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Project Overview: DAEX - Clearing Chain for Exchanges

10 september 2018, 19:46 by Tim Jackson

General Idea

The main goal of DAEX is to improve the current cryptocurrency trading industry and combine the old and mainstream solutions with the benefits provided by the introduction of blockchain technology, its decentralization and transparency.

Project Overview: DAEX - Clearing Chain for Exchanges

The three main targets of DAEX Blockchain is to provide services for the cryptocurrency traders, exchanges and the whole industry. The community will benefit from a settlement ecosystem, while the traders will get a reliable custodian of multiple assets with various exchanges being connected together.

The Current Problem

The blockchain technology and smart contracts have brought incredible possibilities for various decentralized exchanges and trading services. The perks are quite obvious and many traders enjoy the actual ownership of the assets, the transparency and privacy they get. However, such exchanges have often problems with liquidity, order matching speeds and flexibility.

The centralized exchanges, while still being the most popular and widely used are able to provide the trader with all of their support, centralized order matching mechanism and so on. However, the funds are not actually controlled by the traders and are prone to being stolen, hacked or simply taken away by the exchange without any reason. Moreover, the sole order making mechanism, even though quite effective in fast trading, can't be proved to be unbiased.

Distributed Ledger Clearing Services

DAEX noticed that the decentralized exchanges, despite being quite revolutionary and providing the true decentralized trading for the cryptocurrency enthusiasts, at the current stage are not able to beat the centralized and well-established exchanges, which have the biggest trading volumes on the market.

Project Overview: DAEX - Clearing Chain for Exchanges

Therefore, instead of fighting with them DAEX wants to try to improve them and give them the things that they lack, such as privacy, transparency, reliability and security. The distributed ledger technology guarantees that trades are correctly and safely cleared and settled. By using distributed ledger technology, trader's assets are kept in their own accounts on the blockchain. No one else can access traders' assets without their permissions. This effectively removes trader's asset risks in current centralized exchanges.

The whole code will remain open-sourced to gain the trust of the users, who can always check its reliability.

CaaS

Currently, all of the trades, transactions, orders and assets are processed and stored by the exchanges. DAEX wants to bring the environment for third-party apps that could act as the bridges which assure the exchanges are unbiased, objective and transparent. Adoption of such technology by mainstream exchange could easily boost its reliability and value among cryptotraders, who will now be able to trust it.

Project Overview: DAEX - Clearing Chain for Exchanges

They use a Clearing as a Service (CaaS) method with a CVF-POS consensus. It provides clearing and settlement services to both individual and institution users. This chain is deployed on multiple nodes on a public cloud. It uses one kind of POS consensus mechanism to validate transactions. All clearing and settlement business rules are preprogrammed into a smart contract.

ICO Phase

Project Overview: DAEX - Clearing Chain for Exchanges

The main token offering is scheduled to run from 9th of September to 14th, which is relatively short period of time. 1 DAX will be worth $0.07 at the beginning and it is a regular ERC-20 token.

Apart from obvious cryptocurrencies such as Bitcoin and Ethereum, the project will also accept QTUM and NEO coins.

The project's documentation describe the main idea and features very clearly. It's good to see that there are two whitepapers available, one focused on the technical aspect and the other being more abstract and descriptive keeping in mind that not every investor is a programmer who knows what all of the algorithms and solutions do. This can act as an advantage during the ICO phase, as all people will be satisfied when it comes to the type of information provided on the project's site.

The Team

Project Overview: DAEX - Clearing Chain for Exchanges

On the official site, there are only 5 main members listed with their photos and detailed descriptions of skills and previous experience. The members have worked on multiple big and small projects and have cooperated with various companies, therefore they seem to be able to run such project. However, there doesn't seem to be enough programmers and blockchain developers to create the sole technology, but with a successful ICO phase they will most likely be able to expand the team.

Final Thoughts

The roadmap seems quite reasonable with the final product being fully developed at the end of 2019, with test and beta versions being released earlier. This shows that after raising the funds, the team will take their time to work on the sole technology and whole environment.

The sole approach of empowering centralized crypto exchanges is very interesting as most of the projects focus on improving the decentralized ones to stay fully in the blockchain community. However, the majority of trading happens in this big and often private exchanges. Therefore, the attempt to bring blockchain technology to them could in fact be very successful.

Overall, the documentation and information on the site is on a very satisfactory level, it is easy to research and learn about the project.

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