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The Russian Blockchain platform, Waves is considering the implementation of blockchain technology into trading.
[Note: This is a press release]
The company, led by Sasha Ivanov is looking into the sector with renewed interest after hosting the “Trading in the Era of Robots and Bitcoin” event at its office in Moscow’s Digital October Center.
This particular interest of Waves is further fueled by the resilience of cryptocurrency traders who continue to trade Bitcoin and other digital currencies in spite of the risk associated with it. Since the introduction of Bitcoin’s concept in 2008, the cryptocurrency has come a long way. The digital currency was launched within a year of the white paper publication by Satoshi Nakamoto and the slow but steady adoption ensued. But the Mt Gox incident in 2014 cast doubts about the future of Bitcoin as the largest Bitcoin exchange at that time reported a loss of over 850,000 BTCs.
The failure of Mt Gox was attributed to hacking attempts and poor management. Out of the 850,000 BTCs, about 200,000 BTCs were later recovered from an old format wallet. But still, 650,000 BTCs is a huge number of crypto tokens to be lost. Since Mt Gox, many exchanges have been hacked, the latest being Bitfinex. But all these things have not deterred traders. Most people continue to trade cryptocurrency due to the earning potential it offers, but the existing centralized exchange and trading platforms makes the whole process inefficient, making way for increased volatility and allowances for arbitrage between exchanges.
However, the cryptocurrency trading scenario is bound to change soon. The unregulated cryptocurrency sector is soon going to get its own regulations as it moves towards increased efficiency. This will minimize the arbitrage opportunities, making the market deviate towards high-frequency trading of stocks in the form of blockchain-based assets and ETFs. The future of trading is already in the making and the ongoing implementation of blockchain based solutions by stock exchanges is just the beginning of a whole new era.
Waves is working towards that future by developing its own solutions, including the DEX – Decentralized Exchange. The DEX will allow everyone to make use of the exchange facilities against a very small fee. The truly decentralized platform connects both parties to the trade, without the involvement of any middlemen. The parties can trade a wide range of assets including cryptocurrency, commodities, securities and more within minutes. It also offers traders the comfort of trading at any time throughout the day, seven days a week.
Waves has recently launched full nodes and Custom Application Tokens (CAT) which can be used to create any fiat or securities backed crypto tokens on the platform. These tokens can then be traded over the blockchain and they will form the backbone of the decentralized exchange trading platform as the trend catches up in the mainstream. With the platform already working on the development and implementation of distributed ledger based applications for trading and financial sectors, Waves stands a chance to become the leading solutions provider to the industry in the near future.