Topic: Centralization vs. Decentralization (Read 344 times)

Amongst all that comes with centralization, the most controversial is central control, this point creates a loop for human sentiment and favortisim to come to play. The ethics of Centralization would have been great if there were no interference of emotions, but then, it concerns finance, it is almost impossible to guarantee the non-existence of favoritism and control, mixed with emotions which can cause a bias, which is unhealthy for financial transactions. If this can be addressed, then the possibility of both centralization and decentralization co-existing can be considered.

Both have their pros and cons but what I don't get is why people keep shading Cex black even if they know the danger in DEx is more numerous than cex. This makes me wonder, how people don't still get it that anyone can easily fall for scammers on dex than cex. Fine, Cex can be hacked. That doesn't mean Cex can't be hacked too Mixin for example got hacked with no trace.

I use both but I think I prefer cex in this case when it comes to security, to be honest. I think I once shared about how to secure ourselves and how to go about it in my previous post. There Cex like Bitget, Binance and even Kraken that do well when it comes to security

There’s this saying “Not your keys, not your coins. I see a great sense in what you are saying, but there are some vital advantages of centralized exchange we can’t overlook. Changing from fiat to stables or crypto has been made very easy be centralized exchange, tho some decentralized wallet  offers this services too but their fees are outrageous while on the other hand centralized exchanges charge less amount. For me! they both work in handy

Thing is, we don't have to go towards pure decentralization without centralization. Core can be decentralized and everything centralized we build on top of that doesn't mean we have necessarily lost something ideological. Thing is, we need some sort of centralization at some point, but if the core, like with bitcoin is decentralized, i can't see any harm building centralized services like tokens with ability to freeze them over it. That doesn't mean we would lose core values, but more like adapting to reality.

I can't see total and absolute decentralization of everything being a desirable intrinsic value. It's valuable only where it truly matters.

Can they coexist? They are already coexisting whether some of us want it or not. Take exchange platforms as an example, the most popular cryptocurrency exchanges in the world, like Binance, are centralized exchanges, and people prefer them over most decentralized exchanges the most probable reason for that is that they provide more features and tools for the users when compared to decentralized platform, and people also think they are more secure.

The increasing regulations all over the industry are basically forcing a lot of decentralized platforms to either convert to centralization or simply close shop because you can't be a decentralized platform and comply with the rules and regulations of the authorities such as KYC and AML and stuff. The only decentralization that will always stay is Bitcoin's.

Decentralized projects very rarely combine such qualities as reliability and longevity. In the entire crypto market there are only a few projects that can possess these properties and all of them use POW consensus. Decentralized PoS is decentralized only formally, because all PoS have major holders and a team of developers who can control the project and make changes that are beneficial to them in the first place.

I do not think that OP analyzed only having the exchanges in mind. He was saying from the holistic approach of centralisation and decentralisation as regards the cryptocurrency industry.

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There might be many pros of centralisation, I am surprised because we are used to centralisation in our endeavours, decentralisation is somewhat sounding as a newbie to us. Most decentralized platforms and entities are gradually being centralised and I am not also bothered in as much as bitcoin remains untouched. Decentralisation is the way and we must learn to lean towards the way.

Finding the balance between centralization and decentralization is essential for blockchain's future. It depends on use cases - efficiency vs. resilience. Let's discuss and guide the tech in the right direction.

Without a doubt, centralized exchanges have their attractiveness. They are a hub for traders because of their reduced costs, quicker service, and more efficient procedures. However, as you pointed out, the dangers are obvious. It is a puzzle, isnt it? Why do traders always take risks with their assets? It would seem that lessons learned from the past and anecdotes of hacks and breaches would suffice.

Still, the argument persists and the cycle continues. Why are so many people voluntarily eschewing the most fundamental principle of protecting their possessions if the main objective is to maximize benefits and minimize risks? Either overconfidence or convenience could be the cause. In any case, traders must learn that compromising long-term security for the sake of convenience in the near run might have unfavorable outcomes. Even though it is a lesson that is frequently taught, it is frequently ignored.

To put it in simple words there are some factors due to which users prefer centralized exchange over decentralized exchange is because of user interface and transaction speed and more volume with more trading pairs which are not possible in DEX (to the extend of top centralized exchanges). DEX needs to pull up the socks and start working towards making it user friendly in order to gain more customer base because users are left with no choice rather to switch to CEX knowing that their data is exposed.

They exist both for a reason yeah Ive been using both and they really got a pros and cons. Well for convenience it favors me on cex when I am gonna cash out my money while I used my non custodial wallet for different dapps across different L1 and other networks which is really amazing too.

Regarding security, well no one beats a decentralized approach as precaution and just be mindful of the risk associated on some malicious links.

For me, I think Both are beneficial. Decentralisation allows you to control your assets the way you want while centralisation these days help you control your asset the way you want. Although, people might say centralisation isnt safe enough and this is why most of these centralised entity are transparent with proof of reserve. Have know Binance and Bitget with good reserve so far. So, these makes them look safe for any customer.
Many people are also concerned with converting crypto to Fiat and this is mostly done by the help of these centralised companies.

Hello there,

First and foremost, thank you for initiating such a pertinent conversation. Centralization and decentralization have indeed been at the heart of many discussions in the crypto space.

To delve into the benefits of decentralization over centralization, one must first appreciate the core essence of blockchain technology and the very birth of cryptocurrencies. Decentralization stands as the backbone of this vision. Without it, the web3 that many visionaries and developers are striving to build would be impossible. The idea of web3 is to provide a decentralized internet where platforms and applications are built on a peer-to-peer network, ensuring greater freedom and control for its users.

A key area where we're seeing this decentralization push is in the realm of social networks. Web3 social networks are striving to achieve full decentralization. This is not just a technical pursuit, but an ideological one, aiming to provide users with freedom of speech, an absence of censorship, full control over their funds and content, and heightened data security. Unlike traditional centralized platforms where personal data is often a requirement, most decentralized apps (dApps) on web3 allow users to engage without compromising their personal information.

A prime example of this endeavor is Solcial.io, a web3 social network that envisions building a fully decentralized platform. By doing so, it aims to address many of the pain points users experience in centralized platforms, from data breaches to arbitrary content takedowns. However, the journey to widespread adoption of such platforms is not without challenges. For networks like Solcial to thrive, there needs to be a broader acceptance and understanding of decentralization and web3 among the masses.

While centralization may offer certain efficiencies, the transformative potential of decentralization is undeniable. It's not merely about the technology but about returning power and control to individuals. That said, the debate of centralization vs. decentralization isn't about choosing one over the other in all scenarios. It's about recognizing where each has its merits and harnessing them appropriately. However, for a truly autonomous and free digital world, the scales might need to tip more towards decentralization.

Hold up there, I don't think "easier to implement changes and updates " is a pro. In the first place, changing a process means there's something wrong with it and/or a 3rd party intervention is necessary. This shouldn't necessarily be needed since it leaves room for access in a process that shouldn't be changed in the first place. If there's a change that needs to be made, it shouldn't be "easy", at least imo. Well I guess if it was a pretty shitty system then implementing changes easily can be a pro, but that just goes to show that it's, well, "shitty".

There are not different between cex and dex. Dex was actually bullshit and it's even more often to be hacked compared with cex. People have cex as a better choice. Look at so many people are loosing their money caused by they use dex and the scammers behind dex never reimburse their money.
Cex is offering better guarantee to our money rather than dex. Dex is a garbage thing right now and it's very easy to be hacked by hackers. Look at so many so many dexes got hacked.

Merlin, sushi, curve, and many more. Dexes was actually fake product and it's not as decentralized as what people think.

That’s true, both have their own pros and cons and its up to you if you are going to choose Centralized project or decentralized project, we all have our own preference and seriously most of the top projects today are centralized. If you are looking for a good investment, better to consider this two and also its better to have your own strategy, and know when to buy and sell. Whatever the project is, you should still analyze and this two can be your own option.

Both actually have their own pros and cons and with our current market status, I think many still prefer a centralized project for the security purposes although it will still depend on the project itself. Many are into good projects regardless if its Centralized or Decentralized as long as its a good one, investors will still come. CEX are more popular because it follows regulation and it offers security, many Decentralized project are losing their reputation because of the scam projects.

People will always adopt centralization because it's cheap and convenient, and let it centralize until it collapses. At this point, what was decentralized before is what remains.

Cryptocurrencies gave us the tooling to have decentralization in finance. But their main motor of growth might already be those who find exactly that inconvenient and head towards centralized services. Otherwise, there would hardly be any loud outcry when a big platform dies.

There is nothing wrong with using a centralized exchange if that is what you want, after all we cannot deny that their fees are cheaper, their service faster, and I can see why traders prefer them over DEXs, however to store our coins there for the long term is a big mistake, and this is a lesson we have seen over and over again and many traders still refuse to learn it, despite knowing very well that if a hack happens to the exchange they are using the losses they can accumulate will be massive.

Most of us here are not a newbie anymore and as an experienced user, we know the phrase called " not your keys not your coins " . So don't say that many people store their funds inside a CEX. No matter how strong their security are, it can still be hacked unexpectedly by a skilled hacker. DEX on the other hand can work differently.

I think there is no way to store our funds on them but we should always disconnect our wallet right after we trade just to be safe. It's also a good idea to use a separate wallet only for this purpose. Like you I also prefer CEX. I can only trade on DEX if the coin that I got from the airdrops and bounties are listed on it.