ryptocurrency trading infrastructure is at a vital crossroads in its development. Trading primarily happens on centralized exchanges wherever user funds are exposed to the danger of hacking and lack of access to liquidity. Exchanging fiat for digital currency itself remains a barrier to wider adoption thats yet to be addressed on a broad level.
These problems are both major barriers to the expansion of cryptocurrency as an asset. Among the crypto space, the advantages offered by decentralized exchanges (DEXs) are starting to catch on. DEXs permit users to retain control of their funds, as trades are mediated by smart contracts on a blockchain; however on-chain computation is usually too slow to keep up with high volume order books.
As for the development of neo itself as a rising smart contract platform- the infrastructure required to reach the scale visualized by the project founders remains in its infancy.
NEX ICO value Proposition
Neon Exchange (NEX) is a decentralized platform on the neo blockchain with the goal of solving the problems that are made by regular decentralized networks. Its used to combine security and trust properties from decentralized exchanges while additionally providing a similar level of intense security as centralized exchanges. NEX will be the first exchange to utilize neo, neo Gas and its own NEX token as base pairs to trade NEP-5 tokens.
It works by permitting its users create their own kind of taker/maker fee structure. This implies that market makers who need to create new limit orders dont need to pay a fee. Takers who need to create a limit order or an order thats below the market price will need to pay a fee. This gives it the power to make it quicker than alternative decentralized exchanges. Having the power to create these orders facilitate the network run without having to wait for long transaction times.
Designed to harness the combined advantages of both on/offchain solutions, NEX will receive orders from an offline wallet, match bids offchain and fulfil orders onchain. Additionally to the exchange platform, NEX additionally introduces a payment service and funds management layer that permits third party smart contracts on neo to send and receive assets.
Yet another feature of NEX are going to be the new, easy smart wallet Chrome extension to store currencies off of the exchange while at the same time allowing instant trading. Co-founder Fabio Canesin described the wallet extension as a MetaMask + neon Wallet application permitting users to access exchanges while safely maintaining custody of tokens.
Underlying the neon Exchange is the NEX token. Fifty million tokens are issued that provide holders a share of the profits generated by the payment service and exchange options of NEX. In this approach, token holders who stake NEX benefit directly from the success of the exchange services: as additional fees are generated, holders will receive larger rewards.
NEX ICO Strengths and Opportunities
The planned improvements NEX brings to the neo ecosystem are wide in scope. The NEX wallet extension is planned for release before the ICO, which can offer a much anticipated alternative to the neon wallet.
One key advantage to the wallet extension is that NEX users wont need to worry regarding transferring their NEP-5 tokens on and off of the platform. In Q1 2018 also, a native ICO platform for NEP-5 tokens is planned for launch, permitting an additional streamlined ICO method that originally got off to a rocky begin. Further down the line on the roadmap, NEX will implement its decentralized banking platform, permitting users to use fiat to directly purchase NEP-5 tokens.
The roadmap is really comprehensive, in that every crucial piece of the NEX ecosystem is enclosed in the vision. Purchasing NEP-5 tokens with fiat, storing them safely and trading on a decentralized platform are all components that comprise the vision of the NEX ICO project. This is often by all means that no simple feat to realize, however the team behind the project have an exceptional track record and are capable of making the vision a reality.
The successful deployment of the NEX project will place neo in a very really distinctive position among the crypto space as the 1st protocol to operate a completely complete ecosystem.
NEX ICO Weaknesses and Threats
The crypto space is due for variety of decentralized exchanges in 2018, and NEX will need to deal with the competition. The NEO/NEO Gas/NEX based mostly trading pair exclusivity is of specific note here once it involves predictions on how the exchange will fare. ETH primarily based trading pairs wont be available till q4 2018 and BTC is as of yet unannounced.
On the other hand, the limitation to NEP-5 tokens could seem in some ways problematic; but, narrowing the main focus of the exchange might indeed have the opposite impact of attracting a much larger user base as a result of NEX will support the foremost integrated and comprehensive infrastructure for traders of NEP-5 tokens. In this sense, the strategy of launching the exchange to capture a specific niche of the market may perhaps play out more toward the success of NEX in the long-term.
By the time integration with ERC20 tokens comes around, having an established niche within the DEX playing field might well work toward the favor of NEX however remains an oversized uncertainty at this point.
It is unusual with an ICO planned for Q1 2018 that theres not even a telegram chat to build a core community of supporters. We tend to hope to see this change as the details round the actual ICO become clearer.
The Verdict on NEX ICO
The NEX ICO signifies an enormous success within the development of the neo smart Economy. The introduction of neo based mostly trading pairs, improved wallet function, ICO launch platform and decentralized banking all represent a major milestone in the development of the crypto space as a whole.