Exploring different infrastructures will often yield prominent results. Serum positions itself as a protocol that can effectively put an end to “trusted” trading. It is a platform that offers many benefits to push decentralized solutions to a whole new level.
In the cryptocurrency world, there have been dozens of projects who claim they can put an end to centralization. More often than not, those solutions either introduce more hoops to jump through, or attempt to achieve this goal through off-chain transactions. All valiant efforts, but not what this industry needs right now. Serum is a breath of fresh air in this regard. It removes centralization from any project, platform or protocol.
It is a well-known fact that even DeFi solutions introduce centralization. Especially initial projects rely on centralized oracles, which is far from ideal. This situation is changing slowly, but it seems as if everyone is using the same solution. Offering a viable alternative will be crucial, which is what Serum aims to achieve. Succeeding will not be easy, but it’s an intriguing approach.
Interoperability between different blockchains and crypto assets remains a glaring problem. Especially in DeFi, it is all primarily about Ethereum in one way or another. Again, far from an ideal situation under the current circumstances. Cross-chain support is crucial for the cryptocurrency industry, and decentralized finance as well. Serum provides another form of tokenization of Bitcoin, which is one way of addressing this problem.
This will also have an impact on how cryptocurrency trading evolves. Serum claims it can provide decentralized order books which look akin to those of regular exchanges. Combined with automated market making, it can usher in a different era of trading altogether. Again, making it succeed will rely on the community, but the technology appears fairly solid.
Serum and Stablecoins
Although stablecoins are popular, they also pose significant risks. The current iterations of stablecoins are all tied to companies with bank accounts that can be shut down at any given time. Creating a true on-chain stablecoin, and one retaining its pegged value, has been done through SerumUSD.
It is positioned as a decentralized stablecoin without a single point of failure. A welcome addition to the ecosystem, but convincing users may be a different matter.
Vast Speed and Fee Improvements
Centralized exchanges can be both expensive and slow to use. For liquidity providers, this is a very problematic situation. Serum will, according tot he team, allow traders to perform transactions at a much lower cost and with a vast speed improvement. Competing with exchanges and established DEXes will prove worthwhile for all parties involved. This industry needs to keep evolving at all times.
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