Bithumb, the world’s sixth largest cryptocurrency exchange by volume, has announced plans of opening a global decentralized crypto exchange (DEX).
The aim of this endeavor is to take the lead in the global cryptocurrency market through overseas expansion, as Business Korea reports. The number of obstacles and difficulties in expanding its business abroad, mainly due to unclear regulations surrounding the cryptocurrency world has been reported on widely.
As a product of a cooperation with s blockchain company “One Root Network” (RNT), the new cryptocurrency exchange will be called “Bithumb DEX”. The Bithumb opted for cooperation with RNT as they have the necessary knowledge and experience in both developing and operating a decentralized exchange.
Under the terms of the agreement, Bithumb will have the access to RNT’s “R1 protocol” – an Ethereum-based trading platform. According to the joint press release “…all future R1-based exchanges will be able to share order data and liquidity, providing users with better trading depth and experience, and forming a globally distributed business system”.
Decentralized crypto exchanges are seen as immensely more secure platforms than the existing ones, as they ultimately allow users to retain control of their coins. Because traditional exchanges use services of the third party to execute trades, DEX allows users to directly trade cryptocurrencies through an automated process.
Binance, the world’s leading global exchange by volume traded, launched a demo of the platform’s decentralized exchange in August this year.