Cross exchange’s Goal of “Decentralize Yourself” Innovation
Along with the development of blockchain technology, the recognition of “decentralization” where there are no intermediaries in organizations and systems is increasing. The gradual flow to “decentralization” is not only cryptocurrencies using blockchain technology but also “exchanges” dealing with cryptocurrency. In this article, I will explain this “decentralization” and “distributed” using various examples.
What does decentralization mean?
“Decentralized” is the state in which there are no masters who have audited the administrator, that is, all interactions, in the organization or system have decision making rights as described above. For example, when exchanging money or goods, an intermediary should exist for banks and supermarkets that you normally use. Borrowing money should be completed only by ourselves and counterparts, but in general it is necessary to go through the “manager/broker,” the bank. Similarly in the case of supermarkets, if purchasing goods can be completed only by themselves and producers, there is no waste with seamless transactions. However, it is not really easy to exchange things directly between you and the other person as in the example above.
Consider, for example, a case where a certain commodity is exchanged directly between you and the other person. If you say that the item you want to exchange is a watch, would you buy a high class watch that is sold by hand for sale on the street? Even if it is exactly what you want, there is no guarantee that the watch is genuine. Similarly, when borrowing money directly from another party, the money may be counterfeit.
In this way, decentralized control has the disadvantage that instead of simplifying the organization and the system itself, the value of the item to be exchanged is not secured and decision making becomes complicated.
So how can we realize “decentralization” in real society? In fact, “blockchain technology” is expected as a method that can realize this concept. As in the example above, in order for an intermediary to intercept the item without being absent, it is necessary to guarantee that the product is genuine and that there is no fraud in place. With blockchain technology, since the accuracy of data is structurally guaranteed by using a distributed type ledger, there is no need for third parties to mediate.
How a distributed ledger works
In a blockchain network, transactions that occur on the network are stored in a single chunk of data called “blocks.” At that time, “hash value” indicating the contents of the block generating the previous time is recorded as well as the record of the transaction in each block.
* This way, the generated blocks are connected and are called a “blockchain” because they are connected like a chain.
If someone tampers with this block and tries to create a fake transaction, the hash value generated from the “block” of the fake will be different, so in order to illegally rewrite the blockchain, all the chains after the illegally changed block must be rewritten. Regardless, this is practically impossible. Ultimately, the purpose of decentralized ledgers and blockchain is to decentralize blocks, ensure reliability of data even if an administrator is absent, and move autonomously.
What is “autonomous decentralization” that CROSS exchanges aims to be
Cross exchange also aims to construct a system that moves with “autonomous decentralization” using this decentralized technology. In the first place, “autonomous decentralization” is a technology developed by Hitachi, Ltd., which allows elements to be decomposed independently of each other to move independently and can flexibly change specifications or add extensions without stopping the system. It is one of the essential technologies in IoT society.
As CROSS exchange introduces this concept, they will be able to respond flexibly to the rapidly changing blockchain technology. Furthermore, by constructing a system of a decentralized exchange without administrators, users can use it with confidence and it will be difficult to hack because the system is decentralized.
Although it is CROSS exchange that carries out a wide range of developments such as automatic trade mining and development of an original wallet, if it is possible to introduce a feature of “autonomous decentralization,” it will evolve into an exchange that other exchanges will not be able to follow!