As the crypto world continues to expand, it’s becoming clear that there won’t be a single universal cryptocurrency. While Bitcoin remains one of the more popular digital currencies out there, Ethereum is quickly gaining traction.
For example, a recent report from Weiss Ratings assigned grades to dozens of cryptocurrencies based on a number of metrics, and Ethereum received a higher rating than Bitcoin. Yet as Ethereum and other cryptocurrencies become more desirable, crypto holders now require a single application to leverage all financial products in one place.
The Swiss-based startup Eidoo has solved this problem by creating a mobile app that serves as a multicurrency digital wallet for Bitcoin, Ethereum and all ERC20 tokens. Additionally, Eidoo functions as a hybrid exchange, allowing users to sell, buy, spend and convert cryptocurrencies on one platform.
Simplified Blockchain Interaction
Eidoo aims to simplify the interaction between the blockchain and its users to help make cryptocurrency mainstream. Eidoo does this by providing an easy-to-use application with a “human to blockchain” interface designed for all cryptocurrency needs. As a result, the complexity of the crypto world becomes easier to manage.
One of the main benefits of Eidoo is that the user experience is based on simplicity and control. Once users download the Eidoo mobile app, they can secure all their multi-asset accounts and addresses, as well as their signing keys. Eidoo simplifies and protects wallets by allowing users to access their cryptocurrencies in one place with one password, which is comprised of 12 words. In case of emergency, Eidoo also offers a “recovery tool” designed to provide users with their tokens in a simple manner.
Additionally, Eidoo just announced in a blog post that the Eidoo wallet will soon become “hypersmart” by integrating artificial intelligence algorithms from the Swiss company ORS SA. This will allow Eidoo users to automatically use AI algorithms when trading and investing crypto assets on the basis of their own preferences and risk profiles.
Another way Eidoo distinguishes itself from other popular cryptocurrency wallets is by automatically recognizing ERC20 tokens. According to Eidoo’s white paper, it is currently not possible to enforce unique names and symbols on ERC20 tokens, meaning users can create new tokens that have the same name or symbol as existing ones. This becomes problematic, though, for the simple and secure use of a wallet. The Eidoo wallet solves this problem by implementing a special index that will group tokens issued by companies with legitimate tokens. Tokens that are not in this special index are labeled as “untrusted” in order to help people avoid scams.
A Hybrid Exchange
In addition to its multicurrency wallet, Eidoo serves as a hybrid exchange which is expected to launch in the coming weeks. Currently, two teams — an Ethereum team and a Bitcoin team—are working on applications and the advancement of the Eidoo exchange.
The first pair of cryptocurrencies to be made available on the Eidoo exchange will be EDO/ETH (EDO is the Eidoo token). Subsequently, ERC20 token pairs will reportedly be launched.
The hybrid architecture of the Eidoo exchange allows users to maintain complete control over their funds in a simple manner. Users’ accounts are based on an Ethereum smart contract, where tokens will be placed. This prevents the exchange from having unauthorized access to users’ funds. Ethereum smart contracts are also used to settle and finalize trades.
The Eidoo exchange also utilizes an off-chain order book and server to provide end users with the familiar experience of traditional exchanges. Users will be able to create as many orders as their trading balance allows for, and they will not be charged until an order is matched and executed on Ethereum (smart contracts double-check the matching).
This process helps provide multiple layers of security, while accruing lower gas costs on-chain. This demonstrates how a hybrid approach will be a good scalability solution for exchanges in the future.
Also, similar to decentralized platforms, transactions between wallets will entail atomic swaps. This means trading operations can only take place with a full exchange; otherwise, nothing will happen.
It’s also worth mentioning that the first time users open the Eidoo exchange, they will be asked to make a small ETH transaction to cover the Ethereum blockchain fees and to activate the smart contract to enable exchanges on the account.
As if a multicurrency wallet and hybrid exchange weren’t enough, Eidoo plans to implement a decentralized marketplace and a debit card in the near future. As the crypto world continues to evolve, Eidoo realizes the importance of improving both technology and the user experience to help cryptocurrency become mainstream and accessible.