According to experts, smart contracts on the Blockchain will eventually create Blockchain-based exchanges if the issues of trust, security and liquidity can be overcome. One major aspect of the Blockchain that emphasises its disruptive nature is decentralisation. Transactions on the Blockchain are usually based on automatic execution once the underlying conditions are met. This can be explained by the creation of smart contracts, which eliminates the element of human interference once the process is started.
Within the Bitcoin world and the Cryptocurrency ecosystem in general, transactions between crypto users and exchanges is still characterised by human interference, thereby creating room for the need for trust or panic as the case may be.
Cointelegraph asked experts how possible it would be to have exchanges launched on Blockchain platforms, having transactions probably run by smart contracts. Security is a major issue
Thomas McAlister of AAA Blockchains Ltd says that there are multiple examples of Blockchain technologies facilitating all types of value already in existence. He adds that fundamentally, this is a different issue.
McAlister says: “Even before a viability consensus has been reached based on fairly general economic conditions for it to be profitable, the greatest issue is security. We have already seen millions of dollars of value stolen from participants of these exchanges over the past few years within the crypto world for which many of these exchanges were shut down”. He also points out that already there is a huge demand for "BANKCOIN", indicated by the fact that AAA Blockchain Ltd is based out of Belize due to the fact that:
> They own 100% of the network.
They can insure its value.
It is a banking crypto commodity which was accepted in United States. Their banking commodity product is patented and is represented by patented attorneys Greenburg Traurig in America. Battle […]
