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Centralized vs Decentralized Crypto Exchanges

Hi everyone, It’s Binh again. I am writing this as the 3rd blog post in the blockchain technology blog series. Please be sure to check my previous posts in the series which are: Exploring The Opportunities Of Blockchain Development and Welcome To Chapter 3.0 Of The Web: The Business Model And User Benefits. After covering the basic concept of Web3, which is still in the conceptualizing phase, I would like to return to the reality of the current solution in the market in this post so that you can have a more practical view of how Web3 should be used and built. What is the most used blockchain solution currently? Of course, most current internet users would say it is a cryptocurrency exchange. Yes, despite the doubt about cryptocurrency’s feasibility and toxic news about highly speculating trading, the cryptocurrency exchange is undoubtedly the most popular blockchain application in the market. Today, I will dig deeper into this application and how it is built as a Web3 application. At the end of this blog, you will have a clearer understanding of the decentralization concept of Web3, especially how it is different from Web2-like centralized solutions. I heard about CEX and DEX, but what are these keywords really about? In the world of cryptocurrency trading, there are two primary types of exchanges: centralized exchanges (CEX) and decentralized exchanges (DEX). While CEXs like Binance and Coinbase have become the go-to for many traders due to their user-friendly interfaces and high liquidity, they also come with significant risks. On the other hand, DEXs like Uniswap and PancakeSwap offer greater security and privacy but at the cost of lower liquidity and a steeper learning curve. Next, I will guide you to explore the key differences between these two types of exchanges and why the rise of DEXs brings us closer to the original vision of a truly decentralized web. You are not holding a real crypto asset while trading in a centralized system like CEXs CEXs are built around a traditional model of finance where a single entity controls the platform, holding custody of users' funds and acting as an intermediary for all transactions. This means you do not have tangible crypto assets if you trade on these platforms. You are just trading a number in your account stored in these apps’ databases. While this model has allowed for the rapid growth and adoption of cryptocurrency trading, it also presents significant risks for traders. If a centralized exchange is hacked, users' funds can be stolen or lost entirely, leaving traders with little to no recourse. The Mt. Gox hack in 2014 serves as a stark reminder of the risks associated with centralized exchanges. At the time, Mt. Gox was the largest Bitcoin exchange in the world, handling over 70% of all Bitcoin transactions. However, it was later revealed that the exchange had been hacked, resulting in the loss of 850,000 bitcoins, worth over $450 million at the time. The hack had a significant impact on the cryptocurrency market, causing the price of Bitcoin to plummet and leading to a loss of trust in centralized exchanges among many investors. Another example of a centralized exchange being vulnerable to hacking and security breaches is the FTX scandal that occurred in July 2021. FTX, one of the largest cryptocurrency exchanges in the world, suffered a data breach that exposed the personal information of thousands of its users. The hackers managed to steal over $8 million worth of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. These incidents highlight the risks of using centralized exchanges, where users' funds and personal data are stored on a single server, making them a prime target for cyber attacks. Once a hacker gains access to the exchange's server, they can easily transfer the funds to their wallets, leaving users with little to no recourse. Decentralized exchanges (DEXs) are different in nature On the other hand, decentralized exchanges (DEXs) operate on a peer-to-peer network without a central authority controlling the exchange of cryptocurrencies. They are built on decentralized blockchain technology, offering users more control over their funds. One of the key benefits of DEXs is that they are not vulnerable to the same types of hacks as centralized exchanges. This is because users retain control of their private keys and are not required to trust a centralized entity to hold their funds. Additionally, DEXs are censorship-resistant, meaning they cannot be shut down or restricted by governments. For example, a popular DEX is Uniswap, built on the Ethereum blockchain and uses smart contracts to facilitate trades. Users maintain control of their funds and trade directly with each other without the need for a centralized intermediary. DEXs are designed to be “more Web3”, but… While decentralized exchanges (DEXs) offer several advantages over centralized exchanges, they are not without their own set of drawbacks. One of the most significant drawbacks of DEXs is their limited liquidity. Unlike centralized exchanges, which often have large trading volumes and order books, DEXs generally have lower liquidity and smaller trading volumes. This can result in higher slippage and less favorable prices for traders. Another disadvantage of DEXs is their complexity. DEXs are built on blockchain technology and require users to interact with smart contracts, which can be confusing for those who are not familiar with the technology. Additionally, DEXs may have a limited range of trading pairs available, making it difficult for traders to access certain cryptocurrencies. Finally, DEXs are not immune to price manipulation. While DEXs are designed to be more resistant to market manipulation than centralized exchanges, it is still possible for bad actors to manipulate prices by using sophisticated trading strategies or by pooling their resources to create artificial demand or supply. This can result in traders suffering losses and undermining the trust in the DEX platform. TL;DR which platform should I choose to trade crypto assets? Liquidity: CEX typically has higher liquidity than DEX due to its larger user base and higher trading volumes. This means that traders on CEX may have access to better prices and faster trade executions.Security: While DEX is generally considered more secure than CEX due to the decentralized nature of the platform, there is still a risk of hacking and security breaches. It is important to note that decentralized does not always mean completely secure, and users should still take appropriate measures to protect their assets.User Experience: CEX often offers a more user-friendly experience with a familiar interface, advanced trading tools, and customer support. DEX, on the other hand, may require users to have a basic understanding of blockchain technology and may have a steeper learning curve for beginners.Regulation: CEX is subject to more regulation and oversight than DEX, which operates in a more decentralized and unregulated environment. Depending on your perspective, this can be seen as a pro or a con.Asset Support: CEX often supports a wider range of assets than DEX, which may have limited token offerings due to technical limitations or lack of demand. Overall, the choice between DEX and CEX depends on individual preferences and risk tolerance. Before deciding where to trade, it is important to carefully consider the pros and cons of each platform. Decentralized exchange is a positive step forward Wow, the article is longer than I expected, but I hope you got a better understanding of DEX and CEX after reading it. Again, the implementation of Web3 is an ongoing process and the development of decentralized exchanges is just one aspect of it. As with any new technology, it will take time to iron out all the kinks and ensure a seamless user experience. However, the potential benefits of a decentralized financial system are too great to ignore. As a leader of a tech company like SupremeTech, I believe that the future of finance and many other industries powered by technology lies in the hands of the users. Decentralized exchanges are a step in the right direction for the future of Web3. We should continue to support and develop these platforms to create a more equitable and transparent financial system for all.

Welcome To Chapter 3.0 Of The Web: The Business Model And User Benefits

Hello everyone! My name is Binh, and I am the CEO of SupremeTech. I am excited to welcome you to the second installment of my blockchain technology blog series. If you haven't read it yet, be sure to check out my first blog post, Exploring the Opportunities of Blockchain Development. Today, I want to talk about Web3, a buzzword that you've probably heard a lot about lately. While it's not a finished product yet, Web3 is an ongoing evolution of the internet that we all play a part in building. So, there is no one right answer to what Web3 is, and everyone has their own definition. In this post, I'll share my perspective on Web3 and why I think it's important for the future of the internet. First thing first, what are web 1.0 and 2.0 by the way? 01.1-911x1024 I used to be a web developer when I started my first company. So for me, the easiest definition of this release versioning sound-like evolution is about how to build and how to use it. Web 1.0, also known as the "read-only web" was the first phase of the internet that emerged in the 1990s. During this phase, the internet was primarily used to display static HTML web pages that were created and controlled by a small number of individuals or organizations. Users could only read or view the content that was presented to them, with no ability to interact or contribute to the content. Web 2.0, also known as the "read-write web" emerged in the early 2000s and transformed the internet into a more dynamic and interactive platform. Web 2.0 introduced social media, user-generated content, and collaboration tools that allowed users to contribute, share, and interact with online content. This trend was empowered by the emergence of JavaScript web frameworks such as React.js, Angular, and Vue.js. This also gave rise to popular websites and platforms such as Facebook, Twitter, YouTube, Wikipedia, and many others. So What is Web3? According to Opensea.io, an emerging NFT marketplace website: Web3 is the name given to the concept of a decentralized internet built on blockchain technology. Web3, in essence, puts control and ownership back in the hands of the people using it. The term Web3 has become shorthand for all of the elements that make up this ecosystem, including cryptocurrency, blockchain technology, decentralized finance (known as "DeFi"), NFTs, the metaverse, and decentralized apps ("dApps"). It can be challenging to pinpoint the exact differences between Web3 and Web2 since there aren't any Web3 equivalents to Facebook or Twitter yet. As a user, I believe it's crucial to keep two main concepts in mind: decentralization and ownership. For instance, my Web3 money will be stored in my personal wallet instead of on a server somewhere. Blockchain technology makes it possible for the internet to keep users' personal data, including asset data, in a highly secure, decentralized, and independent manner that prevents anyone but the user from modifying their data. The business model behind Web3 is what makes me think it is crucial for the future The shift from Web 2.0 to Web 3.0 is not just about technology, it's also about a new business model that prioritizes the users' privacy and data ownership. The traditional business model behind Web 2.0 is built around users' attention and the distribution of ads to fit that attention. This means that big companies provide their users with free services in exchange for their personal data, which is then used to target ads to them. However, as the old saying “no free lunch”, are you still comfortable with trading all of your personal information for free service anymore? In fact, Web 2.0 business model has proven to be problematic, with numerous privacy concerns and data breaches that have occurred in recent years. In addition, the Web 2.0 business model has also contributed to a decrease in the overall quality of content on the internet, as companies focus more on generating clickbait and sensational headlines to attract users' attention and generate ad revenue, rather than providing high-quality, informative content. This has led to a proliferation of fake news and misinformation, as well as a general lack of trust in online content. In contrast to the traditional Web 2.0 business model, the emphasis on user privacy and data ownership in Web 3.0, along with the tokenomic mechanism for value creation, has the potential to incentivize the production of higher-quality content and cultivate a more reliable online environment. By putting users back in control of their personal data and enabling them to profit from their own online activity, Web3 encourages the creation of content that is genuine, transparent, and of actual value to users. This model reduces the incentives for sensationalized or clickbait-style content that is prevalent in the current attention-based advertising model. As a result, Web3 has the potential to lead to a more authentic and trustworthy online environment where users can have greater confidence in the content they encounter. If you're interested in learning more about the ideas I discussed in this blog post, I recommend checking out the following resources that I referred to when writing it: Web 2.0Web 3.0Welcome to internet 3.0The Attention EconomyWhat is MetaMask? Just like other evolutions of the world, all the exciting features of Web 3.0 will not be clearly defined in one day. It is a gradual process that requires a lot of innovation and works to be done. I myself also, as a leader of a tech company like SupremeTech, I am committed to learning more and building more technology for the more meaningful future of the internet. Please talk to us if you share a similar idea. Thank you!

Exploring The Opportunities Of Blockchain Development

Good day everyone! My name is Binh, CEO of SupremeTech. We are an exciting outsourcing development company in Da Nang, which is a coastal city in central Vietnam. I'm super passionate about technology and I've been following the evolution of blockchain for quite some time now. I have to say, it's amazing to see how it's transforming the way we do business and shaping the future. I wanted to write this blog post because I believe that blockchain development is an incredibly important topic for companies like SupremeTech, and for anyone who's interested in staying ahead of the curve in this rapidly changing world. And let me tell you, blockchain development is not just about chain development for cryptocurrency or smart contract development - it's so much more! The development of applications on top of these chains, which can be used by end users, requires time, effort, and specialized skills. There's a whole other side to it that involves creating fantastic applications that bring people into the blockchain world and help drive this technology forward. So, if you're interested in learning more about the exciting world of blockchain and how it's shaping the future, read on! The application development part of blockchain development brings more users to the world of blockchain. The challenge lies in making blockchain technology accessible and easy to use for people who may not have a technical background. By building applications that meet their needs and solve real-world problems, companies can encourage more people to adopt blockchain and explore its benefits. One of the key benefits of blockchain is that it provides a secure and decentralized way to store and transfer information. This makes it ideal for a wide range of applications, from financial transactions and supply chain management to secure data storage and voting systems. The potential uses for blockchain are virtually limitless, and this has driven the growing demand for blockchain development services. What to consider apart from your tokenomics? When it comes to developing blockchain-based applications, there are several factors to consider. Firstly, it is important to understand the specific needs and requirements of each project, as well as the target audience. This will inform the design and development process, and help ensure that the end result meets the needs of the users. Another important aspect of blockchain development is scalability. As more and more users adopt blockchain, it is essential that the underlying technology can handle increased demand and maintain its performance. This requires careful planning and consideration of technical specifications, such as the choice of consensus algorithm and the number of nodes in the network. In addition to these technical considerations, it is also important to consider the legal and regulatory environment. Blockchain technology has the potential to disrupt traditional business models and challenge existing laws and regulations. Companies must be aware of these challenges and take a proactive approach to ensure that their solutions comply with the relevant regulations. Finally, it is worth mentioning that blockchain development is a rapidly evolving field, and companies must stay up to date with the latest developments and trends. This may involve investing in training and development for employees, attending conferences and events, and collaborating with other companies in the industry. What are the opportunities there for SupremeTech? In conclusion, as an outsourcing company, there is a growing demand for blockchain development services. By understanding the challenges and considerations involved in building successful blockchain-based solutions, and by investing in the right skills and expertise, companies can capitalize on this opportunity and help bring more users to the world of blockchain. Whether it is through the development of secure financial transactions, supply chain management systems, or decentralized data storage solutions, the potential for blockchain is immense and the opportunities are endless. SupremeTech Technical team is going to attend BlockchainFest 2023 held in Singapore in February. I am so excited to meet blockchain developers and entrepreneurs all around Asia at this event. Tune in and check out new content and projects from SupremeTech about the blockchain world. And if you already had a brilliant idea, do not forget our contact form! 001_blockchain_fest2023-1

Digital Transformation In Business: Adapt To The Digital Age

The impact of digital tools and technology on modern business activities is, without a doubt, significant. The good news is that there are measures businesses can take to boost rewards and minimize risks. This article will describe digital transformation in business, highlight its advantages, and lay out the process that enterprises must follow to prevent disruption. Let’s get started! What is Digital Business Transformation? The following definition is based on the practical demands placed on corporate executives by their investments in digital tools and technology to boost performance. Therefore, digital business transformation is the use of digital technologies and business models to improve performance inside an organization - organizational change. Both obstacles and possibilities are found in organizational changes, which involve people, processes, strategies, structures, and competitive dynamics. And the value through business change would result in speedier innovation, higher productivity, increased process efficiency, and improved customer experiences. Why does Digital Transformation in businesses matter? The idea of why transform is the beginning point for all digital business transformations. Because the transition is difficult, companies must be clear on the reasons for change. Some industries, in fact, face greater urgent pressures than others. According to research, although over half of respondents in the hotel, retail, and media sectors were concerned about going out of business due to digital disruption in the next five years, a similar percentage for respondents in the utilities and oil and gas sectors was less than 30%. A range of factors can drive digital transformation in business. It might come from customers who are more knowledgeable than ever before. Today's consumers are actively looking for better service, lower pricing, and greater levels of quality. Because the transition is difficult, companies must be clear on the reasons for change. Source: Planview New rivals with quality services, better engagement models, or cheaper costs could also serve as motivation for transformation. There are several examples of companies such as Amazon and Google entering new industries and displacing incumbents. However, internal interruption is also possible. Indeed, 65% of respondents in our poll believed that digital disruption would come from within their industry. Emerging technologies that allow new capabilities may also put pressure on change. If embraced first or absorbed and integrated into novel ways, these new technologies might offer areas of competitive distinction. Difference between Digitization, Digitalization, and Digital Transformation Simply defined, digitization is the process of digitizing information. Information visually perceived or written on paper is coded with 0 and 1 and electronically captured as digital information so that computers may readily process it. Digitization makes data processing easier. It's about the need for "sensing," or data collection. Digitalization is the process of using digital technology to increase the extent of automation in operations. Digitalization entails changing supply chain linkages, enhancing workflows and procedures, and using knowledge and information rather than "simply data." It is discussed in relation to the digital tools and competencies required to achieve operational excellence. Difference between digitization, digitalization, and digital transformation Source: NMSConculsting Beyond digitization, digital transformation involves a thorough shift in a company's business strategy. That organization may launch a single project as part of its digitalization attempt, but a project with the purpose of digital transformation will result in change throughout all departments. Digital transformation is defined as the new application of digital technology to advance corporate strategy. It is about using digital technology to empower people, improve processes, and automate systems in order to drastically realign the organization's business performance. Want to create something new but don't know where to start? ESTIM can assist you in quickly creating a new application. Unlocking the "How" of Digital Business Transformation Step 1: The matters of leaders Because technology is a means to an end, it is all about leaders, leadership, and people. Those executives must comprehend how technology will affect their organizations; how to truly consider a 24x7 link to all of their goods, customers, assets, and people; and how all of this will alter the competitive environment. Leaders will need to create their own vision, convey it internally, beginning with their change agents, and embark on the path. And it is critical to recognize that there is no single approach to digital transformation in business. Step 2: Drive culture transformation by implementing effective change management As the term "Industry 4.0" implies, what is happening in the industry today is nothing short of a revolution. A revolution necessitates a cultural shift throughout the company. This idea of becoming a "digital" firm will inform and transform how a company makes choices, engages consumers, controls its supply chain, innovates, produces, manufactures, and so on. Step 3: Connect customers, products, assets, and people Organizations must comprehend that, unlike in the past, the product they supply to clients will now be connected to their organization 24x7. This will allow them to understand what is happening with that product in terms of which features are being used, how the product is functioning, and much more. Furthermore, enterprises may connect to their customers and their customers' environments 24x7, not just through customer systems but also through social listening or IoT. Connections to all assets in the production environment, from the supply chain to the field, as well as employees themselves, are also required. All of these things are simultaneously connected in some way. Connections to all assets in the production environment, from the supply chain to the field, as well as employees themselves, are also required Source: Tweak Your Biz Step 4: Implement a data culture Connecting all of the above—products, customers, assets, and people—will result in massive volumes of data. As a result, you want a platform, or business station digital solutions, that allows you to securely ingest, aggregate, cleanse, and store data, as well as mesh it with other sources of structured and unstructured data in order to execute analytics on it. The possibility to remove technical dependencies and let data scientists conduct data science will then be available, allowing organizations to gain insights fast and simply. Step 5: Try things and fail fast In the current digital era, experimentation occurs in cycles that are at least monthly, so now is the "learn quickly" or "fail fast" age. Businesses must identify the use case, obtain the data, comprehend its contents, obtain insights and intelligence, learn from it, and act on it. If it doesn't work, go on to the next cycle and the use case. If it functions, learn how to replicate it or improve upon it. Due to the rapid pace of change in the digital age, these experimental, brief cycles of transformation are extremely important. It ultimately comes down to either disrupting or embracing early and staying ahead of the curve. In conclusion Digital transformation in business is a broad term that encompasses a wide range of components that, when put together, define how an organization handles interactions with customers and clients, how it uses internal tools and controls employee interactions, and eventually, how this new digital framework is supported technically. However, the financial aspect isn't the fundamental obstacle for any organization going through a digital transition. The change eventually lowers operating expenses if done correctly. Instead, the cultural transformation will continue to be the primary force behind digital transformation in business, from utilizing new technologies to developing a completely different way of communicating between management and staff. If you are planning to take your business to the next level with the employment of digital transformation in business, don’t hesitate to contact us today. With years in working with clients in different sectors, SupremeTech will understand your specific needs and create the best solution for your own business!