Re:Coinbase acquires decentralized cryptocurrency trading pl...
by joosters on Wednesday May 23, 2018 @05:58PM
(#17138742)
If there's no intermediary, what exactly have Coinbase bought?
Re:Coinbase acquires decentralized cryptocurrency trading pl...
by philfrasty on Wednesday May 23, 2018 @06:10PM
(#17138841)
There is an intermediary in 0x called a relayer (receiving relayer fees) that brings together both buyer and seller through e.g. an exchange UI. Just the transaction itself does not require an intermediary and is therefore not prone to counter party risk (of course if buyer and seller knew each other before they could just skip the relayer).
Re:Coinbase acquires decentralized cryptocurrency trading pl...
by iMuzz on Wednesday May 23, 2018 @06:14PM
(#17138874)
Sorry I was a little unclear in my comment.
There is still an intermediary, they just never touch your funds.
Re:Coinbase acquires decentralized cryptocurrency trading pl...
by cbHXBY1D on Wednesday May 23, 2018 @07:32PM
(#17139449)
Seeing as how Paradex isn't the most popular DEX and Coinbase's ties to 0x, I don't think this is an acquihire. This looks like they are actually going to use Paradex as a relayer.
DEXs are great because you can trade cryptocurrency pairs without trusting an intermediary (think Mt. Gox for why this is needed).
This move shows that Coinbase is serious about building a decentralized trading platform (unless this is just an acquihire which would be very disappointing).
Really exciting news!