‌ Block DX Review for Australia

You can’t chase all new offers on the crypto market to find the best investment package. Instead, make a shortcut and learn the basic types of cryptocurrency exchanges. Everything seems easier when you know what you’re looking for.

Since the beginning of the Bitcoin era, centralized crypto exchanges (CEXs) have been the dominant marketplace for trading crypto. This may be against what Satoshi Nakamoto envisioned in the Bitcoin whitepaper, but for some investors, it just feels safer to let a corporate-run platform lead the transaction process.

On the other hand, you may be smitten by the power of decentralization and see cryptocurrencies and stablecoins as the only viable method for achieving it. In that case, it’s normal for you to search for a cryptocurrency trading model that aims to preserve the basic blockchain / ecosystem principles — decentralized crypto exchanges (DEXs).

The thing is that the majority of self-proclaimed decentralized exchange providers aren’t really living up to their name. They do offer an intermediary-free interaction, but at their core, they rely on a centralized system.

About Block DX

Released at the end of 2018, Block DX, or The Blocknet Decentralized Exchange is a blockchain-based project that allows trading crypto directly through users’ wallets. This means that the exchange doesn’t act as an intermediate, broker, or custodian in the trade process.

Block DX is a decentralized app (dApp) built on the Blocknet Protocol, a second-layer blockchain interoperability protocol that enables smooth interaction between different blockchain networks. The protocol incorporates three system components to automate the software operations:

• XBridge — a cross-exchange protocol that employs atomic swaps and ensures trustless communication between two blockchains supported by Blocknet.
• XRouter — a cross-chain interoperability protocol that links the application interface with the blockchain on the TCP/IP networking level. As a part of the Blocknet Protocol, it contributes to achieving sleek interoperability between all participating blockchains with added functionality to connect to off-chain APIs and create blockchain-joined oracles.
• XCloud — a decentralized cloud system that delivers storage and other revenue-generating microservices.

This decentralized architecture enables Block DX to work as an independent desktop program without interference from any centralized establishment. The underlying Blocknet network employs a Proof-of-Stake (PoS) consensus mechanism, which gives full power to the network peers – known as stakeholders or service node operators – to govern, develop, and bring decisions on the future of this open-source protocol.

All fees on the exchange go to the reward fund for those nodes.

Supported Cryptocurrencies / Altcoins and Payment Methods

Because of the open communication between the supported blockchains, Block DX can offer you over 100 tradable crypto assets, with the number continuously rising. Joining the Block DX list is charge-free as long as the asset meets all criteria for Blocknet compatibility.

The best thing is that the exchange doesn’t have any restrictions on creating trading pairs — you can combine all supported coins totaling over 5,000 possible markets. Some of the most attractive coins include Bitcoin (BTC), Litecoin (LTC), Dogecoin (DOGE), Bitcoin Cash (BSH), and many more. This means that you can directly sell Bitcoin in exchange for Dogecoin without the need to open and activate different blockchain wallets. As a typical decentralized exchange, Block DX is able to execute the trade without including derivatives or proxy tokens.

Finally, fiat currency payment system doesn’t fit in such a trading setup — you need to own some crypto and deposit it on your XLite crypto wallet to start trading on Block DX.

Supported Countries

• Germany
• United States
• Netherlands
• Italy
• Singapore
• United Arab Emirates
• France
• United Kingdom
• Georgia
• Canada
• Japan
• Denmark
• Australia
• Republic of Lithuania
• Finland
• India
• Sweden
• China
• Spain
• Republic of Korea

Trading Fees and Limits

The Block DX pricing schedule drastically differs from anything you’ve seen on traditional crypto marketplaces. This may come as a surprise, but this decentralized system doesn’t charge any listing fees or deposit/withdrawal fees apart from the transaction fee set by the native blockchain of the asset being traded. Moreover, BlockDX doesn’t impose any deposit/withdrawal or trading limits on a daily or monthly basis.

When it comes to trading fees, market makers can place orders cost-free as an encouragement for boosting liquidity. On the other hand, order takers need to pay a fixed fee of 0.015 BLOCK the moment they accept the order. BLOCK is the Block DX native token, which powers the transactions taking place on the Blocknet Protocol. You can purchase the Block token on a few centralized and decentralized exchanges like Binance, Uniswap, Anyswap, and Bittrex Global.

What is a BLOCK token and how do you use it?

The native token of Blocknet protocol, the BLOCK token was created in 2012. It uses a Proof of Stake consensus to generate one token per block time. BLOCK holders have the ability to stake their tokens on the trading platform wallet, regardless of the amount. BLOCK does not have a limit on supply, but it uses a monetary-like mechanism for inflation control in the long term.

The token can be used as collateral to pay transaction fees and maintain the Blocknet network. BLOCK uses governance to ensure the Blocknet Network is free from staking incentives and service fees. It is available on many exchanges.

Block DX Features and Products

Block DX calls itself the most decentralized exchange as it delivers a software model that meets all criteria that make a fully decentralized protocol: deposits, order matching and broadcasting, settlement, and local availability.

Deposits

The funds you use to execute a trade on Block DX are in your own custody during all stages of the trading process. Decentralized exchanges don’t offer any in-exchange storage option to keep your private keys on their servers.

Order Matching and Broadcasting

Order placing and order matching are also completely decentralized on BlcokDX. There is no web platform, a physical person, or a company to manage the order book. When the taker accepts the maker’s order, the transfer process starts automatically, and the order is broadcasted over the inter-chain network in real-time. This leaves no room for market manipulation, downtime, and artificial ranking of placed orders.

Settlement

Block DX doesn’t take end-to-end control of the transaction process. Instead, it utilizes a special type of smart contract called atomic swaps that enable instant swaps of two cryptocurrencies running on different blockchains. This removes the need for a third party to validate a crypto transaction allowing users to communicate financially on a peer-to-peer level.

Availability

Centralized exchanges may be more convenient from a user-experience perspective, but they run as a locally regulated company, which can condition your eligibility for using their financial services. These restrictions are based on different factors: age, your bank solvency, and local availability.

On the other hand, Block DX is technically a software program and hence, exempted from anti-money laundering (AML)/CFT liability and KYC checkups. You don’t need to register an account or share your phone number and bank details for verification to start using BlockDX trading services. This helps a lot in preventing scams and hacks.

XLite Wallet

Block DX integrates only with the decentralized XLite wallet. This doesn’t mean that they’re in a “custodian relationship” — XLite is a world-renowned independent multi-wallet with broad blockchain functionality. The thing is that it’s powered by the Blocknet blockchain technology and accommodates cryptocurrencies on par with the exchange. Best of all, you can handle all types of assets with a single seed phrase, which can simplify asset management to a great extent.

The wallet has an intuitive design and gives you a clear insight into your coin balances, portfolio, and transaction history.

Is BlockDX Safe to Use?

It’s safer than any other form of crypto service you can find on the current market. First, your funds don’t go through the exchange’s “hands” at any point in the trading process, so even if hackers get to “hang” on the Block DX code, they won’t be able to compromise your funds.

Second, since no KYC is required, it’s impossible for your personal and bank account information to be virtually manipulated. This crypto trading setup is the core of decentralized finance (DeFi) — you don’t have to implement account-protection measures as there are no accounts to be protected. Finally, the Blocknet protocol has a built-in DoS protection of its decentralized order book.

Customer Support

Crypto exchanges of this caliber don’t feature the familiar pattern of customer support through emails, tickets, chatbots, or open phone lines. Simply, they don’t operate on a corporate level to provide staff that would deal with customers’ requests.

However, the decentralized community is growing bigger and more powerful, and what’s more, it’s willing to help you with everything that stumbles your way on Block DX. The only difference is that you can find them on crypto forums and discussion boards, not on ZenDesk.

Pros and Cons

The freedom of decentralized finance is a perk for many seasoned crypto traders, but it can be a challenge for beginners. That’s why drawing a clear line between the advantages and disadvantages of Block DX can also be a bit tough.

Pros

• No registration required;
• Trading pair freedom for all supported digital assets;
• Low fees.

Cons

• No customer support;
• Unsuitable for absolute beginners;
• Low-liquidity issues.

FAQs

Does Block DX have a mobile app?

No. Block DX is a dApp that runs on a blockchain network. Instead of downloading an app, you pay developers a certain crypto fee to get the smart contract or the original source code.

Can I buy Bitcoin on a decentralized exchange?

The majority of decentralized exchanges are built on the Ethereum blockchain, which means that they support only Ether (ETH), ERC20 tokens, and NFTs. However, there are few cross-chain options similar to Block XP as well as some hybrid digital currency exchanges where you can buy BTC in a wallet-to-wallet manner.

Conclusion

If you believe that the decentralized approach can be your escape from the already established trading practices, there are plenty of exchanges and AMM (automated market makers) protocols that offer no-KYC entrance and less-revealing P2P channels for trading crypto.

However, not many can deliver such a diverse choice of dominant cryptocurrencies under a single umbrella. That’s why we recommend Blockk DX as a perfect solution for a fully decentralized experience.

If the Block DX model sounds difficult to grasp at this point of your crypto career, you should rely on a more familiar trading style and buy some crypto with USD on Coinbase or Kraken.  Actually, just have a look at our best cryptocurrency exchanges in Australia article right here for the best Australian exchanges in the country.

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