TL;DR: A more than two-dozen page white paper for cryptocurrency exchange CoinEx’s latest project, CoinEx Chain, was released on 28 June 2019. The Hong Kong-based company claims to be “committed to building the next generation of blockchain as financial infrastructure which includes a series of public chains to realize programmable cash.”

CoinEx Chain White Paper Released

CoinSpice readers will recall CoinEx founder and CEO, Haipo Yang, first spoke of CoinEx Chain in a Telegram AMA back in late March of this year. Project development has picked up enough now to have a proper white paper in place. “CoinEx Chain presents a public DEX chain based on Tendermint consensus protocol and Cosmos-SDK,” the white paper introduced. “With transparent trading rules, it is operated by the community and allows users to control their own funds. The native token is CoinEx Token (CET). All the existing CET tokens in ERC-20 form will be 1:1 mapped to the native token of CoinEx Chain.”

They plan “three public chains for specific applications: 1) DEX Chain that supports decentralized exchange functions; 2) Smart Chain that supports smart contract functions; 3) Privacy Chain that supports on-chain privacy protection,” and appear to be “interconnected” with each playing “its own role while cooperating with each other to provide full functions.”

The decentralized exchange (DEX) concept seems to be attractive due to its potential to “address the problems of centralized exchanges,” which can lack transparency and also be an unsafe harbor for users’ funds. “Returning asset control to users, Order-Book based fair on-chain matching algorithm,” the white paper explains, “permissionless on-chain listing and creating trading pairs, all these efforts are aimed to build a transparent, secure, and permissionless financial platform for free trading.”

Smart Chain, Privacy Chain

Referring to smart contracts as “a must-have component,” its “Smart Chain will act as the platform to build more complex and rich finance applications,” which apparently will be separate from its DEX chain in order to “achieve maximum transaction processing speed,” supporting “only the necessary functions required by a decentralized exchange.” They acknowledge smart contract inspiration from Ethereum, and double-down on the concept, calling them an “indispensable component when it comes to building decentralized finance technology.”

Insisting “no one wants to be tracked in economic activities,” the CoinEx Chain white paper stresses what are today somewhat traditional “pseudorandom address” schemes, from the likes of Bitcoin Core (BTC) and Ethereum, and how they’re “not enough to protect one’s activity from being tracked.” After a lengthy discussion about various privacy aspects, from projects as diverse as Dash, Monero, Zcash, and even Grin, apparently the team hasn’t exactly settled on a particular approach for its Privacy Chain. The white paper does, however, seem to favor Zether, which is the brainchild of a Stanford University and Visa collaboration. “Implementing Zether protocol upon Tendermint Core and Cosmos SDK is a feasible way to build an anonymous blockchain in account model. This is also the mission of CoinEx Chain team,” and they cite JPMorgan as a real-world example of such an arrangement in the wild.

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.

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