Crypto Exchange Bitfinex To Build Decentralized Exchange On EOS.IO Platform

Uncategorized | February 13, 2018 By:

Hong Kong cryptocurrency exchange Bitfinex is planning to create a high performance decentralized exchange on the EOS.io platform, a blockchain protocol that enables horizontal scaling of decentralized applications.

Called EOSfinex, the platform aims to combine the scalability and speed of EOS.io with Bitfinex’s expertise. EOSfinex is said to deliver an “on-chain” exchange designed to offer a fast, transparent and trustless platform for the trading of digital assets.

Published by Block.one, the EOS.io platform allows developers to efficiently create high performance distributed applications. It provides accounts, authentication, databases, and the scheduling of applications across multiple CPU cores and/or clusters. This allows for horizontal scalability, replaces user fees with an ownership model, and powers simple deployment of decentralized applications.

Bitfinex explains that its continuous goal has been to research and sandbox the capabilities of various protocol-level technologies that meet the rigorous requirements of a high volume, blockchain trading platform. The search for a reliable solution led to EOS.io, which aims at processing tens of thousands of transactions per seconds, with minimal fees and confirmation times.

Bitfinex CEO J.L. van der Velde said he is hoping that the partnership with EOS.io will allow significant advancement for all decentralized exchanges.

“Our experience indicates that these advancements represent fundamentally transformative capabilities for the blockchain industry, and Bitfinex remains dedicated to leveraging the latest innovations to continue offering the world’s leading trading experience,” said van der Velde.

Recently, critics have raised questions about the relationship between Bitfinex and Tether, the creator of a cryptocurrency pegged to the dollar. The critics are questioning the accuracy behind assertions that every USDT is supported by actual bank reserves. The most controversial allegation against Tether is that its USDT token are digitally minted to purchase bitcoin on the Bitfinex exchange, which in turn drives up the price in the cryptocurrency.

In 2015, Tether began issuing USDT at a slow pace. But after Bitfinex was cut off from all formal banking in April 2017, that issuance took on rapid, and later, almost frenzied, pace, with higher and higher volumes being printed each month. During the same period, the price of bitcoin rose from $1,000 to a peak of $20,000 in mid-December. Last month, Tether issued 850 million new USDT, more than any month prior. As of this writing, the number of USDT in circulation is 2.2 billion.