Cryptocurrency Exchange Software Development Company - Espay Exchange

 

Do you know what smart contracts are? If yes, you might know how it is being used in major sectors like Finance, Healthcare, Real Estate, Automobile, Supply Chain, and Management. Even the Government is planning to use it for elections. 

But it was first introduced in the crypto market. Do you know the technology behind crypto trading? The main technology is blockchain. But nowadays, trading platforms are using smart contracts to facilitate crypto trade. 

White label cryptocurrency exchange uses smart contracts to facilitate crypto trade. Do you know how ICO tokens are created and sold? It is done by using smart contracts. It is safe to say that smart contracts have become a very important part of the crypto market and crypto trading.

Many people still don’t have any idea about smart contracts. So in this post, we are going to help you understand what exactly smart contracts are. We are also going to discuss how it is reacted to trading in the crypto market.

Smart Contracts

In technical terms, it is a computer protocol. This protocol works like a contract. It is like a digital contract. Do you know how a contract works? In a contract, two parties agree to certain terms and conditions. Once these conditions are met, the contract is executed. 

Similarly, a smart contract is a computer program which works on the blockchain. Here the terms and conditions are written in codes. When the terms and conditions are fulfilled by both parties, the contract gets executed on its own. Once the contract is executed, it is updated across the blockchain network.

The idea was coined by Nick Szabo. He was a cryptographer. In 1994, he taught of using computer codes to write contracts and make it digital. However, it took 21 years for this idea to be implemented. In 2015, the first smart contract was developed. It was done by Vitalik Buterin. He is the founder of Ethereum. 

A smart contract basically can be understood with the help of these three terms.

• Agreement: It is an agreement between two parties. The agreement is in the form of a written code. It runs on the blockchain. These codes are stored in a public ledger, which everybody can see but cannot be changed.
• Processing: The blockchain network processes the transaction agreement. There is no third party or mediator involved. 
• Execution: Once the conditions of the contract are met, it gets executed automatically. There is no one to stop or intervene. 

If you still have doubts about smart contracts, this example will help you.

Example

You have conducted an ICO. The smart contract is made on Ethereum Blockchain. The smart contract will contain an agreement between you and the investors. Suppose you have 100,000 Tokens. Now, you want to raise 1,000,000 Ether, so you need to sell one token for 10 Ether. Now, you need to create a smart contract which will help you to transfer 1 Token for 10 Ether. The smart contract will look like,

“WHEN the investor pays 10 Ether to you, THEN he will get ownership of 1 token.”

As per the smart contract, when you receive 10 Ether from an investor, he will automatically receive one token. You don’t need to go to any lawyer to create an agreement. With smart contracts, you can develop your own contract. The mechanism behind smart contracts is simple. Once the terms and conditions of the contracts are met, it gets executed.

Read Full Article

Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay

Security Parameters To Look Forward To

 

The cryptocurrency space has seen massive changes since Bitcoin’s earliest days, but one thing that’s remained constant is exchange breaches. About $1.1 billion worth of cryptocurrencies were stolen in the first half of 2018. The survey conducted by the ICOrating.com has revealed some scary statistics relating to the security practices in many exchanges. 

• 41% of exchanges allow passwords with fewer than 8 symbols
• 37% of exchanges allow passwords with either digits or letters alone
• 5% of exchanges allow the creation of accounts without email verification
• 4% of exchanges lack 2FA
• Only 46% of exchanges meet all four parameters
• Just 4% of Exchanges were found to have a best practice for domain security

Numbers don’t lie and it makes me scared. Is it safe to trade my hard-earned money in such exchanges?

The Cryptocurrency derivatives exchange platform should consider safety features for securing the user against any unwanted potential threats and losses. Espay-X crypto derivative exchange software development team makes sure that your software exchange terminal has the below-mentioned features.

LOGIN WITH EMAIL ID AND PASSWORD

Email is of the most important aspect between the user and the software. It is used to alert the user for new activities happening around with his account – login via the new device, one-time password, etc. It can also be used to communicate with the user, when he/she needs support. We make sure that your email address and password are secure and never compromised. The engine helps the user to choose a password that consists of permutations and combinations of varied characters.

STANDARD SIGNUP

The software exchange terminal comes with a secure and optimized login process. This serves the purpose for the end-user as well as guarantee minimal data breach impact. It consists of the usage of SSL encryption, reCAPTCHA, limit login, and password reset attempts, geo-location security, etc.

FORGOT PASSWORD WITH SECURITY QUESTION

The software exchange terminal has the forget password feature to help the users reset it. It will ask a particular set of security questions that are pre-selected and filled by the user. If the user is able to answer it correctly, then and only then the software allows to reset the password. Else, it throws error message or blocks your account.

2 FACTOR AUTHENTICATIONS

2-factor authentications also known as dual-factor authentication is mostly used protection mechanism features. It means the user needs to have a hold of two different authorization keys to enable him to log in to his respective account. Generally, it consists of the password set by the user and the random alphanumeric character. It is mandatory for the user to remember the password, but needs to follow the below-mentioned approaches to get the second code. 

• It can be availed via message of call
• It can be availed via specific applications

The latter approach is considered to be reliable because the code generated by the applications has a shorter life span say 30 seconds. This makes it difficult for the hackers provided your device is at a safe place.

Read Full Article

Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay Espay

What are the risks and liability involved in raising a fund with STO

 

Enter 2018, a terminology was introduced into the cryptocurrency world – STO; Acronym for Security Token Offerings. 

While most people were familiar with ICO but given its number of scam projects that never delivered, STO was brought into the crypto family.

And soon the STO era started that provided far better protection to the blockchain investors and carved the way for mass adoption of the digital economy. Scroll to know about Security Token Offerings in brief.

What is STO?

STO stands for Security Token Offering. It is the alternative to private and venture capital financing for companies across the globe. Security token offerings, popularly known as security tokens, offer a number of financial rights such as equity, vote casting, income shares, profit dividends and access to the investors. A security token performs evenly in functionality and confirms ownership of the tokens via blockchain transactions.

Unlike ICO, STO is the sale of the security token. All in all, STO is a combination of Security and ICO.

What are the key benefits of Security Token Offerings?

Security Token Offerings has unlocked a user- friendly, cost-effective and safe means for the investors to invest in companies, they choose.

With all the discussions around security token offerings, potential investors and buyers have the most obvious question: What makes this STO investment stand out? Let’s take a look at some of the benefits that Security Token Offerings have in store for investors and buyers.

1. Security tokens are programmable

The main benefit of security tokens over conventional financial securities is that they are programmable. This means you can include certain rules within the security token that will apply automatically. These rules can become an effective way to impel ownership and guarantee price stability.

2. 24*7 full liquidity

The current securities can only be traded in working hours on weekdays. It requires a few days before securities are settled. Tokens can be organized using blockchain technology quickly or promptly. It is a significant benefit for investors as compared to traditional investments.

3. Access to the global market

An organization can offer its security to the global market giving it a higher chance of success. Launching an IPO involves a lot of fees to banks and advisors across different sectors. This is not in the case of STO as it lowers the fees to raise funds.

4. Fractional ownership

Fractional ownership is quite complicated when dealing with high-priced assets. Since security tokens allow investors to buy only a fraction of collectibles or arts, people can extend the portfolios without much money.

5. Completely traceable & embedded compliance

Regulatory compliance is key for security tokens. These regulations vary on different factors such as jurisdictions, investor type and asset type. Incorporating them is a bit hassle. But, since security tokens are easily programmable, the regulations can be embedded in the code. This means regulations become rapidly easier and automatic once the system is set up.

Besides, STOs are fully traceable. It is possible to trace a coin, check who owned it and for how long.

What are the main challenges with STOs?

On one side where STO offers a myriad of benefits, there are certain risks and liability involved while raising a fund with STO. One of the biggest challenges that STO platforms face is increased regulation. This places a higher administrative burden as every process will have to be set up for custodianship, exchange approvals, know your customer (KYC), tracking ownership, AML, etc. to ensure they adhere to the relevant securities law.

Though the process of STO is cheaper than IPO, the additional post works turn it more costly and raise the barrier of entry.

Read Full Article