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At this point, to achieve blockchain and cryptocurrency's full potential, financial advisors and institutional investors must play more active roles in the industry than they are doing. The recognition of the Legolas exchange continues for its hybrid approach to exchange. And the centralized with a decentralized structure will permit transparency and prevent front running.
With the emergence of a legitimate asset class with cryptocurrency, financial institutions are working on entering this growing market. But in some way, they currently lack the tools to make the enormous investments that remain in line with their security and transparency needs. Thus, to solve the previous problem, the commitment that Legolas hybrid exchanges come with creates trustworthiness. It also commits demonstrably fair and bank-backed premium protocol. Let us have a deep dive into the space of the Legolas hybrid exchange and its functioning.
What is Legolas Hybrid exchange?
Legolas exchange with a novel hybrid protocol is the first viable crypto-exchange platform. It incorporates the decentralized ledger within its proprietary centralized platform. It is to neutralize front-running, ensuring a fair trading environment. Also guarantees the inalterability and temporary transparency of the order book.
Although the emergence of the Legolas project took place in 2017, in the 3rd quarter of 2018, it has launched an innovative cryptocurrency and fiat exchange. In case of security and compliance, the Legolas hybrid Exchange aspires to become the reference for all cryptocurrencies. It offers a premium hybrid exchange that employs the fundamental qualities of decentralized ledger technology of blockchain and the centralized system of traditional banks.
Also, read: Hashgraph Decentralized Ledger vs Blockchain Technology
Read more: Decentralized Crypto Exchange Platform Development
What Shortfalls of Existing Exchanges that bring Legolas hybrid exchange?
There were many crucial flows and limitations present in the existing exchange. And with no alternatives, this forces the community to accept opacity, capped, or slow transactions. It also acquires the risk of catastrophic losses. Thus the investors of institutions who cannot overlook these concerns are locked out of the market and represent trillions of dollars. Here are some of the listings of flows and limitations:-
- Lack of Security, wallet theft, and hack
- Weak login/password authentication
- Unsafe fiat custody
- Laborious large fiat deposits and withdrawals
- Front Running
- Price formation
- Lack of transparency
What Gives Legolas An Advantage Above Other Exchanges?
For the prevention of front running, Legolas has a clever solution. It is with an unethical practice of trading on advanced knowledge. Although it seems like insider trading and to benefit themselves by placing their orders ahead of pending market orders, brokers can rearrange their orders. So, from this practice, the positioning of the Crypto exchanges platform is the best to benefit. And they can buy a quick and secret cryptocurrency for themselves before any large buy order execution. After the order has pushed the price up, sell the crypto at a good profit. For their transaction and the exchange gains a profit, the trader also ends up paying more. Thus the fact that to recruit new investors the hidden order book is the main hindrance.
Read more: Essential Aspects to Consider for Crypto Exchange Platform Development
Also read: Qurrex The Next-Generation exchange with multifunctional Hybrid Architecture
Is the Legolas hybrid Exchange Decentralized, and what blockchain does it use?
The Legolas exchange aims to be a hybrid of both centralized and decentralized technologies. It is a fact that decentralized computing uses a lot of energy. On the other side, the use of centralized can be off-chain to increase transaction speed and cost. The Legolas hybrid exchange uses a decentralized ledger to create transparency. Instead of having a private centralized ledger for all transactions, that will lead to greater trust. Thus anyone's transaction history or account balance anyone can view.
The ledger agnostic is the great idea behind the Legolas hybrid exchange, and integration can be easy with any blockchain. The beta version of Legolas integrates with the Ethereum blockchain development, But, for the live version, the team is looking for the best possible blockchain. Thus a particular system known as the Byzantine Fault Tolerant they are currently researching for.
Read more: Analyzing the Essentials of Decentralized Crypto Exchange Platform
Also, read: What is Blockchain Technology and How Does it work
Conclusion
The goal of Legolas hybrid exchange is big and aims to disrupt the already disruptive crypto space. It provides a level of security and openness not seen still in traditional exchanges. In the initial, it targeted institutional investors. Though, it is only by taking the best part of centralized and decentralized exchanges. And combine them with industry-leading security. Thus, the team of Oodles Crypto exchange experts will always be available to solve all your queries.
