The topic of ‘Whether Newdex is absolutely decentralized’ has been hotly discussed by many users recently.
First of all, we appreciate your attention. As a product of decentralization, we don't shy away from discussing Newdex's current and future operating model openly.
As to Smart Contract, our consideration
We consider that if we apply Smart Contract on EOS main chain which has just been launched in a short time, it would exist a lot of uncertainty factors. Users’ assets could be placed under risk easily, meanwhile, it might bring a greater uncontrollable operating risk to the platform.
Hence we temporarily adopts the mechanism of ‘Matching off chain, dealing on chain’. By dealing on chain, all orders information and exchange data are open transparently on the EOS main chain which are real-time traceable in the meantime, the assets are transferred right after dealt. This is the biggest difference between us and centralized exchange.
Additionally we are actively promoting the application of Smart Contract. At present, we have completed the development of the original version of Smart Contract.
In the future, we will implement the step-by-step plan to achieve the complete decentralization of the platform. For example, we firstly open up the Smart Contract Exchange Block and allow trading for a small number of exchange pairs, and then we open all the exchange pairs when the model is authenticated to be mature.
As to Entrusted Account, there is no such risk that your assets would be embezzled
‘newdexpocket’ is Newdex’s official account for assets entrustment and settlement. This account is visible on EOS mainnet, all information is transparent and data are real-time traceable. No matter whether we apply Smart Contract or not, entrusted account is required.
There is no function of freezing assets on EOS mainnet, which would easily cause the failure of ordering and trading when users place entrustment. In the meantime it would be unable to distinguish that which amount of assets comes from the placed order. However ‘newdexpocket’ solves above problem.
When you are logged on to the platform, you assets are still protected by wallet before you place an order. Only after order are placed yet not matched, the assets will be temporarily frozen in ‘newdexpocket’. When the matching is done, the assets will be transferred to your wallet directly.
All detail flow of assets that cross newdexpocket are stored on chain, which could be checked clearly. Therefore it doesn’t exist the risk that the assets would be embezzled.
A good news to share is that EOSIO may achieve ‘dex’ on EOS mainnet in the future, which we will access the first time. If the system implements the function of freezing users’ entrusted assets, the necessity of ‘newdexpocket’ will no longer exists.
As to the role of wallets
As to the users’ private keys, they are protected by wallets along the whole trading progress, to which we absolutely have no access. Either Scatter Extension or other application wallets that support code scanning exchange and wallet embedded exchange (including MEET.ONE, TokenPocket, Math Wallet, Starteos, EOS LIVE and MORE Wallet) are always there to protect your assets.
Words in the end
Blockchain technology, EOS and decentralized exchange are all products of a new era. It is a must for these product to go through a process of growing, from start-up to grown-up. We are born as a brand new innovator and reformer, experiencing the mainnet instability and block code missing, we always put the users’ benefit and assets security in the first place. The prosperity of the EOS ecosystem requires the joint of more pioneers.
Meanwhile, we are seeking for your patience and support. We will keep striving for a better EOS ecosystem.
We never stop exploring decentralization. We are please to listen to your voice and grow together with the ecosystem until a decentralized exchange standard model comes out.
Welcome to interact with us via Twitter (@NewdexOfficial) on https://twitter.com/NewdexOfficial.
We will be awaiting for your FOLLOW and RETWEET.
September 21, 2018