With exchanges forming a booming part of the digital currency market, so the behind-the-scenes technology evolves to accommodate the increasing needs of an ever-expanding environment.
While exchanges have so far featured grass roots technology, one company has come forward offering adaptable plug-in tools to allow exchange-related businesses to run off a pre-manufactured backend system.
Munich-based draglet facilitates the use of a central exchange mechanism and secure wallet, which can be expanded with multiple add-on features to suit the needs of the relevant business. This pick n’ mix style of technology integration has proven successful in other industries, and draglet’s leadership is confident in the product’s potential.
“Draglet has developed trading software components that were tested with over thousand beta users and have proven stable and earned lots of positive feedback,” sales director Benjamin Bommhardt told CoinTelegraph via email. “We maintain and host the required platforms and we provide a back office support solution.”
Draglet’s features are many and varied, but its developers see uncomplicated presentation as key in ensuring the success of hosted exchange technology. “Our slogan is “Starting a cryptocurrency exchange has never been easier,” Bommhardt continues, “…We achieve this by customizing the software to exactly match your business case.
“Furthermore we will give you the opportunity to increase the functionality of the exchange by adding external software modules. This might be additional 2FA security, KYC layers or advanced trading graphs for your clients.”
Accessories aside, however, what strikes as pioneering in draglet’s product is the efficiency of its central technology. Unlike its competitors, which notably include New York-based Alphapoint, all businesses running its exchange share the same interface, meaning that new clients with low orders are able to benefit from an active order book and increase liquidity, avoiding a problem which can often plague fledgling exchanges themselves.
Bommhardt further explained that the open order book forms part of draglet’s core strategy going forward and that it will be used to “improve the liquidity and overall economy health” as a leveraging tool.
As is sometimes provided by exchanges for private customers (an example being Hitbtc’s demo), draglet also offers an ‘exchange showcase’ allowing prospective businesses to test the trading platform without risk.
In an increasingly competitive market, the concept of third party hosting tools which can be retro fitted to businesses’ existing technology is a novel one, and something which may indeed provide draglet with coveted first mover advantage. Nevertheless, Bommhardt and his team are staying level-headed.
“Our products are tightly priced because we know that the cryptocurrency space is in the highest risk sector and want to ease the starting thresholds,” he added.