In the article “Top crypto exchange software solutions” we described the suppliers of white label solutions for creating cryptocurrency exchanges. Next we look at two products from this list from Alphapoint and Draglet, which are considered the best on the market. We will study their key features, advantages with minuses and draw conclusions.
What is white labelThis is a concept that came to information technology from the music industry, where record labels distributed vinyl records with a blank (white) label so that retailers could put their brand on them and sell under their own name.
In the modern sense, a white label is any product developed and produced by one company for sale by another company under its own brand, brand, or label. For example, Dell does not produce displays, but receives them from third-party manufacturers and sells under its own name. Similarly, the company makes Dollar Shave Club and Travelpayouts.
White label AlphaPoint overview
AlphaPoint is one of the leading providers of white label cryptocurrency exchange technologies for fiat money or other digital assets. The company is on the market since 2013 and delivers a product that allows you to run a crypto exchanger in less than 20 days.
The main office is located in New York, USA. The company also has offices in San Francisco and Philadelphia. AlphaPoint clients include Bitfinex, BitcoinsNorway, CoinTrader and MexBT.
The company currently offers two products:
- AlphaPoint Exchange - a white label solution for launching cryptocurrency exchanges that can handle 1 million transactions per second.
- Remarketer AlphaPoint - an automatic tool for connecting exchanges to liquidity providers.
Advantages and disadvantagesThe main disadvantage of a white label for creating cryptocurrency exchanges from AlphaPoint is the cost (500 thousand dollars). For competitors, it is an order of magnitude lower (the average on the market is 50 thousand dollars), and this despite the fact that the quality of the product and service of the services are approximately at the same level as many of its competitors.
Enterprise Matching Engine. Architecture engine, created with a focus on global markets. It processes 1 million transactions per second and has great potential for scaling, i.e. does not brake and does not fail under heavy loads. It has flexible management and full support for Linux and Windows.
Modular construction. Compiled modules - plug-ins can be connected to the crypto-exchanger engine. For example, authentication module, support for KYC / AML procedures, ETL system and others. This approach increases the flexibility of the product in terms of its capabilities, management and security.
Financial opportunities. AlphaPoint's white label supports integration with almost all types of banking structures, payment gateways and fiat currency. In addition, the platform can work with private and public networks, as well as with loyalty points and custom-made digital assets.
Safety. According to the developers, AlphaPoint security systems are built on the same architecture that is used by the world's largest banks. Due to this, their product is fault tolerant, has error detection codes on each record and “bulletproof” protection against unauthorized access.
Extended APIs. The product interface allows the use of communication protocols, REST, WebSocket, Binary, FIX custom APIs.
In July 2018, experts noticed a security hole in the AlphaPoint product. The config.js file, which was in the white label distribution of the HybridBlock launch solution, contained a feature for sending KYC documents to an email member of the AlphaPoint team.
With a lot of confidence, we can assume that this is a standard part of the white label code from AlphaPoint. And if so, it turns out that the exchanges created on the basis of this product, by default, send confidential user data in this way. Need to fix!
Apart from this puncture and high cost, there are no other complaints about AlphaPoint. Feedback from partners, reputation and recommendations are positive.
White label draglet review
Draglet Company was founded in 2013. The main office is located in Munich, Germany. One of the most popular blockchain developers. For its product, the company gives a 99.9% uptime guarantee for DNS. Key Clients Draglet - LACOINEX, CapitalDIGI, IWWorldexchange Belfrics.
To launch cryptocurrency exchanges, the company provides a white label technology called Draglet Exchange. Unlike competitors, including the Alphapoint, Draglet-based cryptocurrency exchanges are combined into a common liquidity network through DSO (Distributed Shared Orderbook).
White label Draglet presents 5 products:
- CxEngine. The engine for flexible, reliable, and fast cryptocurrency trading (throughput - 1,000,000 orders per hour), which matches the lowest buy order to the highest sell order. Allows you to customize many adjustable parameters, such as shopping fees.
- Cxclient. User graphical interface for managing the assets in the wallet. You can configure instant notification of any movement of assets, enable two-factor authentication when accessing your account and important information.
- CxServer. Software that provides high scalability and availability of the platform. Allows you to remove servers without downtime. DNS failover disables dysfunctional nodes and instantly redirects traffic to other nodes in the cluster. Can be used to connect trading and financial partners, as well as third-party cryptotographs.
- CxAdmin. Module for managing fiat means user accounts. It manages all customer support and adjusts exchange options, such as minimum nominal sales fees. In addition, this interface complements and provides greater control over other Draglet Exchange products.
- CxWallet. Cryptocurrency wallet with direct trading and two-factor authentication.
Advantages and disadvantages
Product featuresSafety. Draglet protection system uses four levels of protection:
- The architecture of the physical separation of servers for the trading terminal and wallets, which protects users' money from external attacks.
- Patented « user protection mechanism» for additional protection of cryptocurrency wallets.
- Two-factor authentication: by Google Authenticator and email.
- VPN is used to access the admin interface.
Performance Guarantee. The developers of white label solutions from Draglet managed to create a product with an uptime of 99.9% for DNS and a fairly quick recovery after a failure - 180 seconds. For better connection with users, Geo-IP routing and distribution server architecture are used.
Microservices. Products Draglet to run cryptocurrency exchanges can be used as a whole, or separately and in different combinations. At the same time, there are no restrictions on the combination of products from Draglet with products of other companies. Convenient to run unique sites.
First, I would like to draw your attention to the post of the user expert-lister on the Bitcointalk forum. It says that Draglet was deceived by the expert-lister after he turned to them for a product to launch a crypto exchanger. The authenticity of the fact of the author’s collaboration with the company is confirmed by the Draglet representative below in the forum thread.
If you look into the details, it is obvious that this is not a fraud, but the result of poor communication between contractors: the customer and the contractor understood in a different way what and who should do and how much it costs. This does not indicate a poor quality of Draglet products, but it says a lot about those who are responsible for working with customers at this company.
Secondly, Draglet helped Nicholas Maduro create the first cryptoverb in Venezuela. The site was named Monkeycoin, with its help the local authorities intend to change their El Petro stablebcoin (provided with oil) to Fiat. The El Petro coin is a lifeline for Madura, and the Monkeycoin is a “cable”, that connects this “circle” with the “boat”. So, helping such a “effective” leader is a bad ethical decision (from the point of view of the author of this text).
Summarizing, we can say that both of the white label solutions considered are not for nothing that they occupy a leading position in the market. True, the AlphaPoint product may have problems with the security of user data, while Draglet clearly has problems with choosing customers and communicating with them. Our company Merehead is actively engaged in the development of cryptocurrency platforms. If you need help and advice, we will be happy to assist you.