OPENLEDGER: THE MOTHER OF DECENTRALIZED EXCHANGES

OpenLedger DC is a decentralized conglomerate built on the Bitshares platform. It consists of a crowd-funding platform (ICOO), an online advertising agency (HubDSP), Tokens (OBITS) and the core around which all these revolve (OpenLedger DEx).

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It was started in 2015 by a DenMark-based company run by Ronny Boesing. OpenLedger was founded with the goal of solving problems like speed, stability, security, and transparency in the cryptocurrency ecosystem.

An important part of it is that its OPEN-SOURCE. It means that anyone anywhere can have access to the GitHub Repository. And that's the trend of the modern projects and developments. This allows people to contribute to its development yet also allows for anonymity.

In order for readers to fully understand the values that DEx brings its important to review the Centralized exchanges available and see their demerits. Let's proceed;

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REVIEW OF THE CURRENT STATE CENTRALIZED MARKET

At this moment when Bitcoin and Ethereum transactions are so slow plus all the problems arising with centralized exchanges it becomes imperative that we need a decentralized exchange.

Bitcoin transaction time is said to be around 10minutes & 15ses for Ethereum. But because of the hikes and increasing demand of these blockchains, there has been major lags. BTC now takes upto 6hrs for a simple transaction while ETH may take anywhere from 5-10mins.

We are not even talking about the transaction fees. So huge! For example to complete a Bitcoin transaction on Bittrex you have to $15. If you are doing a little transaction of <$100, that's a major percentage of what you are transactions.

Centralized exchanges have worsened this situation. First everyone has to deposit to the site's central coin vault and is given a form of digital IOU which the individual can then trade with. Most of the problems arise not when transferring to the Centralized Exchanges but when an individual wants to withdraw.

Last two weeks there was a major issue with Poloniex not allowing people to transact Steem/SBD. People reached out to the exchange by creating support tickets which were not responded to for a long time. A decentralized exchange will have non of such challenges.

Most times they need to verify the identity of an individual before they allow any major transactions. This ruins anonymity for a lot of persons. Anonymity is something that crypto-currencies offer in the first place.

In conclusion, centralized coin markets need an upgrade. Here comes DExs (Decentralized Exchanges).

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SO WHAT ARE THE BENEFITS OF DECENTRALIZED EXCHANGES:

1- Perfect Anonymity:

• with just an email and a password, you can have an account opened.
  
• No more need to verify your ID with your International ID Cards, National IDs and even House addresses, thus no exposure to Identity Thefts and other hacks.

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2- Security:

• Since the deadly Mt. Gox exchange crash in 2014, people have been exposed firsthand to the dangers of using a centralized exchange.Also since the cryptocoins are stored in a central coinvault, any hack of that vault exposes all the accounts to security threat
  
• But decetralized exchanges are secure because your transacting within your own wallet. Openledger even offers a type of wallet that can only be opened on a particular browser (and device) thus adding another layer of security.

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3- Ease Of Exchange Utility:

• Changelly, Shapeshift are definitely easier than say bittrex and poloniex.
  
• Openledger adds another layer to simplicity while also including the usefulness of Bittrex. Do you know you can even change your crypto to fiat (USD/EURO) on OpenLedger?

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4- Server Downtime Is Unfound:

• Decentralized exchanges function through nodes instead of via a centralized server
• You Get These Sort Of Messages
  

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5- Control Of Your Private Keys:

• This is one of the super-cool features. This means that every wallet you open on a DEx is yours for real( Not an IOU). Unlike in CEx where your keys are managed by the company.
• As we all know, the private keys are the main thing giving you access to your wallet. With that you can even export your funds into another wallet.

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So with this detailed document, I believe we all have learnt what OPENLEDGER is exactly and how it could be of immense use. In my next article, I will outline "HOW TO USE OPENLEDGER EXCHANGE FOR TRADING CRYPTOS."

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I remain me, my mouth & eye @nairadaddy aka SteemDaddy. My aim is to leave you better than I find you.

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Cheers!

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JOIN ME & MY TEAM ON #AIR-CLINIC VIA THIS LINK: https://discord.gg/rqded5m
See yah!

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Posted on Utopian.io - Rewarding Open Source Contributors

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