What is Serum (SRM)?
When you buy crypto from Coinmerce, you do so on a centralized exchange. It is also possible to buy cryptocurrencies from a decentralized exchange, which is abbreviated as DEX (Decentralized Exchange). Serum is one of the many decentralized exchanges out there. Nevertheless, this exchange is unique when we compare it to other decentralized exchanges.
In this article we will tell you what Serum is, how it works and what makes this exchange unique. We will also tell you how to buy and store Serum's SRM token.
What is Serum (SRM) and how does it work?
Serum is a decentralized crypto exchange (DEX) running on Solana's blockchain. A decentralized crypto exchange is a place where you can buy cryptocurrencies, just like you can at Coinmerce. The difference between a DEX and an exchange like Coinmerce, is that the DEX runs as an application on the blockchain. This therefore makes the DEX decentralized.
Users can not only access Serum through a web application, but also have the ability to use Serum on Android and iOs devices. They can do this by downloading the Coin98 app.
Built on Solana (SOL)
Serum's exchange is quite special, as it is one of the first major projects built on Solana's blockchain. This blockchain is not old yet, and therefore there are very few applications running on it, compared to blockchains like Ethereum.
Fast processing of transactions
One of the biggest advantages of Serum is that users can perform a transaction at lightning speed. This is because Solana's network can process between 50,000 and 65,000 transactions per second. Because Serum runs on Solana, it can therefore take advantage of this fast processing time.
Buying and selling tokens
On Serum's crypto exchange, users can buy more than 30 different tokens. This number is expected to increase in the future. Buying tokens can only be done with USDT or USDC. These are both stable coins, meaning that the value is always equal to one US dollar.
Who is the founder of Serum?
Alameda Research coined Serum with the FTX Exchange. Developed in 2020, they chose to build this DEX on Solana's blockchain. According to the founder of FTX Exchange, and therefore Serum, they chose Solana because this blockchain is very scalable. As a result, transactions can be executed at lightning speed, and users pay low transaction fees. This, he said, was something they didn't see enough of with other blockchains.
SRM is Serum's cryptocurrency. This is a token that runs on Solana's blockchain, just as Serum's application does.
SRM's token standard is called SPL. A token standard is nothing less than a set of rules that a token must adhere to in order to work within an ecosystem. For example, one of those rules is that the token must be developed in a particular programming language. If it is not, it cannot be seen as a full-fledged token by other protocols and applications. All tokens running on Solana must conform to the SPL token standard.
Users can use SRM on the Serum crypto exchange. This can be used to pay transaction fees, for example. It is also possible to strike SRM. This is the locking of SRM in a protocol to contribute to the security of the network. As a reward you receive interest on the SRM you use for staking.
SRM is also used as a governance token. Token holders can use the token to vote on plans for the further development of Serum. When someone has an idea, they can submit it in exchange for 50,000 SRM tokens. This makes Serum not only decentralized, but also democratic.
How to buy SRM?
Do you want to buy SRM? You can do so on Coinmerce's crypto exchange, where you can make use of various payment methods. It is possible to buy SRM with iDeal, SEPA, GiroPay, Bancontact, Sofort, EPS and MyBank. Before you can buy SRM, you need to have an account at Coinmerce.
If you do not have an account yet, you can create one quickly and easily by clicking here [LINK]. After your account is created, log in and go to the Coins page. In the search bar you can search for Serum or SRM, to go to the page of this cryptocurrency. On this page, you can buy SRM directly with the payment methods supported by Coinmerce. You can also go directly to this page by clicking here [LINK].
How to store SRM safely?
SRM is safely stored in the wallet of the Coinmerce exchange. This is convenient if you bought SRM on the Coinmerce exchange, as it will be automatically stored in your wallet. You don't have to worry about security because we store most of the crypto coins on a hardware wallet. This is a wallet that is locked from the internet, making it impossible for hackers to get to it.
You can also store SRM in your own hardware wallet, such as the one from Trezor or Ledger. However, you will have to verify the wallet address at Coinmerce first, before you can send cryptocurrencies here.