What Is AirSwap (AST)? Should I Invest in AirSwap (AST)?
What is AirSwap (AST)? AirSwap is a decentralized exchange platform that implements the Swap protocol, a peer-to-peer protocol for trading Ethereum-based (ERC20) tokens. The AirSwap Token (AST) will be a fundamental part of the AirSwap Platform. Should you invest in AirSwap for long-term profits? Read on and find out.
Disclaimer: This article should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.
What Is AirSwap (AST)?
If you are long in the crypto space, you may be aware of the lack of liquidity for many cryptocurrencies and they don’t get the chance to be listed on centralized exchanges such as Binance, Poloniex, and Bitfinex.
AirSwap project recognizes the problems that ICO investors are facing – not be able to trade tokens in the absence of such tokens in centralized exchanges. Other than that, centralized exchanges run the risk of being shut down and coins being frozen or stolen.
Early January 2018, Japanese cryptocurrency exchange, Coincheck loses more than $500 million to hackers. Decentralized exchanges such as Kyber Network, AirSwap or 0x, on the other hand, employ smart contract technology, allowing users to bypass storing tokens on a central server that is susceptible to hacks.
That simply means AirSwap also does not hold user’s coins in hot wallet, which is more susceptible to hacking.
Airswap is a decentralized exchange project designed with security and privacy as its main features. Airswap is based on off-chain negotiation and on-chain settlement mechanisms. It aims to provide a peer-to-peer trading platform that does not impose trading fees and intermediaries.
It uses smart contracts on the Ethereum blockchain to pair up buyers and sellers automatically, eliminating the need for a central authority to match trades.
How AirSwap Works?
AirSwap uses atomic swaps on the block-chain with zero counterparty risk. Airswap introduced Swap protocol to facilitate p2p trading of tokens. These protocols are intended to become a foundation for the asset trading ecosystem and to accelerate Ethereum ecosystem growth.
The AirSwap exchange index is public and traders can browse it for free, but they will need AirSwap tokens (AST) to signal their “intent to trade” to the exchange index.
After signaling intent, a certain amount of AST will be locked for a set period of time. AST also give traders voting power to manage certain conditions within the trading platform, such as the amount of AST that must be locked when posting a trade request in the index.
As the AirSwap project facilitates the use of an ‘Indexer’ instead of order books and quotes via an off-chain P2P network. This process is a strong solution to privacy, speed, and efficiency.
What’s AirSwap Potential
The problem that AirSwap is trying to solve really is a gaping hole in the cryptocurrency community.
It is without a doubt obvious the ERC20 market is growing at rapid speed and there continues to be more demand to exchange one token out for another. As utility tokens continue to demand their own token this will continue to increase. Thus, there needs to be a way to exchange these tokens in a manner that doesn’t involve a third party which can be shut down based on local legislation.
Because Swap is an open protocol, AIRSWAP will be able to support many permutations of peer-to-peer transactions, such as storefronts, marketplaces, and auctions.