Decentralized KYC certification
the first step is to register (open an account) and set the password. The second step is user authentication (KYC). The third step is to recharge. Here comes the key. The third step is the most important. Because you need to charge money to your address in the exchange before you can trade money in the exchange. The address of the exchange is actually a wallet address, but the ownership of the wallet is not the user, but the exchange, that is to say, the private key of the address, you don't have it!!! Do you understand the meaning
well, after recharging, the transaction is finished. The user submits the instruction (hanging order) to the server, and then the exchange will be responsible for matching the transaction, which is exactly the same as the stock. The last is cash withdrawal (withdrawal of currency). Users can send instructions to transfer the currency from the exchange address to their wallet address. The above is the trading mechanism of the centralized exchange. In these steps, all actions will have costs. No matter you recharge, trade or withdraw money, gas and handling charges can't escape
then let's look at the decentralized exchange. The trading mechanism is different from the centralized exchange. The first step is to register (open an account) and set the password. It doesn't make any difference. But then it's a little different. KYC is not used. But because there is a private key, the ownership of this address is completely controlled by the user. The second step is recharging. This is not very different from the centralized exchange. You still have to make your own gas
after recharging, we can also trade in the decentralized exchange. Users can also register orders, and exchanges will also be responsible for matching transactions, but the matching is done by smart contracts. Finally, cash withdrawal (withdrawal of currency) is initiated. After withdrawing currency, users can directly transfer the currency from the address of the exchange to their wallet address. This step is the same as that of the centralized exchange
the above is the trading mechanism of centralized and decentralized exchanges, and the difference between them is also obvious. Because all currencies in the central exchange are under its control, the trading efficiency is very high, and it is similar to the stock trading process, convenient and suitable for most users. Conversely, the risk lies in this. If the exchange itself loses its integrity or is attacked by hackers, the user's capital (currency) is not guaranteed
all the transaction processes of decentralized exchanges are completed by smart contracts, so the transaction efficiency is relatively low (TPS of blockchain technology has always been a soft rib), but relatively, the capital (currency) is completely in the hands of users, so the security is relatively high. In addition, there are also KYC, where KYC is needed for centralization, but not for decentralization, and the security of personal information is relatively high. Compared with the decentralized exchange, the advantages of the centralized exchange lie in the trading depth and the number of users, which are unmatched by the decentralized exchange
therefore, centralization and decentralization have their own advantages and disadvantages. It depends on the user's own choice. They like convenient, centralized, secure and decentralized.
since 2013, many decentralized trading platforms have emerged. Different from the centralized trading platform, the decentralized trading platform does not need to register an account, and can participate in the transaction by using the personal digital asset account
secondly, every transaction of the decentralized trading platform is carried out through the blockchain, and it needs to wait for the confirmation of the blockchain before the transaction is successful. At the same time, the decentralized trading platform is not responsible for keeping users' assets and private key information. On the one hand, it avoids the moral hazard of the trading platform, on the other hand, it requires you to keep your private key well
e to the low liquidity and slow transaction processing of decentralized trading platforms, the total transaction volume only accounts for 0.03% of the global total transaction volume of digital assets. At present, the tokens of airswap, kyber, 0x and omisego can be traded on huobi.pro.
The public chain is open to all, the private chain is open to indivials who meet specific conditions, and the alliance chain is open to authorized organizations or institutions
public chain, also known as public blockchains, refers to a consensus blockchain that can be read by anyone in the world, sent by anyone, and effectively confirmed
private chain, also known as fully private blockchains, refers to the blockchain in which the write permission is completely in the hands of an organization, and all nodes participating in the blockchain will be strictly controlled
alliance chain, or alliance blockchains, refers to a blockchain that is managed by several organizations or institutions. Each organization or institution controls one or more nodes and records transaction data together. Only these organizations and institutions can read, write and send transaction data in the alliance chain
blockchain has three types: public chain, private chain and alliance chain
blockchain is a new application mode of distributed data storage, point-to-point transmission, consensus mechanism, encryption algorithm and other computer technologies
blockchain is an important concept of bitcoin. It is essentially a disintermediated database. At the same time, as the underlying technology of bitcoin, it is a series of data blocks generated by using cryptographic methods. Each data block contains the information of a bitcoin network transaction, Used to verify the validity of its information (anti-counterfeiting) and generate the next block
< H2 > reference: blockchain networkLet's talk about the policy changes and application conditions of Estonian license since March 10, 2020:
Estonia is one of the first countries to issue ICO in the name of a country. Estonia licenses cryptocurrency transactions. Cryptocurrency operation is permitted by other payment instruments (since August 12, 2017, it is designated as "virtual value"), remember that it is legally permitted. On December 8, 2017, Estonia officially issued a cryptocurrency trading license
Estonia is one of the 28 member states of the European Union, and belongs to the European Union as well as Malta, where the currency is located. It is planned to issue a digital cryptocurrency endorsed by the state. More and more businessmen choose to carry out crypto trading in Estonia, and at the same time carry out many other continuity businesses here. Therefore, the number of encryption projects started in Estonia is increasing