Quanta : Not Just Another Decentralized Exchange

Why do we need decentralized exchanges when centralized exchanges work? At a price tag anywhere from tens of thousands to a million dollars, listing a cryptocurrency or token on an exchange can be prohibitive. This pushes out small market cap coins and tokens. Decentralized exchanges level the playing field for all cryptocurrencies, but they still have problems.

Decentralized Exchanges and Liquidity

Image via Flickr by Marco Verch

In order for a token to be trusted and used, it needs to be liquid. To be liquid, exchanges have to list it. High listing fees cause the markets to be fragmented and illiquid. This not only hurts ICO’s. It hurts you as an investor, trader, or user.

Every exchange has Bitcoin and Ether, that’s a given. But what if you want to trade your #101 market cap token with a #150 market cap token? You might end up having to exchange your token for Ether on one exchange, transfer that Ether to another exchange that has the token you want, and finally made the final trade.

So you’re racking up fees for each transfer and trade. You’re also wasting time, and in that time, the market will change. To read more about the issues with centralized exchanges, visit Quanta.

Problems with Decentralized Exchanges

If decentralized exchanges are so great, why do they only account for 1% of all cryptocurrency trades? Well, current decentralized exchanges have issues.

They are slow. The average time to create the smart contract for the trade is around 15 seconds. Then it takes time to match a buyer to a seller. Most current dexes don’t communicate with other dexes. Ethereum based dexes can only trade in Ethereum based tokens, Neo dexes can only trade Neo tokens, and so on. You’re back to jumping between exchanges to complete your trade.

For more details on current dexes, see the Quanta whitepaper.

How Quanta Will Fix Decentralized Exchanges

Quanta claims to do 5 million transactions a second with less than a second latency. To do this, Quanta uses an on-chain order book, a distributed memory ledger, and dual-ledger Byzantine Fault Tolerance Consensus. These features make matching a buyer to a seller fast. Even when the trading pairs aren’t available, Quanta will route orders through multiple pairs to provide the perfect pair match.

Quanta also uses cross-chain architecture. A user deposits native tokens into the cross-chain wallet (Ether, Neo, Eos, Achain, Cardano) and can then trade his token for any other tokens available on any of these networks.

There are also no hard-coded trading pairs. You define your own. This means no listing fee and no bar to entry for even small market cap coins. Everyone has a seat at the table.

With these and more features you can read about in the Quanta whitepaper, Quanta is poised to be the decentralized cryptocurrency exchange we all have been looking for with low fees, fast transactions, and high liquidity.