A new story from The Crux of Crypto

Automatic TRANSCRIPT

And a lot of entrepreneurs like us all that disruption and we're excited to to jump in and lean and do something and so you saw this this advent of all new smart contrast smart contractbased to centralize exchanges in that led to bank or and khyber but then another spark happened will before you do that what why was either delta interesting to some people why did it provide in some ways some sapir architecture compared to traditional centralized exchanges yes so the early users of ether delta of which they ballooned up to thirty thousand total users cared deeply about the noncustodial nature so what does that mean so part of the the centralized exchange architecture we talked about is a user gives their funds to the exchange and the exchange hoses funds on their behalf they get faster trading times lower latency but of course we all have seen some of the hacks and when you think about what essentials exchanges to from hackers perspective that looks a lot like a honeypot ones database of hundreds of millions or potentially billions of dollars of funds and there's been myriad of hacks over the years and so users kind had counterparty risk when they were using those exchanges because i said okay if i wanna go in trade some bitcoin any go into positive on the exchange they sit on a big honeypot which is attractive to hackers and so therefore lies a risk and some counterparty risk and using that exchange either delta kinda helped eliminate some of that counterparty risk nailed it absolutely and both for retail users and automated traders alike reduction in operational risk significant and when that spark was late with escrow technology in theory that led to an entire new category and either there was the forefront of a series of centralized exchanges.

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