Business Korea said on Thursday that Bithumb will be partnering with One Root Network to launch a decentralized exchange called Bithumb DEX.
One of South Korea’s largest cryptocurrency exchanges has announced it will launch a decentralized exchange, as reported by Business Korea on Thursday (October 4).
Bithumb, which is the sixth largest cryptocurrency exchange in the world according to Coinmarketcap, said its intentions to launch a decentralized exchange are to reach a global audience because and difficulties expanding domestically “due to unclear regulations.”
According to Business Korea, Bithumb will be partnering with One Root Network (RNT) to launch its newly decentralized cryptocurrency exchange, Bithumb DEX, through an overseas subsidiary.
“Bithumb DEX will be operated by its overseas subsidiary. The company is working together with RNT only in the decentralized exchange sector,” a Bithumb spokesperson said as noted by Business Korea.
In a blog post written by RNT, the firm said has developed an Ethereum-based decentralized token transaction protocol called “R1, ” which enables the sharing of data and liquidity.
The post explains that R1 separates order matching and execution and will provide Bithumb users with a “stronger security, higher matching efficiency, and better experience.”
While Bithumb DEX won’t directly store cryptocurrencies, it will allow its users to trade digital currencies between their crypto wallets.
Bithumb DEX users will have complete control of their assets, which will be stored in a smart contract. Because Bithumb DEX will be a decentralized exchange, if it is hacked individual assets will not be compromised.
Business Korea reported that Bithumb has been hacked in the past and is taking all measures to ensure Bithumb DEX will operate in “the safest way possible.”
Bitcoin is currently Bithumb’s most traded cryptocurrency with a 49.57 percent trading volume, followed by Ripple at 9.29 percent and Etherum Classic at 4.33 percent.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.