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The market challenges Yellow Network is addressing. |
A monolithic business structure of current crypto exchanges isn't scalable.
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Currently, the cryptocurrency industry is highly fragmented.
There are over 200 notable exchanges and over 6000 cryptocurrencies. Around 100 of them use their own blockchain, making it hard to achieve secure interoperability.
Centralized and decentralized exchanges suffer from low liquidity, spread over dozens of different markets and exchanges that are forced to compete with one another.
Every new blockchain project is adding more to this chaos and significantly slowing down the growth and scaling of the cryptocurrency industry.
Centralized exchanges fully control the assets you deposit on the platform. You have to trust the platform entirely to store your funds securely. Big exchanges take security seriously, especially recently, but it comes at a high cost; we still read news about exchanges being hacked and users' funds being drained by attackers.
Small exchanges prefer to target only a single market by complying with a single regulator and miss out on inter-market financial operations.
Exchange registration in an unregulated country does not protect end-users and is perceived as a risk.
The security aspect requires the full-time focus of a dedicated team. Each of the multiple blockchains supported by the platform needs to be monitored 24/7 to make sure it keeps processing blocks.
Blockchains technologies are not scaling well. The throughput of blockchains is minimal; users may experience network congestion, resulting in high fees, delays in transactions, or even in transactions being entirely dropped.
All on-chain transactions are visible publicly before they are mined in a block. A bot can "front-run" a transaction by setting a higher gas price, while the user's transaction would execute with a worse price than expected or would even be rejected.
It is too complicated and expensive for the end-user to move assets from one staking protocol to another or from one blockchain to another, requiring multiple complex steps and incurring fees.