Bithumb, the second largest crypto exchange of South Korea, is all set to launch its own decentralised exchange(DEX). The move comes after announcement of the same by Binance, the largest cryptocurrency exchange in the market.
This initiative has partnership with One Root Network (RNT) which provides decentralised protocol based on Ethereum technology. This will enable the company to make decentralised transactions. Plus, R1 protocol will separate order matching and order execution which is expected to improve efficiency of the whole process.
Users of Bithumb will be protected from security threat and theft. According to the announcement, that the users’ funds are no longer saved in exchange server wallets, but are now saved in smart contact. This will enable extra layer of user security and the users of Bithumb will no longer be prone to risk of exchange theft.
One Root claims that its decentralised token exchange platform is faster than other platforms available in the market. This new platform separates matching and settlement of orders and enables order matching faster.
Security, Transparency, Stability and Liquidity
DEX framework also eliminates relatively complicated membership authentication procedures which are employed to avoid leakages of personal information. DEX platform allows only peer-to-peer functionality that makes identity management processes holy grail.
OneRoot R1 protocol helps Bithumb to maintain its DEX platform by using blockchain, which will improve transparency and augments reliability. In exchange zone, low transaction volume on decentralised exchanges leading to long transaction matching time is a persistent problem. Therefore, the speed of transaction matching under decentralised network is slower than in centralised network. But now, OneRoot’s R1 protocol will be able to solve this problem by enhancing the speed of transaction matching.
The announcement reads:
“The sharing of order data and liquidity is the most important feature of R1 protocol, which embodies the concept of sharing and win-win which is consistently upheld by ONEROOT. With R1 protocol as core, different exchanges can carry out cross-regional cooperation, which was defined by ONEROOT team as DDEX (Distributed Decentralized Exchange). This trading system is significant for the overall ecosystem of Bithumb, and contributes to the establishment of global distributed business system.”
With this partnership, Bithumb will be able to share its other data and liquidity with all other exchaanges running on R1 protocol, which will certainly increase asset liquidity and trading depth.