From $0.003 USD in March 2010 to $9337.74 USD in February 2018. This is of course, the price-value of 1 BTC (Bitcoin) in US Dollars. Bitcoin which started in 2009, is a cryptocurrency, a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities.
The Bitcoin network came into existence with the release of the first open source bitcoin client and the issuance of the first bitcoins, with Satoshi Nakamoto mining the first block of bitcoins ever (known as the genesis block), which had a reward of 50 Bitcoins even when it had nosignificant price-value. A lot of investors and traders from numerous parts of the world have since then, found it profitable and comfortable to participate in the economy of this currency. Cryptocurrency, which started with the introduction of Bitcoin, has now led to the presence of over 1500 crypto-based coins in the world. This technology (Cryptography) which works with a transparent ledger system, known as Blockchain has made its marketplace a convenient one for everyone.
Blockchains have been revolutionary by allowing anyone to own and transfer assets across an open financial network without the need for a trusted third party. Now that there are hundreds of blockchain-based assets, and more being added every month, the need to exchange these assets is compounding.
With the advent of smart contracts, it is possible for two or more parties to exchange blockchain assets without the need for a trusted third party.Decentralized exchange is an important progression from the ecosystem of centralized exchanges for afew key reasons: decentralized exchanges can provide stronger security guarantees to end users since there is no longer a central party which can be hacked, run away with customer funds or be subjected to government regulations. Hacks of Mt.Gox, Shapeshift and Bitfinex have demonstrated that these types of systemic risks are palpable. Decentralized exchange will eliminate these risks by allowing users to transact trustlessly -without a middleman -and by placing the burden of security onto individual users rather than onto a single custodian.
In the two years that have passed since the Ethereum blockchain’s genesis block, numerous decentralized applications (dApps) have created Ethereum smart contracts for peer-to-peer exchange. Rapid iteration and a lack of best practices have left the blockchain scattered with proprietary and application-specific implementations. As a result, end users are exposed to numerous smart contracts of varying quality andsecurity, with unique configuration processes and learning curves, all of which implement the same functionality. This approach imposes unnecessary costs on the network by fragmenting end users according to the particular dAppseach user happens to be using, destroying valuable network effects around liquidity.sfcapital-whitepaper