The new cryptocurrency startup Radar Relay is leveraging the 0x protocol to boost their business and the standings of decentralized cryptocurrency platforms.
Cryptocurrency and blockchain technology offer alternatives to the more entrenched systems of centralized exchanges and non-transparent data services we know today.
Just think of the New York Stock Exchange (NYSE) or even Facebook.
Cryptocurrency alternatives offer decentralized exchanges and blockchain alternatives offer data security-minded platforms such as Minds.
In fact, Ethereum creator Vitalik Buterin went so far as to say that he hoped centralized exchanges “go burn in hell as much as possible” in a TechCrunch interview.
So how did Radar Relay prove itself and earn its $10-million USD seed money?
What Decentralization Means for Securities
Many cryptocurrency fans posit that centralized exchanges inherently possess the distinct weakness of getting shut down or hacked. As you might know, various exchanges do get hacked quite often and to large cost to investors.
That’s why Buterin and others say that decentralized exchanges hold the solution.
Due to the fact that these exchanges don’t hold tokens in wallets, decentralized exchanges forego this glaring security flaw that is integral to centralized exchanges.
But this wouldn’t be possible without the 0x protocol.
This protocol allows traders to swap tokens without a centralized marketplace using “smart contracts”. This basically means that the transaction can happen simultaneously.
That’s where Radar Relay comes in: they want to help you find traders interested in your particular order and conduct successful trades.
Users with Ledger Wallets can easily exchange tokens from any address to another on their Ledger. So if you want to trade with someone who advertised a trade, all you need to do is connect wallet addresses to do so.
Why This Matters for Cryptocurrency Traders
Services like Radar Relay leave traders fully in charge of their tokens and wallets. In fact, you don’t even need to create an account in order to use a decentralized exchange.
However, right now, Radar Relay only works with ERC20 tokens. Designed for ERC20 tokens, the 0x protocol will likely soon include more currencies. Despite this, users have so far traded around $150-million USD in just 170 tokens.
That brings us to their $10-million USD funding round spearheaded mostly by the company Blockchain Capital. But it also includes Distributed Global, Tusk Ventures, Reciprocal Ventures, SV Angel, Elefund, and so many others.
Only time will tell if these decentralized exchanges can truly put people in control of their currency once and for all.