Listed below are some of the key questions and answers from the Talking Cryptocurrency Podcast with Jason Rigden. Adam highlights the problems he is currently facing with the futures trading market, as well as, his challenges to develop a commission-free Futures Exchange. For more insight about this exciting and revolutionary new project, tune in to this podcast.
Jason Rigden: Adam, please explain to us what problem you are trying to solve.
Adam Todd: The first problem I want to solve is trading fees. There is a mechanical edge working against traders, which makes it difficult to make a profit on these exchanges, especially for short term trading. Getting rid of fees will completely change the market… it will make it more liquid.
For a lot of people, this new revenue generation model will be life changing… This will allow us to bring crypto futures trading to the masses.
The second problem is the centralized account balances. We want to decentralize account balances, and allow traders to be able to use our exchange in a lifetime trading environment.
Jason Rigden: How are you going to fix this problem?
Adam Todd: The idea of our exchange is that it uses its own native currency, the DGTX token. By having this, account balances will be denominated; therefore you will make and lose in ‘DGTX tokens.’ By doing this, we can eliminate all transaction fees. We are introducing a brand new revenue generation model, which has never been used by an other exchange.
By minting small numbers of DGTX tokens each year, we can allow to swap transaction fees for small inflation. The community of DGTX token holders will be the ones that vote and control new token issuance. Therefore, the growing value of DGTX tokens should over-ride the fractional inflation.
Jason Rigden: Is the exchange being built on an existing blockchain technology?
Adam Todd: Yes, it is being built on the ETH token, ERC223.
Jason Rigden: What are the challenges of solving this problem?
Adam Todd: It’s a hybrid model. It’s also the problem of a decentralized exchange which you trade in a lifetime environment. The ETH blockchain isn’t mature enough for our hybrid model. We’re working on something called Plasma. The environment is similar to the lightning network for Ethereum. Once that comes out, we’ll be one of the first ones to use this. We believe that this is going to help the scaling issue and it will make a massive difference. Although the set back is that we have to wait for the plasma technology to be ready. This should happen sometime in 2019…
The interview continues to go into more depth about the development of the Digitex Futures Exchange. Stay tuned for next week, as Adam will share more insight about the Plasma technology, and how it will be incorporated into the Digitex Futures Exchange.
Thank you for your support! And, thank you Jason for your time and insightful interview with Adam. Cheers!