On May 23, 2019, NeuronChain released a statement describing a new product built on the mainnet called NeuronEx. NeuronEx was to operate like a marketplace where users can exchange crypto for fiat and vice versa safely. The uncomplicated and straightforward platform envisioned facilitating financial empowerment among its users.
More than one year later, NeuronEx has been officially launched in Tallinn, Estonia. The launch took place on July 15, 2020, and the service is now operating under the license of Estonia. NeuronChain assured users that the main focus of NeuronEx is to “facilitate and simplify all the activities connected to cryptocurrency and make this process as convenient and safe as possible.”
What is NeuronChain?
Blockchain technology is growing in popularity, precisely because of enabling peer-to-peer interactions. Technology has disrupted a great number of industries through the decentralization of activities, but none has been affected more than the financial sector. NeuronChain is one such platform.
According to its white paper, NeuronChain is an “eco-friendly 4th generation blockchain with a native speed of over 100,000 tps on mainnet and the capacity to scale into millions through the use of on- and off-chain scaling options.”
Unlike legacy blockchain platforms such as Bitcoin that leverage Proof-of-Work (PoW) consensus mechanism, NeuronChain merges Delegated Proof of Importance(DPoI) and Transactions as Proof of Stake(TaPoS) consensus mechanisms to create a high-speed platform tailored for the global financial markets.
The hybrid of DPoI and TaPoS achieves feats previously unheard of, especially when discussing the scale of applications that can be built on the mainnet. On the legacy, consensus mechanisms like PoW and Proof-of-Stake (PoS) are energy inefficient, and applications' upscaling is difficult. The scalability problem on the legacy blockchains arises from the fact that blocks on the platforms are limited in frequency and size. NeuronChain avoids the problem by prioritizing the importance of transactions.
NeuronChain has its sights squarely fixed on the financial industry. According to Maksim Beskorovainy, Co-Founder and Chief Blockchain Architect at NeuronChain, their sole purpose is to ensure that “thousands of decentralized smart financial applications to blossom.” And NeuronEx is the first major product built on NeuronChain.
What is NeuronEx?
When introducing NeuronEx to the world, the team behind NeuronChain defined NeuronEx as a bridge between the world of crypto and fiat. NeuronEx has two main functions. First, it provides a marketplace where participants can exchange fiat for crypto and vice versa. Secondly, NeuronEx provides network operability for agents. The exchange is part of the Neurochain payment system with decentralized cards that are controlled by their users, a wallet that allows users to store their tokens safely and trade on the exchange directly from the wallet, and a native token for paying exchange fees at a discount.
A marketplace for cryptocurrency and fiat exchange transactions
NeuronEx has a native coin called NRON that users will earn for every transaction completed. In addition to NRON, participants can exchange BTC, ETH, LTC, XRP, EMC, DASH, and DOGE. And once the Wallet is launched in the middle of August, more coins will be added including EOS, BCH, BSV, EURT, USDT, CNHT, and XAUT.
NeuronEx offers to store the digital assets free of charge. The platform intends to take this storage service a notch higher with the launch of a mobile wallet in mid-August. The wallet will enable the binding of currencies to bank cards to facilitate crypto usage for everyone and enable fast cross-border payments. The Neuron wallet will allow users to directly trade on it. Be able to convert crypto into fiat and vice versa. Additionally, the wallet will offer anonymity and simplified depositing and withdrawal of currencies. Also, users will be able to make everyday purchases with bank cards that are linked to the wallet.
NeuronEx, chief objective is to create its own payment system on the blockchain. Thereby acting as a marketplace where participants can access cross-border transaction services, crypto-cards, mobile wallets, a peer-to-peer crypto exchange, and an API service for partners. Besides, the platform has a native coin that facilitates seamless interactions among parties.
Providing agent network interoperability
Other than enabling the exchange of fiat and cryptocurrency, NeuronEx leverages the NeuronChain network to link up agents and clients. This connection provides sufficient fiat liquidity in the NeuronEx marketplace to facilitate transactions. Why is this important?
Legacy decentralized exchanges (DEXs) have failed to decentralize truly because of the fiat liquidity issue. They have had to rely on financial institutions to provide this essential service, and it has undermined their cardinal objective, which is to decentralize the financial industry. Agent network interoperability makes NeuronEx an actual DEX, which is unprecedented.
What does this mean for DeFi?
The concept of Decentralized Finance (DeFi) has been around for some time now, but it has failed to take off as anticipated. To be sure, the ecosystem holds great promise in increasing the speed of transactions and reducing the burden of costs. However, the inability of DeFi applications to decentralize has been holding the ecosystem back.
Looking at NeuronEx from this angle, one begins to appreciate the opportunity that the platform has created for the growth of DeFi and its leading the way by creating a payment system on its blockchain. Finally, DeFi can begin to solve everyday problems such as enabling seamless and fast cross-border payment, facilitating the safe exchange of crypto and fiat, and more. DEXs are already starting to gain traction, as evidenced by increased monthly DEX volume. In June 2020, the monthly DEX volume clocked $1.52 billion, a historical figure. With NeuronEx’s launch, higher monthly DEX volume in the future is closer to reality.