The markets over the world are slowing down and the rising threat of governments using quantitative easing for temporary relief has become a matter of concern. As a result, the public’s trust in governments and banks is at an all-time low. Decentralization is seen as the key to solving the problems of misaligned incentives that give rise to wealth and income inequality. As Bitcoin has proven, decentralization is significant to transitioning to a new, trustless, world. This technology sparked a revolution for creating decentralized applications that function without any governing power.
In light of these opportunities, many risks arise. Among them are Bitcoin’s upper cap, issues with scalability, security, and decentralization.
Advances in Decentralization
Since the time Bitcoin was released, developers have made new explorations to enable users to maintain a decentralized network. But, finding the balance between decentralization, security, and scalability is such a laborious undertaking that it has been dubbed the blockchain trilemma. Thus the critical requirement is to maintain ledgers securely while leaving room for scalability to allow for maximum adoption. Adoption increases the demand for resources and speed, but concurrently improves the system’s security.
Decentralized blockchain networks can deploy a multi-tiered-solutions-approach aimed at building chains that are outstandingly decentralized, secure and scalable.
As several blockchains emerge to solve a different set of problems, these blockchains often work in isolation. Cross-blockchain trading and functionality are yet to be seen in the mainstream. Digital assets only find utility within their blockchain. With cross-blockchain, digital assets gain more meaning and better credibility, both as a medium of exchange and store of value.
Similar to challenges faced with international trade, liquidity on blockchain platforms is also a significant factor. This corresponds to the way global trade is controlled by the Balance of Payments (BOPs). And being relatively new, holders of digital assets lack a common nationality. So what brings them together? Their global pursuits to commerce, within a genuinely global cross-blockchain trading experience.
Decentralized storage of information on the cloud is also one big use case that will be solved in the near future. This provides redundancy and security that is paramount. Blockchain enables this because of its inherent cryptographic security and the ability to distribute data across nodes.
Case study: Interplanetary Crypto Token Exchange (ICTE)
One crucial project that is rolling out and aiming to create a new and unique implementation of decentralized technologies is the Interplanetary Crypto Token Exchange, or ICTE, a network of decentralized blockchains deployed with a global satellite network. Their cloud technology provides the best security for the user’s data. ICTE can be accessed via both desktop and mobile, offering secure and speedy transactions for holders of digital assets. ICTE will host their coin, IEO, on their platform and support over 80 tokens from various blockchains.
ICTE uses its unique strategy to reach its level of decentralization and distribution. ICTE follows a hierarchical model of exchanges that can be hosted nearly anonymously through the clouds. ICTE uses a large stack of advanced and state-of-the-art technologies with two layers of reverse-proxying, IPFS, Docker compositions, optimized messaging systems, and automated deployment that allows an entire exchange to pop up ready for trading within minutes, not hours. The major exchanges -- labeled as Alpha Exchanges -- are able to host members under them. These Satellite Exchanges are a part of the alpha server and can be identified through the alpha itself.
Although Satellite Exchanges appear to function as subsidiaries of the major exchanges, they still can generate and fulfill their own orders and communicate their trades and volume with other exchanges regardless of who hosts their membership. ICTE is not only establishing the infrastructure for a community-ran decentralized exchange network but also forming the ability to operate a cryptocurrency exchange franchise.
With ICTE, you have opportunities to trade as an individual or operate a satellite exchange for your region. The icing on the cake, ICTE satellite exchanges can function as a matching mechanism, facilitating holders of digital assets to meet parties willing to offer trade partnerships aligned to their interests.