The part of the economy that’s connected to cryptocurrencies and the blockchain is only at the start of its development, although this sector is growing very rapidly. Truth be told, this growth isn’t as active as it could be, as there are a few factors holding it back. One of the main factors is the lack of a regulatory base, legislative norms, and regulation of work on the cryptomarket. For now, these either simply don’t exist or are still in their infancy.

For this reason, major players, who are attracted to the reliable tools of the traditional financial market, are still cautious about the cryptocurrency component of this sphere. Money is being invested, but players are afraid of risking large sums. Experts believe that regulation of the cryptomarket will allow it to be opened up for everyone, including institutional participants.

One possible example of such a merger is a project where a group of experts, including trading specialists, financial analysts, developers of trade terminals, and developers of existing stock markets, work. Development of this project began in November 2016. The goal of its creators is the creation of a “mature” solution that is at the same level as traditional financial platforms. The means of achieving that goal is by merging the positive sides of traditional financial tools with the capabilities of decentralized blockchain systems.

The Qurrex hybrid platform

We are talking about a multi-functional, hybrid trading platform that includes such elements as:

● A central node, functions, and capabilities that are similar to the functions and capabilities of traditional exchanges;

● A client part whose capabilities meet the needs of users of the largest exchanges and FX brokers;

● A blockchain infrastructure that provides a solution to the issue of secure storage of transaction data and simultaneously eliminates the need to work with middlemen; Additionally, the blockchain provides users with aggregated liquidity from all network nodes, including the central element.

During the creation of Qurrex, several standards will appear that can be used by other blockchain projects, including by cryptocurrency exchanges, in particular. When implementing this project, we plan on bringing proven solutions from classic financial exchanges to the cryptocurrency market. Thus, the project team plans on also using several tools based on the blockchain.

The project itself is far from theoretical. A web version of the trade terminal, which demonstrates the capabilities of the entire system, has been created. The test version will allow for the use of cryptocurrency pairs in trading and also provides trading and analytical tools to which brokers and traders are accustomed. The client part of the service is at 30% readiness.

The majority of its creators have more than 10 years of experience in developing various types of exchange and brokerage systems, as well as products for traditional financial markets.

Matthijs Johan Lek, founder and CEO of Qurrex, has been working in the financial sector for more than 20 years. His specialization includes investment banking, brokerage, and business development. Matthijs has worked in the cryptomarket for the past several years.

Andrey Sitaev possesses enormous experience in developing financial tools. In particular, he managed the development of TradeSharp, a Forex/trading platform. Now he heads a team of 17 front– and back-end developers.

For a long time, Konstantin Sviridenko and his team have worked on developing trade and clearing systems, as well as the creation of financial tools for the Eastern European financial market (the St. Petersburg Stock Exchange, RTS, the Voskhod Investment System, and the Ukrainian Stock Exchange). His experience will be indispensable in developing the tool set of the Qurrex hybrid exchange.

It later became clear that the blockchain offers unique possibilities that are missing in the traditional tools of traders and brokers. These possibilities allow for an increase in the security of storing and processing client data, faster execution of several operations, and, overall, transformation of the traditional financial market. After recognizing all these points, the Qurrex team made the decision to merge CEX and DEX technologies and create a qualitatively new system.

In order for the platform be as efficient as possible, many discussions were held about its possible architecture and the addition or absence of individual capabilities or elements. As a result, the following conceptual understanding was formed:

● Centralized exchanges (CEX), for a long time, will remain the most effective and functional solution to ensure the highest volume of available liquidity;

● In particular, one of the advantages of a CEX is a guarantee of the fulfilment of obligations by transaction parties, which is performed by the central link of the infrastructure. This tool will likely be introduced to the cryptocurrency market sooner or later;

● Full comprehensive decentralization of exchanges, characterized by a capacity sufficient for the needs of the financial market, unfortunately, is something that is still unattainable. Why? The blockchain, in its current form, is not capable of handling the required loads that are typical for a financial market. An example is the daily delays in processing transactions on the blockchain system or a decrease in the performance of the Ethereum infrastructure during the advent of the first popular game, Cryptokitties. After all, “ether” was declared a high-performance system. Solving the problem of insufficient work speed during the emergence of new market participants still does not seem possible. The Moex futures exchange is capable of processing around 50,000 transactions per second at its peak. The bitcoin blockchain is capable of handling barely 7 transactions per second.

Nevertheless, decentralized systems have a huge amount of useful capabilities that can serve a modern financial market.

For example, a decentralized infrastructure (DEX) is an excellent way of preventing issues with blocking work of any centralized system if a main node fails. Additionally, DEX provides transparency of all or nearly all operations executed in the system, which lowers risks for the participants of such a system.

If we merge the benefits of a CEX and a DEX (the characteristics of these concepts will be discussed further in upcoming articles), then, as a result, we will get a reliable and capacious infrastructure capable of working on the financial market under any load. This system, firstly, is transparent for participants, and, secondly, provides market players with the necessary amount of liquidity. Thirdly, it is capable of processing several thousand transactions per second, which is needed for the majority of modern participants on the financial market, including institutional clients.

Whitepaper

Telegram-channel

Telegram-chat

Facebook