Bithumb exchange aims at joining the league of decentralized exchanges which is considered safer than centralized exchange. This has led the company to partner with One Root Network blockchain for this project.
The New DEX
South Korean cryptocurrency exchange considered to be the sixth largest cryptocurrency exchange in the world announced recently that it would be launching its decentralized exchange DEX by the end of October.
The Bithumb DEX project is being built by One Root Network (RNT), a blockchain firm. Also, Bithumb noted that the decentralized exchange would be launched through an overseas subsidiary to avoid the South Korean regulatory restrictions.
Furthermore, Bithumb, who is a global leading cryptocurrency exchange have predominant users to be South Koreans. Thus, the decentralized exchange project is a strategy aimed at expanding the reach of the firm to compete with other leading cryptocurrency exchanges in the cryptocurrency space.
Notably, unlike the centralized exchange that relies on third-party service to trade cryptocurrencies, the decentralized exchange enables users and traders to trade cryptocurrencies through an automated process. This combats security issues such as hack on exchanges.
A spectacular feature will be available on the Bithumb decentralized exchange, as cryptocurrencies will not be kept directly by the exchange again, but the exchange will aid its users to trade cryptocurrencies between their cryptocurrency wallets. Though the decentralized exchange is said to have a relatively slow feature, it has cutting-edge security in comparison to the centralized exchange.
Bithumb Exchange and DEX Adoption
Bithumb exchange has been through turbulent waters despite its steady growth. The exchange is ranked sixth in the crypto space, and has recorded $270 million in revenue and $194 million in operating profit in the first half of 2018.
Meanwhile, the turbulent water has been seen in a $32 million hacking attack, fine of 60 million (about $55,000) levied by the Korea Communications Commission (KCC) because of leaking private data of users, and also a temporary suspension of new account creation due to bank problems.
Bithumb adoption of DEX is joining a trend as cryptocurrency exchanges seek better feature for the security of cryptocurrency users. Binance, Upbit among others have adopted this.