10 exchanges provide proof of solvency on BitShares blockchain

At present, at least 10 online trading platforms, ranging from small platforms that only offer 4 or 5 currencies to large platforms that offer dozens of currencies, have joined the BitShares blockchain and provided their own solvency on the BitShares blockchain. Bitcoin.com interviewed Ken Code, the founder of BitShares Munich, a company that provides training in cryptography and is one of the companies that provides solvency proof on the BitShares blockchain.

Ken talked about why exchanges should open their ledgers, why this is beneficial, and how he deposits his fiat salary directly into the Openledger platform for trading.

Bitcoin.com (BC): OpenLedger (CCEDK), BlockTrades, Poloniex, MetaExchange, Yunbi, BTC38, BTER, DACPlay, BunkerDEX and BANX have all joined the BitShares blockchain and provided their solvency on the BitShares blockchain. Can you explain what this means?

Ken Code (KC):

All trading platforms that join the BitShares trading network must save their trading orders on the BitShares blockchain, and everyone can see their trading orders. However, I do not hand over my assets to the trading platform, so there is no counterparty risk.

“Although I am trading on these trading platforms, my assets are still in my wallet because these trading platforms are all on the blockchain and I access these trading platforms through my wallet.”

BC: You said that you still control your private keys when trading. How is that possible?

KC:

Each member of the BitShares blockchain will offer their own unique front-end interface (web wallet), user training, specialized products and services to compete with each other. But they all use the same back-end trading engine, which is the BitShares blockchain - this is available to anyone, who can download their own BitShares wallet and bypass all trading platforms.

But casual users can access their funds through custom web wallets provided by the exchange, which look like those centralized web interfaces we are familiar with. No matter which web wallet you use from these Bitcoin platforms or a full wallet you download yourself, you are ultimately accessing the same blockchain - the BitShares blockchain.

BC: What do you think are the benefits of having trading platforms make their trading orders public?

KC:

“BitShares allows each trading platform to maintain its own customers by giving the fees paid by the customers of each platform to each trading platform. By participating in this shared market, users of all platforms are brought together, and users will get better market depth and more liquidity.”

In this way, the scale of each trading platform is larger than before, and eight small trading platforms are combined to be equivalent to a medium-sized trading platform. For new startups entering this field, this is a good way to develop.

Last week, small exchanges from 8 countries expressed interest in joining the BitShares blockchain. As more exchanges join, the Compound network will become one of the largest exchanges. If this is the case, it will make more sense for medium-sized exchanges to each take advantage of the shared network effect and market depth. Like a rolling stone…

BC: You founded BitShares Munich. Could you please tell us what you do?

KC:

We offer solutions worldwide. BitShares Munich provides Smartcoin and Bitcoin products and services to investors, businesses and anyone interested in crypto. As a crypto coach myself, my goal is to find the best solutions to help users integrate new technologies. We build POS [point of sale] systems, ATMs, wallets and even decentralized media platforms like Qora and Muse.

BC: What attracted you to join the BitShares platform?

KC:

In my opinion, BitShares has low overhead, globality, and the right marketing strategy. Bitcoin is for money, BitShares is for businesses. BitShares is a platform that provides tools and a community to help businesses automate and decentralize all aspects, including payroll, legal, accounting, marketing, fundraising, and course remittances.

BC: What does it take for a trading platform to provide proof of solvency on the BitShares blockchain?

KC:

Exchanges do not need to do anything special to prove their solvency since all assets are visible on the BitShares blockchain.

One thing that exists is counterparty risk, which is that any asset issued by the exchange is backed by their reputation. It is impossible to see which asset is backed by which platform on the blockchain.

BC: You said you would deposit your salary in fiat currency directly into the CCEDK platform via SEPA payment. Will you convert all your salary into BitShares? Or will you make the decision based on the market and your investment goals?

KC:

Since I got CCEDK, I rarely use banks. Any fiat assets I receive are directly deposited into the CCEDK platform, and then exchanged for any crypto assets I want, such as bitEUR, bitUSD, Bitcoin, Qora, etc.

I can use Openledger's web wallet or my own downloaded wallet, and it doesn't matter which wallet I use because the funds are encrypted instantly. Sometimes, I will automate this exchange process and convert the euros directly into bitEUR when they come in.

I think traditional banks would be better off adding these features, otherwise their business will become obsolete.

Original article: https://news.bitcoin.com/10-exchanges-now-proving-solvency-on-bitshares-blockchain/
By Amanda Johnson
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information