Cryptocurrencies have paved the way for the decentralized mode of exchange where the value of digital assets can be exchanged in a healthier and much transparent manner. Due to this reason, the businesses today are trying to adapt to Cryptocurrencies for all their transactions. Investing in cryptocurrency has now become a part of fashion among the crypto enthusiast because of its high volatility.
Lets see the challenges that will be met during the Cryptocurrency exchange development and the way we can resolve that! This helps us to create potentially futuristic Crypto Exchange.
(1) Security- The primary Challenge
The security perimeter, layers of authentication processes are the security system in the present Crypto Exchanges. But there are limitations in it also.
The other features to be included in order to increase the security
- Biometric mode ofAuthentication
- Use of AI and quantum entanglement for advance the security.
- Increasing the usage of Decentralized Exchange platforms
The exchanges have a limitations in terms of number of operations performed using Bitcoin or Ether or other Altcoins. The fact that when an exact level of user activity is reached, the performance of the system drops sharply and the time to confirm transactions increases also the commission fees increases. For Example, when the operations performed using the Bitcoin in a region exceeds 7 transactions per second a queue is formed. This leads to the increase in commission based on the rule that ” larger the commission the higher the priority they get in the queue”.
This can be solved-
- By increasing the block size or by building it in a customized way depending on the load on the system.
- By processing the part of transaction in Offline mode.
- By replacing the PoW consensus protocol with another, for instance PoS.
Because of the continued cases of hacks and breaches of exchanges, regulations will help us to ensure transparency and consumer protections.
This can be overcome-
- By the elimination of legal barriers,
(4)Updating advanced Crypto Technologies
With the increasing Crypto exchange competition, one has to have advanced Crypto exchange business modules. When your trading platform is updated with latest trends, the success will be at your side. Smart contracts, ICOs, Wallet Integration and Blockchain technology are the important aspects to consider when developing a crypto Exchange Platform.
These challenge play a major role towards creating a potential Cryptocurrency exchange platform. We PULSEHYIP as top rated Cryptocurrency exchange development company with its experienced technicians provide the best solution for our clients. We integrate the new ideas of our clients to produce a product that remains the most effective Exchange platform.