IDEX is betting that three chains are higher than one.
The non-custodial cryptocurrency trade, whose operations run on the Ethereum blockchain, introduced Tuesday it plans to broaden to the Binance Sensible Chain and Polkadot networks. Therefore, each holder of IDEX’s Ethereum tokens will get an equal variety of IDEX tokens for every of the brand new chains.
“If you consider it from a enterprise perspective for us, we’re desirous about, the place can we give prospects new networks to commerce?” IDEX CEO Alex Wearn instructed CoinDesk in a telephone interview.
Whereas it stays to be seen whether or not quantity on the brand new sensible contract chains can ever compete with that on Ethereum, IDEX is taking these measures “so we will put a stake within the floor and plant our flag early,” Wearn stated.
The brand new tokens can be distributed on Dec. 7 and IDEX holders might want to claim them promptly or they are going to revert to a group fund whose use can be decided later. Wearn stated he expects IDEX buying and selling to go stay on the brand new chains early in 2021, optimally each within the first quarter.
IDEX goals to be a non-custodial trade that may compete with totally centralized ones. To that finish, it takes a hybrid strategy the place it centralizes commerce executions and decentralizes settlement and storage. Wearn stated its design displays a dedication to protecting consumer property out of IDEX’s management.
The design can also be meant to supply most of the options that centralized exchanges can however decentralized exchanges (DEXs) to date largely can not, akin to high-speed order matching. (IDEX tokens are used for staking by the nodes that validate transactions on the trade’s off-chain ledger; validators are paid for his or her work in extra tokens, and may lose their stake in the event that they misbehave.)
The corporate intends to broaden to different chains because it is smart to take action, however is beginning with Polkadot and Binance Sensible Chain as a result of each are totally appropriate with the Ethereum Digital Machine (EVM).
Extra particulars stay to be labored out for Polkadot than Binance Sensible Chain. On the latter, Panama-based IDEX is mainly able to go, with some particulars on the applying facet nonetheless to be labored out.
To be clear: IDEX’s transfer doesn’t sign the arrival of seamless trades throughout chains. A consumer who desires to commerce, say, ether (ETH, the native token of Ethereum) for a token that’s solely accessible on the Binance chain would first want to maneuver the ETH via a “bridge” to the latter.
“Pure cross-chain buying and selling remains to be many, a few years away,” Wearn stated.