Newdex released an open letter responding the queries about its decentralized trading model.
Last week, the world’s first EOS decentralized exchange Newdex (https://newdex.io) released an announcement: A Letter to Newdexers.
There are four points mentioned in the announcement, which are the consideration of the platform on Smart Contract, the role of entrusted account ‘newdexpocket’, the role of wallet and the future developing direction of the platform. The announcement address: http://support.newdex.io/hc/en-us/articles/360015993432-A-Letter-to-Newdexers .
The announcement positively responded some users’ queries about Newdex being a decentralized exchange. Thereinto, some Redditors mentioned that Newdex doesn’t apply Smart Contract to match deals on chain and use newdexpocket for transferring, claiming that it is only a seeming decentralized system and is actually a exchange with centralized exchange model.
In the announcement Newdex firstly responded on the model of dealing on chain. Every single order is dealt on chain, which is open and transparent, thus making a huge difference between Newdex and centralized exchange. Besides, Smart Contract is to be applied as long as the technology is mature enough.
Furthermore, the most concerning issue that bother the users would be the worry about Newdex embezzling users’ assets through the account ‘newdexpocket’. Newdex also gave a positive respond admitting that ‘newdexpocket’ truly is the official EOS entrusted account, however, all the funds flow that crossing the entrusted account is stored on chain. Hence it doesn’t exist the risk that users worry about. Using the entrusted account is due to the limitation of current technology. It should be fixed after it achieving the ‘dex’ technology on EOSIO base layer.
As to the points regarding the developing direction of wallet and the platform, details are available in the announcement. Despite Newdex is unable to realized completely decentralized, its operating model is way different from that of centralized exchange.
With private key protected by wallet and signing on with authorization via Scatter Wallet Extension and APP wallets like TokenPocket, it is still very convenient to trade airdrops on Newdex. Currently, Newdex has listed almost 40 exchange pairs including the major ones such as BLACK/EOS, IQ/EOS, TPT/EOS. Newdex keeps developing new functions, we should provide more opportunities for such platforms to grow.
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