Digitex Futures and its special features.
As always, for those interested in more extensive information regarding all of the technical aspects of Digitex Futures, you will surely find it very useful to take a look at the whitepaper.
Off-Chain Price Discovery, On-Chain Settlement Source
With the goal of providing the most efficient way for traders to interact with each other through their different orders, the team at Digitex decided that the best way to handle the process of matching orders was using their own centralized engine, however, this doesn’t mean that the exchange works on an entirely centralized way, as mentioned before, Digitex is never in control of its users funds because it is an independent smart contract on the Ethereum network the tool that holds all of the account balances, this way, users aren’t at risk of suffering from having their account frozen by a centralized party.
By implementing its centralized engine designed to match orders as fast as possible, while also protecting users funds through a decentralized smart contract, Digitex is hoping to offer the most efficient and secure way for users to proceed with their trading activities.
Decentralized Governance by Blockchain Source
As we already know, a fundamental aspect to comprehend how Digitex is going to work is by understanding the importance of the DGTX tokens. The sales of these tokens (which are necessary to participate and place orders in the exchange) not only allow Digitex to have zero transaction fees, but they also empower the users in a way that wasn’t possible before.
Operating complex platform like a futures exchange is certainly something very expensive, especially if it is designed with modern mechanisms that didn’t exist before, which is why Digitex after 2 years of operating, will start creating new DGTX tokens to cover its future costs. This is where users empowerment comes into place, it will be the token holders the ones who are going to decide how many new tokens are going to be created, there will be a voting system and only the holders will be able to participate. Under this governance model, the decision-making process will be completely decentralized, and it will be the users who ultimately decide which is the proper balance between creating enough new tokens to cover the costs of maintenance and development of the exchange, and keeping the inflation under control to not harm current holders. Every person who actively participates in the exchange will then feel like his opinion is taking into consideration, which is something not very common with other exchanges and their decision-making process.
Complete Privacy Source
Even though all kinds of companies, like exchanges, that held private information about its customers in their own databases, have sophisticated security measures to protect that valuable data, there is always the risk of suffering attacks from advanced hackers who can manage to bypass those security measures, and have access to the protected data, this is how data leaks from major companies happen, they suffer from hacks and the attackers might decide to release the private data to the public.
In the case of Digitex, something like this happening is literally impossible, simply because Digitex request any private data of their customers in the first place because it is “an offshore exchange that accepts only DGTX tokens” Source, therefore, users will not have any risk of suffering from their private data being exposed.
Blockchain Driven Source
Every breakthrough feature that Digitex is offering to futures traders, can only be done by implementing mechanisms that blockchain technology makes possible. Most of the aspects that were covered in this series of articles were something not possible before this technology arrived, therefore, it is fair to say that Digitex effectively leverages the best that blockchain technology can offer to improve the way futures exchanges can operate.
In this article, we continue with the explanation of more special features that make Digitex an exchange worthy of attention. On this occasion, perhaps the most technically challenging aspect was the one consisting in “Off-Chain Price Discovery, On-Chain Settlement”, for anyone interested in knowing more about how this is going to work, please take a look at page 12 of the whitepaper, where there is an extensive and highly technical explanation beginning in the section called “Benefits of Centralized Matching Engine & Order Book vs Decentralized Exchange”
As always, feel free to share your thoughts and ask any question you might have about this project!