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Top 5 Crucial Challenges For Cryptocurrency Exchange To Overcome!

alwintechnology profile image WeAlwin Technologies Pvt. Ltd. ・3 min read

In the digital era, blockchain technology has paved the way for cryptocurrency with the decentralized method of exchanging value. Talks over-regulation of digital currencies and crypto exchanges are a way to assist the market become healthier and more transparent. Cryptocurrencies are most widely used by businesses and today, investing in crypto exchange platforms enables the cryptocurrency users to buy and sell cryptocurrencies at ease and become a part of the digital currency revolution. Cryptocurrencies and exchanges indeed have many issues to address and challenges to overcome.

Let us tell you what problems interfere with cryptocurrency exchange, as well as about who and how to solve them. This will help us to understand the future and growth potential, and of crypto exchange.

Security
These are cryptocurrency exchanges that have a good security system: Security perimeter, many levels of protection for authentication and other means of protection. It is terrible to think what is happening with security on online exchanges and p2p-platforms.
How to solve a problem we can implement Other security features can be:
-Use of biometric data for authentication.
-Use of AI, quantum entanglement and other advanced technologies to increase the level of protection.
-Transition to platforms created on the basis of decentralized blockchains.

Scalability
Many cryptocurrencies like Ethereum and Bitcoin, have a growth limitation due to the fact that when an exact level of user activity is reached, system performance drops sharply: the time needed to confirm transactions increases, commission fees increase For example In Bitcoin, the limit is in the region of 7 transactions per second, in the Ethereum - 20 operations per second. If users perform additional operations than the blockchain can process, a queue is formed. This ends up to an increase in commissions, since the larger they are, the higher the priority in the queue.
How to solve this problem?

  • Increase the block size or build it customized way depending on the load on the system
  • Replace the PoW consensus protocol with another, for instance PoS;
  • Process part of the transaction "offline".

Microtransactions
Microtransactions are transactions with very small amounts, which usually occur when buying and selling low-value goods. For example, when buying a pen, a cup of tea or a pack of matches. To service such operations, you need a payment system with high speed and very small commissions.
How to solve a problem. This can be done in two ways:
-Use centralized cryptocurrencies to increase transaction speed by reducing the level of security;
-Create payment channels on top of the blockchain network, so that operations take place “offline”.

Regulation
In light of these flaws and loopholes, and continuing cases of hacks and breaches of exchanges, regulations would be welcomed if tailored to ensure transparency and consumer protections.
How to solve a problem.
Thus, the elimination of legal barriers to the development of a cryptocurrency market is associated with lobbying legislative acts that increase market regulation.

Updating With Advanced Crypto Technologies
In order to remain ahead in the crypto exchange competition, having advanced crypto exchange business modules is of utmost importance. When you update your trading business with the latest trends, you are sure to get success in your crypto exchange startup. Smart contracts, ICO, wallet integration and blockchain technology are some of the top technologies without which no entrepreneur can expect to create a high-performance cryptocurrency exchange development project.

The role of these challenges plays a vital role towards the future potential of cryptocurrency exchange development. ALWIN Technologies is standing separately as a Customized crypto Exchange development company its has 10+ years of experience in the development process. Our groundbreaking methodologies offer industry’s best expertise to the clients and add value to every project we commence. We work with our regarded customers to remodel their digital wants into probably the foremost effective and high-performance exchange platform.

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