The Internet Computer (IC) blockchain of the Dfinity Society has launched its first decentralized exchange, SONIC. Upon the publishing of a new whitepaper, the first-ever decentralized platform on the bitcoin ATM Foundation’s Internet Computer blockchain officially launched in January. Presently, two other exchanges are also in the planning, as per the feedback shared with Cointelegraph.
On the 22nd of January 2022, the first feature of the latest Decentralized exchange, dubbed Sonic, went live on the mainnet.ICP/XTC (Cycles Token), WICP/XTC, and InterICP/WICP (wrapped ICP) are the only three platforms for token exchanges using its original proxy Internet Computer Protocol (ICP). However, individuals can also receive incentives by supplying liquidity.
According to Dfinity director of communications, Michael Less, Sonic intends to revolutionize a model of decentralized finance. Presently, the exchange has a trade completion time of less than one second. That’s not all, Sonic also runs exclusively on the IC’s public blockchain platform with no transaction charges.
“It’s operating on an open blockchain, where it can’t be disabled — you can’t shut it down, it goes on forever,” Michael explained. He also adds that the firm’s existing key emphasis is an impending inclusion with Ethereum, which is most scheduled for release in Q3 this year.
“You’ll be able to transfer your Eth assets into Sonic, and it’ll work similarly to Uniswap but with no transaction charges and extremely faster processing time.”
Sonic v2, which will include the decentralized autonomous organization (DAO) features, its own native SONIC governance token, and token Launchpad is already in the works. However, Sonic 2’s release date is yet to be determined.
According to the information disclosed to Cointelegraph, Sonic will be joined on the IC by at least 2 more Decentralized exchanges. These decentralized exchanges include ICP Swap and InfinitySwap.
What exactly is an Internet Computer?
Internet Computer is an open blockchain and network that allows programmers to write, download code, and decentralized apps (DApps) on the network. Through this, genuinely decentralized internet is enabled.
“The Internet Computer for Techies,” a new whitepaper released on January 21, returns to the fundamentals, detailing how the IC employs code to power the burgeoning Web3 decentralized environment.
Based on reports from Dfinity, more than a thousand engineers are currently working on the IC blockchain. DSCVR, Distrikt, and Desocial are examples of social platform DApps. On the other hand, IC Gallery and PokedStudios are also examples of Metaverse initiatives. Also, MetaSports Basketball and Cube Run are examples of GameFi works.
What it intends to provide to its users
It aspires to provide users with a wide range of options. Users that are interested in finding hot tokens at their inception can use the DeFi to do so. DEXs also often have a virtually unlimited amount of assets, ranging from well-known to bizarre and random. And since anyone may build an Ethereum-based coin and a liquidity pool for it, there will be a wider range of projects to choose from, both verified and unvetted.
The chances of being hacked are minimized. Since all of the assets in a DEX exchange are kept in the traders’ accounts, they are less vulnerable to a hack. (In a non-DeFi transaction, DEXs also lower what’s regarded as “counterparty risk,” which is the possibility that one of the individuals involved — even the main individual — may falter.)
Because no private information is necessary, it provides anonymity.
It also intends to take its utility to undeveloped countries. Where robust banking infrastructure is lacking, this DEX will attempt to expand its peer-to-peer financing, fast transactions, and privacy services to developing markets where they are increasingly popular.
Here are a few potential drawbacks
DEXs, in general, have more difficult user interfaces, and SONIC is no exception. Decentralized trades necessitate some specialist expertise, and the user interfaces aren’t necessarily intuitive. Because it‘s possible to commit an unsalvageable error, such as sending funds to the wrong wallet, caution is essential. Another prevalent problem is “complete loss,” which occurs when a more unstable coin is combined with a less unstable one in a trading platform.
Frailty in smart contracts Any DeFi protocol is just as safe as the smart contracts that enable it, and code can have manipulable defects that lead to a loss of your tokens (despite extensive testing).
