Today, May 18th 2019, the team behind the Switcheo cryptocurrency exchange took to their Medium blog to announce that they have now gone live on the EOS blockchain. The launch comes as a result of a partnership with finance based research and development company Obolus.
Switcheo and Obolus’ partnership sees the modern trading interface of the Switcheo exchange utilising the powerful “on-chain matching engine” of the Obolus platform. This means that users of the newly launched exchange will be able to trade EOS cryptocurrency tokens in an entirely “trustless, fair and transparent” manner.
Mauricio Hernandes, CEO of Obolus, has stated that the smart contract used by the new decentralised exchange will be able to provide “blazing fast speed” while allowing users to retain ownership of their funds on the exchange.
Meanwhile, Ivan Poon, CEO of the Switcheo Network, stated that he was “pleased” with the milestone and hopes that the partnership of Switcheo and Obolus will lead to a “decentralized financial system”.
The official press release states that the smart contract used for the Switcheo DEX is coded in a way which enables it to “pay EOS network fees for traders“.
This is a topic Hernandes acknowledges is a barrier for entry to the EOS blockchain:
“Transacting on the EOS blockchain can be very daunting … Unlike blockchains like Bitcoin where users pay network fees using Bitcoin itself, EOS requires users to pay network fees using CPU, NET and sometimes RAM. These can be confusing to a casual trader and be a barrier to entry for new EOS users,”
Why Use a Decentralised Exchange?
The majority of custodial exchanges essentially own the crypto you send them the second it hits their wallet. They are able to liquidate and disappear with your funds (although this is unlikely depending on the exchange) and, in the event of a security breach, your funds are at risk.
However, with a securely coded DEX your funds always remain your own and a hack resulting in you losing them becomes very unlikely. This is because your funds are only ever accessible to the exchange when you wish to actually make a trade and interact with the exchange’s smart contract.
The majority of traditional exchanges are beginning to require customers perform a KYC check which is a huge privacy concern – if they were to get hacked all your personal details are at risk. DEXs do not, generally, require you enter any private information so you can remain entirely anonymous while using them.
Whether you intend to use their service or not, this is a great achievement for the EOS blockchain and a great example of what collaboration can achieve.
Love, peace and happiness.