The following content is quoted and translated from chainnode:
LBTC Makes Pragmatic Efforts in Decentralization
The whitepaper is the best manual for a project. When reading the whitepaper, purpose and perspective vary from person to person. The nodes mainly value the rules. The users mainly value the attractiveness. The investors mainly value the potential and risks. The exchanges mainly focus on the liquidity of the market value. But no matter what’s your opinions on the whitepaper, our starting point is based on the reality and rooted in future expectations.
From the LBTC whitepaper we can see the vision of the project, the resources it has, the path of execution, and the expectations of the future. Among them, decentralized exchanges occupy the largest area of content, with 14 pages.
We all know that the blockchain is not limited to the bookkeeping carrier shift from the off-chain account book to the on-chain account book, but to create a variety of new, non-traditional and non-standard asset types, while LBTC decentralization trading platform expects that, technically, with the help of the block accounting system and the introduction of on-chain Oracle, it can establish a distribution, circulation, custody and acceptance platform that carries any form of assets. From the macro perspective of vision, the future is brilliant.
You may still remember that when FCoin was born in 2018, then hit the top of the ranking list of crypto exchanges within a short time. Their slogan “transparent disclosure of assets and revenue all return to users’ pocket” is shown at a notable position on the homepage. However, doubts about its funding and supervision are coming soon. FCoin is essentially a centralized exchange, and it is impossible to achieve true security and transparency.
Centralized exchanges have already begun to expose their disadvantages:
- Cryptocurrency theft incidents emerge one after another, and hacker attacks have seriously disrupted the normal operation of the entire industry.
- The right of listing the token and pricing are controlled by the centralized exchanges. There are risks such as bank controllers and robots scalping, and there is a lack of trust and transparency.
The advantages of decentralized exchanges are constantly being revealed:
- Depending on the smart contract, the asset trusteeship, matchmaking tradeoff, and asset clearing are placed on the blockchain, decentralized exchanges cannot make price adjustment by human operation.
- Hackers can’t rely on centralized attacks on exchanges to make huge profits. They can only attack scattered individual accounts. As the difficulty increases, the profit acquisition decreases.
Functionally, the LBTC decentralized trading platform is also trying to target these industry weaknesses. such as:
- Pay great attention to the new types of on-chain assets. Non-standard and non-traditional assets enjoy a great proportion of market demand, but they have not yet achieved large-scale development. In the LBTC decentralized exchange ecology, any definable, quantifiable and divisible assets can be personalized and traded in the DEX supported by LBTC.
- The problem of the circulation of digital assets and real assets has always been a thorny issue. It is becoming more and more difficult to regulate and accept the fiat channel openly and compliantly. LBTC can decentralize the fiat channel problem through DEX. Just need to open the LBTC client or web page and customize the parameters of the token according to their own needs, users can distribute the tokens of these asset certificates to the customers according to the rules, and allow them to trade freely on the LBTC.
- Avoid the catastrophic loss of users in the digital currency field. LBTC’s use of cross-chain atomic technology DEX will enable multi-coin conversion and trading. Cross-chain technology implementation requires a scalable blockchain for cross-chain platforms. LBTC is based on the DPoS consensus mechanism, which satisfies the need for scalability of cross-chain technology, and has enough space in technology to develop the infrastructure needed for atomic exchange.
LBTC has set its sights on the development of decentralized exchanges to achieve a simultaneous increase in transaction efficiency and user friendliness. As decentralization gradually becomes dominant, orders and trading behaviors occur on the blockchain. There is no middleman cost, and assets would not affected by hackers, so that users actually have control over assets, and the crypto-currency ecosystem is healthier and more transparent.
Of course, the reliability of technology and the gradual realization of the vision are what we are most looking forward to. LBTC has set up the framework of the empire with the planning of on-chain governance. Meanwhile, the gateway agreement, decentralized exchange, and smart contract are the flesh and blood of the technology. The future development of the environment is still changing and competition is unavoidable in the industry. In short decentralized exchanges that give users sufficient security, ease of use, and better experience will definitely be popular, and we expect LBTC to have better development in this field in the future.