In the past few years, the crypto world has lost billions of dollars’ worth of assets to hackers. This has led to general distrust about crypto. It has also caused some people, who would love to invest in the industry, to stay away. One of the solutions that have been developed in recent years is the use of third party vaults. However, most of these solutions are usually slow, which slows down the operating speed of exchanges. That could all change, thanks to the Nebbex protocol.
What is Nebbex
Nebbex is a semi-decentralized vault, created with the goal of solving the problem of asset losses to hackers. This exchange custody solution will aim to end the loss of asset to hackers and internal theft. This deep cold storage solution has already proved quite useful in helping investors to buy and store crypto assets.
How The Solution will Help Exchanges
The Nebbex protocol is based on the use of an offline system that is powered by smart contracts. The smart contracts will be used to reconcile assets out of a physical vault where all assets are held in cold storage. The vault itself is located in the Dubai DMCC. This region was voted the number free trade zone globally. The vault where the cold storage is located is ranked as one of the top five most secure vaults in the world.
Why it is a Better Solution
With current crypto vaults, it takes about 48 hours to make a withdrawal. However, the Nebbex solution will offer exchange the ability to receive their funds in just an hour. This solution is great for exchanges and institutional investors that want to move large quantities of crypto assets in and out of physical vaults.
Currently, there is no other solution like Nebbex in the market. Most vault solutions offer either security or liquidity. Nebbex is the first one to offer both. With the Nebbex system, exchange operators will use redeemable tokens from their hot wallet. Alerts will be cross-referenced with deposits and can be redeemed in an hour. Today, most exchanges are forced to keep a portion of their assets in hot wallets for the purpose of speed and large volumes transactions, which is a downside to using cold storage.
It could Help Spur the Influx of Institutional Investors into the Crypto World
Many institutional investors see the value of crypto-coins such as Ethereum, Bitcoin, and many others. However, they are unwilling to invest huge amounts of money in crypto due to the lack of reliable custody solutions.
The Nebbex protocol is still in BETA. It is actively seeking exchanges to be part of the early adopter program. It plans to open a private presale for institutional investors, crypto funds, and exchanges that want to be part of this revolutionary protocol.