Augur & 0x Protocol Supported Betting Exchange Releases Alpha Version

The alpha testnet version of the BlitzPredict exchange has been launched and its mainnet is expected to go live in the “coming months.”

The latest release of the BlitzPredict software is an Ethereum-based peer-to-peer (P2P) “betting exchange“ that utilizes the 0x protocol (a widely adopted specification for building decentralized exchanges on Ethereum) and Augur (REP).

Exchange Operates Like Traditional Stock Market

As detailed in an official blog post published by BlitzPredict’s management, the decentralized exchange (DEX) works in a manner that is “similar to how a stock market order book features buy and sell orders.”

For example, the BlitzPredict exchange “allows ... users to either post a bet they would like to make [on various sporting events including NBA and MLB games], or take the other side of an already posted bet.” BlitzPredict’s blog post further notes: “Whenever two people want opposite sides of a bet, a match gets made, each person’s ETH goes into the Augur smart contract, and the bettors receive tokenized ERC-20 shares representing their selected outcome in the event.”

Built-In Support For MetaMask

Tokens held by users are “immediately liquid and transferrable, allowing for pre and in-game trading.” BlitzPredict blog further notes that they have added a “holdings page where [users] can view [their] open orders (orders not yet matched), matched orders, and potential winnings.”

“[They] can use [the platform’s built-in] retraction tool to remove any unmatched orders from the order book if [they] want,” the blog explains. Notably, there’s also a built-in user interface (UI) for MetaMask, a browser that lets users access a new type of “distributed web” and run Ethereum-based dApps directly from their browser, without operating a full-node.

As mentioned in BlitzPredict’s blog, an important design consideration for the development team has been “infrastructure” and rigorous testing. According to the developers, “the infrastructure [they] have built and are continuing to build will allow [them] to scale rapidly and prepare for mass adoption.”

Native XBP Token To "Provide Additional Functionality"

BlitzPredict’s P2P exchange also has a native token, called XBP, which will reportedly be used for “staking and burning mechanisms.” This will help “provide additional functionality” to the platform’s users in a manner that’s similar to utility tokens on other exchanges.

The XBP token can also be used in tournaments mode (to be launched later this year), which will include survivor tournaments. In order to participate in these, users will be required to “stake XBP” - in order to “gain entry — escrow a certain amount of XBP for a certain period of time to enter.” Users may also earn ETH and “other prizes and [they] will receive their XBP back once the staking period expires,” the blog explains.

Sub-accounts in Crypto: What They Are and How They Work

 

Julia Gerstein, a crypto trading bots enthusiast and a content writer at TradeSanta. My final goal is to help readers find what they need, understand what they find, and use what they understand appropriately.


Speaking generally, a sub-account is a segregated smaller account that is tied to a larger primary account. Sub-accounts may serve different functions depending on the objectives of their owners. The term can refer to multiple email addresses linked to one user or secondary accounts tied to a primary account with a financial institution or a bank.

For this article, we will be looking at sub-accounts as they exist in the crypto industry, and specifically on trading platforms.

Built-in Sub-Accounts

On trading platforms, the sub-accounts feature allows users to create a set of subsidiary accounts with different trading strategies, funds and end customers. On some platforms, general accounts already come with built-in sub-accounts.

For example, exchange platform Crypto Facilities provides each user with cash and margin accounts when they sign up. While deposits and withdrawals are completed with the cash account, trading an instrument requires users to make an internal transfer from a cash account to their margin account that corresponds to the instrument in question.

Each instrument has its own margin account. This grants users more control over their funds and allows them to manage risks for each instrument separately from their main balance.

Optional Sub-Accounts

Other cryptocurrency exchanges, such as Gemini and Binance, have launched sub-accounts as an optional feature for institutional investors.

As an optional feature, sub-accounts can serve to introduce additional security measures and different access levels between the main account and its subsidiaries. Binance has underlined the differences between a master account and its subsidiaries, providing the former with the exclusive ability to view all data and balances, transfer funds between accounts, and have full managerial control and access to a range of asset audit tools.

Here master accounts have sole control over the movement of assets between sub-accounts, and can grant each of them different access levels and permissions. This ensures that the main account has the power to direct and monitor the actions of all its associated accounts, while each sub-account can perform its function independently from other sub-accounts.

Not Only for Institutional Investors

While institutional investors have been able to create sub-accounts for a while, this feature is still being introduced by more and more major exchanges.

Now even individual investors can create subsidiary accounts to try and assess the performance of distinct trading strategies. For example, HitBTC recently introduced its own sub-accounts feature that is now available per user’s request.

At HitBTC, sub-accounts enable users to create separate subsidiary accounts with which they can utilize various trading styles and strategies with operational autonomy. While each sub-account is separate, all of them are still tied to a master account and contribute to the cumulative volume of all accounts connected to the master.

Because trading volume is measured cumulatively, the use of the subaccounts feature can open up additional benefits for traders such as lower commissions due to progressive fee tiers that reward users for contributing to the liquidity on the trading platform.

Therefore, users can perform a variety of different trading activities unconnected to each other, and all the activities will still weigh in the financial favor of the parties involved. Master accounts also have access to important data such as the performance of each sub-account and total trading fees of all linked accounts combined. While the feature is designed with institutional and corporate clients in mind, on HitBTC any user can create sub-accounts upon request.

The adoption of this feature by more and more trading platforms will be beneficial for both institutional and individual traders. Some users can utilize it to execute different trading strategies or try various algorithms with a clear picture of their effectiveness, others to manage their team and analyze the performance of each account securely and conveniently.

Featured image by Tyler Franta on Unsplash