Decentralized exchanges (DEX) have begun popping up like weeds in 2018. Users have started gravitating to DEX because they adhere to blockchain and crypto ethos and remove the need for a third party to hold funds. However, decentralized exchanges have many limitations - for example, there is not an easy way to trade assets that are created on a blockchain other than Ethereum. However, a new innovation promises a way for decentralized ETH exchanges to trade BTC.
Last week, LQDEX, an inter-blockchain exchange that is still in development, announced a new product called “LQDEX Bridge.”
A Way For Decentralized ETH Exchanges To Trade BTC
LQDEX Bridge is intended to serve as an auxiliary for existing decentralized exchanges, like EtherDelta. LQDEX Bridge enables decentralized exchanges that are specifically trading ERC20 tokens (Radar Relay, Airswap, etc.) to be able to support trading of BTC, LTC and other external blockchain assets.
LQDEX Bridge operates through Collators to stake X amount of the native LQDEX token, LQDX, in order to accept deposits of external cryptocurrencies like Bitcoin and Litecoin. During the alpha release, LQDEX will act as the sole Collators, while focusing on exposing APIs to find other potential Collators.
LQDEX published a detailed explanation of their new product on Medium. The company says LQDEX Bridge is just one component of their exchange, which is due to launch later this year. LQDEX co-founders, Yogesh Srihari and Sergey Nikitin, developed the idea while building the Collator component of their cross-chain exchange. LQDEX Bridge will be independently useful without the LQDEX exchange, as it is intended to be used with existing decentralized exchanges that are built on Ethereum.