“To be or not to be” a Centralized or Decentralized Exchange? This was the question when first considering what sort of exchange Aureus Coin should be primarily offered on. We had to consider the following:
With Centralized Exchanges:
- You do not have control of your crypto coins; they are kept by the Exchange as custodians.
- Centralized exchanges are highly vulnerable to hacking or cyber security threats as they are online 24hrs a day and all accounts are accessible 24hrs a day. The Exchange could be holding millions of dollars worth of crypto assets for millions of people. External or even internal hacking can move multiple crypto from multiple accounts in minutes without the user even being connected.
- Loss of crypto keys by a centralized exchange could lock them away making the assets inaccessible forever. This recently happened on the Quadriga exchange when the CEO who was the only person with knowledge of the crypto keys died.
With Decentralized Exchanges:
- Decentralized Exchanges use smart contracts and decentralized apps to automate
- Transactions and trade.
- They do not control (keep) your crypto assets. You have full control and keep your own coins in your wallet.
- Coin or token access is only available at the point in time when the individual user opens their wallet to buy or sell which may be 5-10 minutes in a day. If the wallet is not connected, then hackers cannot transfer coins or tokens.
- The user is responsible for their own keys and hence the security of their assets.
Thus Decentralized Exchanges are far safer and virtually no security breach is likely to occur.
Hence after consideration of many factors the Company decided to create the Aureus Coin Exchange as a Decentralized Exchange.
The Company takes the security of its Exchange and of the buyers of Aureus Coins to a very high standard thus in addition to being a Decentralized Exchange our Exchange does not hold minted Aureus Coins waiting to be sold. Our Exchange mints the coins at time of purchase.
