This Exchange Protects User Funds by Keeping 98% in Cold Storage

Guest Author | September 26, 2018 | 10:00 pm
blockchain.io, exchange
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This Exchange Protects User Funds by Keeping 98% in Cold Storage

Guest Author | September 26, 2018 | 10:00 pm

A new European exchange wants to protect their customer funds from governments and hackers by regulatory compliance and a special focus on security.

Blockchain.io is a newly announced exchange that intends on enforcing strict rules to comply with both international and local laws, even for future regulations. The company wants to stay regulatory-compliant, audit their records and only approve carefully selected coins in order to make sure that they stay on the right side of the law.

What the team hopes to achieve this way is to make sure that no seizing or freezing of customer funds will ever take place on their exchange. The second major focus on the project is security. The company promises DDoS and high-traffic resistance, minimal downtime and a platform that is free from “technical debt.”

To be free from technical debt means that not even one coin or feature will make it on the platform without being carefully audited by experts first. As an additional security measure, 98 percent of the funds are to be kept in cold storage. The cold storage wallet will be multi-signature, and the private keys needed to access the funds will be held in separate locations to make it even harder to get hold of the funds without authorization.

A selective exchange

The exchange is putting a lot of emphasis on strict eligibility criteria for both ICO projects to be assisted and tokens to be listed. The projects need to be regulatory compliant and to have experienced teams to ensure that only high-quality and viable projects are taken into consideration.

Projects that fit into the requirements, before getting approved, are also voted on by the exchange’s community. The ICOs that are eligible for assistance by Blockchain.io are being offered legal, marketing and financial expertise, but not only. All of the ICO operations are planned on behalf of the team in exchange for a percentage of the raised funds, leaving the team free to focus on the actual project.

From a user standpoint, the exchange is designed to be versatile and accommodate the needs of both new and experienced traders. For instance, a variety of simple and complex order types will be featured. Moreover, there are plans to integrate a peer-to-peer (p2p) lending system to let user borrow from a fund managed and maintained by Blockchain.io. The interest rates of such transactions will be based on supply and demand.

The white paper also claims that this platform will combine the advantages of centralized exchanges and decentralized settlements. According to the document, the “decentralized cross-chain settlement will be based on cross-chain atomic swaps.” Decentralized settlements are meant to “allow users to settle transactions across heterogeneous blockchain networks without ‘trusted’ third-party and without counterparty risk.”

The reason why such a design has been chosen is to ensure that the costs, privacy and scalability issues reported with Bitcoin won’t be experienced on the exchange.

A new company funded by experienced players

Paymium.com leads the project. The parent company is an exchange, active since 2011 which, according to Fintank, is the first European regulation-compliant Bitcoin exchange.

That being said, expertise isn’t all that the new exchange is going to inherit from the existing one. They claim that over 170.000 registered Paymium users will be automatically granted both Blockchain.io accounts and incentives to use the new platform.

The start of the token sale is scheduled for Sept. 27, and the exchange will start its operation as soon as it ends, which will happen in November.

Disclaimer: The opinions expressed in this article do not represent the views of NewsBTC 
or any of its team members. NewsBTC is neither responsible nor liable for the accuracy of 
any of the information supplied in Sponsored Stories/Press Releases such as this one.

NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

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