Today I’m focusing on Blocknet, and I’ll be covering more in the weeks to come, but for the purposes of this post I’ll be providing a quick, yet passionate reminder why decentralized exchanges will be our saving grace. Next, I’ll get into what Blocknet is all about as well as the technical details of their most recent updates as well as what to expect looking forward.
There are many reasons why we as cryptocurrency users should seek out decentralized exchanges to facilitate the trades of our decentralized cryptocurrencies.
Safety is and should be a big factor. Everyday this proves more relevant.
If you were a hacker and you knew that there existed a place where many new and unsuspecting people store their cryptocurrencies using nothing more than a weak password, wouldn’t you target it as well?
Don’t forget that centralized exchanges are a honey pot for hackers.
Securing your funds and keeping them legitimately in your possession is a cornerstone of cryptocurrencies very existence.
When you use a centralized exchange you’re pretty much giving that exchange, and who ever owns it, the power to do whatever they want with your funds. You’re trusting that they care about their reputation, that they won’t screw you over.
But we all know that humans are flawed and this type of blind trust rarely ends well in the long run.
This is also why it’s said over and over, that there are no guarantees in this space. Most of the time, this is referring to the fact that we as humans are flawed, we become greedy, we can be deceitful, we can write imperfect code.
If you’re new to this space, take a moment and search the Mt. Gox debacle. Don’t feel bad if you missed out on that one, we’re seeing yet another centrally controlled exchange go down a similar road as well, Bitfinex has always been shrouded with drama and less than transparent business practices, particularly with its ties to Tether. Now they’re in the news because they’ve cut ties from Nobel bank and now users are having issues when trying to withdraw their funds from the exchange. (If you want to read more about, links are provided down below.)
This is why I love that decentralized exchanges exist. They allow you to trade your cryptocurrencies without requiring you to deposit your coins onto any kind of centralized wallets, without requiring you to entrust your coins to anyone else but yourself. With a DEX, you are always in control of your coins.
One more side note, which definitely is deserving of its own video that I will be posting in the coming days, not all exchanges that are claiming to be decentralized truly are.
Let’s get into BlockNet and all that it has been up to and has to offer.
BlockNet is a blockchain with its own native coin called BLOCK, but it’s also a protocol. This protocol is what allows you to trade cryptocurrencies without a centralized exchange by enabling you to interact and transact across different blockchains. Blocknet connects the nodes of different blockchains and allows them to communicate to each other. Think of it as an internet of blockchains. This communication is achieved thanks to what is called XBridge. This XBridge is what allows you to conduct cross chain transactions, or atomic swaps. If you’re not sure what these are, check out my past video that covers this topic.
As of this writing there are over 90 different blockchains that are supported by the Blocknet protocol that have been formally announced.
Now that you’ve been introduced to Blocknet, let’s take a look at what they’ve been working on lately and what we can expect to see in the future.
The newest version of their wallet is 3.10.4 but be aware that the next update should be released very soon. With this new wallet you’ll be equipped with your trade history as well as the ability to more easily view and vote on proposals.
In regards to the Blocknet DX, the actual decentralized exchange, they’ve added an automated setup option which should make it easier for users to create an account and get started. Seeing as how decentralized exchanges have, for the most part, required at least a bit of technical knowledge in order to be able to use them properly, this automated setup is a great update that will open the door for more average users to reap the benefits of a decentralized exchange.
Looking forward, according to their FAQ, Blocknet does not yet support Segwit addresses, so keep in mind you’ll need to use legacy addresses instead. They are also still working on integrating with the Ethereum blockchain. They’re also working on a solution called XRouter which will enable users to interact with different blockchains without requiring them to download the full version of each blockchain, this one can be expected to roll out by the end of this year.
Additional Reading/Links:
Mt. Gox
Bitfinex blunders
Nobel Bank splits with Bitfinex
Blocknet
Blocknet explained
Brian Colwell article
FAQ
Blog
Roadmap
Status Update
Trade Fees
Recent updates
Thanks for the update Heidi awesome stuff!!
all said and done, crypto-bridge dex screwed me. I didnt login for few months, was using cloud based login and now they say cannot find my user ID. i donot keep much coins in exchange, so nothing much happened.May have lost few obscure coins but no biggie, But ofr folks like me having accounts in many many exchange and invest in many coins, its a lesson. Stick to few top exchanges and few promising coins period!!!
It's important to understand that there are layers of centralization inside of DEX's. For instance if you bought EOS on Bitshares through Open.Ledger, you do not hold your keys to EOS, OpenLedger does.
If you don't have the private keys to your crypto's, then you don't own the coin. Always research what you're buying and know that decentralization is not a boolean variable.
So true and what's more, except for EOSDAC, they didn't give any other airdrop, it was the worst to have your EOS on
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Nice write-up Heidi. Thanks!