Hybrid Exchanges, The Future of Crypto Trading?
Hybrid exchanges, their benefits, and an inside look at one developing team’s model.
For years cryptocurrency has continued to innovate. To not do so would be to consider the
future of finance set in stone instead of the ever-changing malleable volcanic rock that it is.
The first cryptocurrency “trades” were entirely peer to peer. When bitcoin was the only
currency on the scene and crypto exchanges did not exist, the only way to trade bitcoin was
to buy them from someone at an agreed price.
As the cryptosphere matured, introducing new currencies with new applications and listing
them on exchanges, two types of exchanges emerged that overshadowed such peer to peer
Centralised exchanges are platforms such as Binance, where each trade does not allow a
user to hold the private keys but instead moves around information pertaining to ownership
on a corporate server. Some perks provided by this centralisation are things like access to
traditional payment processors, huge amounts of liquidity, and stability through oversight and
Exchanges such as Uniswap or JustSwap are blockchain specific Decentralised
exchanges[DEXs] that allow developers to create new and diverse financial concepts using
blockchain technology, and to trade in a fully decentralised private manner, while holding
ownership of their own assets directly. Each transaction is on the blockchain, and no central
authority regulates trades. The perks of owning, in a true and tangible sense, your
cryptocurrency is obviously more attractive than allowing a central authority to hold it in your
name. But the lack of a central authority means that use of payment processors such as
PayPal and credit cards is just not possible.
Founder and CEO İsmail Köseoğlu, CTO Uğur Özkan and Founder and CFO Mehmet
Köseoğlu form one of many teams developing ByteDex – a Hybrid exchange and their effort
at developing a project in the sector of what many consider to be the future of cryptocurrency
exchanges. Hybrid exchanges[CDEXs] combining the best of both CEXs and DEXs.
Hybrid exchanges will.triumph in the end many believe, a sort of hybrid model that takes
features from both. That fact is not lost on those looking to mark their place in the crypto
The reasons for and search to implement solutions to the shortcomings of the two current
major exchange models are full of obvious benefits, and as such it has become a highly
competitive venture. Whilst the key features proposed as hybrid models will be adopted in a
common sense fashion by most of these projects, standing out is what will make or break a
project. Thus, the race to solve a problem has evolved into a race to innovate alongside, and
also to stand out with a unique approach. The ByteDex team will include the main hybrid
model features which generally aim to create an exchange ecosystem combining the liquidity
and utility of a centralised exchange, a CEX with that of a decentralised exchange, a DEX.
ByteDex will allow fiat purchases as well as crypto purchases, users will transact on the
blockchain and hold their own private keys for each trade, whilst enjoying the flexibility
afforded by fiat liquidity integration and a managing authority connecting ByteDex to
centralised exchanges and decentralised exchange directly with negligible trading fees
known as “gas” coming into play as unplanned expenses.
ByteDex also has a token of the same name and it will serve as it’s native token, providing
users with staking options, rewards program incentives, and a reduced trading fee when
using ByteDex token as a trading pair.
ByteDex token is currently undergoing ICO and has raised well over half a million dollars in
token sales, with over 50,000 users registered on their website prior to the launch of both
their launch and their accompanying wallet. ByteW.
Byte Wallet ByteW
The release of their Byte Wallet – or ByteW – ahead of launching the exchange, is also going
to be a test of their competency, one which the team certainly is unfazed at publicly
undergoing. Byte Wallet will be a next-generation cryptocurrency wallet that will allow users
to hold their own private keys for coins across a variety of blockchains, but also provide
features that are unique to ByteDex and which more importantly leave plenty of room for
expansion of features on the platform. The evolution of crypto is accelerating at such a pace
that any project without ambition and multiple avenues in place to adopt, implement and
develop new ideas will soon be a relic. An old and unadaptable piece of crypto history. After
all, the cryptocurrency ecosystem looks in one direction – forward.
Such a wallet is a powerful addition to the stated goals of the project, which is to create a
hybrid exchange combining the liquidity and utility of a centralised exchange, a CEX with
that of a decentralised exchange, a DEX. All of this while keeping in mind community input,
rewarding participation and versatility.
“Byte Wallet will record every transaction on the blockchain, not on a centralised exchange
server. Although we will have some centralised control over the exchange it will be to
facilitate rather than own the result of a transaction. Transactions happen on the blockchain
and not on our servers.” Says İsmail Köseoğlu, CEO and Founder of ByteDex”.
That’s a decentralised exchange feature provided by a central authority. Certainly a neat
“Our plan is to create our own blockchain eventually, and keep the aspect of cross-chain
To date, ByteDex’s ICO has raised over half a million dollars, and fueled a community that
continues to grow by the day. To learn more about their project, and participate, visit their
website. ByteDex.io has over 50 thousand registered members and provides both a
pre-launch interaction User Interface as well as an organised informational structure
containing a whitepaper, roadmap and FAQ.