Switcheo, NEO’s First Decentralized Exchange, Lists 19 ERC20 Tokens

Colin Muller

Switcheo, a NEO-based decentralized exchange (DEX) launched earlier in the year, has added 19 popular Ethereum-based ERC20 tokens to its platform forming new trading pairs, the exchange recently announced on its Medium blog.

This news makes good on Switcheo’s earlier announcement that it would begin supporting ERC20 tokens, which CryptoGlobe reported on in September. The Singapore-based exchange now offers 44 exchange pairs in total, paired against NEO, GAS, its native SWTH token, and ETH tokens, according to data from CryptoCompare. The new listings follow on the launch of the inital Ethereum integration, only weeks ago, dubbed Callisto.

Although moving a respectable $2 million worth of daily volume back in April when the DEX first launched, Switcheo is now posting a paltry $82,000 in daily volume, perhaps reflecting the leaner times hitting the cryptoasset industry during 2018. Most of the tokens listed are on the newer/smaller side - but there are a couple of bigger names such as Kyber Network token (KNC), NEO itself, and the fairly new USD Circle (USDC) centralized stablecoin.

Switcheo does not have any know-your-customer (KYC) requirements. A rival ERC20 DEX, IDEX, was recently accused of implementing such policies, although there is apparently no evidence to support this accusation.

DEXs On Notice

The biggest bombshell in the DEX space as of late must be the US Securities and Exchange Commission’s (SEC) prosecution of the creator of one of the oldest Ethereum DEXs, the no-frills EtherDelta exchange. The charge was operating an unregistered securities exchange, as some ERC20 tokens were considered such.

Zachary Coburn, the founder, settled and paid nearly $400,000 in fines to the SEC without admitting guilt, which was received by some as a controversially chilling message to DEXs.

A recent innovation concerning the DEX space is the Wrapped Bitcoin (WBTC) project, which utilizes Kyber Network functionality to join bitcoin and Ethereum tokens in a smart contract so as to allow bitcoin to be traded on Ethereum-powered DEXs.

CryptoGlobe conducted an interview with KNC CEO Loi Luu last month, where he said WBTC would bring the “best of both worlds: bring the most popular cryptocurrency [BTC] to Ethereum and allow it to be programmable….”

Vitalik Buterin Calls Ethereum’s Scalability a ‘Big Bottleneck’

Michael LaVere
  • Vitalik Buterin calls Ethereum's scalability a "big bottleneck" issue. 
  • Proposes a network system that does not require each computer to verify transactions. 

Ethereum co-founder Vitalik Buterin had some interesting words on the state of scalability for ETH, calling it a pressing issue facing the cryptocurrency. 

Ethereum Scalability

In an interview with The Star published on Aug. 19, Buterin said that scalability has become the primary hurdle for organizations interested in using Ethereum’s blockchain, and that the issue has become a “big bottleneck.”

He said, 

Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining.

Buterin proposed an alternative to the vice grip of scale that has plagued most blockchain-based projects, including cryptocurrency. He speculated that the Ethereum’s network should evolve beyond the need to have every computer verify each transaction.

Instead, he believes that a blockchain can remain secure while utilizing a model that has connected computers only verifying a small portion of the transactions on average. 

When asked whether this would compromise the existing security of blockchains, Buterin said, 

There would be a sacrifice but it would be fairly modest.

However, he also said that implementing such a system would reduce scalability costs by “a factor over 100,” for every transaction. 

In addition to scalability, Ethereum’s co-founder also highlighted challenges in usability, posing the rhetorical question, “how do you turn it into something people will use?”