The Functions of Blockchain Wallets (Part 2)

Assets Trading

The current wallet supports three types of digital asset transactions: token swap, token exchange, and OTC.

Token Swap

Assets on different blockchains can be exchanged by Token Swap. For example, you can exchange your BTC (Bitcoin) into EOS.

Usually trades happen on basic trading pair. like A to C,first is trade A to B by basic trading pair and then B to C. Token Swap can help to trade from A to C directly.

Token Exchange

Nowadays there are three types of exchanges :centralized exchanges, decentralized exchanges and mixed exchanges. The centralized exchanges include Huobi, Binance, OKEX, etc. The decentralized exchanges include IDEX ( available on ETH), NewDex, Whale Exchange, and DEXEOS (available on EOS).

First of all, we need to understand the process of trading. Generally speaking, users must first securely deposit assets in a certain place. Once there is a demand for trading, they will issue trading instructions. At this time, a place with sufficient liquidity is required for users to conduct match. After a suitable match is found, buyers and sellers enter into a transaction in a secure environment. At this time, certain restrictions need to be imposed objectively to prevent one party from cheating or bounced check. Finally, when the transaction is completed, the two parties settle the transaction.
The biggest difference between the two is that the centralized exchange requires us to deposit the currency in the exchange account, while the decentralized exchange deposits the currency to our own wallet. This greatly reduces the risk of loss of users’ assets due to theft or running of the exchange. Through smart contracts, while improving transparency, it also greatly reduces the reliance on central media.

Mixed Exchange

Mixed exchanges can aggregate all exchanges into a single exchange platform, which allowing users to cross-platform anytime without downloading many apps. Aggregation exchanges share the quoted depth and pair trading of other exchanges. For example, every time you buy or sell bitcoin in the mixed exchange, you can choose the best one with cost effective price from different exchanges.

Decentralized wallets nowadays can support decentralized exchanges, and some of them support aggregated exchanges.

OTC

OTC (Over The Counter) is a peer-to-peer transaction which is guaranteed by a third party outside the exchange. OTC in the blockchain usually refers to the one-to-one transaction of fiat money and digital currency between OTC users.Currently,the largest OTC mainly based on exchanges, but some wallets also connected to the services of third-party channels.

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