But as many incidents unfolds, many people have began to understand the importance of decentralization and many people will begin to adopt same.
Topic: Finally they understand the value of Decentralization ! - page 2. (Read 286 times)
But as many incidents unfolds, many people have began to understand the importance of decentralization and many people will begin to adopt same.
Thank you for sharing this. It is indeed fascinating and would undoubtedly excite crypto.its a decentralized nature of the crypto space and the reliance on public ledgers has once again been proven with the recent collapse of US banks and centralized exchangers, such as SVB. The collapse of the USDC, the 2nd stablecoin in the market. the reliance of centralized markets on banks must be reconsidered in light of recent events. Thank you again for sharing this good insight
I don't think it's every business economy that really understand the meaning of decentralization because it's doesn't end with investing on bitcoin alone, it involves doing away with other centralized digital currencies, using a decentralized exchange and also running an economy under a non custodial channel whereby government or third party will have control over the affairs of the things you're doing, decentralization means freedom from any authorities or third party.
Yes, the recent events in the crypto market have highlighted the importance and growing popularity of decentralized exchanges (DEXs). The fact that DEXs facilitated a record high of $25 billion of daily trading volume on Saturday, following the depegging of USDC stablecoin, shows that traders are increasingly turning to decentralized platforms to secure their funds and avoid the risks associated with centralized exchanges.
The recent events have shown that the crypto market is still highly volatile and unpredictable, but it has also highlighted the importance of decentralized platforms in providing a more secure and transparent trading environment for crypto traders.
True, but we must also recognize that some of those platforms are selling themselves as being decentralized when this is not really the case and this is a problem, after all an investor may decide they want to avoid centralized platforms due to the risks they force upon them and choose decentralized exchanges to avoid them, only to realize too late that the exchange in which they were trading was centralized anyway and they got none of the benefits of decentralization anyway. The recent events have shown that the crypto market is still highly volatile and unpredictable, but it has also highlighted the importance of decentralized platforms in providing a more secure and transparent trading environment for crypto traders.
Yes, the recent events in the crypto market have highlighted the importance and growing popularity of decentralized exchanges (DEXs). The fact that DEXs facilitated a record high of $25 billion of daily trading volume on Saturday, following the depegging of USDC stablecoin, shows that traders are increasingly turning to decentralized platforms to secure their funds and avoid the risks associated with centralized exchanges.
The recent events have shown that the crypto market is still highly volatile and unpredictable, but it has also highlighted the importance of decentralized platforms in providing a more secure and transparent trading environment for crypto traders.
The recent events have shown that the crypto market is still highly volatile and unpredictable, but it has also highlighted the importance of decentralized platforms in providing a more secure and transparent trading environment for crypto traders.
We can call it one step towards the actual existence of decentralisation but we can’t claim this is what happening in the world right now. What I mean is really simple if you know how pees keep changing their minds as per the situation. As stated by you in the OP the whole chain reaction started after the collapse of bank and then out of the fear of losing funds in the process everyone is moving or trading more on decentralised exchangers as compared to the before zone in the want of “saving”.
Consider the reverse situation here when decentralised exchangers run out enough volume and they do not get much users for long time then ultimately everyone would start trading on centralised exchanges again. That’s the only bridge point here.
Consider the reverse situation here when decentralised exchangers run out enough volume and they do not get much users for long time then ultimately everyone would start trading on centralised exchanges again. That’s the only bridge point here.
I would guess that people are investing heavily into crypto these days because they are taking their money out of the banking world. This caused a huge spike in bitcoin price as well, and that is why I think we are in a good movement these days, we will probably keep going up for a while but congress and treasury got together on a zoom call just the other day and decided that everyone will be protected.
This means people with over 250k will be still given their money, this will not be from taxpayers money but a prevention fund that banks already pay into, so it is not going to be coming out of anyone's pocket. However, it is still a proof that the system fails, you may recover after the fail, but fails nevertheless.
This means people with over 250k will be still given their money, this will not be from taxpayers money but a prevention fund that banks already pay into, so it is not going to be coming out of anyone's pocket. However, it is still a proof that the system fails, you may recover after the fail, but fails nevertheless.
Good topic OP, I do have a question, now, are decentralized exchanges really decentralized? Because if SEC investigate DEX and they found a leak then it will be a disaster, it might not be sooner, but believe me, once Decentralized exchanges becomes noticeable, there will be some investigation behind the closed doors, because I don't believe that those decentralized exchanges are truly decentralized.
It's a good thing to see that DeXs are now getting the attention they needed, I have always dreamed about this because Centralized exchanges are too risky but everything has its disadvantages, let's just keep hoping for the best future.
It's a good thing to see that DeXs are now getting the attention they needed, I have always dreamed about this because Centralized exchanges are too risky but everything has its disadvantages, let's just keep hoping for the best future.
I won't say they understand the value of decentralization by using decentralized platforms for trading instead of centralized but this is more of a survival tactic to avoid the loss but the ultimate goal should be avoiding any centralized coin which includes all the stable coins which isn't happening since USDT and other stable coins still having high trading volume on most of the exchanges.
snip
The rise comes with down trends if the trading volume from a centralized platform moves to decentralized ones and breaks the trading volumes, but i think it's not fair that they do not have any other options to do trading. like they were forced to make transactions or lose their money due to fud and fear of USDC de-pegging. On the other hand, SVB gave an awesome entry in the market. but as i said ups come with downs, and this is not applicable to everyone like the one who managed to take advantage is now "UP" and the one falling prey to market sentiments is facing "Down" so overall, the market has something for everyone. Decentralization no doubt needs no popularity people who are involved and tasted the flavor of DEXs are the ones who know how fast, secure, and custodial assets transactions are. But new technologies are still coming with great features which could circumvent the limitations that DEXs comprise. This will also increase the DEX volumes and when the People will fall prey to taking Interest from Banks and When Banks will give them no options other than taking it.
Then people will understand the potential DEXs holds, and i hope this could be bearable for them.
It's clear that if the centralized market is relying on the banks then their funds are not secure and it could create a chaotic situations like FTX and thus everybody thinks their funds are not safe at all.
While that one was obvious for everyone since it's just logical when you spend just a few seconds on it, at the same time DeFi is often misleading, both in terms of decentralization which is not always there and when it comes to security:
https://www.coindesk.com/business/2023/03/13/euler-defi-protocol-exploited-for-nearly-185m/
Quote
The losses occurred over four transactions in dai (DAI), wrapped bitcoin (WBTC), staked ether (sETH) and USDC after the attacker conducted a flash loan attack.
Not a bank run, not a fractional reserve but a simple exploit, and here you go, $200 million worth of coins evaporating.
Best to keep things simple, don't rely on anything that might prove to be something else than what it advertises itself for.
legendary
Activity: 2884
Merit: 1115
Leading Crypto Sports Betting & Casino Platform
It must be recognized that each type of platform has its advantages and disadvantages.
Unlike centralized exchange platforms, decentralized cryptocurrency trading platforms lack a number of useful features such as stop loss, margin trading, and others. These features are not added by decentralized exchanges, but centralized ones already boast of these features. These features also can be a major hindrance in a trader's performance.
Centralized platforms are also easier to use than decentralized platforms where users have to navigate through dozens of smart contracts. This can be an inconvenience, even for experienced users.
Unlike centralized exchange platforms, decentralized cryptocurrency trading platforms lack a number of useful features such as stop loss, margin trading, and others. These features are not added by decentralized exchanges, but centralized ones already boast of these features. These features also can be a major hindrance in a trader's performance.
Centralized platforms are also easier to use than decentralized platforms where users have to navigate through dozens of smart contracts. This can be an inconvenience, even for experienced users.
It's a fair comment, both have their pros and cons, no one is perfect when it comes to comparing the two. I don't know, why people are always waiting for the demise of a company or centralized exchange to mock and ridicule. While we also have thousands, millions of banks are still very stable to serve us. I think, whether it's DEX or CEX, it's just to serve us, to make our lives more convenient, so let's just use both for each appropriate case. All DEX or CEX, none of them are entirely reliable, use them for the right purpose and always have a backup plan.
It's clear that if the centralized market is relying on the banks then their funds are not secure and it could create a chaotic situations like FTX and thus everybody thinks their funds are not safe at all.
If the last decade has any lessons to teach.
One thing which might be learned is a good percentage of people in the world work hard to live under a rock. Many pride themselves on never following current events on the news and not being able to find australia on a map. The size and distribution of this demographic is a key component to determining what segment of the population is aware events like FTX are occurring. As well as to recognize how far implications of asset contagion and economic instability might penetrate into public consciousness.
While these events might seem broad in scope to those of us who have seen it on a daily basis over a period of many years.
It helps to remember that not everyone is so lucky as to have the benefits of basic knowledge.
Funny enough a lot of people won't still learn from this. I don't know what needs to happen before they realize that their money is not safe on centralized exchanges. No matter how big a centralized exchange is its always not advisable to keep your money there. As much as the SVB drama is an unfortunate event, lets hope it helps people in crypto to understand that they can't completely trust centralized exchanges.
It must be recognized that each type of platform has its advantages and disadvantages.
Unlike centralized exchange platforms, decentralized cryptocurrency trading platforms lack a number of useful features such as stop loss, margin trading, and others. These features are not added by decentralized exchanges, but centralized ones already boast of these features. These features also can be a major hindrance in a trader's performance.
Centralized platforms are also easier to use than decentralized platforms where users have to navigate through dozens of smart contracts. This can be an inconvenience, even for experienced users.
Unlike centralized exchange platforms, decentralized cryptocurrency trading platforms lack a number of useful features such as stop loss, margin trading, and others. These features are not added by decentralized exchanges, but centralized ones already boast of these features. These features also can be a major hindrance in a trader's performance.
Centralized platforms are also easier to use than decentralized platforms where users have to navigate through dozens of smart contracts. This can be an inconvenience, even for experienced users.
what we can do as consumers of this market is to take advantage of the opportunities offered by DEXs and CEXs platforms. yes, both have their pros and cons and let us accept the fact that we need both of them in our trading journey as there are some features that we can get from CEXs that DEXs don't have and vice versa. as a user, you are the only one who can limit your transactions in both platforms.
Only Bitcoin can achieve ultimate decentralization. Projects that revolve around stablecoins offer no security because they are pegging value to the dollar. Even defi has had too many errors leading to losses for investors. Only investing in Bitcoin and taking full security measures is the only way for your assets to grow steadily. But only if it follows the stock-to-flow pattern. Once the pattern is broken watch out.
This will inneed be a lesson for people, mostly for retailers and not CEO's behind crypto-projects.
One is expecting to hold dollars in a secure decentralized way, but when we talk about those full-backed assets, in reality there is not much difference from the risk of having one's money in the bank.
There is actually a disadvantage, since in this case, one (as final user) does not have a say on what bank to trust.
On the increase of volume, besides increasing from people trying to swap their tokens for other reliable coins on Uniswap, the volume could be also be due to people trying to pocket a buck, speculating on the value of USDC and arbitrage.
One is expecting to hold dollars in a secure decentralized way, but when we talk about those full-backed assets, in reality there is not much difference from the risk of having one's money in the bank.
There is actually a disadvantage, since in this case, one (as final user) does not have a say on what bank to trust.
On the increase of volume, besides increasing from people trying to swap their tokens for other reliable coins on Uniswap, the volume could be also be due to people trying to pocket a buck, speculating on the value of USDC and arbitrage.
It must be recognized that each type of platform has its advantages and disadvantages.
Unlike centralized exchange platforms, decentralized cryptocurrency trading platforms lack a number of useful features such as stop loss, margin trading, and others. These features are not added by decentralized exchanges, but centralized ones already boast of these features. These features also can be a major hindrance in a trader's performance.
Centralized platforms are also easier to use than decentralized platforms where users have to navigate through dozens of smart contracts. This can be an inconvenience, even for experienced users.
Unlike centralized exchange platforms, decentralized cryptocurrency trading platforms lack a number of useful features such as stop loss, margin trading, and others. These features are not added by decentralized exchanges, but centralized ones already boast of these features. These features also can be a major hindrance in a trader's performance.
Centralized platforms are also easier to use than decentralized platforms where users have to navigate through dozens of smart contracts. This can be an inconvenience, even for experienced users.
This news is really interesting and should excite the crypto lover a lot. Since we know that the crypto space is all about a decentralized environment and everything is trusted on the public ledger, the same thing was proven by the recent event of US bank collapse that happened recently. SVB lost its major players which were mostly centralized exchangers.
This followed the collapse of USDC the second-largest accepted stablecoin in the market. It lost its dollar ratio and had highly unstable circumstances.
Soon after the market got aggregated a whopping 25 billion dollars worth of volume is getting traded or exchanged over a decentralized market. This is recorded high all the way after 2021 trading volume. This is a clear indication that whenever a centralized market is baffled people are moving to a decentralized market to secure their funds.
It's clear that if the centralized market is relying on the banks then their funds are not secure and it could create a chaotic situations like FTX and thus everybody thinks their funds are not safe at all.
Decentralized Exchanges Posted Record $25B Daily Volume as USDC Depegged
This followed the collapse of USDC the second-largest accepted stablecoin in the market. It lost its dollar ratio and had highly unstable circumstances.
Soon after the market got aggregated a whopping 25 billion dollars worth of volume is getting traded or exchanged over a decentralized market. This is recorded high all the way after 2021 trading volume. This is a clear indication that whenever a centralized market is baffled people are moving to a decentralized market to secure their funds.
It's clear that if the centralized market is relying on the banks then their funds are not secure and it could create a chaotic situations like FTX and thus everybody thinks their funds are not safe at all.
Quote
Decentralized crypto exchanges facilitated a record high $25 billion of daily trading volume on Saturday, according to Defi Llama data.
The previous high of $24.3 billion was in May 2021, when bitcoin (BTC) was worth roughly $65,000 and ether (ETH) $4,400.
Trading activity surged on a wave of panic as USD Coin (USDC), the second-largest stablecoin, lost its peg to the dollar following a short-lived banking crisis in the U.S.
The majority of trades took place on decentralized exchange Uniswap, with weekly volume of $31.7 billion. On the Curve protocol, meanwhile, traders rushed to flee USDC – a move that prompted an unbalancing of the protocol's equally weighted stablecoin liquidity pool.
Circle, the company that issues USDC, calmed concerns by reiterating that every USDC token remained backed by one U.S. dollar, despite having $3 billion in exposure to the troubled Silicon Valley Bank.
Volume across the decentralized finance (DeFi) sector has remained high in the wake of the depegging with a weekly increase of 255%, according to Defi Llama.
Traders' confidence in USDC was demonstrated by a surge in on-chain leveraged positions, with $70 million being at risk of liquidation if the stablecoin was to lose its peg again.
The previous high of $24.3 billion was in May 2021, when bitcoin (BTC) was worth roughly $65,000 and ether (ETH) $4,400.
Trading activity surged on a wave of panic as USD Coin (USDC), the second-largest stablecoin, lost its peg to the dollar following a short-lived banking crisis in the U.S.
The majority of trades took place on decentralized exchange Uniswap, with weekly volume of $31.7 billion. On the Curve protocol, meanwhile, traders rushed to flee USDC – a move that prompted an unbalancing of the protocol's equally weighted stablecoin liquidity pool.
Circle, the company that issues USDC, calmed concerns by reiterating that every USDC token remained backed by one U.S. dollar, despite having $3 billion in exposure to the troubled Silicon Valley Bank.
Volume across the decentralized finance (DeFi) sector has remained high in the wake of the depegging with a weekly increase of 255%, according to Defi Llama.
Traders' confidence in USDC was demonstrated by a surge in on-chain leveraged positions, with $70 million being at risk of liquidation if the stablecoin was to lose its peg again.
Decentralized Exchanges Posted Record $25B Daily Volume as USDC Depegged
Jump to: