centralized exchanges are doomed, DEX are coming soon

spartacusrex

hero member

Activity: 718

Merit: 545

Quote from: brekyrself on January 30, 2017, 03:32:38 PM

Quote from: spartacusrex on January 30, 2017, 05:37:39 AM

There is still NO SOLUTION to the 'Jamming' issue that affects decentralised exchanges.. Sad

So the other party can pull out before the trade is done should the market move against them ~30 minutes later (when they actually have to complete)

Until this TECHNICAL issue is resolved, I don't think any DLEX can really work..

The 'hack' is easy.

There's an order book, with 3 SELL orders below(at a lower price then) yours.

You initiate a trade with those three, to get them out of the way, never intending to complete.

New user turns up and sees your SELL order is the first available. Boom.

The ONLY 'hack-fix' at the moment is not decentralised, but centralised. Which kind of defeats the whole point.

..

It'll be some clever trick, like Tier Nolan's original and brilliant Atomic Cross Chain Transfer. No one's come up with it yet though..

Can you explain how this issue can work against the BitShares dex?

Actually BitShares is an 'onchain' exchange. What I mean is that the assets you trade are on the Bitshares Chain itself. This means the 'hack' does not work. But.. you have not really traded BTC for ETH.. You have traded a 'market pegged asset'.

When you want to trade BTC for ETH on BitShares, you actually trade a BTC 'token' against an ETH 'token' that both live on the BitShares Chain, and THEN have to convert those tokens, into either actual BTC or ETH.

So although the Chain itself is decentralised, and so is the trading, you still have to cash out, and this requires finding someone to exchange your BitShares tokens with.. hmm..

This is not the same as actually trading BTC you own, for real ETH. It's close-ish, but you are not sure you can even convert your 'tokens' into the real thing.

I think this is what prevents many of us from using onchain asset exchanges.. after all NXT has had one for-ever..

cyrixcer

hero member

Activity: 524

Merit: 500

DEX? It is a joke or toy, look bitsgares, what can you expect more from DEX? Only a few trade there, there is no neccessary to trade there.

brekyrself

hero member

Activity: 547

Merit: 502

Quote from: spartacusrex on January 30, 2017, 05:37:39 AM

There is still NO SOLUTION to the 'Jamming' issue that affects decentralised exchanges.. Sad

So the other party can pull out before the trade is done should the market move against them ~30 minutes later (when they actually have to complete)

Until this TECHNICAL issue is resolved, I don't think any DLEX can really work..

The 'hack' is easy.

There's an order book, with 3 SELL orders below(at a lower price then) yours.

You initiate a trade with those three, to get them out of the way, never intending to complete.

New user turns up and sees your SELL order is the first available. Boom.

The ONLY 'hack-fix' at the moment is not decentralised, but centralised. Which kind of defeats the whole point.

..

It'll be some clever trick, like Tier Nolan's original and brilliant Atomic Cross Chain Transfer. No one's come up with it yet though..

Can you explain how this issue can work against the BitShares dex?

spartacusrex

hero member

Activity: 718

Merit: 545

There is still NO SOLUTION to the 'Jamming' issue that affects decentralised exchanges.. Sad

So the other party can pull out before the trade is done should the market move against them ~30 minutes later (when they actually have to complete)

Until this TECHNICAL issue is resolved, I don't think any DLEX can really work..

The 'hack' is easy.

There's an order book, with 3 SELL orders below(at a lower price then) yours.

You initiate a trade with those three, to get them out of the way, never intending to complete.

New user turns up and sees your SELL order is the first available. Boom.

The ONLY 'hack-fix' at the moment is not decentralised, but centralised. Which kind of defeats the whole point.

..

It'll be some clever trick, like Tier Nolan's original and brilliant Atomic Cross Chain Transfer. No one's come up with it yet though..

hotsurfing

member

Activity: 105

Merit: 10

Komodo has its own with delayed-POW, decentralized exchange, fiat-pegged assets, geckochains and dapps

_nur

sr. member

Activity: 308

Merit: 250

dont forget https://lykke.com/ by the founder of https://www.oanda.com/

andrei56

sr. member

Activity: 840

Merit: 254

It could work but I think the best advantage of a DEX is that governments will not be able to just do raid and seize everyones coins, obviously a DEX will also protect you from hackers too, but raids are way worst ion my opinion, so it will be a welcome change.

cengsuwuei

hero member

Activity: 714

Merit: 516

#SWGT PRE-SALE IS LIVE

youre founder/owner dex exchange
is same centralized, same in poloniex exchanger, so what is advantage trade in dex is compare in poloniex or bittrex
if launch new exchanger can incraese client must inovative and masive promote
in youre write not explain youre site, youre only explain about same poloniex site

jeffthebaker

legendary

Activity: 1526

Merit: 1034

After the shit Poloniex pulled with PascalCoin and all the dirty things Yobit openly engages in, I think it's time for a DEX to take up a prominent share of the crypto exchange market. If any project steps up to tackle the issue, I'll certainly indulge.

instacalm

hero member

Activity: 798

Merit: 500

Quote from: btc_zero_sum on January 29, 2017, 07:13:52 AM

during next months decentralized exchanges will be released, think of Komodo, Waves, Bitsquare and a few others are following that direction

looking forward, we will stop using centralized websites for our trading and start using 2-3 platforms with decentralized matching features

poloniex and similar centralized exchanges will soon be obsolete, no more deposits on shady websites and risks of third party being hacked, volume will move to those platforms and they will be forgotten

are the traders ready for the change?

Decentralized exchanges are the future, that's for sure! Centralized Exchanges will fight to defend their existence and market share as more and more people will turn to decentralized solutions. It's great to see innovation in this field. Just like Bitcoin originally revolutionized how payments can securely be sent in a peer to peer fashion, decentralized exchange are another important puzzle piece in an internet that endorses open access.

brekyrself

hero member

Activity: 547

Merit: 502

Centralized exchanges are not doomed. They will simply become gateways in and out of digital tokens. See how OpenLedger (gateway) works on top of the Bitshares DEX.

Fiat in, fiat out is still the difficult part with crypto.

deadpoolx

hero member

Activity: 560

Merit: 500

Decentralized exchanges are something that users are requesting for a long time, and things are progressing a lot in this regard. This can reduce the FUD with respect to the possibility that governments may try to interfere with the functioning of the exchanges, and this has the potential reduce the risks involved in depositing funds into exchanges, because you don't have to depend on third parties.

However, I think many people will continue to use such services, since decentralized exchange is still not something much known by many users, and will have to gain the trust of them.

Hazir

legendary

Activity: 1596

Merit: 1005

★Nitrogensports.eu★

Quote from: Pattberry on January 29, 2017, 12:52:49 PM

People tend to use exchanges which have lower fees and majority of the volumes are in exchanges where the fees are none and the major disadvantage of centralized exchange is that the funds are not safe and it is evident with the frequent hacks we are seeing every now and then and for that reason i do think that decentralized exchanges are the future.

They will be if the concept will be polished and working. In the same way bitcoin in not first digital currency at all, but it is first crypto having blockchain as its backbone.
So far decentralized exchanges are like internet network in mid 90. it was working and some people were ecstatic about it, but we know how bad it used to be back then compared to what we have now.

Pattberry

sr. member

Activity: 448

Merit: 250

People tend to use exchanges which have lower fees and majority of the volumes are in exchanges where the fees are none and the major disadvantage of centralized exchange is that the funds are not safe and it is evident with the frequent hacks we are seeing every now and then and for that reason i do think that decentralized exchanges are the future.

HaXX0R1337

sr. member

Activity: 574

Merit: 252

Decentralized exchanges are a good option we can have along with centralized exchanges but that does not mean that it is going to doom in the future,it is good people having many options to trade their coins and the problem i find with p2p exchanges is that it is really slow in trading on a daily basis and it becomes a problem for smooth usage.

Hazir

legendary

Activity: 1596

Merit: 1005

★Nitrogensports.eu★

Bitquare is already operational and I don't see them making huge impact on bitcoin trading. Their decentralization is basically pairing people who wants to sell with buyers.
Think of this service like of automated localbitcoins.com and because of that their fees are way higher than buying BTC on a standard exchange, as a result there are very few orders.
So until this fee polity will change then I don't think traders will use decentralized platforms.

European Central Bank

legendary

Activity: 1288

Merit: 1087

people want pumps and order books to play with. i don't see how decentralised places can deliver that. they'll be great for obtaining coins. not much use for trading them which is all alts are good for anyway.

Febo

legendary

Activity: 2744

Merit: 1288

Quote from: btc_zero_sum on January 29, 2017, 07:13:52 AM

during next months decentralized exchanges will be released, think of Komodo, Waves, Bitsquare and a few others are following that direction

looking forward, we will stop using centralized websites for our trading and start using 2-3 platforms with decentralized matching features

poloniex and similar centralized exchanges will soon be obsolete, no more deposits on shady websites and risks of third party being hacked, volume will move to those platforms and they will be forgotten

are the traders ready for the change?

I thought https://bitsquare.io/ is an decentralised exchange that is already working many months. Or I am wrong here?

It dont have much volume. It seems people are still used to use centralise exchanges. It has to switch in their mind. Everything needs its time to evolve.

topesis

hero member

Activity: 630

Merit: 500

Time will tell, how many of the existing DEX have 200BTC trading volume. It is not a matter of centralisation, is about marketing and understanding the business behind exchanges.

I want to ask if these exchanges will be offering margin trading because it is margin trading that allows traders to gamble and that is where the huge profit is.

BitcoinNational

legendary

Activity: 1470

Merit: 1010

Join The Blockchain Revolution In Logistics

1. latency.
(if you want high speed trade it will still need to be central server-lized)

2. DEX are for wide spread trading, SLOW trading, and that's okay.

3. 'D-L-Ex' is a hybrid of the 2, slow and fast, really up to you, OTC stuff.

Topic: centralized exchanges are doomed, DEX are coming soon (Read 1231 times)