In a post on Medium yesterday, Bitfinex, the worlds fifth biggest crypto exchange, announced it is planning to create a decentralized exchange utilising EOS.IO technology. The partnership aims to leverage EOS.IO’s platform for horizontal scaling of decentralised apps.
Bitfinex explains that its goal has been to research and sandbox the capabilities of various protocol-level technologies that meet the strict requirements of a high volume, blockchain-based trading platform. The search for a reliable solution led to EOS.IO, which aims at processing tens of thousands of transactions per seconds, with minimal fees and confirmation times.
Decentralised Exchange
The company has said that its new product, EOSfinex, will combine the speed and scalability of EOS with its own leading industry expertise. The result will be an on-chain exchange providing fast, transparent, and trustless transfers of digital currencies. EOS.IO, with the ability to handle thousands of transfers per second, was a good fit with the goals of Bitfinex to continue pushing the boundaries of the high volume trading platform.
J.L. van der Velde, Bitfinex CEO stated:
“We are excited to leverage EOS.io to further advance the field of high performance and trustless on-chain exchange. Block.one continues to display an unwavering dedication to improving blockchain scalability through the EOS.IO platform and it is our hope that this collaboration will allow significant advancement for all decentralised exchange. Our experience indicates that these advancements represent fundamentally transformative capabilities for the blockchain industry, and Bitfinex remains dedicated to leveraging the latest innovations to continue offering the world’s leading trading experience.”
We are excited to announce EOSfinex – a high-performance, decentralized exchange to be built on https://t.co/nGdT3NbVSE.https://t.co/j8ouxX0FiD
— Bitfinex (@bitfinex) February 12, 2018
EOS is a blockchain protocol which enables horizontal scaling of decentralized applications (dApps). This effectively allows developers to create high performance distributed applications that do not operate on the same chain. Ethereum developers are working on a similar technology called sharding which will facilitate the same thing when the update is rolled out.
Currently ninth in the market capacity charts, EOS is trading at the time of writing at approximately $9. It has risen steadily over the past week by 50% but is still down from its all-time high of $18 on January 11 as are most altcoins. The total market cap is just under $6 billion and it is traded predominantly on South Korean exchange Bithumb which has 40% of the total. The news of the partnership is likely to boost the trading figures for EOS.
Expect more announcements as progress is made developing the decentralised exchange.
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