new blockchain, GateChain, you will have access to 2 different accounts: a Standard Account and a Vault Account.
The Standard Account enables transactions to work just as they would on any other blockchain. Transactions are irreversible and distributed making them fully transparent and immutable.
The Vault Account however uses incredibly complex technology so as to reverse any unauthorized transactions. Any long-term holdings should be kept in this account so that you can retrieve funds if hackers steal them or recover them if you forget the password.
So as to avoid double spending issues, the taxid will clearly indicate whether the provenance of a transaction comes from a Vault Account or Standard Account.
Multi-sign means multi-security ? Here is why:
The industry is changing, and so we change with it. The audience has gone from blockchain enthusiasts, to retail traders, to professional traders, and we’re now seeing more and more enterprise clients. GateChain introducing multi-sign wallets is the response to this change.
Single-sign wallets are sufficient when transactions only concern one party. However, with enterprise entering the market, businesses need to diversify their risk: indeed, they cannot depend on a single person to make transactions.
Multi-sign wallets use a “m-of-n” signature mechanism where both ‘m’ and ’n’ can be customized independently. To validate a transaction on a multi-sign wallet, a number of ‘m’ members need to sign the transaction of the total amount of ’n’ members before the asset can be transferred out. This protects businesses against fraud, human error and malicious spending.
We welcome the valuable suggestions from our users to help us persistently progress towards the future of blockchain technology , and look forward to the launch of GateChain Mainnet. To keep up with our latest progress, please follow our social media account down bellow: