There have been various attempts to address the common issues of exchange security, liquidity, and volatility in the crypto market since Bitcoin’s inception over 10 years ago. The way exchanges work and their overall state is one of the main problems on the table still, and it doesn’t look like it’s going to go away anytime soon. At the same time, many companies have managed to make real progress in addressing this, and we’re already seeing some solutions that may very well be the foundation of the market’s future.
Element Zero is a relatively new player in this game, but they’ve already made a great impression on many with their creative approach and the unique way of handling transactions. It’s a new approach to the crypto exchange system, and one that’s showing solid promise already with their live testnet.
How It Works
One of the main issues Element Zero addresses is hot wallets wallets. Both cold and hot wallet approaches have been found to have their flaws over time, and it’s becoming more and more obvious that we need an alternative solution in order to address some of the main security concerns in the field. Element Zero’s response to this is a new system which relies on smart contracts to lock down funds until they are ready to be released.
This means that nobody can access the funds involved in a transaction until they’ve fulfilled the requirements of its corresponding contract. On the other hand, it means that the money is not controlled by the exchange, but rather by the people who’re performing the transaction in the first place. This is a huge step up from the previous systems we’ve seen, which were prone to problems related to exchanges going down or even going rogue.
The Current State of the Market
The way the market works right now relies heavily on exchanges to get the job done. Centralization is the name of the game to a large extent, and it looks like many important players in this field want things to stay that way in the near future. However, this has proven to be unsustainable, and we’re likely going to see a shift away from this trend sooner or later.
Cold wallets have proven to be a good alternative to traditional ones, but they still have their weaknesses, and are not an ideal solution for the long term. On top of that, it’s very likely that people are going to start preferring solutions that don’t rely on wallets at all sooner or later.
Viable for the Future?
This all makes Element Zero a very viable approach for the future of the financial market. As people are moving away from the idea of relying on exchanges and storing their money in wallets, they’re going to start realizing the benefits of systems like the one Element Zero is based on.
In fact, Element Zero has obviously been designed from the ground up with the idea of addressing not only the current problems of the market, but future ones as well. This makes it a very viable system for those who want to know that they are working with something reliable in the long run.
Growing Attention from Exchanges
The viability of Element Zero is easy to see when taking one look at the attitude of exchange platforms towards it. There’s growing attention towards the idea from multiple sides, and it looks like more and more people are jumping on board the trend. It will likely take a while before it reaches proper market coverage, but at this point, there’s no doubt that this is exactly where things are headed.
Which means that those who want to benefit the most in the future should do their best to be among the earliest adopters of Element Zero in their own work. The system stands to change a lot in the market as a whole, and these changes will take some time to adapt to properly. This, in turn, means that companies who make it a point to adopt the new system early on will be the ones that will gain the most as it starts to take a more solid presence in the market. How long it will take until we get to that point is hard to tell, but it’s very likely that we’re closer than most think.