The only gateway to seamless access to cryptocurrencies was to trade them on exchanges. According to recent reports, the cryptocurrency sphere is controlled by over 500 exchanges. These platforms were intended to be channels where traders can buy and sell their digital assets. The centralized exchange was the first to be developed, and a decentralized platform was soon adopted. The irony is that the former became the premise for the success of the latter. This simply means that assets to be traded on decentralized exchanges had to be transferred to centralized ones before they could be traded. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay This procedure does not bode well for traders because their data is exposed and other culminating risks are bound to become a stronghold. Although this scenario is not supported by many traders, centralized exchanges are actually not to blame. The main reason why assets had to be reported to the CEX before trading was because the available decentralized exchanges do not have clearinghouses and margin trading. Continuing with DEX attracts little liquidity because the platform may not scale when transactions are large. Likewise, the costs will be tripled and the only alternative would be to use the next platform: centralized exchanges. These disadvantages and many others, such as wide spreads where it is not possible to provide the required quantity, were part of the reasons for the formulation of bZx. What is bZx? The platform was supposed to be a solution to the overt focus on CEX when its counterpart, decentralized exchanges, could do better if scaled up. It is designed to address existing pain points and cater for matching and settlements in centralized exchanges. It is worth noting here that the platform is not an exchange, even though it may seem so. Instead, bZx is a protocol that has the ability to integrate into platforms that wish to take advantage of the benefits of margin trading. It can be added to the current group of exchanges and relays and in each of these cases there would be token incentives to be issued. Exchanges and relays integrating bZx will be empowered to offer margin trading and lending services to end users. bZx components have amazing features that hope to project the goals of the platform. There's the bZx. Js Library – a library developed in Java script that has the necessary tools to develop smart contracts which would be vital for recreating margin trading features on decentralized exchanges. The bZx smart contract functionality is in tandem with the platform's line of smart contract conceptualizations. The smart contract will liquidate the ERC-20 traded tokens and determine the on-chain margin lending. Finally, there is a web version of the protocol known as the bZx portal. Users who are not in tune with a relay or who do not trade on any exchange can take advantage of the portal to access margin trading. The portal uses the library to reduce margin services to those who need them. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Oracles on exchanges are intended to direct transactions but have downsides such as low throughput had led to bZx Oracle, an oracle to be used on the bZx protocol. It would be transformed into a marketplace where developers can create Oracles to satisfy existing pain points and merchants.