Can decentralized exchanges be the solution to prevent such hacks? Since centralized exchanges keep their money into a centralized location, it's lucrative for the hackers. But in decentralized exchanges, handling of money is controlled by the users and not kept in a centralized location. What do you guys think? Should we pay more attention to decentralized exchanges going forward?
Decentralized exchanges have their limitations. For instance, they can't properly interface with fiat money, which always requires a trusted third party within the banking system.
The current crop of DEX can also be more properly described as "non-custodial" -- they don't hold user funds but they use centralized architecture. Etherdelta had its DNS registry updated by attackers, who set up a phishing site on their domain and extracted user private keys. That's one example of how vulnerable this
semi-decentralized model is.
Overall, though, I'm guessing decentralized exchanges will eventually play a very important role. When we can trade on a completely decentralized architecture with decentralized stablecoins, it'll be a real game changer as well. We're probably several years away from that point.