Blockchain.io — Solving The Challenges That Modern Cryptocurrency Exchanges Face

Cryptocurrency retail market nowadays are rapidly growing in numbers. For newcomers in the space, it could become very overwhelming and hard to choose where to put their trust on. It is important that we know not just the benefits but also the shortcomings of cryptocurrency markets.

There are a number of challenges that modern cryptocurrency exchanges are facing today. These issues hinder the growth of cryptocurrencies and the cryptocurrency industry as a whole.

Listed below are the most significant problems that most regulators and institutional investors have pointed out that need to be addressed by the new and existing cryptocurrency exchanges:

Compliance

Regulation is one of the important topics discussed in the crypto space today. A number of exchanges have been affected by the national and intentional laws and cases like freezing users’ assets or suspending their accounts happened due to the platform’s lack of compliance. Other exchanges also have no choice but to transfer business to other countries, which requires a lot of resources and expenses to do.

Technology

Cryptocurrency trading is highly volatile and taking that into consideration, a reliable infrastructure is definitely required for a cryptocurrency exchange platform. Some exchanges needed to shut their platform down due to service outages and performance issues. They have resumed operations quickly, but some functionalities were removed, some tokens were delisted and trading on some cryptocurency pairs were suspended.

Opacity

Transparency is very important for traders or investors. Some exchanges have very poor customer service and do not treat customer inquiries important. Some also operate dark pools and allow price manipulations which results to traders spoiling others on the platform.

Security

Hackers usually attack high volume exchanges through DDoS attacks. They try to bring the systems down in whatever purpose it may benefit them. Some hack users’ accounts to steal their cryptocurrency holdings using social engineering. If a platform’s security is weak and does not comply on the standards required, chances are they will be forced to shut their platform down.

Solutions to these problems are a must-have for cryptocurrency exchanges today to provide a robust and reliable platform to traders and investors.

A new and upcoming cryptocurrency exchange, Blockchain.io aims to solve these problems. They claim to be building a platform of trust with the highest reliability, accountability and security standards for both individual and institutional traders and investors.

Blockchain.io is built by Paymium, Europe’s only crypto exchange whose financial accounts are fully audited by an external auditor with a title equivalent to an American CPA. Paymium also complies with the European Banking requirements for know-your-customer (KYC) and anti-money laundering (AML) procedures. Blockchain.io aims to comply with all current applicable EU regulations, ensuring that assets never seized or frozen. Thus, both platforms has what it takes in terms of compliance and accountability.

Compliance

With Paymiums extensive experience in the space, the team relies on their advanced knowledge in cryptographic technology, its operational in-depth understanding of the crypto world and its strict discipline in software development. Blockchain.io will be built with a reliable infrastructure with: minimal downtime; resilience to high volume, heavy traffic or DDoS attacks; processing capacity of up to 2M orders per day in the first phase, no technical debt; and specific features such as FIX API and borrowing facility to attract high volume traders.

Technology

One of Blockchain.io’s essential features is transparency. All accounting records are audited by independent professional auditors to ensure the platform’s intregrity. Customers balances on the liability side must match exactly to the exchange’s inventory of coins. The exchange aims to do the balance check and publish the cryptographic proof at every block interval.

Opacity

Paymium was built in 2011 and has been operating hack-free since 2013. The company has a longstanding commitment to security and technological competence which are the underlying basis for the excellence. In the centralized part of the exchange, a highly secure custody services with cold storage and cryptographic proof of reserve is provided. Cold wallets have multiple signatures and private keys are split and stored in various vaults in different locations. Internal procedures ensures no social engineering attacks could penetrate the platform. The exchange will also perform periodic technical and financial audits to ensure the safety of the system’s accounting database.

Security

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store