In order to see how Dimensions Network compares to other exchanges, one must first identify the competitors, and establish their strengths and challenges. The cryptocurrency exchange market is competitive, but it is clear that there is sufficient space for new entrants like Dimensions. The reasons being:
1. External factors: the crypto community is growing exponentially and existing platforms are not able to keep up; a massively scalable platform is needed.
Within the standard coin pair trading market, an explosive growth of users has led to scaling problems on major exchanges. Popular exchanges are known to become unavailable during times of peak price volatility as their services become overloaded by users. This lack of system availability is frustrating for users and presents some users with large losses due to the lack of availability of the trading platform at key times. The fiat markets have developed technical solutions to deal with large trading volumes, and Dimensions is using these lessons and methodologies to build the platform from the ground up to meet the market demand.
2. Internal features: introduction of the ELA to share liquidity with established exchanges and seamless fiat currency integration.
With the introduction of the ELA (Exchange Liquidity Aggregator) into the market, Dimensions’ aim is to co-exist and partner with well-established exchanges in order to share liquidity and contribute to the ecosystem. Click here to read more about the Dimension ELA.
Few exchanges have managed to effectively offer its users an effective way to transact in fiat currencies such as USD, GBP and EUR. Dimensions is actively pursuing and working towards global banking licenses in order that our users can buy or sell at ease using fiat currencies.
3. The lack of comprehensive advance trading instruments: Derivative trading.
Derivatives are advanced trading instruments that hold many benefits to traders and investors such as utilizing leverage and hedging positions. As investor sophistication is continuing to grow in the expanding crypto market, one can expect the appetite for more advanced trading options to increase. There is unmet demand for derivative trading options and not many exchanges are providing this tool for its users. There is potential for the derivative trading market to develop and Dimensions aims to launch these advanced trading features for its users in the second half of 2018.
Entry into the Cryptocurrency Exchange Market:
The majority of existing cryptocurrency trading is largely coming from coin pairs, and it has become the core business for most exchanges. Dimensions is following this proven route to establish a strong position in the market, and will open up the advanced trading market to retail and institutional users. To give our community a clear view on where we are and where we are heading, a comparison with Dimensions against major exchanges is desirable.
The below comparison chart helps to illustrate the features available on a variety of top exchanges, and shows where Dimensions positions itself in the market.
In light of the above the team has identified four exchanges that can be viewed as competitors, and classified them according to their strengths or similarities:
- Binance – Industry benchmark
- Bitfinex – Margin trading and shorting
- Idex – Leading decentralised exchange
- Kucoin – Similar 15% transaction fee share
Dimensions Network comparison chart:
• Regular trading – Trading coin/token pairs such as BTC/ETH or ETH/USDT
• Derivatives trading – Trading advanced instrument like options and futures.
• Margin Trading – Trading on a fraction of capital by utilizing leverage to long or short the market.
• Decentralised Component – Trust-less, peer to peer digital asset exchange.
• Fiat Funding – Deposit and withdraw fiat (USD, GBP, EUR etc) currencies.
• Exchange Aggregator – Buying or selling on other exchanges from a single exchange.
• Token Reward – The benefit that token holders receive for holding the token.
• Scalability – Trades per second, user and exchange traffic capacity.
It is apparent that the existing cryptocurrency exchanges are facing some challenges with regards to scalability, on boarding new users during peak times and funding accounts with fiat currencies. Dimensions, inspired by the fiat and global markets, is looking to solve these problems by building the exchange from the ground up for scalability and advanced features. The team believes that with a feature rich, high performance and scalable exchange, offering all the popular coin trading pairs, the platform can rapidly grow and compete with the established exchanges.