One of the major challenges faced by the blockchain community isn’t being given enough attention. Exchanges—centralized exchanges—have too much power. Because the crypto community is full of so much fervor and is heavily focused on the great developments being achieved on a monthly basis, exchanges are getting away with unreasonable policies at the expense of the community.
Wall Street Wants a Piece
Exchanges are minting money. The trading fees and unjustifiable robbery-like withdrawal fees are making the top crypto exchanges millions of dollars. It’s no surprise that even Wall Street banks want a piece of this. Goldman Sachs-backed Circle Financial recently bought Poloniex due to the sheer amount of money the investment bank felt they could make from this purchase. The chart below gives a look at the revenue of exchanges. This isn’t trading volume; this is cold, hard revenue.
Because centralized exchanges play an essential role in trade of crypto, they are able to get away with charging the community massive sums and earn money irrespective of whether market is up or down. Whether the community cheers or bleeds, the exchanges are merrily making money with ridiculous pricing. The irony is that this community revels in the goal of decentralizing everything, yet its own functionality is heavily reliant on centralized exchanges. So far, exchanges have been able to get away with their robbery-like fees because the community hasn’t had a feasible alternative. Decentralized exchanges cannot fulfill the transactional demands that crypto trading demands.
Things can be Different
It could be argued that centralized exchanges are becoming the banks of the blockchain world. They possess simply too much power even though effective decentralized exchanges are in existence. The problem, however, is that those centralized exchanges are able to run through massive volumes as they utilize internal and traditional payment processing while the decentralized exchanges currently rely on Ethereum’s processing power.
For the crypto community to break free from the growing power of centralized exchanges, decentralized exchanges need to reach the transaction processing power of their centralized counterparts. Now, QuarkChain, with an initial aim at a milestone of over 100,000 tps, is bringing in the transactional fulfillment that can make this a reality. This is perhaps the most important role QuarkChain could play for the blockchain community.
QuarkChain can allow this community to break free from complying with the necessary evil that exchanges have become. As decentralized exchanges can fulfill the needs of this community, centralized exchanges should be powerless. While the current tps ability of Ethereum has been unable to fulfill this imminent need of the community, QuarkChain can make it a reality.
An added benefit of QuarkChain empowering decentralized exchanges is that it secures the community. Centralized exchanges have shown time and time again that they are prone to hacks. This draws negative media coverage to this community and market and often steers away positive interest. On the other hand, many decentralized exchanges allow users to hold their own private keys and so any breach of the exchange will have limited impact on the users as the exchange does not hold any assets.
As QuarkChain empowers decentralized exchanges to fulfill the transactional demand trading would draw, the community won’t need to hold funds in exchanges as they could seamlessly trade with funds in their personal accounts. This important factor could allow QuarkChain to pave the way for a crypto community safe from hackers.
Essential QuarkChain Links
🌐 Website: https://quarkchain.io/
💡 Whitepaper: https://quarkchain.io/QUARK%20CHAIN%20Public%20Version%200.3.4.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=3587645.0
💻 Telegram: https://t.me/quarkchainio
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