DEX + Stablecoins, a Powerful Combination Leading a New Trend of Blockchain
Time flows away, day and night. Life is but a dream. At the end of the year, all walks of life are preparing for their year-end summary.
Looking back on the past year, the blockchain industry has gone through a lot: from the IEO trend early this year to the ISO mode, the reduction of the Litecoin block reward, further to the rise of POC, the DeFi sweeping the globe, eventually to the official justification of blockchain technology on the state level. What has happened in blockchains is a good proof of a popular saying that goes, “one day in the crypto space equals one year in the world”. You will never know what you’re going to get from the blockchain until the last moment.
In the last 40 days of 2019, exchanges’ public chains managed to seize the eleventh hour of this year by showing an extraordinary potential in the public chain. Huobi Chain, which used to be in a difficult state, has finally embraced its progress. On the evening of October 31, Huobi Group announced to have uploaded the source code of Huobi Chain to Github, officially going open source on its public chain. That news has caused a stir upon its release and hit the headlines that day in the industry. Elsewhere, CoinEx Chain, built by the Copernicus project team and highly praised by Wu Jihan, decided to launch its Mainnet on November 11, a day for shopping spree for the Chinese, after seven months of development and testing. Behind all the good news of exchanges’ public chains is a switch in the industry’s attention back to blockchain technology. The complicated incidents one after another have eventually driven the public attention back to exchanges’ public chains.
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“Having developed for a long time till this day, Bitcoin, Ethereum, EOS and other public chains of past generations are very mature, but they still fail to solve such problems as capacity, token issuance and trading. Yet exchanges’ public chains have intrinsic advantages in this regard. Try to get familiar with the business of exchanges before engaging in decentralized trading, and you may gain more with less effort,” said by Yang Haipo at CoinEx when talking about the exchange’s public chain.
“What we want is the Taobao of blockchain.” That is CoinEx’s ambition. The day of November 11 has seen CoinEx Chain’s transition from a mere concept to reality when Wu Jihan’s Matrixport, Bitmain’s BTC.com, and Bitcoin Jesus’ Bitcoin.com participated in the launching ceremony of the CoinEx Chain Mainnet as the first nodes.
Endorsed by famous nodes and developed by the most professional team in China, CoinEx Chain has received much attention from the release of the white paper to the launch of its Mainnet. The enviable investment background may add glory to the CoinEx Chain’s success, but it is not the deciding factor of its brilliance. For Yang Haipo, a great admirer of technology, technology is the very foundation for public chains’ development.
Ever since its birth, the blockchain has given birth to countless decentralized exchanges in just a decade. However, suffering from such problems as poor user experience, lack of liquidity and bad performance, all of them are merely passers-by on the stage of blockchain history. Solutions were nowhere to find until the birth of CoinEx Chain.
After two years of research into centralized exchanges and the existing decentralized exchanges, Yang Haipo made up his mind to develop a truly decentralized exchange.
Yang was not alone. In a casual talk with Jiang Jiazhi, the former developer of underlying blockchain technology of Bitmain, they happened to coincide with each other on the idea of CoinEx Chain. Then they have devoted all their efforts to its development for the past year.
The integration of three public chains, respectively, DEX chain, Smart chain and Privacy chain, is the key to CoinEx Chain’s success among many counterparts. The DEX chain is responsible for token issuance, transfer, and transaction; the Smart chain achieves complex financial application functions; and the Privacy chain safeguards privacy. They parallel each other, creating the strongest public chain among exchanges.
DEX+ Stablecoins, a Powerful Combination among Blockchains
The year 2019 witnesses the rise of a very popular word, Decentralized Finance, or DeFi for short. Decentralized finance, distributed finance, and programmable finance can all be equivalent to DeFi.
DeFi is mainly characterized in the following ways: blockchain-based; with assets controlled by individuals; with clearing and settlement done in real time through smart contracts, thus reducing the trust cost between individuals by minimizing dependence on trust.
As an important application scenario of DeFi, DEX and stablecoins play an indispensable role in blockchain. Originated in 2014 by Tether Limited under Bitfinex, a well-known digital asset trading platform, one of the stablecoins is a USDT against US dollars on a 1:1 ratio.
What happened later must be no stranger to people familiar with this industry. Stablecoins have always been dominated by USDT alone until 2018 when they swept the world and both exchanges and the project teams hurried to issue their own Stablecoins.
Speaking of stablecoins, the chief developer Jiang Jiazhi seems positive: “Stablecoins have all the characteristics of a blockchain: it is based on cryptographic protection; it allows free opening of accounts and global circulation; it is equipped with certain anonymity and can’t be tampered.”
Elsewhere, the social giant Facebook’s Libra can also be considered as a basket of stablecoins against legal currencies throughout the world, in a different sense.
What kind of spark can the DEX+ Stablecoins combination produce? There seems no parallel in history.
On November 21, HonestNode Team, a CoinEx Chain’s node, announced the issuance of USDH, a stablecoin project, based on CoinEx Chain. Currently, CET/USDH trading pair has been available on CoinEx DEX.
USDH used to be a stablecoin based on the BCH public chain, and what HonestNode just developed is the CET-based version of USDH, against US dollars on a stable 1:1 ratio. USDH differs from its counterparts issued in the past in the regulation by the government, safety, stability and transparency in operation. All of these factors meet the demands for investment products. In the blockchain field where frauds, theft and credibility crisis are rampant, the combination between a safe, compliant USDH and a truly decentralized exchange will provide investors with a more secured investment environment and investment products.
Stablecoins-based solutions may enable a global unified payment system in the future, which is exactly the ideal of blockchain. To make this vision happen, the CoinEx DEX+USDH combination may be a satisfactory shortcut.