Digitex - Commission free futures marketplace powered by blockcahin

chibure (36)in #contest • 6 years ago (edited)

The blockchain revolution is beyond Bitcoin

Cryptocurrency is almost becoming a household name as we see blockchain technology sweep across the digital economy. Since bitcoin came on stage in 2009, lots of amazing concepts, projects and solutions have been built on the rapidly expanding blochchain ecosystem. Established industries such as education, health, finance, government and other sectors feel the wave of blockchain revolution with solutions that are set to rival existing technologies. For example, futures trading have been implemented on the blockchain and traders speculate on the future prices of cryptocurrency futures. Although blockchain technology has made landmark progress, There are major challenges that need to be overcome to consolidate on the success already recorded in blockchain technology. However, this article narrows it down to cryptocurrency future trading. It will examine the current challenges of cryptocurrency futures trading and proffer a workable solution for these challenges.

Cryptocurrency Futures trading and Challenges

Futures trading is a long-standing trading model where the buyer and the seller agree to trade in a commodity at a set price in the future. This kind of trading is usually done to manage the risks associated with changing market price of goods or commodities. Futures trading is not just unique to physical goods alone, financial assets also can be traded in futures market. That is what gave rise to cryptocurrency futures trading where the commodity for trading is a blockchain instrument. In cryptocurrency futures trading, speculators anticipate the rise or fall of a cryptocurrency and bet against it. At the set time, no matter what the market price of the assets is, the asset will be bought or sold on the price agreed beforehand. Cryptocurrency futures trading has its benefits. However, it also has some challenges that discourage traders for doing this king of trading.

One major challenge of cryptocurrency futures trading is the high commission charged for using an exchange. 99% of futures trading platform charge fees for betting on their platform. Most times, these fees are exorbitant and eats into the profit that traders would have made. So after removing trading fees, the profit margin is so reduced that traders see it as a non-profitable activity. This is a major challenge because each platform has a way collecting fees purportedly to cover the operating cost of the platform. As large as the issue seems to be, Digitex has come up with a noble blockchain based solution to overcome it.

What is Digitex?

Digitex is a cryptocurrency futures marketplace that grants free trading access to traders. This unique solution gives speculators the rare opportunity to make marginally high profits by eliminating trading fees from the platform. In Digitex, operational cost is covered by creating a native token which traders must purchase in order to do business on the platform. The internal market demand for DGTX token is facilitated by mandating traders to buy the coin. All transactions are done using the DGTX coin. Also, Digitex is a trustless market. So it runs a decentralized account balance for traders, putting everyone in charge of their funds. Digitex does not create wallets for members. Rather, all transactions are funded through an decentralized, independent smart contract on the Ethereum blockchain. So there is no record of traders wallet addresses or master keys.

Another good aspect of digitex is that it is democratically governed. Token holders make decisions regarding how the system will be funded. By creating and adding some DGTX tokens periodically, the platform is kept up and running. However, the traders collectively decide how much token to issue and when to issue them. This blockchain-based decentralized governance system ensures that everyone is empowered to contribute in decision-making.