Decentralization and crypto usually go hand in hand. Of course this holds true for the crypto exchanges as well. Every single crypto exchange will describe itself as decentralized exchange (DEX). Upon closer inspection however, Bisq probably is the only exchange living true to the description.
Bisq was originally called Bitsqaure and the DEX has been operational since 2016. It’s unique in the sense that it runs on its users’ computers instead of using a hosted website. Other supposed DEXs like Everbloom and Airswap are operated by startupts. Bisq on the other hand is a strickly open source project.
Bisq’s developer team is always working around to clock to push the project further. The team knows they have much work ahead of themselves in order to locate and minimize all points, which could lead to failure. This is the main reason the team is launching a decentralized autonomous organization or DAO.
Essentially, this is a software created to manage compensation for contributors to the project’s code. This is all done without any meddling or oversight from a single party. If everything goes according to plan, the testnet is projected to go live in November. The mainnet can follow in December or the beginning of 2019.
The compensation will be available as the upcoming cryptocurrency BSQ. BSQ will be a colored coin, meaning it’s a bitcoin marked as representing some other form of value in a layer above the core protocol. The Bisq DAO will be tasked with distributing the bitcoin, which has been donated to the project.
Bisq have puzzled many experts with their choices
The company has taken a bit of a risk with the two crypto concepts it has decided to use. Colored coins haven’t seen major success and have always fallen behind the ethereum-based tokens. DAOs don’t exactly have the best reputation either. With The DAO collapsing after a very famous security breach in 2016, the concept hasn’t seen much favorable views.
But security is in fact the main reason why Bisq wants to take this risk. The Bisq community isn’t very willing to trust the ethereum developers to provide secure and bug-free tokens. That’s why BSQ is launched on top of bitcoin. The Bisq community generally believes that proof-of-work coins are only secure when they’ve reached a widespread usage similar to bitcoin.
With to project steadily underway, it has already received 2.5 bitcoin in donations. If marked and divided properly, it could basically become around 2.5 million BSQ tokens. Of course this tokens don’t pop out of thin air.
They come into being when a DAO compensation proposal becomes approved. This means the BSQ will be consumed when a user spends it to use the DEX. Even those the BSQ is used once, the tokens keep their value as bitcoin.
Bisq isn’t having the most popularity when it comes to transactions. The DEX has been processing around 850 transactions a month since April this year. 0x has thousands of transactions every single week and it includes more than 100 cryptocurrencies.
So in order for the system to grow and become truly decentralized many more will need to join. This is of course a very ambitious task for any single project and its completion will require a lot of time, dedication and hard work.
You can also check out:
Bitcoin Fees Are Skyrocketing: Lightning Network is Growing
Wednesday May 08, 2019
During the bear market, a lot of miners and exchanges were very careful with bitcoin fees. According to Diar however, just last month, bitcoin fees increased by over 250%. This effectively means that blocks have reached almost the same size as the peak of the 2017 bull run. Naturally, bitcoin fees were a lot lower
ShapeShift Easily Shuts Down Accusations About Money Laundering
Crypto Mining Company to Build a Solar Farm to Mine Bitcoins
Bitcoin Rat Pops Up on Wall Street Ready to Tear Down the Fed
EOS Community and the Division Between East and West
Binance Cryptocurrency Exchange Hacked for 7000 BTC (USD $40 million)
Wednesday May 08, 2019
The post Binance Cryptocurrency Exchange Hacked for 7000 BTC (USD $40 million) written by Richard Kastelein appeared first on Blockchain News – Security and Utility Tokens, Tokenomics, Cryptoeconomics Hackers were able to steal 7000 BTC worth some 43 million dollars from leading cryptocurrency exchange Binance on Tuesday, May 7, 2019. According to a security update
The post Bisq: What Does a Decentralized Crypto Exchange Really Mean? appeared first on CoinStaker | Bitcoin News.