Following close behind Binance, South Korean crypto exchange Bithumb, currently the world’s sixth largest exchange by daily traded volume, will offer a globally accessible decentralized crypto exchange, reports Business Korea.
Bithumb has partnered with One Root Network (RNT) to offer its clients a DEX. RNT, which has already developed an Ethereum based decentralized token transaction protocol called “R1”, will be better able to offer improved security and matching efficiency due to the protocol.
Decentralized platforms (DEX’s) allow users and investors to trade peer-to-peer via an automated system. Since the crypto stays in the wallets of the individual users, not in the hands of the exchange, they are less vulnerable to thefts and hacks that often target centralized exchanges. However, due to the nature of DEX’s and the security that they offer, the trade-off is that DEX’s usually have slower trading speeds when compared to their centralized counterparts.
Business Korea cites a Bithumb official who clarified the partnership between Bithumb and RNT – stating: “Bithumb DEX will be operated by its overseas subsidiary. The company is working together with RNT only in the decentralized exchange sector.”
As RNT has outlined, its project aims to enable exchanges, such as Bithumb, to build their own DEX’s, and share their data and liquidity with other R1 protocol users as part of a wider ecosystem. Bithumb is certainly a victory for RNT, has, once again, they can offer enormous amounts of liquidity due to their being the 6th largest exchange.
Business Korea, citing an unnamed industry source, went further, saying that the partnership represents a global expansion strategy by the Korean exchange. Quoting the unnamed industry source: “Bithumb is one of the leading global exchanges in terms of transactions but it is true that most of its users are Korean. The latest decisions seems to be the company’s strategy to compete with other leading exchanges in the global market by opening a decentralized exchange that receives attention in the global market”.
Business Korea noted in their article that Upbit, another Korean exchange, has also delved into the DEX space through its investment in Allbit.
Once again, this follows shortly on the heels of the world’s largest crypto trading platform, Binance, announcing its intentions of opening a DEX. Binance has already started to offer fiat/crypto pairs in Singapore, what exchange is next, do you think?
Let us know on Facebook, and join our community!
