Community Questions About Blockfunder, DGTX, and Beyond 1

Community Questions About Blockfunder, DGTX, and Beyond

Crypto Industry
• Digitex
June 8, 2021

We’ve kicked off the Blockster (BXR) token sale and it’s off to a strong start! We’ve had positive feedback from several key influencers and a few hundred sales have come in. Track the action yourself or join in by heading to our Blockfunder page. During the first phase of the sale, BXR tokens are available for the reduced price of $1 each and purchases are accepted in DGTX only.

And while our very first IEO is taking place, as always, we’re gathering feedback from the community. Beyond our stellar trading platform and super talented team, it’s you guys we value the most. We’ve been able to expand and grow even through the toughest of circumstances thanks to your ongoing feedback and support. 

This week, your questions are answered by Digitex’s Product Owner Alexey Veledinskii (AV). He’s one of the driving forces behind the high-quality upgrades you’ve seen lately and is working closely with Adam to keep the roadmap on track. We’ll share a spotlight on AV later this month, but for now, let’s dive into your questions.

Q. Was Blockfunder the only solution mentioned in the blog to take DGTX out of circulation?

A. Blockfunder is only the first step that we will take in this direction. We understand that to create demand for DGTX, we need to add more utility for the token. We have several ideas and will deploy some of them this year (autumn will be rich for harvest).

Q. Any news about the stablecoin?

A. We can’t give any details on that right now, but we know that our traders really want stable derivatives markets and satisfying our traders is the main reason we’re all here working on Digitex.io development.

Q. Are bracket orders coming soon?

A. We are in the concept stage of refactoring Delayed Actions (Conditional orders, SL/TP) systems. We aim to deliver really easy-to-use Delayed Actions and bracket orders.

Q. Is the burning DGTX tokens idea on the table? Like some proportion of the Blockfunder sales maybe.

A. Burning may be helpful for short to medium term but it can’t be good as a long term solution. DGTX received from the BXR token sale will not be burned, but in future, when we add more utility for DGTX, we can implement a burning system to warm the market up.

Q. Is there going to be a staking period and penalty if un-staked earlier than the period; burning some of the unstaked tokens is a good idea as well.

A. This seems strange. Like we are going to force our traders to use DGTX or lose it. My point is that I think this is the wrong way to do it. We must create demand for DGTX by improving our products, make it more stable on one hand, and more flexible on the other. That’s why creating new utilities for DGTX is our top priority.

Q. Many trade on mobile, any news on that?

A. We already put some logic and design to our early version of the mobile app. The work is in progress, but we can’t say any ETA yet. Our goal is to adapt our Ladder interface for mobile screens. It’s very hard, but we know that the Ladder trading UI has excellent feedback from the community, and it is much more comfortable than a classic UI, especially for quick trades on fast moving markets.

Q. Are you going to improve the spread?

A. Having a big spread is not an issue in itself. We discovered the reasons why it happens and are going to change the market maker model. Also we hired a very experienced senior-level developer with trading bot making experience.

That wraps it up for this week but if you still have a question you want us to answer, be sure to get in touch. Our helpful support staff are on hand 24/7 and you can also reach us on our socials. Also, don’t forget to get in on the Blockster sale right now. Earn extra BXR tokens by referring friends, you can find all the details here.

 

June 8, 2021
Crypto Industry

Community Questions About Blockfunder, DGTX, and Beyond

Digitex
Community Questions About Blockfunder, DGTX, and Beyond 2

We’ve kicked off the Blockster (BXR) token sale and it’s off to a strong start! We’ve had positive feedback from several key influencers and a few hundred sales have come in. Track the action yourself or join in by heading to our Blockfunder page. During the first phase of the sale, BXR tokens are available for the reduced price of $1 each and purchases are accepted in DGTX only.

And while our very first IEO is taking place, as always, we’re gathering feedback from the community. Beyond our stellar trading platform and super talented team, it’s you guys we value the most. We’ve been able to expand and grow even through the toughest of circumstances thanks to your ongoing feedback and support. 

This week, your questions are answered by Digitex’s Product Owner Alexey Veledinskii (AV). He’s one of the driving forces behind the high-quality upgrades you’ve seen lately and is working closely with Adam to keep the roadmap on track. We’ll share a spotlight on AV later this month, but for now, let’s dive into your questions.

Q. Was Blockfunder the only solution mentioned in the blog to take DGTX out of circulation?

A. Blockfunder is only the first step that we will take in this direction. We understand that to create demand for DGTX, we need to add more utility for the token. We have several ideas and will deploy some of them this year (autumn will be rich for harvest).

Q. Any news about the stablecoin?

A. We can’t give any details on that right now, but we know that our traders really want stable derivatives markets and satisfying our traders is the main reason we’re all here working on Digitex.io development.

Q. Are bracket orders coming soon?

A. We are in the concept stage of refactoring Delayed Actions (Conditional orders, SL/TP) systems. We aim to deliver really easy-to-use Delayed Actions and bracket orders.

Q. Is the burning DGTX tokens idea on the table? Like some proportion of the Blockfunder sales maybe.

A. Burning may be helpful for short to medium term but it can’t be good as a long term solution. DGTX received from the BXR token sale will not be burned, but in future, when we add more utility for DGTX, we can implement a burning system to warm the market up.

Q. Is there going to be a staking period and penalty if un-staked earlier than the period; burning some of the unstaked tokens is a good idea as well.

A. This seems strange. Like we are going to force our traders to use DGTX or lose it. My point is that I think this is the wrong way to do it. We must create demand for DGTX by improving our products, make it more stable on one hand, and more flexible on the other. That’s why creating new utilities for DGTX is our top priority.

Q. Many trade on mobile, any news on that?

A. We already put some logic and design to our early version of the mobile app. The work is in progress, but we can’t say any ETA yet. Our goal is to adapt our Ladder interface for mobile screens. It’s very hard, but we know that the Ladder trading UI has excellent feedback from the community, and it is much more comfortable than a classic UI, especially for quick trades on fast moving markets.

Q. Are you going to improve the spread?

A. Having a big spread is not an issue in itself. We discovered the reasons why it happens and are going to change the market maker model. Also we hired a very experienced senior-level developer with trading bot making experience.

That wraps it up for this week but if you still have a question you want us to answer, be sure to get in touch. Our helpful support staff are on hand 24/7 and you can also reach us on our socials. Also, don’t forget to get in on the Blockster sale right now. Earn extra BXR tokens by referring friends, you can find all the details here.

 

Latest News

digitex

Digitex Community – Your Latest Questions Answered

Digitex
• Digitex
May 3, 2021

What a start to the week! With Ether blasting its way to a massive new all-time-high above $3K and Bitcoin making some serious moves as well, don’t miss out on the action trading commission-free on Digitex.io. But first, be sure to check out this article in which we go over all your latest feedback and answer your most burning questions. 

Q. Any news about the trading bots or partnership with existing bots?

A. Going through the community’s feedback, one of the questions that’s come up a few times is about trading bots. We know that you’re really looking forward to using our bots to enhance your zero-fee strategies, and would even like to deploy existing bots on the platform. 

Rest assured, we are developing our user-configurable bots that will be built into our platform UI and we’ll be updating you on that soon. We’re also going to make connectors for two popular bots and will be adding support for Coinrule and Bitsgap in the future.

Q. How will the rewards with other tokens be paid? 

A. We are ironing out all the details right now and will be sharing this with you later this month once we release our yield farming program.

Q. Are experts with connections and crypto history being hired? 

A. Good question! Yes, of course! In fact, if you visit the exchange and start trading, you’ll already notice how smooth and robust our technology is and, with all the programs that will be slowly getting released throughout the year, no amateur would be able to pull that off! What we’ve already built and what’s to come requires the best talent all working together. We’re proud of the team we’ve built so far and are most definitely on the right track for Digitex now. 

Q. Why do you need to mint so many tokens?

A. We understand your concerns and we plan to offset the minting by introducing new utilities that will gradually create more demand for DGTX. Please, just bear with us, as everything takes time and we have plenty more exciting plans in store for you.

Q. Digitex is not as transparent as it should be. Wallets are not public, and we don’t know what the tokens are for. How will you fix this?

A. This is a valid point. Transparency  especially for the crypto audience — is very important. We can certainly consider introducing a webpage to track all our tokens’ activities. Basically, we’re open to suggestions and are strongly in favor of doing anything to support building trust and confidence.

Q. When will the mobile app be ready?

A. Our mobile app is being developed right now with a dedicated in-house team. We’ve spent a good amount of time researching the top exchanges to understand how to give our app a competitive edge. Traditionally, exchanges require lots of tools, so the mobile version will be stripped down with a lot of those key features.

Yet, since mobile traffic is huge, the app will still give us a great opportunity to reach this audience. It’s roadmapped for this year but we don’t have a release date for you yet. Just know that when we do release it, it will be the best possible quality. 

Q. Why will you not make a stablecoin?

A. We attempted this last year as you all recall. The stablecoin is excellent in theory. But, in reality, it’s a very complex system and we were nowhere near production-ready. In order for us to release all the products and features we have roadmapped, we have realized that the key is to do one thing at a time, to ensure quality and execution.

This year, we’ve made an internal priority list, and we’ve reorganized our team. We now have a very strong team of developers and project managers to make sure we release high quality products. So to answer your question, we’ve put the stablecoin on the sideline because we have many other things that need to be done first. 

We’ve improved our UI/UX, we’ve released the spot exchange, and there’s a lot more coming… but one thing at a time! We’re definitely listening to you and we haven’t abandoned the idea, but we will reevaluate the stablecoin concept at a later date. 

That’s it for now, we hope that we’ve covered your questions here. Be sure to hit us up on our socials if not or directly on our site through our live chat function. And… don’t miss out on the wild volatility while getting paid to trade on Digitex.io. It looks set to be an interesting week!

May 3, 2021
Digitex

Digitex Community – Your Latest Questions Answered

Digitex
digitex

What a start to the week! With Ether blasting its way to a massive new all-time-high above $3K and Bitcoin making some serious moves as well, don’t miss out on the action trading commission-free on Digitex.io. But first, be sure to check out this article in which we go over all your latest feedback and answer your most burning questions. 

Q. Any news about the trading bots or partnership with existing bots?

A. Going through the community’s feedback, one of the questions that’s come up a few times is about trading bots. We know that you’re really looking forward to using our bots to enhance your zero-fee strategies, and would even like to deploy existing bots on the platform. 

Rest assured, we are developing our user-configurable bots that will be built into our platform UI and we’ll be updating you on that soon. We’re also going to make connectors for two popular bots and will be adding support for Coinrule and Bitsgap in the future.

Q. How will the rewards with other tokens be paid? 

A. We are ironing out all the details right now and will be sharing this with you later this month once we release our yield farming program.

Q. Are experts with connections and crypto history being hired? 

A. Good question! Yes, of course! In fact, if you visit the exchange and start trading, you’ll already notice how smooth and robust our technology is and, with all the programs that will be slowly getting released throughout the year, no amateur would be able to pull that off! What we’ve already built and what’s to come requires the best talent all working together. We’re proud of the team we’ve built so far and are most definitely on the right track for Digitex now. 

Q. Why do you need to mint so many tokens?

A. We understand your concerns and we plan to offset the minting by introducing new utilities that will gradually create more demand for DGTX. Please, just bear with us, as everything takes time and we have plenty more exciting plans in store for you.

Q. Digitex is not as transparent as it should be. Wallets are not public, and we don’t know what the tokens are for. How will you fix this?

A. This is a valid point. Transparency  especially for the crypto audience — is very important. We can certainly consider introducing a webpage to track all our tokens’ activities. Basically, we’re open to suggestions and are strongly in favor of doing anything to support building trust and confidence.

Q. When will the mobile app be ready?

A. Our mobile app is being developed right now with a dedicated in-house team. We’ve spent a good amount of time researching the top exchanges to understand how to give our app a competitive edge. Traditionally, exchanges require lots of tools, so the mobile version will be stripped down with a lot of those key features.

Yet, since mobile traffic is huge, the app will still give us a great opportunity to reach this audience. It’s roadmapped for this year but we don’t have a release date for you yet. Just know that when we do release it, it will be the best possible quality. 

Q. Why will you not make a stablecoin?

A. We attempted this last year as you all recall. The stablecoin is excellent in theory. But, in reality, it’s a very complex system and we were nowhere near production-ready. In order for us to release all the products and features we have roadmapped, we have realized that the key is to do one thing at a time, to ensure quality and execution.

This year, we’ve made an internal priority list, and we’ve reorganized our team. We now have a very strong team of developers and project managers to make sure we release high quality products. So to answer your question, we’ve put the stablecoin on the sideline because we have many other things that need to be done first. 

We’ve improved our UI/UX, we’ve released the spot exchange, and there’s a lot more coming… but one thing at a time! We’re definitely listening to you and we haven’t abandoned the idea, but we will reevaluate the stablecoin concept at a later date. 

That’s it for now, we hope that we’ve covered your questions here. Be sure to hit us up on our socials if not or directly on our site through our live chat function. And… don’t miss out on the wild volatility while getting paid to trade on Digitex.io. It looks set to be an interesting week!

Latest News

dgtx

Update for DGTX HODLers

Digitex
• Digitex
April 29, 2021

The first month of Q2 is coming to an end already and it’s been a year of positive growth for Digitex so far. We’ve built out our team, released some key improvements to the UI and functionality of the exchange, launched our popular Liquidity Mining program that pays you to trade, and rolled out our commission-free spot markets with six trading pairs. Find out what else we’ve been doing and what you can expect from the rest of the quarter here.

Improvements to the Spot Markets

We’re super excited about the launch of the Digitex spot markets. It marks a huge milestone for us as an exchange, making it far easier to buy and sell DGTX and onboard new users, who no longer have to go to a third-party to convert their crypto.

Digitex.io also provides an optimized experience for traders on the exchange who can now trade between futures and spot cryptocurrencies with easy navigation all from one universal wallet. And they can quickly convert their DGTX to stablecoin USDC if they wish to avoid DGTX volatility. 

On top of that, we’re still the only exchange to offer users no fees of any kind. This includes withdrawal fees that every other fee-charging exchange on the market extracts from their users. This means that you can place as many transactions as you want with us and withdraw your funds keeping 100% of your profit. It’s your hard-earned money, you shouldn’t have to watch it being chipped away at by percentages, fees, and rent-seeking intermediaries.

We’re just getting started with our spot markets as well, and are continuously testing and improving the overall user experience so that, in the coming months, we can start to actively list popular trending tokens. This will not only benefit our community members who want to trade their favorite cryptos zero-fee but it will open Digitex up to many new cryptocurrency users as well. Watch out for our first listing coming this quarter. 

Also, keep in mind that all new markets will provide liquidity mining rewards to users to build liquidity and keep the spreads tight, and the cryptocurrency projects will be able to pay liquidity mining rewards in their own token (not DGTX). As the only exchange to use a trading ladder interface on our futures markets, we will also be bringing users the same experience trading spot. They will soon be able to choose from a one-click trading ladder interface or a traditional layout.

Marketing

We kicked off our marketing campaign this month and we’re actively promoting across dozens of channels in partnership with many popular influencers. We’re pleased to say that this is really paying off and we’re getting a healthy amount of new users registering to the exchange this month. 

Update for DGTX HODLers 3

In fact, we currently have over 3,500 new users in the last two weeks from different countries all over the world. We’re actively getting around 150 to 300+ new users registering daily, which is a good sign of stable growth and reflects the efforts that we’re putting in.

Update for DGTX HODLers 4

Keep in mind, DGTX is designed as a utility token for zero-fee trading, so our primary efforts are focused on getting new users to the exchange – and getting them to trade or stake DGTX.

Yield Farming Program

Talking of staking, in addition to actively getting new users and working on new listings for the spot markets, we have a yield farming program coming out next month. We think that this is going to be really popular among DGTX HODLers and new users as it’s designed for other cryptocurrencies listed on the Digitex exchange. Users will be able to stake DGTX to earn back cryptocurrencies partnered with our exchange. As more and more cryptocurrencies list on our spot market and put tokens into our yield farming program, demand for DGTX will therefore steadily increase.

With the whole phenomenon of yield farming gaining so much traction, it’s clear that crypto participants want to make their money work for them and earn a passive income on their funds. With our yield farming program, they will be able to easily buy DGTX and deposit it to earn passive income at attractive rates. We’ll be releasing more details on this soon.

Growing the Team

Update for DGTX HODLers 5

As well as actively working to market our existing products and introduce new features to create more new demand for DGTX and new users to the exchange, we’ve been actively growing our team. We’re now 50-person strong here in Kyiv alone! Made up of developers, creatives, and marketers – and we also have plenty of other talented contributors dotted around the globe. 

As always, we appreciate your ongoing support. We’ve made really great progress this year and there is still so much more to come. A big thank you from the Digitex team here at the Kyiv HQ and stay tuned for the next releases coming soon.

April 29, 2021
Digitex

Update for DGTX HODLers

Digitex
dgtx

The first month of Q2 is coming to an end already and it’s been a year of positive growth for Digitex so far. We’ve built out our team, released some key improvements to the UI and functionality of the exchange, launched our popular Liquidity Mining program that pays you to trade, and rolled out our commission-free spot markets with six trading pairs. Find out what else we’ve been doing and what you can expect from the rest of the quarter here.

Improvements to the Spot Markets

We’re super excited about the launch of the Digitex spot markets. It marks a huge milestone for us as an exchange, making it far easier to buy and sell DGTX and onboard new users, who no longer have to go to a third-party to convert their crypto.

Digitex.io also provides an optimized experience for traders on the exchange who can now trade between futures and spot cryptocurrencies with easy navigation all from one universal wallet. And they can quickly convert their DGTX to stablecoin USDC if they wish to avoid DGTX volatility. 

On top of that, we’re still the only exchange to offer users no fees of any kind. This includes withdrawal fees that every other fee-charging exchange on the market extracts from their users. This means that you can place as many transactions as you want with us and withdraw your funds keeping 100% of your profit. It’s your hard-earned money, you shouldn’t have to watch it being chipped away at by percentages, fees, and rent-seeking intermediaries.

We’re just getting started with our spot markets as well, and are continuously testing and improving the overall user experience so that, in the coming months, we can start to actively list popular trending tokens. This will not only benefit our community members who want to trade their favorite cryptos zero-fee but it will open Digitex up to many new cryptocurrency users as well. Watch out for our first listing coming this quarter. 

Also, keep in mind that all new markets will provide liquidity mining rewards to users to build liquidity and keep the spreads tight, and the cryptocurrency projects will be able to pay liquidity mining rewards in their own token (not DGTX). As the only exchange to use a trading ladder interface on our futures markets, we will also be bringing users the same experience trading spot. They will soon be able to choose from a one-click trading ladder interface or a traditional layout.

Marketing

We kicked off our marketing campaign this month and we’re actively promoting across dozens of channels in partnership with many popular influencers. We’re pleased to say that this is really paying off and we’re getting a healthy amount of new users registering to the exchange this month. 

Update for DGTX HODLers 6

In fact, we currently have over 3,500 new users in the last two weeks from different countries all over the world. We’re actively getting around 150 to 300+ new users registering daily, which is a good sign of stable growth and reflects the efforts that we’re putting in.

Update for DGTX HODLers 7

Keep in mind, DGTX is designed as a utility token for zero-fee trading, so our primary efforts are focused on getting new users to the exchange – and getting them to trade or stake DGTX.

Yield Farming Program

Talking of staking, in addition to actively getting new users and working on new listings for the spot markets, we have a yield farming program coming out next month. We think that this is going to be really popular among DGTX HODLers and new users as it’s designed for other cryptocurrencies listed on the Digitex exchange. Users will be able to stake DGTX to earn back cryptocurrencies partnered with our exchange. As more and more cryptocurrencies list on our spot market and put tokens into our yield farming program, demand for DGTX will therefore steadily increase.

With the whole phenomenon of yield farming gaining so much traction, it’s clear that crypto participants want to make their money work for them and earn a passive income on their funds. With our yield farming program, they will be able to easily buy DGTX and deposit it to earn passive income at attractive rates. We’ll be releasing more details on this soon.

Growing the Team

Update for DGTX HODLers 8

As well as actively working to market our existing products and introduce new features to create more new demand for DGTX and new users to the exchange, we’ve been actively growing our team. We’re now 50-person strong here in Kyiv alone! Made up of developers, creatives, and marketers – and we also have plenty of other talented contributors dotted around the globe. 

As always, we appreciate your ongoing support. We’ve made really great progress this year and there is still so much more to come. A big thank you from the Digitex team here at the Kyiv HQ and stay tuned for the next releases coming soon.

Latest News

The Role of Stablecoins in the Crypto Industry 9

The Role of Stablecoins in the Crypto Industry

Digitex
• Dave Reiter
April 27, 2021

During the past decade, several new innovative products have been created in an effort to disrupt the financial services industry. Arguably, the product that has unleashed the most disruption is stablecoins. The first stablecoin was Tether (USDT), officially launched in October 2014.

Immediately upon its introduction to the crypto industry, Tether became incredibly popular and quite useful. Since the release of Tether, over 200 stablecoins have been announced. However, the majority of these coins are still lingering in the phase of research and development (R&D). Additionally, 10% have been discontinued. Currently, 36 stablecoins are in existence with a market capitalization of $75.7 billion. Let’s examine a list of the top 5 stablecoins.

  • Tether (USDT) – $48.7 billion
  • USD Coin (USDC) – $11.3 billion
  • Binance USD (BUSD) – $5.4 billion
  • Dai – (DAI) $3.6 billion
  • TerraUSD (UST) – $1.8 billion

As you can see, Tether is clearly the leader within the stablecoin universe. In fact, Tether’s market capitalization comprises 64% of the entire industry. The top five coins represent 94% of all stablecoins. Essentially, five coins dominate the entire space.

Stablecoins Versus Traditional Cryptocurrencies

Although stablecoins share many of the same features and characteristics of cryptocurrencies, they were designed to solve some of the problems inherently rooted in cryptocurrencies. Let’s discuss the details.

When Satoshi Nakamoto launched the world’s first cryptocurrency on a decentralized ledger in January 2009, Nakamoto could not possibly have forecasted the substantial price appreciation that would transpire during the first decade of its existence. Of course, the cryptocurrency we are referring to is Bitcoin (BTC).

The dramatic increase in the value of BTC in the years following its release was both a benefit and a curse within the global crypto community. Obviously, Bitcoin’s price increase was a huge benefit because a substantial number of investors enjoyed historic rates of return. However, the extraordinary price appreciation was also a major detriment to Bitcoin investors because these price advances also included a great deal of volatility.

Many people in the crypto community were unaware that Nakamoto’s original concept for Bitcoin was a peer-to-peer payment system. In fact, the initial paragraph of the Bitcoin white paper describes “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

As you can clearly see from the white paper, Nakamoto was enamored with the idea of an electronic P2P payment system without the need for a third-party intermediary. From 2009 through 2017, the vast majority of the crypto community supported Nakamoto’s belief that Bitcoin was designed to be a payment system that would ultimately replace Visa, Mastercard, PayPal, and other payment forms as the preferred method for daily transactions.

Following the historic rally in 2017 and subsequent collapse in early-2018, Bitcoiners came to the realization that BTC was much too volatile to be used as a method of payment for daily transactions. Beginning in 2018, the Bitcoin narrative began to change from “method of payment” to “store of value.” Based on the fact that BTC had substantially outperformed gold and all other major asset classes since its inception in 2009, the best use case for Bitcoin going forward was a store of value.

Although the Bitcoin community had successfully changed the BTC narrative in 2018, they still had to deal with the fact that cryptocurrencies were inherently volatile. In order to solve this problem, stablecoins were rolled out on a large-scale basis. Stablecoins are an excellent vehicle for performing day-to-day transactions because they are simplistic, stable, scalable, and secure. Stablecoins fulfilled the role of Nakamoto’s original intent for Bitcoin, which was a peer-to-peer payment system.

Unlike cryptocurrencies, stablecoins are not prone to dramatic price fluctuations because each stablecoin is linked to a fiat currency like the US Dollar or Euro. It is collateralized by the value of the underlying asset. Additionally, each stablecoin is pegged at a 1:1 ratio with the underlying asset. This explains how stablecoins are able to maintain price stability even if other cryptocurrencies are experiencing dramatic volatility.

Types of Stablecoins

Stablecoins can be placed in four different categories. Let’s briefly review each category.

Fiat-collateralized – The vast majority of stablecoins are fiat-collateralized. This means that the stablecoins are backed by fiat currencies like US Dollar, Euro, British Pound and other fiat currencies. As we previously mentioned, stablecoins are linked at a 1:1 ratio with the underlying fiat currency. For each stablecoin in existence, fiat currency is held in a bank account as collateral. When a trader initiates a stablecoin withdrawal, the crypto exchange transfers fiat currency to the trader’s bank account and the corresponding stablecoin is taken out of the trader’s crypto account and removed from circulation.

Commodity-collateralized – As the name implies, commodity-collateralized stablecoins are supported by interchangeable assets such as commodities. The most popular asset in this category is precious metals, specifically gold. In addition to gold, other assets include silver, crude oil and even real estate. The most attractive feature of commodity-collateralized stablecoins is that the owners of these coins hold a tangible asset with real value. This is in stark contrast to other cryptocurrencies, which typically have no tangible value.

Crypto-collateralized – These stablecoins are backed 100% by other cryptocurrencies. Many crypto investors don’t support fiat-collateralized stablecoins because they are linked to the legacy financial services industry through fiat money. Instead, these investors prefer 100% decentralized stablecoins, with all transactions conducted on the blockchain. Even though crypto-collateralized stablecoins are inherently more volatile, there is a growing list of supporters who are willing to tolerate the volatility in exchange for a purely decentralized transaction.

Non-collateralized – Even though stablecoins have been in existence since 2014, very few non-collateralized stablecoins have been issued. The demand for such a coin is relatively small because it carries the greatest amount of risk among all stablecoins. Despite its inherent risk, there is a small group of crypto investors who prefer this type of stablecoin because it is the most decentralized and independent form of stablecoin. Its decentralization stems from the fact that the coin is not collateralized to any other asset. Therefore, it avoids dealing with centralized assets such as fiat money and commodities.

Use Cases for Stablecoins

Even though stablecoins have only been in existence for six years, crypto experts have discovered several different use cases. Let’s review a few of the ways stablecoins are being used within the cryptocurrency ecosystem.

Without question, the most common use case for stablecoins is the ability of crypto traders to easily transfer their funds between various crypto assets. Prior to the introduction of stablecoins, traders were unable to move their crypto assets to a safe and secure coin. Instead, they were forced to liquidate their cryptocurrencies, convert the proceeds back to a fiat currency and also remove their funds from the crypto exchange. Thanks to the introduction of stablecoins, traders have the option of liquidating their cryptocurrencies and parking the proceeds in a stablecoin. This allows all funds to remain in the cryptocurrency ecosystem. Thanks to stablecoins, traders and investors can completely avoid the fiat system.

As stablecoins continue to gain widespread acceptance, the retail community could ultimately become the biggest beneficiary. As we previously discussed, Satoshi Nakamoto’s original use case for Bitcoin was a medium of exchange for day-to-day transactions. However, the daily use of BTC never gained widespread adoption because Bitcoin was simply too volatile. Stablecoins have solved the volatility problem. Therefore, stablecoins have the potential to be used as a daily medium of exchange, finally realizing Nakamoto’s original use case for Bitcoin.

Another use case for stablecoins involves smart contracts. During the past few years, several industries have explored the idea of using smart contracts in an effort to lower their costs by removing third party intermediaries. However, companies have been reluctant to use smart contracts because the payment method usually involved a volatile cryptocurrency like Bitcoin or Ethereum. Thanks to stablecoins, several industries are reexamining the use of smart contracts because the problem of volatility has been solved.

Crypto experts believe that we are just beginning to scratch the surface in terms of how stablecoins will be used as a bridge to connect the old legacy financial services industry with a new system based on decentralized finance. Stablecoins could easily become the fastest growing sector within the cryptocurrency universe.

 

Digitex writers and/or guest authors may or may not have a vested interest in the Digitex project and/or other businesses mentioned throughout the site. None of the content on Digitex is investment advice nor is it a replacement for advice from a certified financial planner.

April 27, 2021
Digitex

The Role of Stablecoins in the Crypto Industry

Dave Reiter
The Role of Stablecoins in the Crypto Industry 10

During the past decade, several new innovative products have been created in an effort to disrupt the financial services industry. Arguably, the product that has unleashed the most disruption is stablecoins. The first stablecoin was Tether (USDT), officially launched in October 2014.

Immediately upon its introduction to the crypto industry, Tether became incredibly popular and quite useful. Since the release of Tether, over 200 stablecoins have been announced. However, the majority of these coins are still lingering in the phase of research and development (R&D). Additionally, 10% have been discontinued. Currently, 36 stablecoins are in existence with a market capitalization of $75.7 billion. Let’s examine a list of the top 5 stablecoins.

  • Tether (USDT) – $48.7 billion
  • USD Coin (USDC) – $11.3 billion
  • Binance USD (BUSD) – $5.4 billion
  • Dai – (DAI) $3.6 billion
  • TerraUSD (UST) – $1.8 billion

As you can see, Tether is clearly the leader within the stablecoin universe. In fact, Tether’s market capitalization comprises 64% of the entire industry. The top five coins represent 94% of all stablecoins. Essentially, five coins dominate the entire space.

Stablecoins Versus Traditional Cryptocurrencies

Although stablecoins share many of the same features and characteristics of cryptocurrencies, they were designed to solve some of the problems inherently rooted in cryptocurrencies. Let’s discuss the details.

When Satoshi Nakamoto launched the world’s first cryptocurrency on a decentralized ledger in January 2009, Nakamoto could not possibly have forecasted the substantial price appreciation that would transpire during the first decade of its existence. Of course, the cryptocurrency we are referring to is Bitcoin (BTC).

The dramatic increase in the value of BTC in the years following its release was both a benefit and a curse within the global crypto community. Obviously, Bitcoin’s price increase was a huge benefit because a substantial number of investors enjoyed historic rates of return. However, the extraordinary price appreciation was also a major detriment to Bitcoin investors because these price advances also included a great deal of volatility.

Many people in the crypto community were unaware that Nakamoto’s original concept for Bitcoin was a peer-to-peer payment system. In fact, the initial paragraph of the Bitcoin white paper describes “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

As you can clearly see from the white paper, Nakamoto was enamored with the idea of an electronic P2P payment system without the need for a third-party intermediary. From 2009 through 2017, the vast majority of the crypto community supported Nakamoto’s belief that Bitcoin was designed to be a payment system that would ultimately replace Visa, Mastercard, PayPal, and other payment forms as the preferred method for daily transactions.

Following the historic rally in 2017 and subsequent collapse in early-2018, Bitcoiners came to the realization that BTC was much too volatile to be used as a method of payment for daily transactions. Beginning in 2018, the Bitcoin narrative began to change from “method of payment” to “store of value.” Based on the fact that BTC had substantially outperformed gold and all other major asset classes since its inception in 2009, the best use case for Bitcoin going forward was a store of value.

Although the Bitcoin community had successfully changed the BTC narrative in 2018, they still had to deal with the fact that cryptocurrencies were inherently volatile. In order to solve this problem, stablecoins were rolled out on a large-scale basis. Stablecoins are an excellent vehicle for performing day-to-day transactions because they are simplistic, stable, scalable, and secure. Stablecoins fulfilled the role of Nakamoto’s original intent for Bitcoin, which was a peer-to-peer payment system.

Unlike cryptocurrencies, stablecoins are not prone to dramatic price fluctuations because each stablecoin is linked to a fiat currency like the US Dollar or Euro. It is collateralized by the value of the underlying asset. Additionally, each stablecoin is pegged at a 1:1 ratio with the underlying asset. This explains how stablecoins are able to maintain price stability even if other cryptocurrencies are experiencing dramatic volatility.

Types of Stablecoins

Stablecoins can be placed in four different categories. Let’s briefly review each category.

Fiat-collateralized – The vast majority of stablecoins are fiat-collateralized. This means that the stablecoins are backed by fiat currencies like US Dollar, Euro, British Pound and other fiat currencies. As we previously mentioned, stablecoins are linked at a 1:1 ratio with the underlying fiat currency. For each stablecoin in existence, fiat currency is held in a bank account as collateral. When a trader initiates a stablecoin withdrawal, the crypto exchange transfers fiat currency to the trader’s bank account and the corresponding stablecoin is taken out of the trader’s crypto account and removed from circulation.

Commodity-collateralized – As the name implies, commodity-collateralized stablecoins are supported by interchangeable assets such as commodities. The most popular asset in this category is precious metals, specifically gold. In addition to gold, other assets include silver, crude oil and even real estate. The most attractive feature of commodity-collateralized stablecoins is that the owners of these coins hold a tangible asset with real value. This is in stark contrast to other cryptocurrencies, which typically have no tangible value.

Crypto-collateralized – These stablecoins are backed 100% by other cryptocurrencies. Many crypto investors don’t support fiat-collateralized stablecoins because they are linked to the legacy financial services industry through fiat money. Instead, these investors prefer 100% decentralized stablecoins, with all transactions conducted on the blockchain. Even though crypto-collateralized stablecoins are inherently more volatile, there is a growing list of supporters who are willing to tolerate the volatility in exchange for a purely decentralized transaction.

Non-collateralized – Even though stablecoins have been in existence since 2014, very few non-collateralized stablecoins have been issued. The demand for such a coin is relatively small because it carries the greatest amount of risk among all stablecoins. Despite its inherent risk, there is a small group of crypto investors who prefer this type of stablecoin because it is the most decentralized and independent form of stablecoin. Its decentralization stems from the fact that the coin is not collateralized to any other asset. Therefore, it avoids dealing with centralized assets such as fiat money and commodities.

Use Cases for Stablecoins

Even though stablecoins have only been in existence for six years, crypto experts have discovered several different use cases. Let’s review a few of the ways stablecoins are being used within the cryptocurrency ecosystem.

Without question, the most common use case for stablecoins is the ability of crypto traders to easily transfer their funds between various crypto assets. Prior to the introduction of stablecoins, traders were unable to move their crypto assets to a safe and secure coin. Instead, they were forced to liquidate their cryptocurrencies, convert the proceeds back to a fiat currency and also remove their funds from the crypto exchange. Thanks to the introduction of stablecoins, traders have the option of liquidating their cryptocurrencies and parking the proceeds in a stablecoin. This allows all funds to remain in the cryptocurrency ecosystem. Thanks to stablecoins, traders and investors can completely avoid the fiat system.

As stablecoins continue to gain widespread acceptance, the retail community could ultimately become the biggest beneficiary. As we previously discussed, Satoshi Nakamoto’s original use case for Bitcoin was a medium of exchange for day-to-day transactions. However, the daily use of BTC never gained widespread adoption because Bitcoin was simply too volatile. Stablecoins have solved the volatility problem. Therefore, stablecoins have the potential to be used as a daily medium of exchange, finally realizing Nakamoto’s original use case for Bitcoin.

Another use case for stablecoins involves smart contracts. During the past few years, several industries have explored the idea of using smart contracts in an effort to lower their costs by removing third party intermediaries. However, companies have been reluctant to use smart contracts because the payment method usually involved a volatile cryptocurrency like Bitcoin or Ethereum. Thanks to stablecoins, several industries are reexamining the use of smart contracts because the problem of volatility has been solved.

Crypto experts believe that we are just beginning to scratch the surface in terms of how stablecoins will be used as a bridge to connect the old legacy financial services industry with a new system based on decentralized finance. Stablecoins could easily become the fastest growing sector within the cryptocurrency universe.

 

Digitex writers and/or guest authors may or may not have a vested interest in the Digitex project and/or other businesses mentioned throughout the site. None of the content on Digitex is investment advice nor is it a replacement for advice from a certified financial planner.

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digitex

Your Questions Answered – Digitex Spot Markets

Digitex
• Digitex
April 19, 2021

Thank you very much to everyone who has sent in feedback and shared their experience of using Digitex spot markets so far. As always, we have been listening to what you have to say and collecting all your questions. Here, we answer any doubts you have about the UI, the features that are coming, our future plans, and more. Check it out.

Why is there no ladder interface for spot?

One question we received several times is why there’s no ladder interface yet for the spot markets. The answer is that it’s definitely coming. But we thought that starting with the traditional version would make it easier for new users to understand. After all, Digitex is still the only exchange in the industry to offer a trading ladder UI for our futures markets and, while we know that high-frequency futures traders love it, we didn’t want to scare off any beginners that are relatively new to crypto.

Will there be a use case for DGTX built into the spot markets?

We’re introducing a few types of programs and some are more complex than others. In fact, in one of our upcoming releases, we will be bring you a Staking Program that lets you earn a passive income on your DGTX (rewarded with other crypto; not DGTX). But DGTX staking built into our spot and futures trading markets is road-mapped for later this year. As you’ve probably noticed from our last two releases, the speed and quality of our development has improved. We’re now focused on short sprints so that each quarter you’ll be seeing something new released… this is the new way of Digitex development moving forward.

How long will withdrawals stay free?

Free withdrawals is a promotion, and we’ll see how it goes and how sustainable it is. If we see people abuse this then we’ll stop running it. Luckily, we haven’t had any problems with it so far and we know our loyal users really appreciate this feature, so we’d like to keep it as long as possible. In order for Digitex to really grow as a brand, we need to be distinctive and do things differently from other exchanges. No other exchange would ever consider removing withdrawal fees but, if you think about it, this feature brings so much value to the end of the user… so why not?

When will you add more tokens to spot markets?

Soon! But, we only just launched it and we want to test it more and build up the liquidity. Rest assured, however, when we’re ready, we’ll share details.

Is it possible to bring out a roadmap for future updates?

Honestly, we’ve learned our lesson from the past that roadmaps are particularly hard to stick to, especially when working with explorative technology in a constantly changing space. So, we’d rather not put any dates out for now, but just a rough estimate so as not to raise users’ expectations or overtask our developers. 

However, we can confirm that we’re releasing a DGTX Staking Platform in quarter two and, later in the year, we’ll have DGTX staking built into our markets, and a mobile app as well.

Will marketing start now that the spot market has been launched?

Yes. Actually, we have already started marketing and we are gradually going to start cranking it up. 

Is a stablecoin still being worked on?

We do have a solution to solve our DGTX-denominated market volatility, but it’s not a Digitex stablecoin. We can’t say more than this for now.

Why did you remove the Treasury?

Because we now have the spot markets and when we switched to the new website, we just updated the public Buy DGTX page to send traders directly to the spot market instead of buying from the treasury. It made more sense to do it that way.

How’s the work on the bots looking? Are you using a white label or building them custom?

User configurable bots are still on our roadmap and, in fact, they’re almost ready to be released. These will be an awesome addition to the exchange as they’re very easy to use, and traders will be able to access them from within their dashboard with zero fees. Regarding integrating with popular bots, that’s also roadmapped, but will require customization and integration with each particular bot. So, this is planned for later on in the year. 

That’s it for now, once again, we really appreciate your continued feedback and support and we’re glad to hear how much you’re enjoying the spot markets. Be sure to let us know if you have further questions by hitting us up on our socials, contacting live support, or opening a ticket. 

 

April 19, 2021
Digitex

Your Questions Answered – Digitex Spot Markets

Digitex
digitex

Thank you very much to everyone who has sent in feedback and shared their experience of using Digitex spot markets so far. As always, we have been listening to what you have to say and collecting all your questions. Here, we answer any doubts you have about the UI, the features that are coming, our future plans, and more. Check it out.

Why is there no ladder interface for spot?

One question we received several times is why there’s no ladder interface yet for the spot markets. The answer is that it’s definitely coming. But we thought that starting with the traditional version would make it easier for new users to understand. After all, Digitex is still the only exchange in the industry to offer a trading ladder UI for our futures markets and, while we know that high-frequency futures traders love it, we didn’t want to scare off any beginners that are relatively new to crypto.

Will there be a use case for DGTX built into the spot markets?

We’re introducing a few types of programs and some are more complex than others. In fact, in one of our upcoming releases, we will be bring you a Staking Program that lets you earn a passive income on your DGTX (rewarded with other crypto; not DGTX). But DGTX staking built into our spot and futures trading markets is road-mapped for later this year. As you’ve probably noticed from our last two releases, the speed and quality of our development has improved. We’re now focused on short sprints so that each quarter you’ll be seeing something new released… this is the new way of Digitex development moving forward.

How long will withdrawals stay free?

Free withdrawals is a promotion, and we’ll see how it goes and how sustainable it is. If we see people abuse this then we’ll stop running it. Luckily, we haven’t had any problems with it so far and we know our loyal users really appreciate this feature, so we’d like to keep it as long as possible. In order for Digitex to really grow as a brand, we need to be distinctive and do things differently from other exchanges. No other exchange would ever consider removing withdrawal fees but, if you think about it, this feature brings so much value to the end of the user… so why not?

When will you add more tokens to spot markets?

Soon! But, we only just launched it and we want to test it more and build up the liquidity. Rest assured, however, when we’re ready, we’ll share details.

Is it possible to bring out a roadmap for future updates?

Honestly, we’ve learned our lesson from the past that roadmaps are particularly hard to stick to, especially when working with explorative technology in a constantly changing space. So, we’d rather not put any dates out for now, but just a rough estimate so as not to raise users’ expectations or overtask our developers. 

However, we can confirm that we’re releasing a DGTX Staking Platform in quarter two and, later in the year, we’ll have DGTX staking built into our markets, and a mobile app as well.

Will marketing start now that the spot market has been launched?

Yes. Actually, we have already started marketing and we are gradually going to start cranking it up. 

Is a stablecoin still being worked on?

We do have a solution to solve our DGTX-denominated market volatility, but it’s not a Digitex stablecoin. We can’t say more than this for now.

Why did you remove the Treasury?

Because we now have the spot markets and when we switched to the new website, we just updated the public Buy DGTX page to send traders directly to the spot market instead of buying from the treasury. It made more sense to do it that way.

How’s the work on the bots looking? Are you using a white label or building them custom?

User configurable bots are still on our roadmap and, in fact, they’re almost ready to be released. These will be an awesome addition to the exchange as they’re very easy to use, and traders will be able to access them from within their dashboard with zero fees. Regarding integrating with popular bots, that’s also roadmapped, but will require customization and integration with each particular bot. So, this is planned for later on in the year. 

That’s it for now, once again, we really appreciate your continued feedback and support and we’re glad to hear how much you’re enjoying the spot markets. Be sure to let us know if you have further questions by hitting us up on our socials, contacting live support, or opening a ticket. 

 

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How Long Before Ethereum Fees Get Lower? 11

How Long Before Ethereum Fees Get Lower?

Cryptocurrency
Crypto Industry
• Digitex
April 5, 2021

Ethereum has been grabbing the headlines a lot lately. From the rising popularity of DeFi and NFTs to being Visa’s blockchain of choice for settling its first transaction, ETH price has been on the up, recently marking its latest all-time high of over $2,100. All this action surrounding the premier altcoin has undoubtedly been bullish for HODLers and yield farmers. But, what about regular users trying to interact with the Ethereum blockchain? 

Rising gas fees on the network have been pricing them out of the market. According to  BitInfoCharts, this time last year, the average transaction fee on the Ethereum network was around 8 cents. Today, users are facing regular averages of around $20 just to move funds, calling the promise of low fees and near-instant transfers of value into question. And for traders looking to avoid the volatility of cryptocurrencies by using stablecoins, such as the ERC20 versions of USDT or USDC on Ethereum, high fees create a barrier.

In tandem with rising fees comes rising network congestion. Not only do users have to pay prices on a par with PayPal to move their funds but they also have to wait for lengthy periods of time to do so. While the solution to all these problems is touted to be the long-awaited transition to a Proof of Stake blockchain (ETH 2.0), that could be a long time coming. So, how long will users really have to wait before Ethereum fees get lower?

Optimistic Rollups

Ethereum users cannot wait for years to resolve the problem of high fees as DeFi grows and Ethereum attracts increasing attention from investors. Interim solutions are needed in the meantime. Even Vitalik Buterin recognized that Ethereum scaling was a top priority  and that a solution in the shape of optimistic rollups was on the cards very soon.

How Long Before Ethereum Fees Get Lower? 12

If you think of the blockchain in layers, Ethereum is a layer 1 protocol, whereas rollups are a layer 2 solution that aggregate transactions and store them inside smart contracts to reduce congestion on the network and bring gas fees down.  

The concept of rollups was first described way back in 2014, but they were referred to as “shadow chains.” And now that network congestion and fees have been thrust into the limelight once more, their utility is back on the table. How long will it take for them to be implemented? Some projects such as Polygon (formerly Matic) have already started using them with success and, optimistically (groan), rollups could act as the mid-term solution for Ethereum.

Berlin Hard Fork

Another solution for gas fees may lie in the upcoming Berlin Hard Fork, slated to take place on April 14, 2021. Months in the planning, however, it’s not certain just how much of a dent the hard fork will make in gas fees or whether it will improve congestion. Four main improvement protocols (EIPs) will be deployed in Berlin to make the network more robust and hacker-resistant, as well as tackling gas fees. 

But different analysts have questioned how much of an effect the Berlin hard fork will really have on gas fees, citing that Ethereum has deep structural changes that need to be resolved for it to scale first before sustainable gas fees are achieved. 

Competing Blockchains

In the meantime, cryptocurrency industry participants are not sitting idle. Several PoS smart contract blockchains from Solana to Algorand have already started rolling out solutions to help traders avoid Ethereum’s high gas fees.

By running stablecoins like USDC and USDT on these blockchains, traders can move their funds from a crypto like BTC or ETH into a stablecoin almost instantly and for a cost of next to nothing. This is particularly appealing to high-frequency traders and users who simply want to move small-to-modest amounts of value without paying exorbitant fees.

There is also an increasing number of blockchains integrating EVM compatibility. This allows any smart contract deployed on the Ethereum blockchain to be deployed on them. dApp developers being priced out of the market by high fees can easily migrate their dApps to one of these blockchains and continue to develop without the high cost.

However, most of these come with trade-offs and are arguably centralized or flawed in some form or another. Moreover, network effect isn’t something that you simply knock out of the park straight away. Ethereum has much longer time in the market and still far and away the largest developer community, and number of dApps in the cryptosphere. It’s also the backbone of the majority of DeFi projects and is well-recognized now among a growing class of institutional investors.

Closing Thoughts

The upcoming Berlin hard fork could give network users some temporary relief as far as high gas fees go and optimistic rollups seem to be the next likely major step forward for Ethereum before it transitions to ETH 2.0. 

With a little bit of luck, we might expect to see lower gas fees on Ethereum by the middle of this month and at least sustainable rates coming soon while we wait for ETH 2.0. In the meantime, Ethereum will certainly be keeping its eyes open to the cohort of high throughput blockchains that are springing up around it promising faster transactions and lower costs. 

Want to trade ETH futures with zero commissions on crypto’s only trading ladder interface? Sign up for a KYC-free account and start making gains now.

April 5, 2021
Cryptocurrency
Crypto Industry

How Long Before Ethereum Fees Get Lower?

Digitex
How Long Before Ethereum Fees Get Lower? 13

Ethereum has been grabbing the headlines a lot lately. From the rising popularity of DeFi and NFTs to being Visa’s blockchain of choice for settling its first transaction, ETH price has been on the up, recently marking its latest all-time high of over $2,100. All this action surrounding the premier altcoin has undoubtedly been bullish for HODLers and yield farmers. But, what about regular users trying to interact with the Ethereum blockchain? 

Rising gas fees on the network have been pricing them out of the market. According to  BitInfoCharts, this time last year, the average transaction fee on the Ethereum network was around 8 cents. Today, users are facing regular averages of around $20 just to move funds, calling the promise of low fees and near-instant transfers of value into question. And for traders looking to avoid the volatility of cryptocurrencies by using stablecoins, such as the ERC20 versions of USDT or USDC on Ethereum, high fees create a barrier.

In tandem with rising fees comes rising network congestion. Not only do users have to pay prices on a par with PayPal to move their funds but they also have to wait for lengthy periods of time to do so. While the solution to all these problems is touted to be the long-awaited transition to a Proof of Stake blockchain (ETH 2.0), that could be a long time coming. So, how long will users really have to wait before Ethereum fees get lower?

Optimistic Rollups

Ethereum users cannot wait for years to resolve the problem of high fees as DeFi grows and Ethereum attracts increasing attention from investors. Interim solutions are needed in the meantime. Even Vitalik Buterin recognized that Ethereum scaling was a top priority  and that a solution in the shape of optimistic rollups was on the cards very soon.

How Long Before Ethereum Fees Get Lower? 14

If you think of the blockchain in layers, Ethereum is a layer 1 protocol, whereas rollups are a layer 2 solution that aggregate transactions and store them inside smart contracts to reduce congestion on the network and bring gas fees down.  

The concept of rollups was first described way back in 2014, but they were referred to as “shadow chains.” And now that network congestion and fees have been thrust into the limelight once more, their utility is back on the table. How long will it take for them to be implemented? Some projects such as Polygon (formerly Matic) have already started using them with success and, optimistically (groan), rollups could act as the mid-term solution for Ethereum.

Berlin Hard Fork

Another solution for gas fees may lie in the upcoming Berlin Hard Fork, slated to take place on April 14, 2021. Months in the planning, however, it’s not certain just how much of a dent the hard fork will make in gas fees or whether it will improve congestion. Four main improvement protocols (EIPs) will be deployed in Berlin to make the network more robust and hacker-resistant, as well as tackling gas fees. 

But different analysts have questioned how much of an effect the Berlin hard fork will really have on gas fees, citing that Ethereum has deep structural changes that need to be resolved for it to scale first before sustainable gas fees are achieved. 

Competing Blockchains

In the meantime, cryptocurrency industry participants are not sitting idle. Several PoS smart contract blockchains from Solana to Algorand have already started rolling out solutions to help traders avoid Ethereum’s high gas fees.

By running stablecoins like USDC and USDT on these blockchains, traders can move their funds from a crypto like BTC or ETH into a stablecoin almost instantly and for a cost of next to nothing. This is particularly appealing to high-frequency traders and users who simply want to move small-to-modest amounts of value without paying exorbitant fees.

There is also an increasing number of blockchains integrating EVM compatibility. This allows any smart contract deployed on the Ethereum blockchain to be deployed on them. dApp developers being priced out of the market by high fees can easily migrate their dApps to one of these blockchains and continue to develop without the high cost.

However, most of these come with trade-offs and are arguably centralized or flawed in some form or another. Moreover, network effect isn’t something that you simply knock out of the park straight away. Ethereum has much longer time in the market and still far and away the largest developer community, and number of dApps in the cryptosphere. It’s also the backbone of the majority of DeFi projects and is well-recognized now among a growing class of institutional investors.

Closing Thoughts

The upcoming Berlin hard fork could give network users some temporary relief as far as high gas fees go and optimistic rollups seem to be the next likely major step forward for Ethereum before it transitions to ETH 2.0. 

With a little bit of luck, we might expect to see lower gas fees on Ethereum by the middle of this month and at least sustainable rates coming soon while we wait for ETH 2.0. In the meantime, Ethereum will certainly be keeping its eyes open to the cohort of high throughput blockchains that are springing up around it promising faster transactions and lower costs. 

Want to trade ETH futures with zero commissions on crypto’s only trading ladder interface? Sign up for a KYC-free account and start making gains now.

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