InfinityBit will be the first ever On-Chain Transparent CEX (TCEX). A TCEX is a CEX where all final settlement happens On-Chain. Everyone can self-audit our reserves at any time on our FSB Blockchain, an innovative new technology developed by InfinityBit which will bring transparency to CEXs. Anyone can verify that the exchange holds exact 1:1 reserves by using our FSB blockchain. InfinityBit will have order books and low fees like a traditional CEX, but all final settlement of balances, deposits, and withdrawals are settled on the FSB blockchain. In this case, you can think of it as a CEX which operates with completely open and immutable books (accounting books). "
InfinityBit is proud to introduce the world's first ever On-Chain Transparent CEX. A Transparent On-Chain CEX refers to a centralized exchange (CEX) where all final settlement occurs on the blockchain. This means that all parties can access and verify the exchange's reserves at any time via our innovative FSB Blockchain technology, which brings unparalleled transparency to CEXs.
At InfinityBit, we understand the importance of transparency and accountability in the cryptocurrency industry. With our Transparent On-Chain CEX, customers can easily self-audit our reserves and confirm that we hold exact 1:1 reserves. This is achieved through the use of our innovative FSB blockchain, which enables anyone to verify that our exchange holds exact 1:1 reserves. InfinityBit FSB makes our records immutable and completely open to be verified by everyone.
Despite its unique and novel approach to settlement, InfinityBit's Transparent On-Chain CEX offers the same order books and low fees as a traditional CEX. The only difference is that all final settlement of balances, deposits, and withdrawals are settled on the FSB blockchain.
We believe that our Transparent On-Chain CEX is a significant step forward for the cryptocurrency industry, and we are excited to offer this innovative solution to our customers.
What are the differences between a CEX and a DEX?
Crypto exchanges are platforms where people can buy and sell cryptocurrencies. There are two main types of crypto exchanges: Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs).
CEXs are the traditional type of crypto exchanges, where a central authority or company manages and controls the platform. CEXs usually have order books, which are electronic lists that display all the buy and sell orders for a particular cryptocurrency. Traders can place orders at the current market price or specify a limit order to buy or sell at a specific price.
On the other hand, DEXs are a newer type of crypto exchange that operates on a decentralized network. DEXs typically use liquidity pools, which are pools of funds contributed by users who want to participate in the exchange. These funds are used to facilitate trades and are usually controlled by smart contracts on a blockchain network. When a user wants to buy or sell a cryptocurrency on a DEX, they are essentially trading with other users who have contributed to the liquidity pool.
One of the main benefits of CEXs is their high transaction frequency, which allows for rapid trading and quick execution of orders. This is because CEXs do not need to operate on the blockchain Additionally, CEXs can charge lower fees than DEXs since they have a centralized infrastructure that allows them to operate more efficiently. On the other hand, DEXs are known for their decentralized nature, which provides users with greater security and control over their funds.
In terms of trading volume and liquidity, CEXs are currently more popular than DEXs since they have been around for longer and have more established user bases. CEXs offer high transaction frequency and lower fees, while DEXs provide greater transparency, security and control over funds. InfinityBit aims to offer the security and transparency of a DEX with the benefits of a CEX.
What issues are addressed by InfinityBit’s FSB technology?
While existing CEXs have several benefits over DEXs, they also have some significant downsides. One major issue is the lack of transparency and accountability when it comes to the reserves held by the exchange. Existing CEXs do not hold exact 1:1 reserves of cryptocurrencies and instead hold equivalent assets. For example, they might treat USDT tokens as equivalent to fiat USD or CEX tokens as equivalent to cryptocurrencies like Bitcoin. This approach can lead to problems because these equivalent assets do not have the same liquidity or value as the underlying cryptocurrencies, which puts investors at risk.
In contrast, InfinityBit CEX's approach of having on-chain proof of reserves and holding exact 1:1 reserves of cryptocurrencies will provide greater transparency and security for users. This means that every Bitcoin held by InfinityBit is backed by an equal amount of Bitcoin, and these reserves can be verified on the InfinityBit FSB blockchain by everyone. This approach provides users with greater peace of mind and eliminates the risk of fraud or mismanagement by the exchange.
The approach taken by InfinityBit CEX of holding exact 1:1 reserves and providing on-chain proof of reserves addresses these issues and provides greater security and transparency for users.