What is a Backpack Exchange?

in blurt-170858 •  17 days ago 


(Including a Referral Code)

Backpack Exchange is a newly launched cryptocurrency exchange that has secured a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA).

The exchange is part of the company Backpack, known for its all-in-one web3 wallet and for the NFT collection Mad Lads, popular on the Solana blockchain.

The exchange aims to bring a high level of security and transparency to the cryptocurrency trading landscape.
It features technological innovations such as zero-knowledge proof of reserves (zk-proofs) and Multi-Party Computation (MPC) for custody, which enhances the safety of users' funds and allows for real-time verification of reserves without compromising privacy.

Backpack Exchange's development has focused on creating a seamless transition for users moving from fiat to blockchain applications. The exchange, in conjunction with the Backpack Wallet, offers users a variety of decentralized applications (dApps) and executable NFTs (xNFTs) that are unique to the Backpack ecosystem.

Moreover, the platform plans to include a range of trading functionalities, like derivatives and margin trading, while continuing to secure additional regulatory licenses globally.

Currently, the exchange is set to start in a private beta for existing Backpack and Mad Lads community members and is expected to roll out to the general public in the first quarter of 2024. The company's leadership emphasizes the importance of creating a transparent and trustworthy platform, especially in the aftermath of the FTX collapse, which highlighted the critical need for exchanges to provide proof of reserves and auditability to protect users.

The license granted by VARA allows Backpack Exchange to operate in Dubai and is a step towards setting industry standards for digital asset trading. It's an effort to ensure a regulated, transparent, and secure environment for trading virtual assets.

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