Adel ▲ Opinion ▲ 11 ▲ The Next Evolution in Crypto Trading

The Next Evolution in Crypto Trading.PNG

By: Gabriel Dusil, co-Founder & General Manager, Adel Ecosystem Ltd.
Jessica Zartler, Director of Marketing & Communications, Adel Ecosystem Ltd.

In the revolution of emerging blockchain technologies, shifting from legacy models and habits to embrace this paradigm shift, occurs in iterations. Arguably, the most significant aspect of blockchain is decentralization, which allows for programmable trust, distributed ownership, and removes the necessity for third-party arbitration.

Money is flooding into cryptocurrency, seen by a market cap increase from 18 billion US$ to more than 600 billion US$ just in 2017. That is a 240 fold increase. With 99 percent of transactions still residing in centralized exchanges (Coinmarketcap.com), the shift to fully decentralized platforms is just on the horizon. Several major catalysts are contributing to the move to decentralized cryptocurrency exchanges, also known as DEXs.

DEXs are superior in security and provide instant account creation. However, in their current state of development, they lack liquidity and their user experience and user interface (UX/UI) are still immature compared to their centralized counterparts. Generally speaking, the more liquid the market, the less volatility and price manipulation, making DEXs vulnerable at this stage. At the moment, investors are still walking a thin tightrope between friction and fluidity, causing growing pains before mass market adoption.

The Next Evolution in Crypto Trading 2.PNG

To understand the importance of this shift and what it means, we should understand how centralization affects the investment ecosystem, and explore the development steps needed for DEXs to reach their full potential. Centralized exchanges are platforms that allow investors and traders to buy, sell and exchange cryptocurrency against fiat or other crypto assets. Traders deposit funds and the exchange issues an IOU that is freely tradeable on their platform. When a trader wants to withdraw funds, the IOUs are converted back to currency and returned to the trader.

Centralized exchanges are an on-ramp for people with fiat currency (i.e. dollars, euros, yen or otherwise) to purchase cryptocurrency. While these exchanges allow movement from fiat to crypto, they are a prime target for hackers, and have been taken for billions of dollars. Exchanges which follow regulatory guidelines have lengthy registration processes which further hinders investment speed. They also have service lags (brownouts or blackouts), and may be susceptible to government shutdowns.

DEXs shift investments from a centralized third party, to peer-to-peer transactions, through proxy tokens or assets or a multi-signature escrow system, among other solutions being developed. This allows investors to remain sole custodians of their funds rather than relinquish their private keys (the passwords used to secure their accounts) to centralized exchanges. DEX benefits include instantaneous account creation, elevated privacy, and decentralized server resilience, ensuring that the infrastructure cannot be shutdown.

If DEXs are the next evolution, why only a one percent market adoption? To begin with, the DEX concept is brand new. As centralized exchanges proceed through their own market maturity lifecycle, decentralized services are only at the starting gate. Because DEXs are blockchain driven, account control resides solely in the hands of the trader. If they lose their private key, or make a mistake when entering a buy or sell order, then there is no recourse – liability resides exclusively with the account holder, and there can be no finger-pointing. In addition:

  • Margin lending and other more advanced trading options are not yet available on DEXs.
  • There is a chicken-egg effect at play, resulting in low liquidity. Since transactions happen on the blockchain itself, there may be issues of scaling pressure if the connected blockchains have not been architected well.
  • Miners can see the blockchain transactions before they are cleared, resulting in front-running risk and market manipulation.
  • Fiat to crypto trading in DEXs will require the cooperation of banks which introduces a new centralized point of failure.

The list of challenges for DEX developers is long, however, they are making quick progress. Developing user-friendly interfaces (UX/UI) continues. Issues like liquidity, scalability and front-running are being solved with new technology models such as relayers, off-chain transactions, hardware-wallets, as well as using a hybrid of centralized and decentralized exchanges to pool liquidity.

Although development is happening at lightning speed, trading performance highlights o a huge gap in the market. While NASDAQ processes one million transactions per second, centralized crypto exchanges average just ten thousand per second. If development is any indicator of velocity, crypto exchanges estimate a ten-fold improvement in the next 12 months.

Progress continues and the momentum is starting to shift in the direction of DEXs, the next evolution of cryptocurrency investment. Those who can iterate the quickest, will unleash full speed liquidity and capitalize on the decentralized nature of blockchains.

More Articles

Check out other articles:

▲ Blockchain Will Transform Retail Lending

▲ The Next Evolution in Crypto Trading

▲ Crypto Trading for Everyone

About the Authors

Gabriel Dusil, co-Founder & General Manager, Adel

Jessica Zartler, Crypto Marketing

  • Jessica is an award-winning multimedia journalist, content strategy expert and digital marketing consultant with more than ten years of experience. Her work has appeared on several platforms including Forbes, The Associated Press, The Wall Street Journal, MSNBC, Fast Company and Entrepreneur. Fascinated by the burgeoning blockchain space, she loves to contribute to educational communication about the potential of this new technology for revolution, and the incentivization of fair, inclusive, and environmentally conscious business practices.
  • LinkedInhttps://www.linkedin.com/in/jessicazartler/

More Opinions

Check out more Adel opinions via these links:

▲ 1 ▲ The Right Path to Funding Decentralized Organizations

▲ 2 ▲ The Next Evolution in Funding Innovation

▲ 3 ▲ A Philosophy for Blockchain Integrity

▲ 4 ▲ A Collaborative Blockchain Incubator

▲ 5 ▲ Blockchain Diversity & Passion

▲ 6 ▲ Blockchain Startup Expertise

▲ 7 ▲ Blockchain Portfolio Diversification

▲ 8 ▲ Blockchain Incubation to Employment

▲ 9 ▲ From Blockchain Innovation to Execution

▲ 10 ▲ Blockchain Will Transform Retail Lending

▲ 11 ▲ The Next Evolution in Crypto Trading

▲ 12 ▲ Crypto Trading for Everyone

▲ 13 ▲ Architecting Crypto Financial Instruments

▲ 14 ▲ Crypto, For the People, By the People

Adel ▲ Conference ▲ A Community Incubator for Blockchain Innovation ▲ e.conomia

17_Oct_25_Prague_Adel_Community_Incubator_e_conomia_thumbnail.jpg

Networking and building partnerships is key to the success of Adel and our community. Continuing with our speaking lineup, we were one of only five startups to speak at Fintech (r)evolution, an innovator conference hosted by the Media House of Economia and sponsored by Czech National Bank. This opportunity was thanks to our partnership with Deloitte.

Gabriel Dusil, co-founder & board member, Adel

Abstract

▲ Networking and building partnerships is key to the success of Adel and the community. Continuing its speaking lineup, Adel is one of only five startups to speak at Fintech (r)evolution, an innovator conference hosted by the Media House of e.conomia and sponsored by Czech National Bank. Adel’s Co-Founder Gabriel Dusil was chosen out of 140 startups reviewed by Deloitte, a pitch at the Fintech (R)evolution Conference. Each startup had only six minutes to pitch their company and four minutes to answer questions from hundreds of senior executives from Central European’s finance and banking sector.

Presentation

▲ Here is the video of our presentation:

▲ Here is the presentation on SlideShare:

▲ Here are the native powerpoint slides:

17.Oct.25 – Prague · Adel, Community Incubator for Blockchain Innovation (e.conomia, v2.0).pptx

More Conferences

Check out more Adel conferences via these links:

▲ Conference ▲ Borderless Citizens™ in the 21st Century ▲ Berlin

▲ Will Pandemic Protocols Establish a Utopian Economy? ▲ Helsinki

▲ MultiStakeholder Governance for the Crypto Generation ▲ Gdansk

▲ A Community Incubator for Blockchain Innovation ▲ e.conomia

▲ Startup Incubation with Blockchain Communities ▲ London

▲ Startup Incubation with Blockchain Communities ▲ Stockholm

▲ Living the Blockchain Revolution ▲ Warsaw

▲ Innovation in Banking ▲ Prague

Adel ▲ Opinion ▲ 10 ▲ Blockchain Will Transform Retail Lending

Blockchain Will Transform Retail Lending

By: Gabriel Dusil, co-Founder & General Manager, Adel Ecosystem Ltd.
John McLeod, Founder, JEA Associates Ltd.

One of the great surprises of the Blockchain revolution is that banks continue to occupy a near monopolistic position within financial services, despite their obvious and much-publicized inadequacies. In the UK alone, five high street banks account for 80 percent of SME businesses, and control over 80 percent of domestic bank accounts. Even with the advances made with the digitalization across communications, media and computing industries, their hold remains as tight as ever.

Traditionally this stranglehold has been attributed to high barriers-to-entry, not least regulation and capital ratios for potential lenders. However, in an era where anyone with a car can become a taxi driver and anyone with a spare room can become a guest house, it’s realistic for people with spare cash to become a lender. Since the Renaissance, banking has been carried out on an institution-to-consumer basis or an institution-to-institution basis. Legal and accounting frameworks governing banks have, by and large, remained the same for half a millennia. In fairness, there have been some useful inventions pushing the financial agenda forward – such as online banking, ATMs and credit/debit cards – however, the benefactors of these financial systems reside overwhelmingly in the developed world. With over two billion unbanked in the world, the need for a more equitable and inclusive approach has never been greater.

The use of blockchain technology, particularly smart contracts, has the potential to disrupt the entire retail banking sector, creating a decentralized peer-to-peer network that enables people to borrow and lend in a more streamlined manner. Programmatically settling pre-agreed terms and conditions between two parties was not possible just a few years ago. This is still contingent on account holders willing to take on the same risks as banks, evaluate an creditworthiness, pre-arrange written contracts with customized terms and conditions, and at what rate. When these parameters are met then money can be automatically paid, without the need for a human intermediary. This is the basis of smart contracts.

The benefits of blockchain for retail lending encouraged greater competition. Financial monopolies are finally challenged by virtual currencies, and billions of people in developing markets can have access to loans that were previously too expensive or inaccessible.

The current centralized financial industry has enormous disparities in global lending interest rates. Today, the inflation-adjusted interest rate in different countries varies based on available liquidity. In high liquidity markets such as Europe, interest rates are between 0.5 to 5 percent. In lower liquidity markets such as Russia, they are at 12 to 15 percent, 12 percent in India, and as high as 32 percent in Brazil. These dramatic differences demonstrate a clear inequality. Interest rates for microloans in developing countries are between 30 to 40 percent on average, making borrowing impractical. Interest rates for decentralized lending on the blockchain is a streamlined solution to this disparity. Consumers from developing countries can have access to the same lending services as people from highly liquid markets.

These benefits go beyond just fairness and inclusivity. Blockchain radically improves on the problems associated with legacy systems, transaction latency and transparency. It still takes three working days to approve loans, or transfer money between cross-border accounts. In blockchain this transaction is carried out in minutes, using just an internet connected smartphone.

For the first time in history blockchain service providers (BSP) have the potential to create a fairer and more inclusive lending environment. Dated infrastructures, fragmented governance and economic borders are often cited as why financial lending fails on a global scale. A recent report by McKinsey cited that Blockchain technology and inclusion in the digital economy could boost GDP of all emerging economies by six percent. That translates to $3.7 trillion by 2025. The role of retail banks, in both developed and developing markets, in promoting sustainable and fair services has been questioned. Accessibility, fair terms, and transparency have denied large chunks of the world’s population to banking services that developed countries have enjoyed for decades. Smart contract technology provides the solution to disrupting this elitist source of finance. The potential gains and benefits to global economics and society are on the horizon. The question remains: Will people take advantage of it?

More Articles

Check out other articles:

▲ The Next Evolution in Crypto Trading

▲ Paving the Way for Crypto Financial Instruments

▲ Crypto Trading for Everyone

About the Authors

Gabriel Dusil, co-Founder & General Manager, Adel

John McLeod, Public Relations, Adel

  • John has spent nearly a decade working for a number of leading public relations firms in London, focusing primarily on PR management in the financial services sector. John’s expertise includes blockchain technology and the evolution of cryptocurrencies in financial services. That’s why he recently founded his own consulting firm, JEA Associates Ltd., which is specifically positioned to communicate the value proposition of this burgeoning technology. John has spent the past year successfully executing campaigns for a digital currency consultancy, decentralized financial solutions, and online payments platforms.
  • LinkedInhttps://uk.linkedin.com/in/john-mcleod-a323799

More Opinions

Check out more Adel opinions via these links:

▲ 1 ▲ The Right Path to Funding Decentralized Organizations

▲ 2 ▲ The Next Evolution in Funding Innovation

▲ 3 ▲ A Philosophy for Blockchain Integrity

▲ 4 ▲ A Collaborative Blockchain Incubator

▲ 5 ▲ Blockchain Diversity & Passion

▲ 6 ▲ Blockchain Startup Expertise

▲ 7 ▲ Blockchain Portfolio Diversification

▲ 8 ▲ Blockchain Incubation to Employment

▲ 9 ▲ From Blockchain Innovation to Execution

▲ 10 ▲ Blockchain Will Transform Retail Lending

▲ 11 ▲ The Next Evolution in Crypto Trading

▲ 12 ▲ Crypto Trading for Everyone

▲ 13 ▲ Architecting Crypto Financial Instruments

▲ 14 ▲ Crypto, For the People, By the People

Adel ▲ Conference ▲ Startup Incubation with Blockchain Communities ▲ London

17_Oct_11_London_Startup_Incubation_with_Blockchain_Communities_Gabriel_Dusil_1_smaller.jpg

At this London event, Adel spoke about blockchain innovation in front of an audience of 200 a major European conference dedicated to ICO investments. Smile Expo’s event focused on ICOs and drew a diverse crowd of investors, government officials, banking and fintech executives and hundreds of journalists.

Gabriel Dusil, co-founder & board member, Adel

Abstract

▲ At this ICO Conference, Adel’s co-founder explores the foundations of a community-based ecosystem, to fuel blockchain innovation. This presentation focus on the challenges of building a streamlined environment for creativity, and an efficient execution of successful projects that will use blockchain technology. Idea Incubation is discussed from the perspective of blockchain opportunities in Fintech, Healthcare, eGovernment, Information Communication Technology (ICT) and the Internet of things (IoT). Topics include Adel’s Idea Incubation, I2, Project Planning, P2, and Enterprise Execution, E2 process. Successful projects will be incubated through a well architected Wiki process that combines of People Process and Technology.

Presentation

▲ Here is the video of our presentation:

▲ Here is the presentation on SlideShare:

▲ Here are the native powerpoint slides:

17.Oct.11 – London · ICO Summit (Smile Expo).pptx

More Conferences

Check out more Adel conferences via these links:

▲ Conference ▲ Borderless Citizens™ in the 21st Century ▲ Berlin

▲ Will Pandemic Protocols Establish a Utopian Economy? ▲ Helsinki

▲ MultiStakeholder Governance for the Crypto Generation ▲ Gdansk

▲ A Community Incubator for Blockchain Innovation ▲ e.conomia

▲ Startup Incubation with Blockchain Communities ▲ London

▲ Startup Incubation with Blockchain Communities ▲ Stockholm

▲ Living the Blockchain Revolution ▲ Warsaw

▲ Innovation in Banking ▲ Prague

Adel ▲ Conference ▲ Startup Incubation with Blockchain Communities ▲ Stockholm

17_Sep_7_Stockholm_Startup_Incubation_with_Blockchain_Communities_Gabriel_Dusil

At this event we spoke to blockchain and bitcoin enthusiasts, on “How blockchain incubation will change the world”. This event focused on the implementation of blockchain and cryptocurrency.

“Experts share their experience of implementing Blockchain in governmental institutions (Govtech), banking system, trading, media, healthcare and other spheres. We will discuss all the aspects of creating innovative IT products – from the emergence of idea to entering the market.”
Smile Expo

Gabriel Dusil, co-founder & board member, Adel

Abstract

▲ In Stockholm’s Bitcoin & Blockchain Conference, Adel’s co-founder explores the creation of a community-based ecosystem, to fuel blockchain innovation. This presentation focus on the challenges of building a streamlined environment for creativity, and an efficient execution of successful projects that will use blockchain technology. Idea Incubation is discussed from the perspective of blockchain opportunities in Fintech, Healthcare, eGovernment, Information Communication Technology (ICT) and the Internet of things (IoT). Topics include Adel’s Idea Incubation, I2, Project Planning, P2, and Enterprise Execution, E2 process. Successful projects will be incubated through a well architected Wiki process that combines of People Process and Technology.

Presentation

▲ Here is the video of our presentation:

▲ Here is the presentation on SlideShare:

More Conferences

Check out more Adel conferences via these links:

▲ Conference ▲ Borderless Citizens™ in the 21st Century ▲ Berlin

▲ Will Pandemic Protocols Establish a Utopian Economy? ▲ Helsinki

▲ MultiStakeholder Governance for the Crypto Generation ▲ Gdansk

▲ A Community Incubator for Blockchain Innovation ▲ e.conomia

▲ Startup Incubation with Blockchain Communities ▲ London

▲ Startup Incubation with Blockchain Communities ▲ Stockholm

▲ Living the Blockchain Revolution ▲ Warsaw

▲ Innovation in Banking ▲ Prague

Adel ▲ Seminar ▲ The Revolution that is Blockchain ▲ PwC

17_Nov_1_Prague_Pw_C_Innovation_Breakfast_snapshot.jpg

Adel was invited by PricewaterhouseCoopers to speak at their innovation breakfast in Prague. This was a closed-door event with the aim to share ideas, inspire PwC senior consultants and partners, and discuss various world changing topics and trends. It was an honor to be their keynote speaker that morning.

Gabriel Dusil, co-founder & board member, Adel

Abstract

▲ Adel’s co-founder explores the creation of a community-based ecosystem, to fuel blockchain innovation. This presentation focuses on the challenges of building a streamlined environment for creativity, and an efficient execution of successful projects that will use blockchain technology. This presentation covers blockchain from aspects of Blockchain market spending forecasts to 2024, Geoffrey Moore’s Crossing the Chasm, Gartner’s Hype Cycle ‘17, opportunities & threats, and blockchain’s future. Gabriel also discussed the phenomenon of blockchain’s popularity, in the context of its ideology and disruptive nature in horizontal and vertical industries.

Presentation

▲ Here is a video of our presentation:

▲ Here is the presentation on SlideShare:

▲ Here are the native powerpoint slides:

17.Nov.1 – Prague · PwC Innovation Breakfast (v1.8).pptx

More Seminars

Check out more Adel seminars via these links:

▲ The Revolution that is Blockchain ▲ PwC

▲ Anatomy of the Blockchain Evolution ▲ Deloitte

▲ How to Build a Community Blockchain Incubator

▲ Setting the Stage for a Community Blockchain Incubator

▲ Paralelni Polis

Adel ▲ Conference ▲ Living the Blockchain Revolution ▲ Warsaw

17_Dec_1_Warsaw_Cryptocurrency_World_Expo_thumbnail.jpg

This was one of the largest blockchain events of the year with 1,400 of the biggest names in cryptocurrency meeting in Poland. The biggest exchanges, payment providers, leaders in fintech, miners, traders, ICO participants and crypto-maniacs were eager to discuss trends and new opportunities for innovation at this summit.

Our most active member, Robin Jansen also attended. It was great to meet up and talk crypto with such an experienced blockchain expert.

Gabriel Dusil, co-founder & board member, Adel

Abstract

▲ Adel’s co-founder discusses the blockchain paradigm, and how it has begun to change global society. This presentation focuses on the disruption of the “Religion of Money”, through the creation of bitcoin, as the first and truly global currency. The crypto-economy is “For the people, by the people, and of the people”. Topics of this presentation include Idea Incubation, Project Planning, and Enterprise Execution. Gabriel also discusses the phenomenon of blockchain’s popularity, in the context of its ideology and disruptive nature in horizontal and vertical industries, fueling opportunities in Fintech, Healthcare, eGovernment, Information Communication Technology (ICT) and the Internet of things (IoT).

Presentation

▲ Here is the video of our presentation:

▲ Here is the presentation on SlideShare:

▲ Here are the native powerpoint slides:

17.Dec.1 – Warsaw · Cryptocurrency World Expo.pptx

More Conferences

Check out more Adel conferences via these links:

▲ Conference ▲ Borderless Citizens™ in the 21st Century ▲ Berlin

▲ Will Pandemic Protocols Establish a Utopian Economy? ▲ Helsinki

▲ MultiStakeholder Governance for the Crypto Generation ▲ Gdansk

▲ A Community Incubator for Blockchain Innovation ▲ e.conomia

▲ Startup Incubation with Blockchain Communities ▲ London

▲ Startup Incubation with Blockchain Communities ▲ Stockholm

▲ Living the Blockchain Revolution ▲ Warsaw

▲ Innovation in Banking ▲ Prague

Adel ▲ Seminar ▲ Anatomy of the Blockchain Evolution ▲ Deloitte

17_Sep_4_Prague_Adel_Seminar_Deloitte_Samsung_S8_1_thumbnail

We first met with Deloitte representatives at a TechCrunch Startup event in Prague earlier in the year. Our presentation sparked their request for this executive seminar and Q&A session a few months later. This was part of Deloitte’s Innovation Breakfast series, with a goal to educate their staff on the latest trends in the ICT market. We were honoured to be their keynote speaker.

Abstract

▲ Deloitte’s Innovation team in Prague organized a special seminar for their senior executives, around the topic of blockchain. Co-founder Gabriel Dusil was invited as their keynote speaker of this event to introduce Deloitte’s future leaders to the world of cryptocurrencies. This presentation covers blockchain from the aspect of market sizing, Roger’s Adoption Curve, Gartner’s Hype Cycle ‘17, opportunities & threats, and blockchain’s future. Gabriel also discussed the phenomenon of blockchain’s popularity, in the context of its ideology and disruptive nature in horizontal and vertical industries.

Presentation

▲ Here is a video of our presentation:

▲ Here is the presentation on SlideShare:

More Seminars

Check out more Adel seminars via these links:

▲ The Revolution that is Blockchain ▲ PwC

▲ Anatomy of the Blockchain Evolution ▲ Deloitte

▲ How to Build a Community Blockchain Incubator

▲ Setting the Stage for a Community Blockchain Incubator

▲ Paralelni Polis