Dear users, investors, and other interested individuals which have been following the progress we have been making at NEXT.exchange until now, it is time to make a statement regarding the progress of our platform as well as the upcoming features that we aim to deliver.

Ongoing Developments.

According to some disgruntled users, we have been sitting still. This, however, is quite far from the case. Our team started developing an exchange from total scratch, which is a job that took longer than what was initially expected. Building an exchange platform from scratch (with the unique features that NEXT.exchange is providing) is quite a massive and resource intensive process. In contrast to simply copy & pasting open-source code from the Internet.

To give insight as to our progress, a snapshot has been provided below which gives you an overview of the commits made in our private NEXT.exchange repository:

Snapshot of daily commits to the NEXT.exchange code.

Currently, NEXT.exchange is the only exchange platform in the world which provides every single one of its users with a separate Blockchain address.

At the very beginning of our journey, we decided that we do not want to store all user funds in one big account (wallet). Over the course of the last year, there was plenty of news regarding large exchanges succumbing to breaches, with millions in user funds leaking away. We learn from the past mistakes of our competitors. Therefore, we try to avoid them and built our exchange on top of a different foundation than that which most traders are used to.

On our platform — each user has his or her own Blockchain address, not one big wallet for all.

The foundation on which we built our platform requires deep knowledge and experience in maintaining various separate Blockchains and executing them, without third party interference. For ERC20 tokens built on the Ethereum Blockchain, this leads to quite a challenge. Considering the fact that the Ethereum Blockchain requires a dynamic gas price and nonce to function properly. We’ve addressed this issue by bringing down ERC20 transactions on the Ethereum Blockchain to as low as 2 cents (instead of higher fees, $2+ charged on other platforms in the industry).

2 cents for an Ethereum transaction ladies and gentlemen!

Other demanding areas include the Orderbook and Exchange Engine, both of which are integral for transactions. We worked hard towards getting the execution of transactions working properly between different coins based off of different Blockchains. The most amazing aspect is that we can provide pairings on our platform with quite literally any digital asset in the world, be it Syscoin, Electroneum, Colossus XT, etc.

NEXT.exchange has the ability to deliver the greatest amount of asset pairings in the world. However, it was quite a mind bending experience on the development side.

At the moment, we have an (approximately) 5% fail rate behind transactions. This fail rate is due to some additional validations we have added to the exchange platform. These validations are without a doubt required.

Validation Example: ERC20 transactions require Ethereum to cover gas fees. If no ETH is in a wallet, the Ethereum Blockchain will not execute a transaction. Quite a few users did not have any or enough ETH in their wallets, which is why it appeared as if orders were getting stuck in the Orderbook. One of our newly built in validations solves this issue.

All validations require a delicate testing process, fine-tuning, and repeat testing prior to being released to the public. Readers are correct to assume that the delays experienced are a product of additional validation testing. However, we cannot launch an exchange platform with even a 5% transaction fail rate. That needs to hit zero. Based on our results and internal testing, we are likely to reach a 0% fail rate by September 1st. After which we would like to invite all users to aid us in filling the platform with transactions.

Further on transactional activity on our platform. Over the course of the past few months, our platform has executed over 1,500 transactions. It may seem like that is not a lot. But, it’s important to note that we are in ‘beta’ and testing live transactions on the mainnets of many Blockchain architectures.

Which assets are integrated and available for trading on NEXT.exchange?

We started integrating digital assets from the very beginning of our journey. Currently, the following tokens and coins have been integrated.

Bitcoin (BTC)

Litecoin (LTC)

Ethereum (ETH) + over 40 ERC20 type tokens. We have the capacity to integrate all ERC20 type tokens.

Electroneum (ETN)

Electra (ECA)

Rupee (RUP)

Omni (OMNI) + all Omni Layer assets.

Verge (XVG)

IOTA (IOTA)

NEM (XEM) + 2 XEM mosaics. With the capacity to integrate all of them.

ColossusXT (COLX)

SolarBanker (SLB)

KaliCoin (KALI)

Creativecoin (CREA)

iDeal Cash (IDEAL)

DeepOnion (ONION)

ECC (ECC)

SounDAC (Formerly MUSE).

NEO (NEO) + capacity to integrate all NEP-5 assets.

Syscoin (SYS)

RISE (RISE)

What do we mean exactly when we say ‘integrated’? It means that a respective Blockchain is up-and-running and is connected to the NEXT.exchange platform. Integrated Blockchains simply require one ‘flick of a switch’ for trading to be enabled. Some of the above assets have already been brought online, others will be announced together with their respective teams to draw maximum attention to NEXT.exchange. We see no added value behind promoting coins with massive communities if the exchange is not available for full public access.

Once we are fully public however, we are ready to welcome the above assets and their communities to the NEXT.exchange trading platform.

What about company developments?

Currently, and during the summer season, we were primarily focused on fine tuning the exchange platform and supporting our community. Company-wise, we are involved in frequent consultations with lawyers and advisers in order to ensure that our exchange can sustain continual operations once we are fully up and running.

Over the course of the last few months we have run into ‘issues’ with our bank and faced refusals from payment service providers. Stemming from the fact that once a company involves itself with cryptocurrencies, many financial institution doors slam shut. Understandable, as banks are fearful because they find it quite difficult to trace the origin of money involved with the trade of cryptocurrencies, among other reasons. While payment providers simply have bank accounts with the fearful banks.

In order to break this barrier, we will be adhering to strict KYC and AML policies, as well as unique user identifiers for those who which to deposit or withdraw fiat currencies.

We wish it were simpler, but for now, we require banks to make operations with fiat currencies a possibility.

However, taking the above fact into consideration, the logical step for NEXT.exchange is to become an electronic money institute. To accomplish this, we have two options.

Obtain a license with the National Bank (DNB in the Netherlands) Purchase or partner with an existing EMI in the European Union.

We decided to go with option number 2, since it will speed up our processes as a whole and allow us to provide bank accounts and debit/credit cards (with cryptocurrency support) to our users.

T he above will result in changes taking place within our company structure. Since the EMI is located in the United Kingdom, we will be establishing NEXT.exchange LTD, as the mother company. Under this we will have NEXT.exchange B.V. (private limited) as a daughter company, followed by a trust, PayAccept (which will be responsible for handling the incoming/outgoing fiat money). Additionally, a United States based LLC (required for listing on an OTC market) will also be launched by us.

This restructuring will not hinder our current operations. However, it is required to be listed on OTC markets and to split operational cash flows from third party incoming/outgoing fiat currencies.

As CEO of NEXT.exchange, I would like to clarify that we are still going ‘full power’ in developing this wonderful exchange platform. We will continue to provide progress updates and keep our great community in the loop. Nonetheless, if there are any questions or concerns, please do not hesitate to contact me on Telegram (@dcnl1980) or any of our team members in the official NEXT.exchange Telegram chat.

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