Block DX Review for Canada
To find the best investment package, you can’t chase every offer on the crypto market. Instead, make a shortcut and learn the basic types of cryptocurrency exchanges. It’s easier to find what you want when everything is clear.
- Operating Since 2018
- Cryptocurrencies Supported 100+
- Fees Vary
- Deposit Methods Via crypto wallets
- Fiat Currencies Not directly supported
- Verification Methods Not required
- Margin Trading No
- Futures Trading No
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. It’s common to look for cryptocurrency trading models that preserve the fundamental blockchain/ecosystem principles, such as decentralized crypto exchanges (DEXs).
The thing is that the majority of self-proclaimed decentralized exchange providers aren’t really living up to their name. Although they offer an intermediary-free interface, their core reliance on a central system is what makes them so ineffective.
Block DX is the only truly decentralized exchange platform. We can even learn about decentralization from its features.
About Block DX
Block DX or The Blocknet Decentralized exchange was released at the end 2018 and allows users to trade crypto directly from their wallets. The exchange does not act as an intermediary, broker, or custodian during 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. To automate software operations, the protocol includes three components:
- 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 received on the exchange are donated to the reward fund.
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. Bitcoin (BTC), Litecoin, Bitcoin Cash (BSH), Ripple (XRP), LTC, USDT, Dogecoin(DOGE), and many others are some of the most desirable coins. This means that you can directly sell Bitcoin in exchange for Dogecoin without the need to open and activate different blockchain wallets. Block DX, a decentralized exchange, can execute trades without using proxy tokens or derivatives.
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.
- United States
- United Arab Emirates
- United Kingdom
- Republic of Lithuania
- 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. Order takers must pay a fixed fee, 0.015 BLOCK, when they accept an order. BLOCK is the Block DX native token, which powers the transactions taking place on the Blocknet Protocol. The Block token can be purchased on a handful of decentralized and centralized exchanges such as Binance, Uniswap and Anyswap.
What is a BLOCK token? How do you use it to make your block?
BLOCK, the native token of Blocknet protocol was created in 2012. It has a decent market cap but low trading volume. The BLOCK token is a Proof of Stake-based token that generates one token per block. BLOCK holders have the ability to stake their tokens on the trading platform wallet, regardless of the amount. BLOCK has no limit on supply but uses a monetary-like mechanism to control inflation over 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 also available on many exchanges.
Block DX Features and Products
Block DX is the most decentralized exchange because it offers a software model that meets all requirements for a fully decentralized protocol, including deposits, order matching, broadcasting, settlement and local availability.
The funds you use to execute a trade on Block DX are in your own custody during all stages of the trading process. The decentralized exchanges do not offer an in-exchange storage solution to store your private keys.
Broadcasting and Order Matching
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. The transfer process begins automatically when the taker accepts a maker’s order. It is then broadcast over the inter-chain network. This eliminates any possibility of market manipulation, downtime or artificial ranking of orders.
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 eliminates the need to have a third party validate crypto transactions and allows users to communicate on a peer to peer basis.
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 upon your age, bank solvency, and 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.
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. You can manage all types of assets using a single seed phrase. This can make asset management much easier.
It is easy to use and provides a clear view of your portfolio, coin balances and transaction history.
Is BlockDX Safe to Use?
This service is safer than any other crypto service available. Even financial institutions trust BlockDX. 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.
Crypto exchanges of this caliber don’t feature the familiar pattern of customer support through emails, tickets, chatbots, or open phone lines. They don’t have the staff to handle customer requests at a corporate level.
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. You can only find them on discussion boards and crypto forums, not ZenDesk.
Both the 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.
- There is no registration needed
- Trading pair freedom for all supported digital assets;
- Low fees.
- No customer support;
- Not suitable for absolute beginners.
- Low-liquidity issues.
- Doesn’t support direct credit card and debit card payments
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?
Most decentralized exchanges use the Ethereum blockchain. This means they only support 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.
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. Don’t forget to visit their website for any press release.
The Block DX model may seem complicated at this stage in your crypto career. Instead, you can rely on a familiar trading style and purchase some crypto with USD on Coinbase. For the best crypto exchange in Canada, take a look at this article.
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