The J.R.R. Tolkien novel series, The Lord of the Rings, tracks the journey of the Ring of Power from Hobbitown to Mordor where it is destroyed. In Tolkien’s magical world, rings possess different powers, and the one great ring rules them all. In a similar way, Legolas exchange is seeking to create one exchange that solves the problems facing currency exchanges now.
Current exchanges are not friendly to institutional traders. Most exchanges that allow for fiat currency transactions have maximum trade caps per 24 hour period ranging from a few thousand to a few tens of thousands of dollars. However, institutional traders may wish to trade far larger sums, and are unable to do so based on the caps.
Further, buying and selling cryptocurrencies with fiat currency can be wildly complex and tedious. Try buying the new renamed digital currency NEO directly with USD. You’ll find that you have to visit and subscribe to a minimum of three different sites, and have excellent knowledge of both Bitcoin and cryptocurrencies in general, to make the purchase.
Plus, different exchanges trade different cryptocurrencies, and generally require users to maintain wallets on their sites in order to trade. In other words, to manage a full portfolio of cryptocurrencies, one user may have countless wallets, exchange addresses, and logins, and in each wallet, as transfers occur, the dust of the transaction is left, costing the consumer.
Exchanges that allow fiat-to-crypto transactions generally charge extremely high prices. Recently, fees for coin sales on Coinbase exceeding $10 per transaction. What’s more, security is a major issue. Customers from exchanges like Coinbase, MtGox, and Bitfinex have all suffered substantial losses from hacking, whether internally or personally. And the more hacking occurs, the greater the impact to prices, as risk-averse investors move out of the marketplace.
Legolas Exchange Seeks to Solve Issues
The new exchange offering from Legolas is creating a system that will allow users to not only exchange their cryptocurrencies, but to do so with fiat currencies and cross-chain transactions as well. Further, the system is designed to increase transparency and greatly reduce risk of hacking for consumers. Finally, the exchange will embrace institutional-scale trades.
The simplification of exchanges has been a great need in the cryptocurrency world. The Legolas platform simplifies transactions by allowing users to effect trades in the three most common ways.
The benefits are clear. Users can trade fiat for coins, and trade across coin platforms, as well as within existing platforms, and all within a single exchange base. This means that a single user can have access to multiple cryptocurrencies within a single platform, and for substantially less fees than traditional accounts.
Legolas also solves security and transparency issues by logging all transactions on a block chain. The parallel blockchain-based hash log prevents the company from changing order positions or front-running transactions for company profit. Security remains stable, with the blockchain as the support mechanism for stability, while functioning within a centralized exchange structure. Thus transactions are safely encoded in the chain, while security is managed by the centralized hub.
Finally, Legolas has partnered with BanQix, the Luxembourg-based bank, in order to facilitate extremely rapid through-put and institutional-scale transactions. Thus, transactions can be of any size, backed by centralized banking, and forever engraved on the blockchain for security purposes.
All told, the Legolas exchange creates a platform more reminiscent of a traditional bank model but with all the benefits of cryptocurrency exchanges. Users are safe, and transactions are clear, traceable, and flexible.
The crypto-exchange world is ripe for change, and the Legolas system may just be the one exchange to rule them all.
Last modified: May 21, 2020 9:16 AM UTC