Cobinhood | What Cobinhood seeks to solve in the cryptosphere

Hello guys, this is Bait and in this post, I will be talking about Cobinhood. This is actually one of the most interesting projects on the blockchain and that’s because the objective of the team behind it is narrowed down on specific objectives that are being faced by all users of blockchain technology and holders of cryptocurrency.

One of the greatest strengths that the centralized model has is the fact that it is organized and replicates a lot of homogeneous systems within itself that answers to a central body. You can’t have a truly centralized system without accountability. And accountability doesn’t necessarily mean that there has to be a boss, it only means that when a group of people working together to defeat a common enemy, they should have a way of keeping a track of their independent activities. Especially those activities that affect the well being of the system where they share a common interest.

The cryptocurrency ecosystem has a lot of brains working in its favour; enormous talents that have the secret of the centralized world and how to make it totally irrelevant. This is already happening; the centralized authorities are becoming irrelevant - slowly but steadily. The number one tool of relevance is the regulation of currency issuance through their apex bank systems. With the use of cryptocurrencies, we can say that we can actually have more money in the economy than what the state decides or even less sometimes. Take Venezuela for example, the government was going to devalue their currency by about 95% against the issuance of the new type of currency and in order to achieve this, Bitcoin was used as a store of value by a lot of people. The number of Bitcoin users in Venezuela has been on the rise.

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This is only a glimpse of what the blockchain technology can do. And in the case of Venezuela, it bailed an entire nation from a great loss; Bitcoin was the safe haven. People are gradually giving attention to the world of cryptos and at this point, there is a need to put a lot of things in place in order to make this subject interest a typical layman. How do you explain transaction charges? Gas? Nodes? And these are all excuses used by blockchain projects to justify how much they charge on transactions. I don’t need to know how the CBN (Central Bank of Nigeria) or the commercials are maintained before I cash out my fiat. Maybe they had a power crisis that morning, or the internet service provider was down temporarily. I don’t care I just want my money when I want it. And we change banks when we get charged unfairly, don’t we? So we expect someone who doesn’t even know about the internet to understand the big terminologies used while talking about blockchain. It makes it look as though cryptos were made for technical analysts and experts. We need a simple and easy to use trading platform where people can deal with as though they are dealing with conventional banking systems. Exchanges are supposed to be banks for crypto holders, not just making profit off traders’ funds in the name of transaction fees.

This is exactly where Cobinhood comes in, just like the names suggests; when you say Conbinhood, the next word that comes to mind is Robinhood and of course, we know what that stands for. Take from the rich to enrich the poor. And Cobinhood starts out with this by becoming the first zero fee exchange platform in the world. Using an exchange that gives room for both crypto and fiat integration. With this one may hold cryptos in the form of the currencies they are familiar with; this will get rid of all complexities and technicalities.

Cobinhood is making cryptocurrencies the better option for those who chose to get funds off the control of central financial institutions; setting up an exchange where non-technical experts can easily use and also very cheap (not just cheap but free). Except that Cobinhood charges a fee on withdrawal, which I think is fair enough; and that’s one of the usefulness of the Cobinhood token. It can be used for paying withdrawal fees.

Cobinhood is solving issues relating to the use of cryptocurrencies by solving some major problems in the crypto-sphere like I said before. Let us now take a look at some of these problems. I talked about a few in my last post on Cobinhood but today let me talk about some other ones just to show us the relevance of Cobinhood and the role it seeks to play in fostering a global adoption of cryptocurrencies and the expansion of crypto-economies.

Difficulties of Real-time Trading

Traders find it difficult to trade in real-time on most exchanges and this is as a result of the rate-limited APIs, delayed order-book updates, and slow transaction confirmation.

Asset Security Issues

One of the biggest targets of intruders is where the most assets lie. Exchanges hold a lot of cryptocurrencies and this makes them a target for intruders such as hackers. Over time, exchanges have been victims of this, exchanges like; Mt.Gox and Bitfinex (one of the world’s leading Bitcoin exchanges). And a huge amount of money has been lost to hackers leaving users and such exchanges at loss. This is a serious problem in that, if investors keep hearing of such, they will definitely lose their interest and gradually the growth of cryptocurrency markets will be greatly affected. Aside this, we have also seen cases where exchanges also make away with funds entrusted to them. This leads us to the next problem which is also the last for this post.

Shutdown without Warning

Most cryptocurrency exchanges are centralized and this is one big issue; they don’t really contact users before making some crucial decisions as against the decentralized model where crucial decisions must be made by an agreement among necessary stakeholders and transactions take place across independent servers from all over the world. We have seen exchanges shutdown on several occasions, sometimes as a result of high trading volume. For example, there was a time when Kraken, a cryptocurrency exchange shutdown about three times in one day. However, there are cases where such shutdowns were deliberate actions made by these exchanges. And whenever this happens, it leads to a fall in value and demand for cryptos costing the market some time to find equilibrium.

The problems highlighted above are what the Cobinhood model seeks to solve and the most important of all is the zero transaction fees on all trades. We move money within an exchange more than we move funds out sometimes; and in the process of moving funds, we lose them in the name of fees to exchanges. But with Cobinhood one can easily move funds without paying any fees. However, Cobinhood charges some amount of COB (Cobinhood token) on all withdrawals even conventional banking systems do the same with the use of their monetary innovations.

Thank you for reading guys, it’s a great thing talking to you about this amazing project. I will be talking more on the technical aspects of the exchange and the artchitecture of the project in a future period. I wish you a happy week ahead of you. This is Bait and I am bringing you words from the Offline Minnow School.

Cobinhood | What Cobinhood seeks to solve in the cryptosphere

Difficulties of Real-time Trading

Asset Security Issues

Shutdown without Warning

To know more about Cobinhood, kindly follow the links below;

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1, 2, 3,and 4.

Cobinhood Team:

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