Gone are the days when the concept of cryptocurrency was looked upon with suspicion and considered detrimental to the conventional financial system which stands as a symbol of stability and security. Common people are getting more interested in investing their hard-earned money into cryptocurrencies, thanks to the ever-growing breed of accessible and versatile independent crypto exchanges allowing investors to trade in virtual currencies. Bitfinex is one such crypto exchange that believes in providing the investor with an unparalleled crypto investment experience. Analytics Insight has engaged in an exclusive interview with PAOLO ARDOINO, CTO, Bitfinex.
ANALYTICS INSIGHT : Kindly brief us about the company, its specialization, and the services that your company offers.
PAOLO ARDOINO : Bifinex is a cryptocurrency exchange that is at the forefront of technological innovation in terms of digital token trading. Our mission has always been to give our users the ultimate cryptocurrency trading experience. As such, we continuously strive to provide our users with state-of-the-art trading tools, innovative technology, and unparalleled levels of customer service.
AI: With what mission and objectives, the company was set up? In short, tell us about your journey since the inception of the company?
PA: Since Bitfinex was founded in 2012, our team has gained invaluable experience in blockchain technology while also cementing our position as the go-to place for digital asset traders and institutions to trade.
The digital asset space is evolving at a breakneck pace and keeping up with such rapid technological innovation requires an equally forward-thinking and agile approach. Bitfinex provides state-of-the-art digital asset trading services for our users and global liquidity providers. We firmly believe that the best cryptocurrency trading experience should be available to everyone.
AI: Kindly share your point of view on the current scenario of Big Data Analytics and its future.
PA: Today, big data is everywhere. You have cars basically selling traffic data to Google. You also can have lightbulbs with a WiFi chip. It’s very exciting. In the blockchain space, you have things like the Lightning Network.
This is a bitcoin second-layer solution that employs micropayment channels to increase the blockchain’s ability to process transactions more quickly. In a nutshell, the Lightning Network enables users to send bitcoin in a matter of seconds at a fraction of the cost. There have been various use cases of how the Lightning Network is being combined with AI and big data to spearhead innovation. We have seen self-driving cars, which rely on a combination of AI-generated data, begin to share data via an integrated network based on the BTC blockchain. With the emergence of the Lightning Network, the transmission of information on a secure and immutable network becomes possible. In the future, AI platforms will be able to communicate data more efficiently, allowing AI systems to better assess their surroundings in real-time.
Overall, the future of big data points to more digital growth, as almost every industry will come to depend on how information is stored, processed, and applied.
AI: How is IoT/Big Data/AI/Robotics evolving today in the industry as a whole? What are the most important trends that you see emerging across the globe?
PA: The Internet of things (IoT) is a major trend at the moment. For example, we now have the technology where your fridge can detect that you’re out of milk and make an order for some milk. The capacity for devices to communicate with each other in the home is growing exponentially. IOT’s growth will play an important role as we move toward living in the homes and cities of the future.
AI: Please brief us about the products/services/solutions you provide to your customers and how they get value out of it.
PA: In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer (P2P) financing, an OTC market, margin trading for a wide selection of digital assets, and derivatives trading. At Bitfinex, we offer the best crypto trading experience for professional traders and liquidity providers around the world through the delivery of cutting-edge technology.
In Bitfinex Pay we’ve created an intuitive and seamless way for online merchants to receive payments in crypto. Bitfinex Pay enables merchants to be easily equipped to support crypto payments as increasing numbers of consumers become more comfortable with paying for goods and services using digital tokens. Bitfinex also provides our customers with the capacity to lend out their crypto and take out a loan using cryptocurrency that can be converted into fiat.
Meanwhile, Bitfinex Securities, the securities platform of the exchange, is providing a better way to raise capital or list securities than traditional exchanges. As a leading exchange in the blockchain space, we are keen to support blockchain-related projects but the platform is not in any way limited to doing so. Bitfinex Securities provides the opportunity for small companies to access funding markets when that route je not available to them in traditional finance. Through blockchain-based securities, it provides the capacity to significantly reduce listing costs and streamline processes. It also increases accessibility to securities products among our member base. The monumental leap that the blockchain represents is an opportunity for new entrants to compete against the incumbent stock exchanges.
AI: What role has Bitfinex played in the innovations of new technologies?
PA: At Bitfinex, we are extremely focused on innovation. You don’t have to look much further than our innovative product offerings. For example, Bitfinex Pay is disrupting the traditional payments industry. By furthering the use of crypto for transactions for payments and services, Bitfinex Pay is at the vanguard in a revolution for money and payments. We also have Bitfinex Securities which is disrupting the traditional exchange trading model for securities. Unlike exchanges in traditional finance, which are more geared to catering to larger and more established corporations, Bitfinex Securities is set to become a hub for innovative tech startups. It recently helped to raise Euro 6.75 mn through the issuance of the Blockstream Mining Note. This is unprecedented, and Bitfinex Securities offers capital raising and trading opportunities to a wide range of companies, that would not be able to get access to traditional capital markets.
AI: The industry is seeing the rising importance of Big Data Analytics and AI. How do you see these emerging technologies impact the business sector?
PA:The rising importance of Big Data Analytics and AI will undoubtedly impact the business sector. The digital era has created an overwhelming amount of information which has proven to be immensely valuable to businesses. An increased capacity to analyze large data sets quicker and more efficiently, will not only improve business efficiency but also provide valuable insights needed to make better decisions.
AI: What are some of the challenges faced by the industry today?
PA: In the past year, we’ve seen a significant shift towards the mass adoption of big data analytics and AI. It is clear that we are now in a technological revolution. However, the fact remains there are still significant challenges being faced by the industry as it heads into this next phase. For one it will take some convincing to get more and more users comfortable with this new technology. This is due to a combination of resistance to change and fear. As human beings, we have become accustomed to a now outdated way of doing things. It will likely take some persuasion to get people to see the benefits of altering procedures and adopting new processes with the help of big data and AI.