There isn’t a trader or even hobbyist in the industry who hasn’t heard of Binance. Shooting out of nowhere to become the world’s largest cryptocurrency exchange by trading volume, the Binance Coin [BNB] ICO was one of 2017’s most successful. And its exchange token is currently tearing up the charts. Now firmly nestled among the top 10 cryptos, what does this mean for DGTX and the future of exchange tokens?
Exchange Tokens Have Great Potential for ROI
Clearly, not every exchange has such a charismatic and influential leader at its helm as Changpeng Zhao, now one of Crypto’s most important personalities. In the same vein, not all exchanges have such a clear use case for their tokens or ambitious plans for creating their own blockchain either.
However, in general, exchange tokens do have great potential for ROI since they are built into the exchange with the goal of increasing demand. As such, when handled correctly, they will always have a strong use case, which translates into a need. Exchange users need the token; the token demand rises as a result, along with its price.
The BNB Token
In the case of BNB, the token allows users on the exchange to receive certain discounts on trading fees when paying in BNB. To encourage greater demand for BNB, there is also a discount for users wanting to buy them to pay fees.
This discount reduces over time, presumably with the goal of capturing investors, increasing price and attracting further investors as the benefits of owning BNB become clear.
In the first year of operation, Binance sold BNB tokens with as much as a 50% discount. This has since been reduced to 25% and over years three and four will be reduced to 12.5% and 6.24% respectively.
BNB holders also have further uses for their exchange tokens than simply paying trading fees. They can now use them to invest in ICOs launched on the Binance platform Launchpad. Holders of more than 500 BNB can also trade at additionally reduced prices.
In addition to that, the BNB exchange token can even be used to pay for goods and services in the high street in some parts of the world, despite its volatility.
Perhaps one of the most compelling use cases for BNB though is that it will be the only means of payment for new listings on its decentralized exchange [DEX]. The Binance Chain will charge close to $100K for new coin listings.
BNB Is Currently on a Bull Run
Why has BNB seen such a spike in price lately? Surging by more than 60% in one month and still rising?
As Binance grows closer to launching its fully decentralized exchange and releasing Binance Chain, demand for BNB is rising. Similar to the Ethereum blockchain, users on it will be able to create their own tokens and all the gas fees are payable in BNB.
It’s the updates and announcements on these developments that appear to be pushing up demand for the BNB token.
Another Use for the BNB
This latest bull run shows that another use for the BNB token, beyond an exchange token, is as an investment vehicle. After all, if you had bought into the BNB token ICO when the coins were worth just $0.10, you would have made a decent profit by now in spite of the bear market. BNB is currently trading at $15.01.
Of course, this presents a sort of double-edged sword for regulators, since a clear utility and exchange token also shows clear signs of being a security. The BNB token’s performance is linked to that of Binance and this is one of the main factors that keeps Binance at the gates when it comes to U.S. investors.
However, it also illustrates the enormous potential of exchange tokens in providing investors with ROI.
DGTX Exchange Token Is Already Proving Its Worth
The DGTX exchange token has all the characteristics of taking off in earnest like the BNB. There are already many parallels that we can draw even before the public launch of the commission-free futures exchange.
Like Binance’s Changpeng Zhao, founder and CEO of Digitex Futures Adam Todd is a visionary and charismatic leader who held a sell-out ICO in January 2018. The DGTX ICO sold out in just 17 minutes.
The DGTX token has also, like BNB, bucked the bear market trend by going on a tearing bull run in October 2018 ahead of the awaited demo of the exchange at the Malta Blockchain Summit hitting a record high of over 14 cents and a 1,400% ROI from its ICO.
While the token later followed the general market trend in November, it is also at the start of a new bull run this month. With over one million users anxiously waiting for the launch date of April 30, DGTX may quite possibly hit a new ATH.
This would seem to be due to some key announcements from the company. The launch of the Digitex Treasury, a transparent and sustainable funding plan for the exchange’s future, and the setting of a public launch date, April 30.
Digitex also revealed a partnership with trading platform experts Spotware. The DGTX is currently trading at $0.082, making gains of well over 90 percent in less than a month and providing investors with over 800% ROI from its ICO currently. Again, despite the bear market.
The Clear Use Case for DGTX
All trades on the exchange must take place in DGTX. This provides a constant demand for the token, which therefore drives up its price. As more traders flock to the platform to take advantage of commission-free trading, the token price will rise.
Digitex Futures is able to cover the operational costs of the exchange thanks to its revenue model of token issuance and token appreciation. This means that, for the first time, the exchange’s interests are aligned with those of its users. Instead of siphoning profits out of the liquidity pool, both the exchange and its users want the price to rise.
Digitex Futures, like Binance, has loftier goals in sight than being just a commission-free cryptocurrency futures exchange. From public launch and thanks to its partnership with Spotware, the makers of cTrader, the exchange will offer traditional futures markets along with cryptos [BTC, LTC, ETH] in the shape of Forex, indices, selected stocks, commodities, and metals.
Moreover, the exchange will release commission-free spot trading later in the year and also provide its users with decentralized account balances.
Digitex won’t be a decentralized exchange like Binance eventually will. However, it will combine the best of centralized features, such as its super fast order matching engine and one-click ladder trading interface, with the security of not holding on to user funds.
At the forefront of innovation, Digitex is the first hybrid exchange to be integrating Ethereum’s scaling solution, Plasma protocol, into its technology stack in order to offer decentralized account balances. The company was personally approached by Ethereum-approved team Matter Inc. to make Digitex one of its first use cases.
The high security of the exchange along with the addition of traditional futures markets will make the audience for the exchange potentially huge. And in fact, the company already has well over one million people signed up to its waitlist for public launch.
It will be interesting to see the evolution of the Digitex Future exchange upon launch and the performance of its DGTX token. But from where we’re standing now, it has all the hallmarks of being the next BNB.
Hyperledger Sawtooth: Performance Problem and the way to solve it
The Hyperledger global initiative within the Open Source movement, bringing together hundreds of technology giants [for example, Huawei, Intel, and Samsung], startups [Blockstream, Lykke, Consensys] and solutions [Netki, Factom, bloq], has become a real push for the entire blockchain industry in forming not only a strong community but also a completely different perception of technology through the prism of innovations in business.
Hyperledger can be called a global collaboration organized by the Linux Foundation. In turn, the uncommercial Linux development consortium, the Linux Foundation, creates sustainable ecosystems around open source projects to develop technologies and implement them in businesses.
Founded in 2000, the Linux Foundation supports communities and innovative projects through financial and intellectual resources, making ambitious and successful contributions to creating technologies for widespread use.
The consortium launched Hyperledger in December 2015 and in February of the following year, it became known about the first participants of the initiative.
The main Hyperledger’s focus is to improve the reliability and performance of the blockchain through comprehensive cooperation with the platform participants, whose number is already over 250.
It is worth noting that for many projects Hyperledger has become the starting point for the development of their own business apps: many solutions have been created on the basis of the platform, ranging from smart contracts to complex multi-stage innovations.
One of the advantages of using Hyperledger is the interaction between its participants since third-party developers can make their own changes to the already created platforms, thus modifying the services and providing new opportunities to end users.
Hyperledger expands its global business and improves its internal processes, developing also the technologies of the Internet of things, logistics, industry, etc.
Platform participants have access to five main frameworks, on the basis of which blockchain solutions can be created, depending on the goals set by the projects’ creators.
This framework appeared in 2014 and works in conjunction with Ethereum Virtual Machine [EVM]. Solutions based on Hyperledger Burrow allow enterprises to use smart contracts to optimize their business processes.
Initiated by the IBM tech giant, the Hyperledger Fabric framework is the foundation for developing complex, scalable applications for corporations.
Businesses can use smart contracts and many other components. Feature of Hyperledger Fabric can be called a high level of performance, off-chain channels, as well as integration with corporate access control systems.
Hyperledger Iroha is designed for easy implementation into a project. This framework is suitable for many businesses, as it is distinguished by a rather light construction and focus on mobile platforms.
In addition, by analogy with the Fabric, Hyperledger Iroha has a well-developed access control system.
The framework is used for decentralized identification. Hyperledger Indy provides reusable services for creating and using independent digital identifiers.
Hyperledger Sawtooth deserves special attention since this framework is quite popular. Operating on the new consensus algorithm, Proof of Elapsed Time [PoET], which stands out from the rest with minimal use of resources, the Hyperledger Sawtooth is considered by the community as one of the most promising.
This solution’s developer, Intel, is confident that Hyperledger Sawtooth is ideal for businesses whose requirements exceed the capabilities of the available public blockchains.
The PoET algorithm provides highly efficient consensus achievement without a serious resources’ cost even in an environment where contractors don’t know each other and they have no reason to trust other participants.
The Sawtooth blockchain platform is designed to counteract denial of service attacks that become more likely in a public blockchain environment or in an environment in which unknown parties can interact.
The reason for the popularity of this framework can also be called the ability to integrate with hardware security solutions, “reliable execution environments”, among which are scalable Intel Xeon E processor from Intel.
At the same time, in Hyperledger Sawtooth were found flaws. In the GitHub user profile eugene-babichenko, the problem that the developer was able to solve was described in detail.
It is important to note that the network built on Hyperledger Sawtooth consists of 30 nodes located in different regions [from Europe and the USA to Singapore] and at three different cloud providers.
Having contacted the developer, it was possible to find out that while the node was experiencing problems with the network connection and could not access the minimum number of peers, the blockchain node, in turn, began to consume an increasing amount of RAM.
As a result, the system crashed in about a day, operating on a server with 1 GB of RAM.
The blockchain developer, after careful monitoring, determined that the component that caused the crash was a Sawtooth validator.
It is responsible for connecting all the other components of the blockchain node [transaction processors, APIs, consensus modules], and also manages network connections and data storage.
The vulnerability was discovered in the inner essence of Sawtooth, which is designed to manage some of the computing and networking staff.
The study revealed that the system was overloaded due to saving instances when trying to reconnect to peers. Since each instance has its own waiting time [which was originally used only to block calls], it was decided to clear the futures’ collections based on this timeout.
The developer of the 482.solutions company, using the example of this vulnerability, warns his colleagues about the need to be attentive with the use of RAM in their apps.
Moreover, Eugene noted that the use of open source products can be really useful in cases where your tool behaves strangely and requires immediate corrections.
In the case of the problem described above, 482.solutions just forked Sawtooth core, fixed it, tested the fix and sent this change to the upstream repository.
The blockchain technology is undoubtedly capable of transforming the most well-known business approaches. The Hyperledger platform, in turn, is an indispensable engine of this progress, since it focuses on the development of blockchain solutions for enterprises.
At the same time, you should not lose sight of the fact that Hyperledger is not a magical place that will solve all the corporation’s problems with a few clicks.
To work with frameworks, you need a strong team that owns all the knowledge in the field of blockchain technologies and businesses digitalization. It is also necessary to pay attention to the previous experience of developers.
For example, the 482.solutions company, whose member fixed the problem in Hyperledger Sawtooth, previously contributed to OpenZeppelin and Ethereum, and also provides services to develop a Remme solution.
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