Digital asset platform KyberNetwork is teaming up with a University of California, Berkeley, blockchain group to study approaches to construct far better decentralized exchanges.
The group, Blockchain at Berkeley, announced the new research partnership yesterday, stating that the two groups would be seeking at aspects of trading, such as diversity, techniques and sustainability, specifically inside KyberNetwork’s early-stage exchange model.
The two entities have drawn up a 3-month roadmap that will see them determining potential issues and coming up with solutions, according to a press release.
Kyber’s chief executive and co-founder, Loi Luu, mentioned:
“We see the power of [decentralised exchanges] to influence adoption of the technologies by mainstream users. Berkeley students, energetically focused on innovation and inventive problem-solving, are an outstanding group to assist extend KyberNetwork’s tips and creative energy.”
Although centralized exchanges use the orderbook model to get rid of trading dangers, decentralized alternatives do not.
According to the release: “The exclusion of orderbook in Kyber Network’s model signifies that the calculated price of these tokens have to be extremely precise in order for the exchange to remain competitive even though keeping the risk of reserve depletion low”
To counter this element, Kyber stressed the importance of preserving a reserve for the exchange, as effectively as monitoring the worth of its inventory and sustaining precise costs.
For the analysis parameters of the project, the team will consider four parameters: how long it requires to rebuild the reserve, how a lot of tokens each user can transact with simultaneously, tokens costs and lock-up times for reserve contributors.
The analysis partnership will encompass students, faculty, personnel, researchers, engineers and other people to create concepts, undertake the study and “transform concepts into reality in measurable techniques,” according to the statement.
Back in August, Luu argued that centralized exchanges are potentially unable to deal with big volumes of users, touting decentralized trading platforms as a much better alternative.
Nevertheless, he added, decentralized exchanges are not as user-friendly as centralized choices, and may possibly not have the funds to support mass trading due to little numbers of users.
U.C. Berkeley image through Shutterstock
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Published at Thu, 23 Nov 2017 13:30:17 +0000