Startup Says Its Open-Source Protocol Can Make Exchanges Obsolete

A young Dutch startup says its innovative blockchain platform could put centralized exchanges out of business.

Hybrix offers an open-source protocol that allows value to be freely transported between all distributed ledgers. It is complemented by a token that is “technically borderless” and not confined to any single blockchain.

According to the company, it currently supports 32 blockchains and 387 tokens, including some of the industry’s best-known networks: Bitcoin, Ethereum, Litecoin and Zcash.

The team behind the project says each blockchain has its own strengths, adding that its token unlocks access to all of these benefits by sitting on top of distributed ledger systems.

Hybrix argues that fragmentation in the industry is a bad thing that could serve as a substantial hurdle to mainstream adoption, adding: “The exclusivity of projects often obstructs the collaboration that is desperately needed for the maturing of distributed ledger technologies.”

A hot-button topic

Ethereum co-founder Vitalik Buterin recently said that more resources must be put into building a decentralized exchange system between Bitcoin and Ethereum, the two biggest blockchains in terms of market capitalization. He tweeted: “It’s embarrassing that we still can’t easily move between the two largest crypto ecosystems trustlessly.”

Hybrix responded speedily to highlight its upcoming protocol, writing: “We’re on it! Not only to bridge between ETH and BTC but between all of the big chains!”

One major point of difference with this project lies in how its multiledger tokens can exist on multiple chains at the same time thanks to a second-layer protocol. Unlike atomic swaps, compatibility does not need to be built into a network in advance. Hybrix executives believe this is an opportunity to improve decentralization without compromising on security and usability.

The open-source framework is important because it means anyone can add additional tokens as they please. Developers and projects also have the freedom to launch their own cross-ledger tokens.

Making blockchains accessible

Back in June 2019, Hybrix launched an explorer that enabled users to browse the transaction history “of pretty much every major blockchain.” It was built on top of its application programming interface in three weeks — and the company says this highlights how easy it is to build software through its platform.

For Hybrix founder Joachim de Koning, this is really important. “Currently, blockchain technology is still too difficult to understand. It should be much closer to the common person, much closer to the common developers,” he said.

To this end, Hybrix uses existing programming languages across its protocol and interface, creating some much-needed familiarity. This means developers will be able to depend on tools they already know and rely on, reducing what would otherwise be a very steep learning curve.

The project’s REST API and blockchain explorer are complemented by a sophisticated web wallet that’s described as a decentralized vault for storing digital assets safely and privately, all without sacrificing easy access.

Looking forward, Hybrix says its multichain approach means that it has built strong foundations to become a platform of the future. The team believes it has plenty of room to expand and head in new directions as the blockchain sector continues to grow and innovate.

With some crypto exchanges often criticized for commanding high fees, inadequate levels of security, and sketchy levels of reliability when prices suddenly rise or fall, Hybrix hopes to offer consumers an alternative, enabling them to transfer assets without the need for a middleman.