- The largest threat for the BRC-20 DEX shall be compliance threat.
- The CEO of OKX mentioned the chance would border on the DEX accepting deposits with none KYC or AML checks.
- The BRC-20 crew acknowledged the necessity to implement KYC as a instrument to advertise belief.
The CEO of OKX, together with the Twitter Star deal with, mentioned the largest threat to decentralized change BRC-20 (DEX) shall be compliance threat. Based on Star, this threat shall be across the DEX accepting deposits with none KYC or AML checks.
Star noticed that the BRC-20 DEX doesn’t help sensible contracts. As an alternative, the protocol requires customers to deposit crypto tokens right into a centralized pockets earlier than buying and selling them. After which, it sends the tokens to consumer wallets.
The BRC-20 crew, through its official Twitter account, appreciated Star for his commentary. The crew defined that their working mannequin is identical as what will be achieved with centralized exchanges. He additionally acknowledged the necessity to implement KYC to advertise belief. The crew tweeted;
“Certainly, Bitcoin doesn’t help sensible contracts. We use the identical technique a central change makes use of to course of withdrawals and deposits by way of an API that controls the lively pockets. A KYC is certainly one thing we must always do to advertise belief. »
BRC-20 is an acronym for Bitcoin Request for Remark 20. It’s a not too long ago launched token commonplace on the Bitcoin community powered by Bitcoin’s Taproot improve. The not too long ago launched protocol permits the registration of ordinals. Customers regard BRC-20 because the Bitcoin model of the ERC-20 token commonplace on the Ethereum community.
Though BRC-20 tokens use ordinals, not all ordinals are BRC-20. Due to this fact, the variety of BRC-20 tokens that presently exist is small in comparison with the hundreds of thousands of ordinals obtainable on the Bitcoin community.
Earlier right now, the BRC-20 crew announcement that customers can now have their AirDrop eligibility utilizing OG wallets. Based on the crew, that is the one class of wallets presently registered on the protocol. BRC-20 has not but registered ALPHA and Zealy members.
The crew additionally requested customers to solely submit pockets addresses used to make purchases through the IDO.
