Suppose you have been trading in a cryptocurrency exchange platform for the past few weeks but with limited features. User-friendliness on the exchange is not up to the mark. It is then you found another crypto exchange that gives unique features and easy to exchange options. In short, a fully-fledged system with good freedom to utilize the features of the platform.
Which one will you go for? Will you continue to use the same exchange or go for the new one? Obviously, you like to get engaged in the platform where you receive complete freedom to explore the trading opportunities.
‘Flexibility’ is the term that differs between the above two exchange platforms. How can you achieve flexibility in a crypto exchange? It is by developing your own core with native blockchain where the exchange structure can be built with complete customization.
A crypto exchange developed under their own or simply say, native blockchain satisfies the above requirements of complete customization. It can be a DEX or CEX, the foundation can be laid by your own creativity.
This is the main reason behind crypto exchanges putting more emphasis or effort in building their own blockchain. Also, note that year after year, new updates in the core are made to keep the traders interested in new innovations.
Flexibility is the key to a successful business
People love the ease of use, the needs are to be satisfied without many complexities. This behavior can be even seen in our own day-to-day life. The simplest example is a brand providing a free demo or let the people run a trial version for free.
We like to get satisfied by using it i.e by experiencing it! We’ll try other products or services from multiple brands, and compare for the best.
The big fishes, the team behind new crypto exchange launches, most of them know the trick. The main challenge comes in the execution scenario and how people accept the new way of dealing with the offer, in this case, trading.
Smart contract – A smart builder of blockchain
Smart contracts are one of the finest contributions that made a real difference in the blockchain industry. Smart contracts enable the ability of automatic execution of a transaction if the required criteria are met which takes away the middleman concept.
The core part of DEX or Decentralized Exchanges is taken care of by using smart contracts. Ethereum created the buzz and new opportunities for developers to create new applications over the Ethereum platform with the help of smart contracts.
Many popular decentralized exchanges have made the best out of the platform with smart contracts and come up with unique ideas of trading. Yes, it’s good to become smart, it can help a lot to achieve in the present and future!
New innovations, more traders, higher retention
Innovations in exchange platforms keep traders attracted. With proper branding and marketing techniques, the crypto exchanges gain the identity as well as customer awareness respectively.
Big fishes like Binance, OKEx, and more have innovated and launched new experiences of trading with native blockchain and tokens.
Traders move from one exchange to another if they haven’t received something new from time-to-time.
If an exchange is developed under their own blockchain then the chances of improving the usability and providing new innovations are always high.
Take a simple scenario, where a trader receives a free set of tokens of a new digital currency for making a trading.
It’s a free investment opportunity, isn’t it? Like an Airdrop, this idea will boost two things smartly.
First one, the traders get to know about the new token, thereby they will be eager to know more details about the source of tokens. There are chances for these traders to buy more tokens once the new crypto-makers launched a token sales event.
Second and the most important part is that more investors will find this news and become new customers of the exchange. The more they trade, the more they receive new tokens.
Similar tactics can be introduced to effectively improve trading opportunities.
Blockchain for private exchanges – Pre-sales opportunities
Usually, companies develop their own digital coins and launch the ICO events on their website. However, prevailing the situations of utilizing ICO for scams, this tendency has declined among legitimate companies.
Instead of such events, IEO or similar token sales are being used now. Still, they have to make people aware of your newly launching sales event. As an early opportunity, companies plan for the event of pre-token sales with a private exchange.
A closer community is given an early opportunity to buy tokens with low rates. This improves the sales opportunity as well as awareness about the upcoming big event – IEO or similar grant token sales event.
Private blockchain help to achieve this target easily. Blockchain enables bypassing the need for a trusted third-party.
Native blockchain is the next big thing (The present age suggest this point)
Binance Smart Chain is the finest example of the idea behind building own blockchain for exchanges. Since it’s launch back in 2017, Binance is considered as one of the best cryptocurrency exchange platforms.
Back in 2018, in one of their articles, the Binance team officially announced the development of the Binance chain where they focus on transfer and trading blockchain assets. Binance Coin (BNB) as their native coin on the platform. They are doing great with this native platform.
At present, most of the exchanges have or are planning to build their own native blockchain. This allows them to make public digital asset offerings more personalized. Both centralized and decentralized exchanges are in a race to show and express their unique abilities.
However, as the experts say, a decentralized exchange may not be truly decentralized in its skin or nature. As decentralization is the key concept of blockchain technology, it’s time to learn how far DEX’s are providing a ‘decentralized’ nature.
Let’s sum up
It’s now predictable that building a crypto exchange platform with a native blockchain is a recommended method to follow. The benefits of such platforms will be higher for both platform owners as well as the traders who trade using the platform.
More native blockchain development like Binance Chain with native tokens is expected to boom and buzz in the coming days.
If you are a blockchain enthusiast and planning to launch your public exchange platform, then consider the above information. It will come in handy, and also, research more from various resources. Use traditional research methods and come up with a proper plan to back the hypothesis. We’ll be expecting more unique crypto exchanges in the future, please don’t disappoint us!