Arwen, a Boston based blockchain company, which has developed a protocol allowing traders to have control over their private keys even when their coins are stored on an exchange, has recently announced a collaboration with KuCoin. The announcement which was made on January 28, revealed that the partnership will be to facilitate the delivery of a new non-custodial service to its customers which will allow them to use the exchange to trade “without exposing coins to the security risks inherent at centralized exchanges.”
Arwen’s co-founder and CEO, Sharon Goldberg said:
“…centralized exchanges are valuable pools of liquidity for traders. The problem is that trading on centralized exchanges without an advanced security system is inherently risky for traders. If an exchange is compromised during a trade, customer funds are at risk. With Arwen, customer funds are secure even if an exchange is hacked.”
She also stated that you are technically not the owner of your coins if you don’t hold the keys, and that is something that Arwen is trying to remedy.
Arwen’s new trading service is based on a Blockchain-as-a-Service (BaaS) protocol which will enable allows traders to access the most secure method for trading cryptocurrencies on centralized exchanges and though KuCoin is the first to introduce the Arwen protocol, the company is already planning its expansion to other exchanges. Arwen with the new service will allow exchanges to avoid being responsible for securing their customer’s digital assets.
KuCoin President and Co-Founder, Eric Don commented:
“KuCoin has been working hard to ensure the security of the exchange itself. We are also exploring other ways to satisfy users who have extreme security requirements and do not trust any third party. [Arwen’s] escrow mechanism enables users who have extreme security requirements to have a higher sense of security in transactions.”