Amplify Brokerage, Amplify Exchange, and CryptoPay
What is Amplify Exchange?
Amplify Exchange is a concept that was born to spur the mass adoption of cryptocurrency. Our goal is to bridge the gap between traditional financial markets and blockchain based technologies. To accomplish this, we are building three separate products:Amplify Brokerage, Amplify Exchange, and CryptoPay.Each of these products is a functional powerhouse within its niche; however, when combined, these products become a symbiotic software suite that solves the basic needs of our digital lives: the ability to Connect, Earn, and Spend. These three basic tenants are sometimes disrupted by digital borders raised by companies and corporations across the world. By utilizing a blend of blockchain-technology and other best in breed technologies, the Amplify team will put these necessities back in the hands of the citizens of the world.
The history of the blockchain and cryptocurrency space is a relatively short one; which helps explain why the crypto markets are so fragmented. To date, there are over 500 cryptocurrency exchanges globally, each offering different prices to their customers--this needs to change.
Amplify intends to connect crypto market participants by building a brokerage that routes orders to the top crypto exchanges across the world; this approach means that our customers will get the best price execution across a plethora of exchanges. Even more, between our brokerage and exchange solutions, we plan to target underserved regions of the world and connect new market participants to the industry.
Earn & Grow.
Everyone wants to see their financial portfolio grow; At Amplify, we have a few approaches to aid this initiative. In the brokerage and exchange platforms, our risk management tools will help customers monitor positions, account balances, as well as provide unique insights into their portfolio. In addition, once the hybrid exchange is developed and launched, our AMPX token will allow Amplify users to earn tokens by validating transactions and supporting the decentralized network; this will come in time, but it’s on the forefront of our minds here at Amplify.
In 2017, our company founder, Justin Tabb, revealed part of his broader vision with the announcement of CryptoPay. CryptoPay is a payment gateway for merchants and consumers that allows customers to spend, or receive, digital assets in exchange for goods and services. CryptoPay will allow online vendors to be paid in the currency of their choosing while allowing online shoppers to pay with the money of their choosing--even if it’s a cryptocurrency.
Crypto-to-crypto transactions are only part of the solution needed to deliver a truly game-changing product to the world and our focus groups overwhelming confirmed that thought. To cut down on the volatility--which may be advantageous to traders but may be too speculative for vendors--, CryptoPay would need to offer immediate crypto to fiat resolution--something that has not existed until now. And since there are no third party tools that enabled crypto to fiat resolution, the time for the third product in the product suite--CryptoPay--has arrived.
There are a few different ways that crypto market participants buy, sell, and hold cryptocurrencies, and at Amplify, the first thing we will be offering market participants is the Amplify Brokerage.
There are many immediate advantages that brokerages offer to crypto traders; because of their much more extensive trading networks, brokers can provide better trading prices than relatively shallow exchanges. Furthermore, they offer consumers considerably more reliability for high-volume crypto trades.
In addition, the brokerage creates the technical infrastructure needed for supporting trades in our Distributed Exchange (phase two). That infrastructure–first developed for the brokerage–will be critical to the exchange, serving as the foundation for it to be built on. In fact, by the time we launch the exchange, the brokerage will have provided so much of the necessary architecture that some users might not even notice the switch right away!
There are two main technological models for a cryptocurrency exchange: Distributed and Decentralized.
Distributed Exchanges (CEX) make up the majority of the space. Distributed exchanges use a single access point website through a URL within your browser; on a distributed exchange, all funds are deposited into a wallet or small series of wallets which are fully owned and controlled by the cryptocurrency exchange. Similar to the way your bank account makes up a small part of what is held within that bank, your cryptocurrency trading account makes up a small amount of what is held on that exchange. The record of ownership points to individual account balances and is held within some form of a relational database that interacts with the website upon your login.
The benefits of this approach are the reduction of transaction fees since only deposits and withdrawals occur “on chain.” When you execute a trade, no coins or tokens physically move from one wallet to another; therefore, the process happens quickly. However, this single access point is subject to censorship by governments (or corporations) and subjects customers to a higher probability of malicious attacks resulting in loss of access or worse, the loss of funds.
Decentralized Exchanges are the alternative approach to distributed exchanges. DEX’s are a lot more flexible since they are fully-decentralized and run through a series of nodes. In this model, all transactions occur “on chain” so deposits, withdrawals, and even trades are subject to long wait times due to the number of confirmations needed to (officially) complete a transaction, this also means that there are much higher transaction fees since each transaction is subject to a network’s gas and transaction fees.
Our long-term solution is to migrate from a distributed exchange to a hybrid exchange, taking features of the best of both the distributed and decentralized models. We will accomplish this through what we like to call: The Amplify Bridgechain, a new, best-in-breed, solution that utilizes proprietary blockchain technology and will serve as a blockchain-based digital ledger that mirrors everything that happens within Amplify Distributed. Doing so allows decentralized clients to have access to the same trading liquidity as the distributed exchange and promotes fast, secure, and cost-effective transactions.