The Best Crypto Exchange Security Features

Cryptocurrency exchanges are becoming an increasingly attractive business for investors. However, as the ICO Rating report shows, only 46% of cryptocurrency exchanges meet the required security parameters. This is a threat to users’ funds as well as to the creators of the exchanges, who bear the most responsibility. In this article we will look at the main security issues of crypto exchanges and identify the best crypto exchange security features.

Crypto exchanges market overview

The large sum of trading money on cryptocurrency exchanges has made cryptocurrency exchange platforms prime targets for attackers. According to statistics, nearly 54% of cryptocurrency exchanges have security holes and more than $1.7 billion dollars’ worth of cryptocurrencies have been stolen by hackers.

Any hack of a cryptocurrency exchange negatively affects the value of cryptocurrencies and the reputation of the crypto exchange. Hackers don’t just conduct attacks to steal money. Many hacks are performed to lower the value of a cryptocurrency. However, a Wired study found that 45%of crypto exchanges eventually shut down. The most famous thefts of crypto happened with:

MtGox – 850,000 BTC – the biggest hack in the history of cryptocurrencies happened to Bitcoin when it was gaining popularity. MtGox employees failed to protect the secret keys of their wallets, where they stored all customer deposits.
Cryptsy – 13,000 BTC and 300,000 LTC – Lucky7Coin cybercriminal injected Trojan malware into the Cryptsy code, then accessed and transferred money from the exchange wallet.
Coincheck – 523,000,000 NEM – The exchange used cold wallets to trade Bitcoins, but neglected them with altcoins. All NEM deposits on the exchange were held in one wallet.
Zaif – 5,966 BTC – access to one of their hot wallets was compromised. This led to $60 million being withdrawn in BTC, BCH, and MonaCoin. The exact number of cryptocurrencies stolen is unknown.
Bitstamp – 19,000 BTC – hackers sent a malicious file to employees. One of the system administrators disregarded security rules and opened the file on a computer that had access to the exchange’s wallet.

To avoid thefts, you need to take care of safety at the earliest stages of the cryptocurrency exchange development. The skills and knowledge of criminals are improving, and the methods of committing theft are becoming even more sophisticated. Below you will find the most important security features for crypto exchanges.

The main security issues in crypto exchanges

Many centralized cryptocurrency exchanges work in the same way. They run a hot wallet that is connected to the Internet. Cryptocurrency is stored in such a wallet to quickly execute customer transactions. Most customer funds are in the “cold” wallet. It is disconnected from the Internet and inaccessible to customers and hackers.

Such precautions do not guarantee the protection of the users’ money though. Even the most secure crypto exchange Coinbase constantly improves its security and conducts smart contract audits. Let’s figure out the main security issues of crypto exchanges.

XSS

Cross-Site Scripting (XSS) is the most popular vulnerability that allows attackers to use other users’ browsers as their own. Virtually all merchant terminals are vulnerable to Cross-Site Scripting attacks. Cybercriminals use the vulnerabilities they find to implant malicious JS/HTML code into a web resource page, redirecting traders to third-party web resources and/or infecting users’ devices with malicious software. Such software includes viruses that steal wallet passwords or replace the address on the clipboard.

Two-factor authentication or an SMS code can’t save either. Javascript simply replaces the wallet address at the moment of withdrawal, so the user doesn’t even have time to check it.

Configuration vulnerabilities

Web terminals may be missing HTTP headers. This increases vulnerability to certain types of hacker attacks. For example, the ContentSecurity-Policy header protects against attacks involving malicious content, including XSS; X-Frame-Options protect against Clickjacking attacks; Strict-Transport-Security forcibly sets up a secure connection via HyperText Transfer Protocol Secure (HTTPS).

Code vulnerabilities

Researches show that there are 0.52 mistakes for every 1000 lines of code in open-source products and 0.72 in proprietary products (the quality standard is less than 1 mistake per 1000 lines of code). Potentially, these errors can negatively affect the security of the platform.

Even if exchange developers write code without a single error, there is always a risk of vulnerability in third-party software. For example, issues in the operating system, payment gateway, or messenger can be used for phishing or installing malicious software on the devices of cryptocurrency exchange employees.

Vulnerabilities in smart contracts

Hackers can discover a vulnerability in a wallet’s smart contract code that allows them to take control of the victim’s funds. This can be a targeted attack on a specific wallet or a mass attack if many wallets have the same vulnerability. That’s why smart contract audit is one of the ways to ensure the security of cryptocurrency exchanges.

Infrastructure vulnerabilities

An exchange can be vulnerable in design. Exchanges are subject to the same security problems as other websites, so front-end, mobile app, clients, APIs, and data repositories must be protected. Here are some issues related to crypto exchange infrastructure development:

NoSQL injections are used in popular solutions like Redis, Memcached, and MongoDB. Similar to the older SQL attacks that are mostly fixed at the framework and ORM level, these attacks target newer technologies and are rarely detected by developers and frameworks.
Logical problems. These problems are critical and difficult to detect with automation tools such as source code analyzers. For example, simultaneous processing of several output transactions, which can lead to a negative account balance.
Authentication problems. Sometimes passwords and even two-factor authentication can’t protect exchanges due to authentication bypassing issues. Bypassing allows access to the user’s session without verifying the relevant credentials.

These were the main vulnerabilities of crypto exchanges. The full list is much longer, that’s why when developing a crypto exchange you should enlist the support of an experienced development team that knows how to implement the main crypto exchange security features in the best way.

What makes a crypto exchange secure

Most cryptocurrency exchanges use at least one, and more often, several anti-hacking systems. The simplest and most common is two-factor authentication: a person needs to enter a one-time password for each transaction, which is sent to their phone or email.

That being said, two-factor authentication is not the most secure method of protection. A more advanced version of two-factor authentication exists in special applications like Authy and Authenticator. They block access to the system if the username and password have been compromised by asking for an additional code.

The second most popular method of protection is multi-signature. In this case, several keys to a Bitcoin wallet have different owners, and it is possible to get access to the funds only by collecting all of the electronic signatures. However, this system can also fail. Experts note that multi-signature only works when all the signers are independent of each other.

One of the most reliable methods of protection against hacker attacks remains the distribution of funds between hot and cold wallets. In addition to physical protection (video cameras, armed guards, etc.), a cold wallet can be equipped with a multi-signature system. The larger the stake in a cold wallet, the safer it is.

Another way of exchange protection is so-called Bitcoin locks, special Bitcoin addresses where coins are locked by a two-step security mechanism with two different keys. A regular digital key is needed to unlock the funds, but full access to the money is only available after 24 hours. During those 24 hours, any transaction can be reversed by entering a second key. There is another level of protection: if a hacker gets both keys, the exchange can burn the funds stored in the wallet.

Among other crypto exchange security features are:

Anti-DDoS security protocol
Domain name system security extension
Registry lock
Web protocol security

It has become a good manner among crypto exchanges to conduct regular audits by independent experts and hacking tests. The latter is done by so-called white hackers. Their goal is to hack security systems to find potential vulnerabilities that can be exploited by attackers.

Regarding the issue of cryptocurrency exchange security, a comprehensive approach is important. Now you know what makes crypto exchange secure. Cryptocurrency exchanges should maintain the security of their own code along with the security of the development environment and third-party libraries that are used in the development of the product.

IdeaSoft experience

IdeaSoft has been providing blockchain-based product development services for more than 5 years. Our portfolio consists of more than 250 successfully implemented projects, including DeFi wallets, NFT marketplaces, DeFi aggregators, lending/borrowing platforms, identity management solutions, and crypto exchanges. The IdeaSoft in-house blockchain development team knows how to create a functional product that meets the highest security standards. Our company provides full-cycle software development services, from business analysis and design to programming, testing, and support.

If you need help creating a high-performance crypto exchange with the best crypto exchange security features, feel free to visit our blockchain development services page or contact us directly.

How NFTs are Transforming the Art Industry

Isn’t it amazing how NFTs have come into our lives and increased the popularity of blockchain technology? Over the past year, everyone from small creators to world-famous brands have been looking for ways to exploit the new trend associated with non-fungible tokens. It seems that the art industry has opened up the most opportunities. With NFTs artists have a chance to enter digital marketplaces and get rewarded for their work. In this article, we will find out how NFTs are transforming the art industry and what to expect next.

How NFTs work

NFTs are similar to certificates, whose reliability is ensured by a blockchain in which all transactions relating to the asset are recorded. Blockchain is the same technology on which Bitcoins are based, with a small but important difference: while Bitcoins are interchangeable tokens, NFTs are unique and non-interchangeable assets.

Unlike bills and cryptocurrencies, NFTs cannot be exchanged for each other because no two NFTs are identical. Money (as well as Bitcoin) has a unit to which a value is assigned: this means, for example, that a 5 Euro bill is interchangeable with any other 5 Euro bill.

For this reason, you can have a digital wallet containing X amount of Euros or Bitcoins, while you cannot have a wallet containing X amount of NFTs because NFTs are unique and limited in number. NFTs cannot be copied or transferred without the owner’s permission, but they can be sold on open NFT marketplaces such as OpenSea. NFT tokens store information related to an asset, such as a work of art. To create and manage these unique digital assets, many businesses rely on specialized NFT development services to ensure smooth integration with blockchain technology.

Someone who buys a work or object associated with an NFT is not buying the work itself. He or she buys the ability to demonstrate the title to the work or have a certificate of authenticity. The vast majority of NFT tokens have been created using one of two Ethereum token standards, ERC-721 and ERC-1155, although other competitors are emerging very quickly.

You can find more detailed information about NFT tokens in our article “Introduction to Non-Fungible Tokens (NFTs)”. So, how NFTs are transforming the art industry?

NFT use cases

Today NFTs are used in art, games, document management, collections, etc. In this article, we will cover only art, games, and document management. You can find more detailed information about NFT use cases in our Medium article “The Most Promising NFT Use Cases”.

Art

Digital art is gaining momentum because the creation of an NFT requires minimal or no investment at all (it depends on the site where the token is created). Offline registration of copyright to intellectual property requires the collection of a document list and the payment of a fee. NFTs perform all the same functions. They include by default a link to the work and the crypto-address of the owner, which indicates that the user has ownership rights.

Another advantage of digital art is that the author of a work can sell his or her creation to another user, but their income from a conditional painting is not limited to that. If another user resells it later, the author will also receive a percentage. It is much more difficult to write such conditions into paper contracts because it requires the fulfillment of appropriate conditions from all parties and subsequent control. In the blockchain, this operation is performed automatically without involving users.

The value of any work consists of its exclusivity and the ability to have ownership of it. NFT fulfills these tasks. More and more artists note the convenience of the system and decide to make exhibitions and sell their works through blockchain systems.

Games

The first game released with the NFT system to handle collectibles was CryptoKitties. It became so widespread that users began to overload the blockchain due to excessive activity.

The point of CryptoKitties is to breed kittens, each of which is an NFT. All of them, like tokens, are unique, each with its own appearance. The cats with the rarest coloring are the most valuable. It is possible to sell and buy cats with Ethereum. It is the first game that can run entirely on blockchain. The system was built on the ERC-721 token, and the kittens’ appearance generator was spelled out in a closed-source smart contract. Trends in the market are set by the players themselves, the developers are not involved in determining the price.

Today the NFT tokens are being used in collectible card games, animal breeding, RPGs, sports simulators, and racing. Thanks to NFT, in future games it will be possible to put an item for sale in one game and buy and use it in another what was impossible before.

Document management

Each document is unique, as it is given to one person to prove a certain right or get an individual statement, etc. All of these can be placed in an NFT, that way they are easier for a person to collect and send documents to perform certain actions.

What is crypto art

In this part of our article, we will look at how NFTs are transforming the art industry into crypto art. But first of all, we need to determine what crypto art is.

Crypto art is digital art, which is valued like physical art because of the confirming ownership possibilities.

The authenticity of the original work “Madonna of Victory” by Andrea Mantegna from the Louvre Museum is confirmed by his signature on the raft, assessments by art historians, and scientific expertise. The authenticity of the crypto-paintings is confirmed by an even more reliable method – an NFT.

There is no universally accepted concept of what crypto art is, but it can be described by the following principles:

Digital nature. Works of digital art can be created, published, bought, and sold entirely electronically.
Geographic independence. Artists from all over the world take part in creating these works. CryptoArt is the first truly global art movement.
Democracy. Everyone is encouraged to create work and promote its movement, regardless of skill, achievement, class, gender, race, age, religion, etc.
Decentralization. Technologies such as DeFi and NFT reduce the influence of art sales intermediaries and increase the power of the artists themselves.
Anonymity. The use of pseudonyms allows artists to create and sell art while remaining anonymous, freeing them from social constraints.

Digital art is currently going through its infancy, driven by the development of technology. The number of artists and community participants will only increase. There is reason to believe that crypto art is a whole new page in art history and now you know how NFT is changing the art industry.

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Ownership of NFTs

Often people just starting to learn NFTs are curious about owning NFT tokens: how this process happens and what they end up owning. Can it be argued that by acquiring ownership of an NFT, the purchaser also acquires intellectual property rights in the work?

Let’s start with the author’s moral rights. Personal non-property rights, according to international standards, include:

The right to be recognized as the author of a work.
The right to use or authorize the use of the work under the true name of the author, a pseudonym, or anonymously.
The right to protect works against any distortion or other infringement capable of damaging the honor and dignity of the author.

The scope of these rights belongs to the author from the moment of creation of the work and cannot be altered. In other words, the transfer of the NFT connected to the work, in any case doesn’t entail the transfer of the personal non-property rights of the author. When it comes to proprietary rights, that is another situation. Proprietary rights include the right of reproduction, the right of distribution, etc.

The author can transfer all proprietary rights to the third person, unlike the personal non-property rights when transferring an NFT. That’s why it is better to draw up an additional agreement in which the parties discuss which rights are transferred to the buyer.

NFT marketplaces

Unlike Bitcoin or Ether, a person can’t trade non-exchangeable tokens directly on regular cryptocurrency exchanges. To buy and sell NFTs, you need special trading platforms that allow us to issue, store, and trade non-exchangeable tokens. Currently, this market is dominated by large marketplaces OpenSea, Rarible, Superfarm, and Mintable.

They generate NFTs using special smart contracts that add to each token a set of unique information (metadata) and prescribe its main parameters (name, immutability, indivisibility, address/number, etc.). Non-interchangeable tokens can then be bought and sold on the platform at a fixed price or through auctions.

On the client side, NFT marketplaces work like regular online stores. The user needs to sign up for the platform and create a personal digital wallet to store NFTs and cryptocurrencies. The user can then either use the listing to buy NFTs or create their own token. Running an NFT is usually simple and similar to creating an eBay listing. You just need to provide a name, a price, give a description and an image, a photo, a video, a gif, and so on.

If you want to create your own marketplace, we recommend reading our article “How to Develop an NFT Marketplace: Ultimate Guide”.

Wrapping up

NFT technology helps digitize works of art and make interactions with any product more convenient. Ownership, purchase, sale, confirmation of originality – non-fungible tokens make all this possible for digital art. Also, tokenization adds value to goods. Time will tell if this technology can prove to be effective. One thing is clear: today and in the future, NFTs are one of the main blockchain trends.

Now that you know how NFTs are is transforming the art industry, feel free to discuss bringing your NFT-based idea to life with our specialists. Check out IdeaSoft blockchain development services or contact us directly.

How to Develop a DeFi Wallet: IdeaSoft Guide

Despite concerns about DeFi in its early days, it seems that decentralized finance has firmly taken its place in the market. Users have started to appreciate the many benefits of DeFi such as transparency, autonomy, availability, and elimination of third parties. The main bridge between DeFi platforms and users is DeFi wallets, which provide a completely new and improved user experience for their owners. In this article, we will explain how to develop a DeFi wallet, one of the most popular types of DeFi projects.

The difference between custodial and non-custodial wallets

First of all, let’s start by defining a DeFi wallet to understand how it works and how it differs from a regular crypto wallet.

A DeFi wallet is a non-custodial wallet which means you get full control over your crypto private keys. This ensures that you are 100% responsible for managing your own funds. Unlike the centralized wallets offered by exchanges like Coinbase and Binance, which store your funds on exchange accounts, with DeFi wallets, the users are the sole owners of their assets. Also, in order to store and manage funds with a DeFi wallet, you don’t need to provide information about yourself and go through checks and verifications. Even when participating in DeFi projects, platforms will interact only with the wallet and its public address without disclosing personal data.

Take a closer look at the main features of custodial and non-custodial wallets.

Feature	Custodial wallet	Non-custodial wallet
Control over funds	Custodian or third-party	Users
Security	Less secure since keys are stored by third-party	Extremely secure since users store their private keys
Account restore	Can be restored	Can’t be restored
Withdrawal process	Slower due to KYC/AML checks	Faster
Transaction fees	Lower or even free within the same ecosystem	User pays a full transaction fee
Usability	More user-friendly	Less user friendly

As you can see, non-custodial wallets are more secure and give users more freedom to store and manage their funds. However, along with this comes additional responsibility. If the user loses the keys to their crypto wallet, the funds cannot be recovered. Also, custodial wallets are often more user-friendly than decentralized ones, so you should pay extra attention to creating a high-quality and user-friendly interface when developing a DeFi wallet.

Key features of DeFi wallets

When creating a DeFi wallet, the first thing you need to do is to draw up a list of the features you want to implement in your product. As you can guess, whether it will be popular among users directly depends on the functionality and convenience of your application. Start with the basic features your wallet should have.

Fast and easy sign-up. Remember, one of the main benefits of DeFi is privacy. Let your users quickly get started with the wallet by setting a username and choosing their security settings like a passcode or biometric security.
Balance check. This is a basic feature for any digital wallet. One of the best practices is to display balances on the start screen so that users can always see them.
Send/receive crypto. Your app should provide both convenient transfer and receipt of crypto funds. For example, Coinbase Wallet allows you to send cryptocurrency in several ways: by scanning a QR code, entering a long-form address or using a Coinbase Wallet’s username.
Money withdrawal. Withdrawals are also a must-have feature for any crypto wallet. Make sure users won’t face difficulties with withdrawals. Also, don’t forget to add a help button so that users can quickly contact you if something goes wrong.
Transaction history. Transaction history helps users analyze their activity. Make sure to add some filters so that users can track their expenses and income in the best way (by time, type of transaction, asset type, etc.).
Notifications. Push notifications can be really useful if you make sure they don’t become annoying. Allow users to independently choose which notifications they want to receive. For example, messages about crediting funds, updates, news, etc.

This is not a complete list of features that users of your DeFi wallet can benefit from. The more personalized and unique the experience is that you provide, the more likely your app will stand out from the competition and come out on top. For example, you can create a chatbot that will help users quickly resolve their requests. Another idea is to provide a lending option so users can start earning interest without leaving their wallets. The best option is to research the needs of your target audience to see how you can meet them.

Steps for creating a DeFi wallet

DeFi product development differs in some ways from the development of conventional centralized solutions. All operations on DeFi platforms are powered by self-executing smart contracts. And building secure and functional smart contracts requires good blockchain expertise. Therefore, no matter how familiar you are with blockchain technology, we advise you to enlist the support of an experienced development team who not only knows how to develop a DeFi wallet but also has a portfolio of successfully implemented DeFi projects.

The process of creating a DeFi wallet consists of several stages. Before your development team starts coding, you need to decide on the business part and design of your app. So here are the main steps used to create a DeFi wallet.

Steps of defi wallet development — Steps for creating a crypto wallet

Discovery phase

The discovery phase is carried out in order to determine the goals of the project, its target audience, risks, etc. In order to succeed you need to create an app that will be useful to its potential users. Market analysis will reveal the needs of your potential customers. The competition in the DeFi market is getting stronger as new platforms quickly emerge, so before you start the DeFi wallet development process you should also know which apps are already popular and how you can stand out.

During the discovery phase, business analysts will help you make a list of features and draw up project requirements. This step in the development process also helps to more accurately define the scope of work, the composition of the development team, and the most appropriate technology stack. You will also need to select the type of wallet (desktop, mobile, web) that best suits the goals of the project. According to statistics, the discovery phase makes it possible to optimize the project budget and reduce risks, so we recommend not skipping it.

Architecture development

Based on the data obtained in the discovery phase, we can start building the architecture of the future product. These are the components of the system and how they will interact with each other. Using a ready-made architecture, developers will be able to proceed to the implementation of the tasks assigned to them.

What do you have to decide at this stage? The first question is: how do you want to host your DeFi wallet. There are several options such as local servers, cloud, or hybrid platforms.

Next, you should decide which tokens your wallet should support and on which blockchain platform it will operate. The most popular option today is Ethereum, the main platform for the development of decentralized finance. In addition to its immense popularity, the Ethereum ecosystem also provides white-label solutions that will allow you to reduce development costs and speed up time to market. If for some reason this platform doesn’t suit your requirements, you can choose another one like Binance Smart Chain (BSC).

Finally, any DeFi application is based on a specific algorithm that triggers the authentication of transactions of network members. Be sure to check this task with a DeFi wallet development company that can help you create the best algorithms for your product.

UX/UI design

Would it surprise you to know that it is not enough to find interesting and useful features for an application? A more difficult task is to collect them into a single user-friendly interface. This is where UX/UI designers come in. UX/UI is about more than just creating the look and feel of your wallet. This stage involves the study of user behavior so that the logic of the application interface meets their expectations and needs. We have already mentioned that the poor UX of DeFi platforms is often one of the main reasons why users prefer centralized solutions. The design should become an integral part of DeFi wallet development.

If the designers are part of the development team, this can help design specialists and developers communicate closely which will greatly simplify and speed up the development process. For this reason we advise you to choose companies offering a full range of DeFi wallet development services. For example, the IdeaSoft team can cover a wide spectrum of tasks related to the creation of a DeFi product: from business analysis and design to programming, testing, and support.

Software development

After the stages of collecting information, building of the architecture, and design creation, we can proceed to the technical implementation of your project. To do this, engineers need to choose the technology stack that best fits the intended goals. The areas of focus should consist of programming languages, frameworks, libraries, databases, and other development tools. DeFi wallet development requires deep expertise in building decentralized solutions. As a product creator you need to make sure not only that the app is functional, but also that it is 100% secure and that users can trust it with their funds. Therefore, it is important to work with experienced blockchain developers who know all the features of writing smart contracts, building algorithms, and ensuring system security.

How can you develop a DeFi wallet providing high-grade security? Basic security features include the following:

Two-Factor Authentication. A simple and reliable way to protect user accounts. By creating a unique one-time code for login, you ensure that unauthorized users don’t gain access to the wallet.
Biometrics. Face ID and Touch ID will allow you to authenticate the user every time a cryptocurrency transfer request is generated. This way you can avoid unauthorized transactions.
Multi-signature. This security feature requires more than one user signature to complete a transaction.
Session Logout. If a user does not interact with the wallet for a pre-specified time, the session will end automatically. The time should be determined by a smart contract, and the smaller the amount of time it is, the less likely a fraudster will be able to use a valid session ID.
And finally, don’t store users’ private keys on the system.

Testing

Software testing is one of the most crucial steps in the development process. It is a best practice to involve QA specialists at all stages of product development in order to not accumulate bugs. Testing the DeFi wallet is not limited to verifying that the features are working correctly and meeting the requirements of the project. You also need to make sure that the smart contracts underlying your application are secure and free from vulnerabilities. A smart contract audit is a complex process that requires a lot of experience, but you shouldn’t skip this step because your investment will be worthwhile.

Examples of DeFi wallets

If you want to create a high-quality and competitive product, it is not enough for you to know how to develop a DeFi wallet, you should, first of all, know what wallets are already on the market. This will help you identify competitors, study their strengths and weaknesses and come up with ideas of how your product can be better. Here are examples of some DeFi wallets and their killer features.

MetaMask. Metamask is a web browser extension that is great for accessing DeFi platforms. It is also available in a mobile version. Metamask has easy integration with most DeFi protocols and supports ERC20 standard tokens, as well as Binance Smart Chain BEP-20 tokens.
Coinbase Wallet. The already mentioned Coinbase Wallet refers to mobile DeFi wallets. It allows you to connect your wallet to your Coinbase account. Also, many users note the convenience of using this app. For example, you can make a transaction by entering a username instead of a long wallet address.
Trezor. Trezor is a cold wallet with a great built-in security mechanism. One of the indispensable features of this wallet is the recovery seed. It allows you to restore access to your wallet if you have lost your device. All you need to do is to enter the words of the seed into your new Trezor device.
Argent. Argent is focused on a mobile-first approach. It helps you easily access popular protocols like Aave and Compound. Argent has a special ‘Guardians’ feature that allows you to recover an account using people or devices you trust. All you need to do is add Guardians to your application, which can be a hardware wallet or a friend.

How we can help

Hopefully this article has given you a quick overview of how to develop a DeFi wallet. Of course, the implementation of each project involves a lot of nuances. If you want to get a solution that best suits your needs feel free to discuss your project with our specialists.

IdeaSoft provides a wide range of blockchain development services. The company portfolio consists of more than 250 successfully completed projects, including DeFi wallets, NFT marketplaces, crypto exchanges, lending/borrowing platforms, DeFi aggregators, and more. We have in-house business analysis and UX/UI design departments, as well as skilled blockchain developers on our staff. IdeaSoft has repeatedly been identified as one of the TOP blockchain development companies according to Techreviwer, Upvotes, and Clutch. Our clients note the high level of organization of business processes at IdeaSoft and the high level of professionalism of the team.

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If you’re looking for a software development company with deep blockchain expertise, we will be happy to help you implement your project. By empowering your ideas with innovative technology, we will work together to bring the most exciting solutions to your business. Contact us today to have a discussion.

IdeaSoft Special Event: Startups Crash Test

Have you been obsessed with the idea of a tech startup for a long time and only your friends have heard about it? It is time to put ideas into action.

Join the Startups Crash Test – tell us about your startup and get help with project implementation.

Startups Crash Test is an initiative of IdeaSoft company aimed at developing the startup community in Ukraine. Our goal is to grow a community of thinkers, believers, and entrepreneurs with an alternative vision.

Startups Crash Test focuses on the following areas:

Artificial Intelligence (AI)
Alternative Finance (Fintech)
Blockchain
AR/VR

On September 24, 8 IT industry experts will come together to test your idea for:

viability (you have problem & solution)
market size
scalability and monetization

Present your startup – we consider projects both at the level of an idea and with ready-made developments (POC, MVP).

Prove that your idea is really cool and promising.

If your project passes the crash test, we will help you bring it to life. Top industry experts will share with you their experience in implementing technical startups.

Startups Crash Test mentors:

Valery Krasovsky – CEO & Co-Founder of Sigma Software
Аndrew Lazorenko – CEO&Co-Founder of IdeaSoft
Herman Stogniev – CTO & Co-Founder of IdeaSoft
Peter Kolomiets – CBDO & Co-Founder of IdeaSoft
Vitaliy Fish – Startup Adviser
Oleg Malenkov – Co-founder of Сoncepter, partner of TA Ventures
Olga Goldina – expert of the Ukrainian Startup Fund
Inna Ushakova – CEO&Co-Founder of Scalarr

Find out all the details by downloading the STARTUPS CRASH TEST presentation.

Apply for participation here *
*Applications are accepted until September 17.

If you would like to attend the event as a guest and simply support the participants, please register here.

Meet our media partner – Sigma Software Labs

Sigma Software Labs is a startup incubator, an innovative platform for developing creative ideas and extraordinary solutions, which provides an opportunity to attract international clients through an extensive network and raise investments. This project was created within the Sigma Software Group as a separate investment area.

What Are Stablecoins: A Quick Start Guide

Cryptocurrencies gain more and more popularity, but one of their main drawbacks is high volatility. This is where stablecoins come into play. Stablecoins have all the advantages of cryptocurrencies, while their price is stable. According to Coindesk, at the end of 2020, the total value of stablecoins was up 300% over the previous year and exceeded $20 billion. So, in this article, we will tell you what stablecoins are, how they work, and how you can use stablecoins. Let’s get started!

What are stablecoins?

So, what are stablecoins? Stablecoins are digital money that mimics the properties of fiat (traditional) currencies. They are usually pegged to the dollar or euro (usually at a 1:1 ratio), gold, or other assets, including cryptocurrencies, that make them stable. So, in contrast to conventional cryptocurrencies, stablecoins have a very stable rate.

According to various sources, there are at least 200 different stablecoins in the world, some of which are already in circulation, while others are under development. Two stable currencies pegged to the U.S. dollar, the Paxos Standard (PAX) and Gemini Dollar (GUSD), are already approved and regulated by the New York State Department of Financial Services.

The idea of a stable cryptocurrency was first announced by the Mastercoin project team in 2012. After that, several attempts were made to create a stablecoin based on the euro or yuan. However, the idea was successfully implemented only three years later when the famous Tether appeared on the market.

Due to their high stability, stablecoins can be an efficient and convenient means of exchange and savings. Optimistic experts believe that they can become a good alternative to fiat money in countries with unstable economies, as well as be used to pay salaries and pensions. So, let’s find out all the advantages and disadvantages of stablecoins.

Advantages and limitations of stablecoins

Every year more and more new stablecoins appear, such as USDT, USDC, DAI, and this is not surprising. The secret of such popularity lies in the numerous advantages stablecoins offer to common users and investors.

Advantages of stablecoins

The most important advantage of stablecoins is the absence of high volatility, which all other cryptocurrencies suffer from. This advantage is especially important in the remittance market. If there is confidence in the cryptocurrency’s exchange rate, transfers become much easier. Since conventional cryptocurrencies are too volatile, their undoubted advantages in the form of high transaction speed and low commissions are still ignored by many people.

In the case of stablecoins, users can take advantage of blockchain technology without having to worry about the volatility of the currency they transfer. This advantage extends not only to money transfers but also to the purchase and valuation of goods. It is much easier to do this with a currency that does not change in value almost every hour.

As for traders and investors, they see stable tokens as protection against a possible market crash. Stablecoins allow them not to convert their capital into fiat currency. Stable crypto makes market declines less meaningful for investors and users of crypto exchanges.

Limitations of stablecoins

The first limitation is centralization. Typically, regardless of which method of stability is used, stablecoins have one central issuer. The code and behavior of the coins are predetermined, and the number of tokens is determined by the creators of the project. Unlike Bitcoin and other cryptocurrencies, which have a limited supply to be non-inflationary money, stablecoins have no limit. The technology allows for virtually limitless coinage.

However, there are already projects aimed at addressing trust issues related to centralized stablecoins. For example, MakerDAO and its DAI token. This platform uses ETH to create a decentralized and verifiable reserve for issuing stablecoins.

Another disadvantage is the likelihood of freezing accounts. No one can take Bitcoins away from you, except for malware. But some tokens allow issuers to freeze funds as well as give information to law enforcement. For example, Paxos Coin and USDC can control the user’s funds. In fact, all ERC-20 stablecoins can be controlled. During times of increased vigilance, the threat of account freezing is very real, as any cryptocurrency transaction can be considered suspicious.

Stablecoin attacks are also a weak point of stablecoins. Since some stable tokens are only protected by an algorithm, it is possible that someone could use them for speculative attacks. The attack on dollar-pegged stablecoins can be seen as a source of certain income for people who know how to profit from stablecoins. The current fallout of Tether (USDT) occurred spontaneously, after months of skepticism. However, some coins can be deliberately attacked, which will cause enough fluctuations in the exchange rate to make a profit.

Types of stablecoins

As a rule, the stability of stablecoins is achieved with the help of collateral. Most are backed by fiat money or various assets such as:

Precious metals.
Cryptocurrencies.
Oil.
Diamonds.

In fact, stablecoins can be backed by any liquid asset as long as it is in demand. So, stable cryptocurrencies are classified according to collateral.

Fiat-collateralized stable currencies

It is the most common type of stablecoin, whose value is backed by the U.S. dollar, euro, or pound sterling. If someone wishes to cash in stablecoins, the organization that manages them will take the appropriate amount of traditional money and transfer it to their bank account. The equivalent amount of stablecoins will be destroyed or removed from circulation.

The most common stablecoin of this type is Tether (USDT). It is the third-largest cryptocurrency by market capitalization, with a daily trading volume higher than any cryptocurrency, even Bitcoin. In January 2021, Tether accounted for about 75% of the stablecoin market.

USD Coin (USDC) is also pegged to the U.S. dollar and is gradually gaining market share. It reached 15% in January 2021. In December 2020, its parent company Circle announced a partnership with Visa to issue corporate credit cards based on USD Coin.

There are also stable coins backed by other fiat currencies: XSGD (Singapore dollar), EURS (euro), and even Candy (Mongolian tugrik).

Crypto-collateralized stable currencies

These stablecoins are backed by other digital currencies, which helps them be more decentralized because all transactions take place via blockchain.

To reduce the risk of price fluctuations, they are often overcollateralized: the value of the collateral is higher than the loan amount. For example, to get $500 worth of stablecoins, you have to deposit $1,000 on Ethereum (ETH). That way, they will be secured by 200%. And even if the price falls by 25%, $500 worth of stablecoins will be secured by $750 worth of Ethereum.

Transactions with such stablecoins are more secure and transparent. Moreover, they are often pegged to several cryptocurrencies at once to spread risk. At the same time, this is one of the most complex and the least popular cryptocurrencies. The best known of these is Dai, whose nominal value is maintained at the dollar level, but is actually backed by Ethereum.

Non-collateralized stable currencies

Such stablecoins are not backed by anything. In fact, the U.S. dollar works the same way. Decades ago, it was pegged to the gold reserve but it is stable now because people believe in its value.

The stability of the exchange rate of non-collateralized cryptocurrency is ensured by the seigniorage – the income generated by the issuance of the currency and appropriated by the issuer. When demand rises, new stablecoins are issued, which normalize the price. If demand falls, coins are bought to reduce the amount of currency in circulation. Theoretically, the price remains stable because market supply and demand control it.

This is the most decentralized and independent form of stablecoins. An example of such a currency is Ampleforth (AMPL), which was launched in late 2018. Its algorithms control the volume of coins daily according to demand to avoid the volatility inherent in secured cryptocurrencies.

Now that we have dealt with the types of stablecoins, let’s find out what are stablecoins like USDT, USDC, DAI used for?

What are stablecoins used for

Stablecoins are not as volatile as other digital coins so they can be used for everyday use. They have the advantages of cryptocurrencies (transparency, reliability, immutability, fast transactions, low fees, and privacy) and are as stable and trustworthy as traditional currencies (the U.S. dollar or euro). A decentralized, reliable, and stable digital currency will have many applications, from cross-border lending to financial planning.

Here are just a few use cases for stablecoins:

Everyday financial transactions.
Streamlined regular payments and card-to-card transactions.
Fast and affordable transfers for migrant workers.
Protection against hyperinflation and market volatility.
Improved cryptocurrency exchange and reduced market impact of Bitcoin.

Initially, cryptocurrency holders used stablecoins to save money in the event of a market crash. If Bitcoins became cheaper, they could be converted into stablecoins. Without stablecoins, Bitcoins would have to be converted into traditional currencies. These transactions are not possible on every platform, and they require significant fees.

Wrapping up

Stablecoins are a new form of digital money that offers transparency, reliability, immutability, fast transactions, low fees, and privacy. Their low volatility makes them a suitable means of savings and facilitates their use in everyday transactions. There is no doubt that stablecoins will play a key role in the global financial system, as they effectively enable the practical use of cryptocurrency.

It is safe to say that stablecoins have become an important component of the cryptocurrency market since their opportunities and prospects are promising.

How to Start a Crypto Casino: A 2025 Guide

The recent times the world of online gambling has witnessed a revolutionary shift with the cryptocurrencies coming into space. Traditional casinos rapidly adapt to this digital disruption, creating the space to make a crypto gambling website that offers unparalleled benefits to both – its operators and players.

Therefore, along with the current “greening” of the crypto market and growing interest in web3.0 casinos, the question of how to start a Bitcoin casino is gaining more popularity. In this article, we would like to share our experience in crypto casino development and showcase our work for the Moonwin project. Based on this practical experience we will give the information about how to make a crypto gambling website, mention the main steps you need to go through and a pro-tips for developing a crypto casino.

Looking for a team to build crypto casino?

Are you wondering how to make a bitcoin casino? Before you find out how to start a crypto casino, you need to know what a crypto casino actually is and how it works. This will help you create all the necessary business environments for casino development. Let us help you figure it out through this article! Or drop us a message and we correctly draw up the requirements for your project.

Why Make a Bitcoin Gambling Website

The primary advantage you might notice if you start your Bitcoin casino is that it attracts many players who appreciate the unique benefits of cryptocurrency. These advantages include but are not necessarily limited to the following:

Low or no transaction fees – Some casinos offer no transaction fees but those that do offer lower fees than those associated with traditional payment methods. The fact is that there are no financial institutions involved, so there is no need to pay higher commissions for making deposits or withdrawing money.
Lower deposits – players can make bets much lower than traditional minimum deposit limits.
Near-instant payments – You can deposit and withdraw cryptocurrencies quickly, with little or no waiting.
Global access – cryptocurrencies are available worldwide, so players all over the globe who use them can play at any crypto casino at any time of the day or night. And it is possible to convert them into any existing currency.
Anonymity – another great advantage of crypto casino development in particular, is the anonymity blockchain technology offers to its users. It can be beneficial for many reasons, some include: players’ privacy, secure fund transfers but at the same time transparency of them, and more.

However, with all those advantages, let’s not forget that in order to make a crypto gambling website you need to ensure legal and tax compliance. Thus, we will talk about this and other aspects you need to pay attention to as in the next parts of our article. So keep reading!.

What to Consider Before Start Your Own Bitcoin Casino

Now let’s move on to the main aspects you need to know to successfully start Bitcoin casino that provides revenue. Generally, the stages are not very different from starting a traditional gambling platform, but there are some aspects to pay attention to. They include:

Legal and regulatory compliance. As the crypto market develops, so does the regulatory coverage for the crypto related businesses. In order to stay compliant, we highly recommend to stay up-to-date with at least the main cryptocurrency regulations around the world. Check Securities and Exchange Commission (SEC) and the IIJA for US; Markets in Crypto-Assets(MiCA) for Europe; FATF and FCA for crypto regulation in UK; IOSCO draft proposal for the unified global regulation for DeFi market published in September 2023.
Security measures. One of the mane things to remember, is that your crypto gambling website should be a safe platform for user to come and operate with his funds. Therefore, do not neglect audits of your blockchain and back-end parts integrations, as well as secondary audits even for the small feature implementations or architecture changes. There are plenty of protocols being drained every week, do not make your platform one of them.
Cryptocurrencies and blockchain part integration. While integrating the blockchain part (especially smart contracts) you and your team need to pay attention to architectural aspects in order to make a smooth connection between blockchain and “non blockchain” parts. This is a complex task which requires previous experience with both blockchain and back-end infrastructure building. So, first of all, consider working with the team who had successfully conducted such work in the past. Second of all, we highly recommend to engage into discovery phase prior to development in order to eliminate future unpredicted adjustments and final overall cost increasement.
Fund management. Effective fund management in crypto casino development involves risk management that encompasses maintaining game fairness, mitigating cryptocurrency price volatility, and preventing fraud. At the same time, it should focus of effective revenue management that requires (as one of the options) integration of multiple cryptocurrency payment gateways,transaction fees management, and strategical usage of funds for promotions and marketing.

The development of a solid software for crypto gambling website is a complex task, so choosing an experienced blockchain development team is crucial here. Make sure you hire crypto casino developers who know all specifics of the industry and can implement your idea with the best ratio of price and quality. To do this, check the company’s portfolio, talk to the tech specialists and CTO who will work on your product, and find out if they have experience in implementing such projects.

After selecting a crypto casino software development team, the next key point is to choose the features that your blockchain casino will have.

All Must-Have Features for Crypto Casino

The choice of functions for a casino is a separate detailed issue since their number and complexity affect the development process of your gambling casino platform. In addition, the features selected determine the value of your platform to users, the experience they will get when using it, and hence popularity in the market

We have prepared a list of the most popular and useful features if you want to make a successful crypto gambling website. They include but are not necessarily limited to the following:

Cryptocurrencies support – Build a financial infrastructure with an integrated cryptocurrency system that allows users to make deposits using Bitcoin and other popular crypto payments.
Fiat multi currency acceptance and convenient payment options. Platforms with fiat multi currency convenient payment options enable users to facilitate transactions without any frets. However, when you start a bitcoin casino, you should keep in mind that usually introducing fiat money into casinos requires registering a casino and obtaining a gambling license.
Anti-fraud system. The anti-fraud system enables you to prevent breaches and keep a platform safe and secure.
Real-time chats. Real-time chats boost engagements and enable players to interact with each other, exchange ideas, and socialize better.
Live dealer games. Live dealer games are in high demand as they create a real casino atmosphere and make the casino even more enjoyable for users.
Random number generator. A random number generator system helps to remove biases and maintain reliability and fairness in the ongoing games.
Multi-lingual support. Multilingual solutions provide easy access and enable players to access platforms in the languages they prefer and are fluent in.
KYC system. The KYC (know your customer) system is designed to store comprehensive information about players, thereby ensuring the platform’s security. You can implement KYC if you don’t plan on making anonymity your killer feature.
Cross-browser and cross-platform compatibility. Cross-browser and cross-platform compatibility offer a smooth gaming experience to the players irrespective of the browser or device they are using (desktop, mobile, and tablet).
Leaderboards and achievement badges. Leaderboards and achievement badges boost player enthusiasm by showing the ranks of the best players and helping players recognize each other by their achievements.

Want to build a project?

Talk to am expert and let us help you figure everything out, and correctly draw up the requirements for your future product!

How to Make a Crypto Gambling Website: 4 Main Stages

Now it’s time to review the process of developing an online crypto casino. Let’s Go step-by-step through the key points that our CTO highlights.

Discovery phase

As we mentioned before, discovery phase can be crucial in terms of web3 development cost optimizations, so we advise to start with it and not neglect this stage. The discovery stage starts with the process of collecting and analyzing information about a project, its intended market, and the audience to find out its needs and requirements better. It allows gaining a well-rounded and for in-depth understanding of the project goals and scope of work.

The analytical part is followed by the technical due diligence, during which our crypto casino software development team will answer the question of how to develop a crypto casino, which tech stack and developers you need for that particular product.

Considering the time, budget investments, and analytical part outputs, we then prepare a technical plan, which includes project features, suggested technology stack, architecture overview, suggested team lineup, and budget [we usually provide a few budget frames for our client to give an overview for the minimum and maximum performance your product can create].

UX/UI design

During the design phase, a design team determines the crypto casino’s look and UX that will be needed. This process includes visual content like images, logos, photos, graphics, and video, and logic of placing all elements of the user interface.

The quality of UX you implement for your platform affects the time and frequency of users reaching your platform. Experienced designers will help you create, crear and easy-to-follow user flow and friendly interface utterly responsive to the web3 audience’s needs.

Development

The development stage of an online crypto casino is generally the longest as it’s the backbone of the whole process. It’s run by a dedicated project manager who ensures smooth cooperation between a development team and a client. This is where we integrate the information collected during the initial stages, create the product logic, and animate the user interface.

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The development part includes:

The back-end and front-end development
Blockchain part development & integration with back and front-end
Database creation
Features implementation
Game API integrations and customizations

Once the complete architecture and crypto casino source code are built, the testing stage starts.

Testing and launch

Final testing ensures that the system works as intended and is free of vulnerabilities. For this QA specialists conduct testing of security, compatibility, functionality, usability, and more.

The testing phase allows us to ensure that your crypto casino is ready to launch, performs all the necessary functions, and is secure for users. Since gambling is already associated with certain user concerns, you can afford to release an unreliable system to the market. Therefore, we don’t recommend skipping the testing phase.

Cost to Start Your Own Bitcoin Casino

Making a crypto gambling website involves various factors that can affect the overall cost. Each project is unique, and it’s crucial to consider your specific requirements and goals. At IdeaSoft, our team of experts specializes in creating customized cryptocurrency casino solutions tailored to your needs.

We understand the importance of providing accurate estimates based on your specific project scope. We may roughly say that make your own crypto casino platform can cost anywhere from $30,000 to $100,000 or more, depending on customization and features.

Yet, to get a precise cost estimate and discuss the details of how to start a cryptocurrency casino, we encourage you to contact our experts at IdeaSoft. Our tech team will guide you through the process and provide a comprehensive analysis of the costs involved to establish a successful crypto casino.

IdeaSoft experience

It’s always better to showcase everything on your own experience, right? So, as we said before, the IdeaSoft team is an experienced tech provider and we know how to start a crypto casino. Therefore, let’s review one of our web3.0 gambling platform case studies – Moonwin project.

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Moonwin is a pioneering decentralized gaming platform, often referred to as Casino 3.0. It offers users a transparent and fair gaming experience, with a particular focus on dice games facilitated through on-chain randomization. As a Web 3.0 gambling protocol, Moonwin allows players to gamble directly against a smart contract.

The IdeaSoft team has been integral to Moonwin’s development, contributing at every stage from the initial concept and MVP creation to the launch of platform versions V1 and V2.

One of the challenges for this product our team highlights is game mechanics development. Ensuring transparency, randomness, and provable fairness in game outcomes while maintaining engaging gameplay dynamics requires innovative design and strategies for user retention. Fortunately, we received excellent input from the client side, and our team consistently provided innovative and unconventional strategies for testing and integration.

After 5 months of continuous work and fruitful cooperation with the client, we delivered a solid crypto gambling platform that successfully functions cross-chain and creates revenue for the client.

Check what Moonwin CEO thinks about the platform development and proceed to the Clutch review for this case study.

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Summary

Now even when you know how to develop a crypto casino, we are sure that you still have questions, because each project is unique and requires an individual approach. And we are here to help you to make a crypto casino.

At IdeaSoft, we offer blockchain development services tailored to the needs of each client. Over the past 5 years, we have successfully completed over 250 projects, including cryptocurrency exchanges, NFT marketplaces, DeFi lending protocols, DeFi wallets, issuance platforms, DeFi aggregators, and more. IdeaSoft is a team of over 140 in-house software development specialists. We provide a full cycle of services for creating a product from business analysis and design to development, testing, and support.

Feel free to check out our portfolio and contact us to discuss your crypto casino project. IdeaSoft specialists will be happy to answer all your questions, select the best technology stack and provide an estimate for your project. Let us bring your ideas to life with advanced technology!

The Future of Cryptocurrency

Investing in cryptocurrency is a huge business opportunity. It is worth investing in, but its benefits are directly proportional to the risks. Despite that, crypto is feasibly the most exciting asset of the 21st century. And 2021 is a confirmation of the fact that the crypto economy experiences significant milestones, fueling the record surge of digital assets. In this article, we’ll try to figure out what is the future of cryptocurrency.

Cryptocurrency market overview

At the end of the first quarter of 2021, the cryptocurrency market capitalization was approximately USD 1.9 trillion. According to Facts&Factors, the market is anticipated to surpass USD 5.19 trillion by 2026. Also, according to Coinmarketcap, the number of registered coins/tokens reached about 5,000 by May 2021, and their number continues to grow every day.

The cryptocurrency market is an expanding market that continues maturing, and we can see more and more innovations and use cases flowing in the crypto space by day. These use cases also determine the direction crypto steers to in the future and show how much it is worth investing in cryptocurrency. Here are the main areas in which cryptocurrency is already being used or will be used in the future.

Smart contracts. Smart contracts can act as a replacement for traditional contracts that deal with mortgages, insurance claims, payments, and government bonds. They provide smoother and faster transactions without the need for a broker or intermediary to manage them.
Decentralized finance. DeFi comprises applications built on top of blockchains, facilitating permissionless financial services and providing a seamless option for running financial activities. DeFi projects broaden the scope of financial systems, shifting the paradigm from ‘portable means’ of payments to decentralized apps (dApps). dApps offer advanced financial services such as insurance, lending, wealth management, and a whole range of other financial management services.
Transactional currencies. Transactional currencies must be non-volatile, so stablecoins have been created to support a 1:1 peg to the underlying asset, which is fiat.
Governance tokens. Governance tokens are tokens that users hold to govern changes in the blockchain ecosystem. They can be used to form entire blockchain-based voting systems. In addition, governance tokens can be characterized as equities of a specific project, and the more tokens you hold, the more share you have.
Collectibles, gaming, and royalties. Tokens of these types are unique and indivisible, and thereby they have a lot of value: uncommon gaming rewards, rare collectibles, digital identities, and royalties for artists. The use cases will be more diversified, which would bring many exciting applications for NFT (Non-Fungible tokens).
Interest, fixed return on investment, and retirement accounts. Financial markets are becoming more volatile over time, so people move towards “saving accounts” in cryptocurrency or individual retirement accounts (IRA) built on the blockchain. The saving accounts are tokens locked in the system to provide liquidity for which you get a fixed percentage of return.

Is cryptocurrency a good investment?

Cryptocurrencies are not merely “good” or “bad” as investments. The novelty of cryptocurrencies makes their risks not well understood, leading to a poor understanding of how the value of a cryptocurrency relates to the value of other assets. There is not enough historical data to predict with certainty how cryptocurrencies will fluctuate when the prices of other assets change. This lack of transparency creates an obstacle to building a balanced portfolio that maximizes returns without exceeding the desired level of risk.

However, despite the lack of historical data, many investors, including institutional funds, banks, and company executives, claim that cryptocurrency should be part of the overall portfolio. Back in September 2017, Jamie Dimon, the Chairman & CEO of Wall Street Banking powerhouse JPMorgan, called Bitcoin a fraud. However, less than two years later, the company announced that JPM Coin was launched for commercial use using blockchain technology.

Also, in the first quarter of 2021, we have seen several noteworthy developments in the crypto field that further their legitimizing and increasing potential. For instance, Around 2,300 U.S. businesses currently accept Bitcoin as payment, according to research from Fundera. Visa, PayPal, Venmo announced they have started allowing U.S. consumers to use cryptocurrency for making payments. Robinhood said its cryptocurrency service added 6 million funded accounts in the first two months of 2021 alone, while the total number of customers reached 13 million in May 2020.

Therefore, we cannot ignore the fact that cryptocurrency is gaining more distribution and becoming more valuable in the market. One way or another, in the coming years, this area will continue to develop, which means it is worth investing in.

Which cryptocurrency is best to invest in?

The most frequently asked question that worries many investors, besides the future of cryptocurrency, is which crypto coin/token is worth investing in? We will take a look at a few cryptocurrencies, which in our opinion, are the best for investing in them.

Bitcoin (BTC)

The list of top cryptocurrencies to invest in cannot start with a different cryptocurrency as Bitcoin (BTC) – the world’s most popular cryptocurrency. Bitcoin’s popularity is one of its biggest advantages against other digital currencies. As long as BTC holds on course to dominate the crypto market, investors will always benefit from high liquidity levels, even during periods of market uncertainty. Many businesses already accept BTC as payment, which makes this cryptocurrency a smart investment. Besides, the larger banks are beginning to incorporate Bitcoin transactions into their offerings, too. As of May 1, 2021, Bitcoin’s market cap was approximately $1.08 trillion, which was about 49% of the total cryptocurrency market capitalization.

Bitcoin first emerged in 2008 when a person or group known as Satoshi Nakamoto released an official document titled “Bitcoin: A Peer-to-Peer Electronic Money System.” The concept behind BTC is that there is no need for a third side to verify data or act as a clearinghouse. It made it possible for people worldwide to send and receive funds almost instantly, without the involvement of any third party, such as a bank or payment provider, and without worrying about exchange rates or high wire transfer fees.

BTC is the original cryptocurrency divided into 100 million smaller units (called Satoshi) similar to gold. There are only 21 million bitcoins globally, and the currently mined bitcoins account is almost 90%. Thus unsurprisingly, BTC predictions for 2021 can sometimes be a little demented. In March 2020, Anthony Pompliano, the founder and partner at Morgan Creek Digital, predicted that by December 2021, Bitcoin would be worth USD 100,000. The BTC price began to get crazy in February 2021 and has increased by USD 56,000 per coin, when Tesla bought USD 1.5 billion in BTC and accepted it as payment for its products.

Ethereum (ETH)

Ethereum (ETH) is a decentralized software platform that provides smart contracts and dApps, and it is also the foundation on which DeFi and NFT markets are built. ETH is the fuel on which these operations run, so it has large reserves of potential use cases. If you want to participate in the ecosystem Ethereum, purchasing ETH could be a good place to start.

ETH launched in 2015, is currently the second-largest digital currency by market cap after BTC. As of May 1, 2021, Ether’s market cap was around USD 341 billion. The goal of Ethereum is to create a decentralized suite of financial products that run without any delays, fraud, control, or interference from a third party that anybody can have free access to, regardless of nationality or ethnicity. This aspect allows access to bank accounts, loans, insurance, or a host of other financial products, even in countries without government infrastructure and identification.

In 2021 Ethereum plans to amend its algorithm from proof-of-work to proof-of-stake. This step will allow Ethereum’s network to run itself with far less energy and improved transaction speed. Proof-of-stake allows network participants to “stake” their ETH to the network. This process helps protect the network and process ongoing transactions.

Benzinga, a fintech media and data company, has published a report called “Ethereum Predicted to Crush Bitcoin’s ROI in 2021.” The survey has obtained data from 100 cryptocurrency traders and investors, and many believe ETH will soon be the top crypto asset. With the introduction of Ethereum EIP-4844, transaction scalability and efficiency are expected to improve significantly, addressing long-standing issues within the network.

Cardano (ADA)

Cardano is a proof-of-stake blockchain platform founded in 2015 by Input Output Hong Kong and its CEO Charles Hoskinson, who was also one of the co-founders of Ethereum. First offered for sale in 2015 September, and as of May 1, 2021, their market cap is in the region of USD 43 billion. There is a maximal supply of 45 billion tokens ADA, and at the time of writing, there was a circulating supply of about 32 billion.

Cardano is designed to ensure that holders can participate in the network and have a say on any proposed software changes. The open-source project also seeks to “redistribute power from unaccountable structures to the margins to individuals” – promoting to create a society that is more secure, transparent, and fair.

The team behind the ADA says that there have already been some compelling use cases, which aim to allow smart contracts and dApps to be developed with modularity. For example, agricultural companies use ADA to track fresh produce. Other products help to store educational credentials securely against unauthorized access, and retailers get a tool to prevent counterfeit goods.

In 2020, Cardano held a Shelley upgrade directed to make its blockchain “50 to 100 times more decentralized” than other large blockchains. Cardano aims to become a global financial operating system by creating decentralized financial products like Ethereum and offering solutions for chain interactions, voter fraud, and legal contract tracking. Prediction for ADA remains bullish, with many analysts expecting it to hit $2 by the end of the year. Some are even talking about a peak of $10 by year’s end.

What is the future of cryptocurrency?

So, the future of cryptocurrency looks bright. According to Ripple CEO Brad Garlinghouse, there are three main crypto trends: cross-border payments, NFT, and involvement of central banks in crypto. Another promising trend is SocialFi, which integrates social networking with decentralized finance to create new financial products and services. This market is expected to continue to grow and attract more users to the blockchain ecosystem. In addition to direct investments in cryptocurrency, potentially, there are other ways to profit from blockchain technology such as issuing your own crypto coin/token or creating your crypto exchange. The best way to benefit from crypto trends is to attract investors to your own platforms.

If you have an idea related to blockchain-based products, we will be happy to help you bring it to life. IdeaSoft has deep blockchain expertise proved by the successful implementation of more than 250 projects in different business domains.

Hire experienced blockchain developers to create a crypto exchange, blockchain protocol, NFT marketplace, issuance platform, trading/auction platform, DeFi wallet, and more. The IdeaSoft team can cover all project tasks within one company, from business analysis and design to programming, testing, and support. Feel free to check our services or contact us directly.

What is a Decentralized Exchange and How it Works

Since the early days of Bitcoin, exchanges have played an important role in mediating between buyers and sellers of cryptocurrencies. Traditionally, centralized exchanges have been dominated in this area. However, with the rapidly evolving stack of available technology, more and more tools for decentralized trading have become available.

For example, Uniswap is an example of a decentralized exchange with over a $2 billion daily volume of transactions. In this article, we’ll tell you what decentralized exchanges are, the benefits of decentralized exchanges and how decentralized crypto exchanges work.

In this article, we’ll tell you what decentralized exchanges are, the benefits of decentralized exchanges, and how decentralized crypto exchanges work. Partnering with a crypto exchange development company can help businesses build secure and efficient decentralized platforms that align with the growing market demands.

What are decentralized exchanges?

A decentralized exchange (DEX) is an exchange that operates based on a distributed ledger, it doesn’t store user funds and personal data on its servers, and acts only as a platform for matching bids to buy or sell user assets. Trading on such platforms takes place directly between participants (peer-to-peer) without any financial intermediaries.

According to Coinsmarketcap, the most popular DEXs are Uniswap, MDEX(BSC), BurgerSwap, SushiSwap, and PancakeSwap. Daily trading volume on these decentralized exchanges exceeds $4 billion. The market share of these DEXs is over 50%. Taking into account that DEX is one of the most popular DeFi project types, we can predict that the number of users, as well as transaction volume, will only grow in this area.

Decentralized cryptocurrency exchanges (DEX) are distinguished by the fact that they lack centralized authority. These are platforms that decentralize the basic functions of an exchange, including trading/exchanging assets, order matching, and deposit placement. By decentralization in this case we mean the absence of a master controlling node or server. All nodes form a distributed network, eliminating the need for intermediaries and enabling trading via smart contracts. This helps reduce the costs inherent in centralized exchanges and increases the speed of all processes. The benefits of decentralized exchange are more meaningful than the benefits of centralized exchanges. That’s why they attract a lot of users.

However, most of the existing exchanges that call themselves decentralized are not, in fact, completely decentralized: they use their servers to store trading data and orders to buy or sell users’ assets. Unfortunately, such DEXs don’t match the meaning of decentralized exchange so they can’t provide all benefits of a real DEX.

How does a decentralized exchange work

Decentralized exchanges (DEX) are in some way similar to centralized exchanges, and in some way, they are significantly different. There are several types of decentralized exchanges available to users. What they have in common is that orders are executed on a blockchain (using smart contracts) and users don’t have to trust their money to anyone. So how does decentralized exchange work?

Decentralized exchanges with blockchain order books

On some decentralized exchanges, everything happens on a blockchain, every order is recorded on the blockchain. This approach is considered the most transparent because users don’t trust any third party to transmit the orders, and therefore they cannot be distorted in any way.

Unfortunately, this approach is also the most impractical. Because users are asking all the nodes in the network to permanently record their orders, they are paying a fee for doing so. Also, they have to wait for the miner to add their transaction to the blockchain, which also creates an inconvenience.

Examples of decentralized exchanges with blockchain order books are Stellar and BitShares.

Decentralized exchanges with order books outside the blockchain

DEXs with off-blockchain order books are more centralized than the ones discussed above. Instead of all orders being added to the blockchain, they are stored elsewhere. The order books could be managed entirely by some centralized entity. If that entity turns out to be unscrupulous, it could manipulate the markets to a certain extent. However, there remains the advantage of self-storage of funds.

The 0x protocol for ERC-20 and other tokens on the Ethereum blockchain is a good example of this type. It doesn’t act as an exchange actually but provides a framework for parties managing order books. Using 0x smart contracts and some other tools, these parties access a shared pool of liquidity and pass orders between users. A transaction is conducted on the blockchain only after a buyer/seller pair is matched.

This approach is more convenient than using blockchain order books. There are not the same speed limitations here. Nevertheless, the final transaction takes place on the blockchain, so order books off-blockchain still have less speed than centralized exchanges.

Examples of decentralized exchanges with order books outside the blockchain are Binance and EtherDelta. Ethereum or Binance for DEX could provide enhanced liquidity and scalability.

Decentralized vs centralized exchanges

DEXs have become more popular in recent years due to the significant advantages they offer over CEXs such as greater privacy, faster transaction times, lower fees, and acceptance of payments in cryptos. Decentralized exchanges allow users to retain control over their funds while centralized exchanges put user funds into one place under the control of a third party. The differences between decentralized and centralized exchanges are significant.

Criterion	Centralized	Decentralized
User identity	Requires KYC	Completely Anonymous
Liquidity	High	Lower
Security	Lower	High
Coin holder	Exchange	User
Fiat availability	Yes	No
Examples	Binance, Bitfinex, Kraken	Etherdelta, IDEX,Tokenlon

So what are the features and benefits of a decentralized exchange? First of all, compared to centralized trading venues, DEX exchanges are more secure. The lack of a single node storing all data means that the system is free of a dangerous vulnerability such as a single point of failure. Even the best and most reliable centralized exchanges can fall victim to hackers or technical problems. This is known firsthand to millions of customers who have lost their money as a result of such incidents. This is not the case with a DEX platform, where each user controls his/her private keys, rather than storing them on an exchange.

Another advantage of decentralized exchanges is their freedom from government control or censorship. The lack of a specific management team to which sanctions or requirements can be imposed prevents authorities from monitoring transactions made on the platform.

The main disadvantages of centralized exchanges:

High risks of hacking and theft of funds. CEXs store clients’ assets. According to statistics, 73% CEXs are solely responsible for users’ money, and another 23% of the exchanges allow users to manage keys. This makes centralized exchanges attractive to hackers because their servers hold billions of dollars and are susceptible to hacking.

Frequent inconveniences for users on CEXs cause damage to the exchange`s reputation and therefore profits. They are caused by equipment failures, due to which exchange operation speed decreases, payment delays occur, etc.

Problems with transparency and trust. Centralized exchanges have been proven to manipulate the market for personal gain to the detriment of the clients. They can impose unreasonably high commissions, hold their orders out of turn, do not react quickly enough to peaks in demand, and delay transactions. That is why trust in CEXs is decreasing.

A lot of competition. Now there are a lot of centralized exchanges that have been on the market for a very long time. It is increasingly difficult for new CEXs to gain popularity and an audience.

Benefits of DEX

The benefits of decentralized exchange attract a lot of crypto enthusiasts that first of all don’t want to entrust their crypto to a centralized platform. DEXs are rapidly increasing their popularity, which can not be unnoticed. The main benefits of DEXs include:

A high level of security, as mentioned above, causes increased attention of crypto enthusiasts.

Transparency of all transactions. All transactions are publicly tracked through the blockchain so DEXs ensure the same level of transparency as CEXs.

Users’ anonymity is ensured when exchanging one cryptocurrency for another. Users don’t need to go through the identification process as in the case of centralized exchanges. This attracts a lot of people that don’t want to identify themselves.

Preservation of assets. If a traditional exchange shuts down, authorities can confiscate its servers and assets, including blocking user accounts. But this is not the case with a decentralized exchange, because its server is a network of computers scattered all over the world, and it is very difficult to restrict its work.

A simple and clear interface allows newcomers to the cryptocurrency industry to quickly get the hang of it.

DEX doesn’t store client funds, which reduces responsibility for the owners of the exchange.

DEX development

The benefits of decentralized exchange encourage a large number of entrepreneurs to think about DEX solutions. Decentralized exchanges are less expensive to maintain than centralized ones because you don’t need to invest in servers and complex security mechanisms (decentralized solutions are already safer than centralized ones), also all processes are automated.

However, you should keep in mind that crypto exchange development requires good blockchain expertise and an experienced development team. There are many examples of poorly developed DeFi projects that failed to fully function. Only by developing a quality product you can achieve good profits. So, if you decided to build your decentralized exchange platform, one of the first things you have to do is to find a reliable software development partner.

The process of creating a decentralized crypto exchange is slightly different from creating a centralized platform. In DEX, the main logic of the exchange is embedded in smart contracts that must be secure and reliable. You may also need integrations with other decentralized protocols to create an efficient ecosystem that benefits both you and the end-users. Among the main functions that your DEX should have are multiple crypto pairing, crypto wallet integration, traders’ control funds, a user-friendly user account, basic analytics and transaction history, and a reliable security mechanism.

In addition to DEX development, considering a socialfi platform can further enhance user engagement and provide additional value.

If you understand all the benefits of decentralized exchanges and want to build your own DeFi platform, we can help. IdeaSoft has deep expertise in blockchain development, including DeFi. Our portfolio contains more than 250 successfully delivered projects. Crypto exchanges, lending/borrowing platforms, NFT marketplaces, issuance platforms, DeFi aggregators – we have experience working with projects of various sizes and complexity levels. Contact us to get a free consultation with a technical specialist or a project estimate.

How to Build a DeFi Lending Platform

DeFi lending/borrowing solutions along with decentralized exchanges are now among the top 5 projects with maximum locked-in value (in USD), according to DeFi Pulse. In this article, we’ll tell you about DeFi lending and borrowing platform development using the best blockchain development practices.

How does DeFi lending work

Financial services have undergone significant changes in recent years. The use of blockchain technology lets us create a completely new market aiming to solve the problems of traditional systems. And at the forefront of innovative solutions is DeFi, offering us a new perspective on financial management. Lending/borrowing platforms have become one of the most popular types of DeFi projects due to the clear benefits for users over their centralized counterparts. And before we go to these advantages, let’s figure out how DeFi lending works.

The development of decentralized lending and borrowing platforms allow users to lend and borrow crypto assets. Unlike traditional systems where a platform gives a loan to a borrower, DeFi provides peer-to-peer lending between network participants, eliminating the need for third-party involvement. The lending protocol allows lenders to earn interest. Plus, DeFi lending platforms often provide an opportunity for long-term investors to earn higher interest rates. Therefore, both borrowers and lenders benefit from this model.

One of the main advantages of DeFi is that anyone can become a lender and earn interest. Also, any user can become a borrower by signing up for a platform and connecting a crypto wallet. So this is how it works.

Loans are disbursed through self-regulatory smart contracts without any intermediaries. Borrowers pay a different interest rate for borrowing cryptocurrencies. And the interest that borrowers pay generates the interest that lenders receive. To start the process of obtaining a loan, a user deposits crypto assets as collateral. For example, if the user needs to borrow one bitcoin, he can deposit the price of one bitcoin in DAI, etc.

Now that you know how DeFi lending works, we can move on to the benefits of DeFi lending platforms. Among the main benefits of DeFi loans are the following:

Improved borrowing speed. With DeFi, you can get a loan very quickly, thanks to automated processes using smart contracts. All you need to do is connect your wallet to a DeFi platform and request a loan. Without intermediaries and any identifications, transactions go through almost instantly.

No intermediaries. Self-executing smart contracts allow lenders and borrowers to establish agreements directly. The absence of intermediaries in the form of banks and other financial institutions speeds up the process of issuing loans and allows borrowers to borrow funds at lower interest rates and lenders to receive higher returns.

Permissionless. DeFi is an open and transparent ecosystem that anyone with a crypto wallet can join. Regardless of geographic location and credit history, you can act as a borrower or lender by meeting the basic requirements of a platform.

Transparency. DeFi has the highest level of transparency that maintains user trust. Built on public blockchains, DeFi lending platforms allow any user to review the smart contract code and see how the system works.

More control over crypto assets. It is no secret that some centralized platforms can lose user funds due to system errors or hacker attacks. With DeFi, users are the custodians of their funds, which gives them more control over their assets and personal data.

So as you can see, DeFi lending gives users more freedom and profit in managing their crypto assets. The inclusion of P2P transactions allows you to reduce costs and speed up the process of issuing loans. In addition, the members of the network remain anonymous.

DeFi lending vs CeFi lending

Decentralized finance emerged as an alternative to centralized finance or CeFi. The main difference between DeFi and CeFi is the lack of central authorities in decentralized platforms. Let’s take a closer look at the other differences between CeFi and DeFi lending to find out the cons and pros of both mechanisms.

Criteria	CeFi lending	DeFi lending
Access	Determined by a platform	Permissionless
KYC requirements	Required	No need for KYC
Funds Custody	Platform	User
Control	Centralized authorities	Not controlled by centralized authorities
Loan disbursement speed	Lower	Faster
Platform examples	BlockFi, Nexo, Celsius	Compound, Maker, Aave

As shown, DeFi lending is very different from CeFi. Firstly, when using a DeFi platform, no one can forbid you to become a member of the network and take a loan if you have provided the necessary collateral. While in centralized platforms, the moderator can approve or decline a loan request. Secondly, an important advantage of DeFi is that users themselves act as custodians of their assets, which removes responsibility from the platform and increases the level of user confidence.

DeFi lending platform features

If you decide to build your own DeFi lending and borrowing platform, start with must-have features. DeFi lending services have similar functionality to regular lending platforms, but they also have unique features associated with the decentralized nature of the product.

First of all, in order to start using a DeFi platform, users must connect their crypto wallets. Therefore, you need to make a list of wallets that your platform should support. For example, Compound allows users to sign up with Metamask, Ledger, Wallet Connect, Coinbase Wallet, and Aave platform provides more options. Decide which integrations you need.

After connecting a wallet, the user can start using the core functionality of the platform. Let’s take a closer look at the main features of DeFi lending apps.

Flash Loans

Flash loans are a type of uncollateralized lending that has gained popularity thanks to the rise of DeFi lending platforms like Aave and dYdX. Thanks to this feature, users have the ability to borrow without providing collateral, but this loan has a limited duration and is automatically canceled if the user cannot repay it. Regulation takes place using smart contracts that don’t allow the transfer of funds if the conditions laid down in them haven’t been met. So the borrower must pay off the loan before the transaction is completed. Otherwise, the smart contract will cancel it.

Flash loans are a fairly innovative and debatable concept, but users have already appreciated their benefits. The possibility of getting a loan almost instantly at the right time is very convenient for traders who can make money on price discrepancies on different exchanges, etc. In any case, this feature can be a great advantage for your DeFi lending platform too.

Rate Switching

Crypto asset markets are very volatile, so users of your platform will appreciate the rate-switching feature. Rate switching allows borrowers to switch between stable and variable interest rates and thus protect themselves from sudden market movements. This feature helps to achieve certain stability of the rates when borrowing. Rate switching is one of the key features of Aave, so we advise you to consider implementing it in your platform.

Fiat Gateway

The DeFi world can seem complicated for beginners, so you need to make sure your lending platform is easy to use and meets the needs of your customers. Fiat gateway is one of the features that will help you with this. Why confuse users and force them to use third-party tools to buy a cryptocurrency when you can implement this feature inside your platform? Fiat gateway will enable your users to buy digital assets with fiat currencies using the interface of your app, thereby improving the user experience. It also simplifies the onboarding process for users.

Margin Trading

Margin trading is a useful feature for traders that involves trading with borrowed money. This helps to increase potential profit in low-volatility markets or in the short term. By borrowing money, a trader increases his capital and leverages his positions, although he assumes certain risks. For example, dYdX allows you to use up to 5x leverage, and you use your own funds as a guarantee. If you decide to implement this feature in your lending platform, think carefully about the mechanism that will need to be written in the protocol.

Investment Rewards

In addition to features for borrowers, you should also think about features for lenders. In order to motivate them to provide funds for borrowing on your platform, you need to offer a reasonable investment reward. For lenders, this is an opportunity to receive passive income from crypto assets, and for you, the process of attracting and retaining lenders. Develop your own reward strategies for lenders to encourage them to make long-term investments.

Recapitalization

Recapitalization helps users stabilize during market movements. For example, Maker issues MKR tokens to keep DAI stable. So if the collateral system is not sufficient to cover the value of the DAI, then MKR is created and sold in the market for additional collateral. You should also think about recapitalization strategies and implement them into your platform. All the logic of the system will be embedded in smart contracts.

Of course, this is not a complete list of features for the decentralized lending and borrowing platform. The more options you provide to users, the higher the chance of success. Follow the latest crypto trends so you don’t miss out on new ideas.

The process of developing a DeFi lending platform

In this part of the article, we will look at how to build a DeFi lending platform from a technical point of view. The DeFi app development process consists of several stages, and we advise you to enlist the support of an experienced development team to successfully complete each of them. Since decentralized finance is a fairly new direction, it can be really challenging to find developers with relevant experience. Therefore, when choosing a partner for the development of a DeFi product, pay attention to the expertise of developers, experience in creating smart contracts, and delivered projects. We also recommend reading our guide on how to start a successful DeFi project.

The process of defi lending platform development

Discovery phase

The Discovery phase is an important part of creating a DeFi application, as it allows you to build the business logic of your project. The fact is that each project is a separate business case that requires a custom solution. And in order to do everything right from a technical point of view, developers need to build a lending platform architecture that would meet your business goals and fit the needs of end-users.

During the discovery phase, business analysts will help you identify and describe the main tasks of the project, core features, as well as create a portrait of your potential users. All these data form the basis for choosing the right technology stack and building the correct architecture of the product. According to statistics, the discovery phase helps to optimize the budget and reduce project risks, so we advise you not to skip this step.

UX/UI design

UX is often one of the weak points of DeFi applications and the reason why users still prefer centralized platforms. No matter how complex the logic of your lending app is, everything should look simple for users. Therefore, you need to work with experienced UX/UI designers that will help you assemble your requirements into a single functional and intuitive user interface.

We advise you to choose DeFi lending and borrowing platform development companies that have an in-house design department. There are several advantages here. First, designing and developing your platform within a single company will save you time and money. Secondly, in this case, a single team will work on your product, which will be able to resolve issues and work as one quickly.

DeFi lending protocol development

We have already mentioned that in order to create a blockchain-based lending platform, it is necessary to put all the logic of the platform’s operation into smart contracts. Smart contracts are self-executing contracts that are triggered automatically as soon as all the conditions laid down in them are met. Once you have decided on the requirements for the project, the mechanism for calculating interest rates, the type of credit pool, the mechanism for investing rewards, etc., all these features need to be implemented technically in the form of code.

Smart contract development requires sufficient blockchain expertise. First, contracts must be secure and free of bugs and vulnerabilities in the code; otherwise, your platform will be unreliable. Secondly, for all their security, smart contracts must remain flexible and functional so that you can easily update them if necessary. And finally, one of the main difficulties of working with smart contracts is the gas fee for their use. If the gas fee is too high, users won’t be interested in using your lending platform. Therefore, gas optimization is also one of the key tasks in the development of a DeFi product, and only truly experienced engineers can cope with it.

Testing and launching

DeFi is a transparent and open system that imposes additional security requirements. When testing your lending app, you need to make sure not only that the system is working as intended but also that it is free of vulnerabilities. And the main task here is to audit smart contracts. You shouldn’t have to transfer issues with assets locked into smart contracts and other problems. The practice of recent years has shown that DeFi protocols are one of the favorite targets of hackers. Don’t give them a chance. Remember that providing full-coverage unit tests is crucial in preventing attacks and fraud.

Our team can help you develop cross-chain DeFi platforms, enhancing security and interoperability across multiple blockchains.

How we can help

Now that you know how to build a DeFi lending platform let me tell you how we can help you. IdeaSoft offers end-to-end DeFi lending platform development services. From business analysis and design to deployment and testing, our team has all the necessary expertise to complete the tasks of your project within one company. IdeaSoft’s portfolio includes over 250 projects, most of which are related to blockchain development. Crypto exchanges, including decentralized (DEX) ones, lending/borrowing platforms, NFT marketplaces, issuance platforms, DeFi aggregators, and more. Our engineers know how to develop a DeFi product of any complexity level.

If you want to set up a DeFi lending platform that fits all security requirements and the needs of end-users, we will be happy to provide you with the best experts to meet these challenges. The IdeaSoft team has more than 140 software development professionals ready to start a new promising project. Check out our blockchain development services or contact us directly to discuss cooperation details.

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Crypto exchanges market overview

The main security issues in crypto exchanges

XSS

Configuration vulnerabilities

Code vulnerabilities

Vulnerabilities in smart contracts

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What makes a crypto exchange secure

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NFT use cases

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The difference between custodial and non-custodial wallets

Key features of DeFi wallets

Steps for creating a DeFi wallet

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Examples of DeFi wallets

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Advantages of stablecoins

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What are decentralized exchanges?

How does a decentralized exchange work

Decentralized exchanges with blockchain order books

Decentralized exchanges with order books outside the blockchain

Decentralized vs centralized exchanges