Block DX Review 2021
Cryptocurrency trading has evolved into a mainstream investment practice but the irony is that its mass availability is powered by centralized corporations, which is at odds with one of the main blockchain principles—decentralization.
That is to say, when Satoshi Nakamoto presented the idea of Bitcoin back in 2009, he heralded a new wave of a trustless payment system, exempted from interference from any third-party financial institutions. Contrarily, the largest marketplace for buying and selling crypto assets today are the centralized crypto exchanges (CEXs) that differ in no aspect from banks and traditional e-commerce vendors.
The reason why people are turning to CEXs is very simple—average consumers feel insecure to rely on themselves during the purchasing process. However, the number of digitally literate crypto enthusiasts is on the rise, which is the reason for the rapid development of decentralized crypto exchanges (DEXs). DEXs operate on a P2P (peer-to-peer) protocol as trustless, immutable, and non-custodial platforms for crypto swaps.
So, stay tuned, the exchange on our today’s menu—Block DX—is one of the most decentralized destinations in the crypto ecosystem.
Let’s see what exactly qualifies Block DX for this title.
What Is Block DX?
Powered by the Blocknet Protocol, Block Dx is a fully decentralized desktop platform that enables users to trade cryptocurrency without serving as a third-party intermediary during the trade. There are four components that define a decentralized exchange and Block DX has them all:
Your assets are always your responsibility during the entire trade process. A DEX doesn’t provide any form of a built-in crypto wallet that keeps the private keys to your assets in its possession.
- Order matching
Order matching on Block DX is done locally. Once the order is placed, the exchange automatically starts interacting with the user’s matching party through a P2P to execute the trade.
- Order broadcasting
The exchange doesn’t use a central order book, which leaves no room for its modification or intransparent rank listing of the existing orders.
The exchange doesn’t facilitate the transaction process. Instead, it employs an atomic swap (a type of automated smart contract)—a self-triggered mechanism that eliminates the need for a third-party body to validate the transaction during the direct exchange of coins or tokens.
Furthermore, with a decentralized exchange like Block DX, you won’t have any concerns regarding local availability—your access won’t be territorially conditioned as the exchange doesn’t function as a government-ruled legal entity that can be banned due to local restrictions towards cryptocurrency trading.
On top of this, Block DX is a fully anonymous cryptocurrency exchange. It doesn’t require any form of registration, AML/KYC compliance, or email confirmation.
Main Features of the Blocknet Protocol
Block DX works on top of the Blocknet Protocol that supports exchange and interaction between both public and private blockchains, with a possibility for off-chain API integration and oracle services. Due to this protocol, Block DX can offer a unique set of advantages deliverable to end-users.
Block DX utilizes the XBridge Protocol to guarantee transparent trades irrespective of the credibility of both trading parties. On top of that, Block DX has released a new 1.7.0 version that has improved the platform’s downtime difficulties.
More importantly, XBridge is compatible with another Blocknet product—XRouter—a blockchain interoperability protocol that allows users to communicate with any other blockchain on a decentralized cross-chain level. Accordingly, they can directly trade Bitcoin (BTC) and Ethereum (ETH) without being required to open multiple blockchain wallets. Just like any other decentralized exchange, the trade on Block DX can be executed without the assistance of proxy tokens or derivatives.
The Blocknet protocol operates as fully independent software without any authority or corporation behind it. As a typical Proof of Stake consensus protocol, it consists of so-called “stakeholders” that make all necessary decisions concerning the protocol’s future development and technical improvements. Last but not least, Blocknet is an open-source protocol that supports new projects and offers shared liquidity and order books to all newly joined users.
The cross-chain model allows Block DX to support a decent selection of over 100 different altcoins but even more intriguing is the fact that users have full freedom in combining trading pairs. The list of Block DX includes the most commonly traded altcoins like Litecoin (LTC) and Dogecoin (DOGE), as well as less popular but promising projects. That said, they can trade any desired coin against another listed on the platform.
Block DX incurs much lower trading fees compared to other centralized or decentralized exchanges levitating around the crypto space. The exchange charges no withdrawal fees or listing fees as trades are executed directly from your crypto wallet. Finally, Block DX doesn’t impose any withdrawal or trading limits on a daily/weekly basis.
Unlike centralized exchanges that make their main earnings from trading fees, on Block DX, the entire amount the exchange gathers from trading fees is distributed to its network peers known as Service Node Operators.
Is Block DX Secure?
Not sharing sensitive personal and bank information not only spares you some extra time on account validation but also prevents all possibilities of fraudulent information breaches. Even though centralized exchanges have considerably tightened their security standards, they’re an inexhaustible target for shrewd cybercriminals.
Note that Block DX comes with an integrated DoS protection and verification of your order book.
Frequently Asked Questions
What’s a BLOCK token?
The BLOCK token is the native token of the Blocknet protocol developed back in 2012. The protocol utilizes a Proof of Stake (PoS) consensus and generates one token per minute block time. BLOCK holders can stake their tokens in the platform wallet regardless of the amount. Unlike Bitcoin, BLOCK has no limited supply but it does use a monetary-like mechanism to control inflation in the long run.
The token is used as collateral for transaction fees and maintenance on the Blocknet network. Apart from service fees and staking incentives, BLOCK also makes use of governance on the Blocknet Network. Certainly, it’s available for purchase and sale on multiple exchanges out there.
Does Block DX provide a crypto wallet?
When it comes to digital asset storage, Block DX provides a fully trustless solution for direct wallet trading. In order to start using the exchange, you’ll first need to download a Blocknet wallet. Currently, Block DX integrates exclusively with XLite Wallet—a lite multi-wallet that supports multiple blockchain networks and provides well-organized management with over 100 cryptocurrencies.
All you have to do is download the available versions of the preferred digital assets. The XLite Wallet is exceptionally intuitive, delivering a user-friendly environment for easy navigation through your asset balance, portfolio, and transaction history. As was the case with the exchange platform, you don’t need to go under an ID verification or set up an account before using it.
A Few Words Before You Go…
If you believe that a trustless and direct P2P trading approach best suits your trading style, then look no further than Block DX. It’s the ultimate alternative for decentralized crypto experience, providing a highly professional yet comprehensive environment for crypto traders of all walks of life.
However, if you think that you’ll still need institutional backup and more familiar grounds for making your first crypto purchase, then it’d be much better to rely on an entry-level crypto brokerage service like Swyftx or CoinSpot.