Frequently Asked Questions
Have questions? We are here to help!
Have questions? We are here to help!
Sanctuary DEX is a suite of software and services that are intended to bring cryptocurrency to the general public. Cryptocurrencies are the future of currencies there is no doubt, however, the existing tools for purchasing, paying, and trading are not designed with the general public in mind. At Sanctuary DEX we have iterated our designs over and over to create a seamless and painless user experience for everyone. While our products provide all the features of other products we design them to require no previous knowledge of concepts like blockchain. Safety, security and simplicity are our goals.
Cryptocurrencies are more secure than printed currencies because they cannot be easily counterfeited. The distributed ledger and the cryptography used make cryptocurrencies highly secure if individuals do a good job of storing their private keys.
The biggest risk in cryptocurrency is losing one’s private keys or not protecting them so that somebody could have access to them and steal them. At SANCTUARY we provide the private keys as a series of words that can be written down and stored in a safe place. We also provide services for printing these keys without any human interaction so that our customers can store these keys in a safety deposit box.
At SANCTUARY it is our firm belief that cryptocurrencies will replace other currencies. Just like Uber replaced taxi services and Netflix replaced Blockbuster, the internet has obsoleted fiat currency.
With that said there are still plenty of technical hurdles that need to be overcome before cryptocurrencies completely replace fiat. At SANCTUARY we are developing unique features and solutions that will facilitate this transition over the next decade.
Cryptocurrencies have outperformed all the major indexes by factors in the hundreds. Some of this is due to speculation but most of it is due to the realization that digital currencies are going to replace paper currencies. The idea that cryptocurrencies are just an investment instrument is a considerable misunderstanding of the transaction that is taking place in our opinion.
As the federal reserve has increased the money supply, cryptocurrencies have increased exponentially. We believe that this would have happened anyway due to the benefits of programmable money and cryptocurrency, but the Fed has accelerated the process in the shift to digital currency. While we expect to see a cooling-off periods in the near future, we also expect these trends to continue over the next few decades.
Deflation occurs when the money supply is constant, and the number of products and services increases changing the ratio between the two. While this phenomenon between products and services and cryptocurrency is already taking place in the case of bitcoin (a few years ago a car might cost 5 Bitcoin that today would cost .5 Bitcoin ) there are thousands of alternative coins that will gain acceptance and have exchange rates relative to Bitcoin. It is our opinion that as the market needs a larger money supply due to increases in gross product the free market will adjust these alternative coin prices relative to Bitcoin as needed to maintain a stable currency ratio.
One of the first retail purchases using cryptocurrency was the purchase of a pizza using bitcoin. Today large items such as cars can be purchased with Bitcoin and in China cell phones can be purchased with Bitcoin. There are issues with using cryptocurrencies to make small purchases. SANCTUARY offers some unique technologies to make purchasing small items economically feasible using crypto currencies.
While gold has some inherent store value in the making of electronics it is not practical for retail purchases as it cannot be divided easily as needed. Cryptocurrencies offer the best of both worlds in that they have a fixed finite supply, and yet they can be adapted for retail purchasing.
A cold wallet is one that is not connected to the Internet and its keys are secured in such a manner that reduces theft.
Any crypto wallet that is connected to the Internet is considered a hot wallet. While its keys might be stored the same as a cold wallet, it’s connection to the Internet introduces an attack surface that could result in the theft or loss of funds. It is best practice to log off of any hot wallet when not in use. For holders of significant funds, it is wise to invest in a hardware wallet like the ones available from Sanctuary Dex. (See below)
A hardware wallet is a device that looks like a USB thumb drive. A hardware wallet stores private and public keys securely. Hardware wallets are recommended for anybody wanting to store crypto currency. There have been many news articles about people losing millions of dollars worth of crypto currency by losing their private and public keys.
Sanctuary has a hardware wallet that has unique features to simplify its use. Presently configuring a hardware wallet can be a difficult process.
Gains in cryptocurrency are treated like gains of any other asset. Cryptocurrencies are not taxed on unrealized gains but anytime a cryptocurrency is traded for another cryptocurrency then that is treated as a taxable event.
In order to help our customers comply with tax regulations, SANCTUARY’s products provide tax reporting functions to simplify filing taxes.
Regulators’ main concerns regarding cryptocurrency are taxes, money laundering, and false promises of guaranteed returns. At SANCTUARY DEX we take compliance very seriously. This is why we offer reporting functionality for taxes, a way to report misuse of our products, and a way to report any employees making false statements about future potential returns.
SANCTUARY DEX has also retained a securities attorney firm to review our product offerings to ensure that we are 100% compliant. SANCTUARY DEX also files money handling licenses in the states it does business.
SANCTUARY DEX can handle large trades, and we have various methods for working with investors to invest large amounts of money in cryptocurrency. Large investments need to be handled with privacy and market impact in mind. SANCTUARY DEX can help our customers in these two areas.
Sanctuary offers a wider variety of complimenting products all aimed at one goal which is to remove confusion and simplify the experience of its customers. Most other cryptocurrency companies are geared to people with extensive trading knowledge and not designed for the average person to purchase currencies. At SANCTUARY we believe that this is the reason that only 3% of the population owns crypto currencies at this time is because the software is designed for the wrong audience.
Another differentiating feature of SANCTUARY’s products is that other exchanges are only centralized. SANCTUARY DEX offers both centralized and decentralized features. To overcome some of the challenges related to using cryptocurrencies for retail payment SANCTUARY has developed a unique deferment system to its decentralized exchange.
Many of the centralized exchanges now are trying to figure out how to implement decentralized functionality into their centralized exchanges. SANCTUARY DEX was started from the beginning as decentralized because we felt that it was easier to add centralized features later on an as-needed basis than to try to add decentralized features to a centralized exchange.
Deferred commit is a concept that SANCTUARY has developed to save its users mining fees when using cryptocurrency to make retail purchases. Deferred commit allows the users, especially merchants, to build up a large amount of cryptocurrency before committing it to the blockchain. This reduces the transaction cost for retail purchases to just a small fee which SANCTUARY charges, generally in the .5% to 1.5% range.
Geo fence token dropping is a way for retailers to attract customers. When the SANCTUARY app reports that a customer is in a certain geographical area the customers automatically receive points that they can use to make purchases at the retail location that supplied the points (this feature is under development).
SANCTUARY DEX is in the process of filing for provisional patents. These patents are regarding unique features that make cryptocurrency more accessible to the general public. SANCTUARY will continue to file for intellectual property that focuses on main street adoption of cryptocurrency.
SANCTUARY DEX has a preferred client program for investors and retailers that reach certain levels of holdings or velocity. This program allows its members to receive personal care in making transactions as well as receiving newsletters and white papers.
SANCTUARY’s sealed key delivery system is an automated method for users to receive their private keys permanently etched on a non-corrosive material. These etchings are never viewed by human eyes and are sealed and delivered to the customer for safekeeping.
At this time SANCTUARY mines a small amount of Ethereum. As the size of the SANCTUARY network grows we intend to increase are mining capacity
Security is the fundamental building block of any cryptocurrency company.
The SANCTUARY DEX Executive Team has extensive experience, degrees, and certifications in Internet security and cyber security.
Backups are another important part of the security process. The term “air gap” refers to storing backups in a way that they are not connected to the internet. There are many advantages to having a diversity of air-gapped backups of software and data. SANCTUARY has extensive backup procedures integrated into our business processes.
Cryptocurrency popularity is on the rise! Check out the latest industry news stories and updates from the SANCTUARY blog here.