(ZEXPRWIRE) — The Limitations of Uniswap
The PRIVI Protocol aims to provide an enhanced alternative to systems like Uniswap and crypto-based swapping. By aiming to provide real-world use cases for swapping, the industry moves beyond the limitations of cryptocurrency pair swapping.
Platforms like Uniswap have become popular in recent months as they offer users of crypto upgraded use cases for their crypto. However, these platforms still have limited use cases. One of them is that they limit the total value of tokens that can be swapped to the size of the crypto market. The entire crypto market is worth a few hundred billion. That figure is huge but still minuscule in proportion to the global economy.
Another limitation of Uniswap and the like is that not everyone is interested in crypto-to- crypto swapping. Most people in the world do not engage in crypto. However, most people have a lot of value locked inside future return events, like loans.
The PRIVI Protocol thus aims to open up an unbounded interest and swapping environment that is more attractive for all people, not just crypto users. By combining blockchain swapping with real world use cases, like loans.
This type of swap is what we call use-case-based swapping, and it could be the next step in swapping. When someone performs an ETH/BTC swap, the swap is not dependent on the performance of the activity. Instead, it is limited to what the market dictates. However, use- case based swapping is dependent on real-world performance.