ForexMinute.com – No matter how much we think cryptocurrencies to be a face of the free economy, it is still bounded by corrupted onlookers. In February 2014, we saw how the incompetency of one centralized exchange damaged the overall reputation of the cryptocurrency market. The incidence, in which a million dollars worth of Bitcoin were stolen due to an “alleged” hacking attack and “believed” inside job, amplified an uncertainty in crypto trading that still haunts the traders.
Eventually the question is, why traders need to get dependent on centralized institutions to trade cryptocurrencies. Isn’t it, in some way, the actual death of the concept with which Bitcoin was born? Where is decentralization when it comes to trading? The growing cryptocurrency sector doesn’t need any more Mt. Gox like institutions indeed.
The solution then comes to mind is decentralizing crypto trading from the base. The technical difficulties in this case however are many. First of all, we simply can’t transfer one coin to another’s blockchain due to inter-compatibility issues. You simply can’t put a Dogecoin on a Bitcoin chain right? Quite embarrassingly we have to admit that trading without a 3rd party is impossible. But what if the 3rd party itself is decentralized?
NXT has come up with something similar lately. The organization is currently working towards Multi Gateway (MGW) – a decentralized trading platform built on NXT very own asset exchange which currently offers digital assets trade of almost every kind. In strict words, MGW is an add-on which ir allows traders to treat coins like any other asset.
As per the information available on the MGW official link, the add-on uses the concept of multi-signature. It keeps the users’ coins in three distinct servers and only makes the transaction when two among them are in agreement. It simply means that when one of the servers gets hacked, the attempts to eradicate coins off the wallets will be failed. An excerpt from the website reads:
“MGW creates a unique deposit address for your account, for each of the supported coins. When you send coins to that deposit address, MGW will deliver to your Nxt account the same quantity of coin assets to your NXT account. Coin assets can be traded in the NXT Asset Exchange like any other asset: you can buy them with NXT, sell them for NXT and send them to any other NXT user with the fast speed of the NXT network. Similarly, MGW allows you to easily withdraw your coin assets back into your corresponding coin wallet, with the lowest withdrawal fee in the market – equivalent to the minimum transaction fee for the coin.”
The Multi Gateway feature is still in development and is currently available only in beta phase. It also offers multi-storage facilities to the users, which ultimately allows them to store different digital currencies on one platform, while they all are stored as assets on the NXT blockchain.
You can read more about it here.
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