Topic: many CEXs faces strongest regulatory pressure, will you use CEXs/DEXs/TEXs? - page 2. (Read 475 times)

Update:
this article explain TEXs: How to Solve the User Experience Challenge of DEXs

https://medium.com/@Tsp_Exchange/texs-how-to-solve-the-user-experience-challenge-of-dexs-acb7ddb72b08

About the private keys of users stored and security, which is same as the Bitkeep and TP wallet.

The best advice will be to continue using multiple exchanges at the same time with a shared balance on each of them rather than being your own bank.
I am sure many of you will be against this thought of mine however this works very well with beginners as they tend to mess up things with Metamask and Bitcoin wallets.

Using 3 exchanges, dividing your balance on each of them lowers the risk of losing all the money by 99%.
Other than that, using the most trusted exchanges like Binance and Coinbase will be a better idea because if your money goes, it goes away with millions of others.

If you are an advanced user, mostly you should be your own bank rather than using a CEX.
Metamask is a key choice if we are talking about DeFi: https://metamask.io/download/

Make sure you do not store your passphrase online. That's where people go wrong even by using Hardware wallets like Ledger and Trezor. 

I think I kinda understand you now, you mean that using private keys in TEX is not necessary, but (if the user wants) TEX can provide them with an extra layer of security by using ERC-4337 social retrieval.

Of course, TEX will not be able to access the private keys of users, but here another question arises, where will the private keys of users who choose this method be stored? Also, if TEX is hacked, will these keys be safe?

Regarding the use of ERC-4337 social recovery method in the context of TEX, which is designed to offer transparency and security like decentralized exchanges (DEXs). Let me clarify the role of ERC-4337 and the need for private keys when using TEX.

In most cases, users will not need to use their private keys when interacting with TEX. However, it's important to have a backup plan in place to address potential risks, such as losing access to the private key.

While it is true that in a fully decentralized environment, users maintain control of their private keys and do not need to share them with the exchange, there are still potential risks involved. For instance, users may lose their private keys due to accidents, device failures, or security breaches. In such cases, the funds in the associated wallet become inaccessible, leading to a significant loss for the user.

The ERC-4337 social recovery method is introduced to address this issue by providing a mechanism to recover access to funds without compromising decentralization. With ERC-4337, users can assign trusted contacts who can help recover their wallets if the private key is lost. It is important to note that these contacts do not have direct access to the user's funds or private key, but their collective approval can enable the wallet's recovery.

Of course, users also have the option not to add any friends or KOLs as guardians, ensuring the highest level of security. In this case, it is crucial to remember and keep the private key safe, as losing it will result in permanent loss of access to the wallet.

To summarize, when using TEX, users still maintain control of their private keys and do not need to share them with the exchange. The ERC-4337 social recovery method is an additional security layer to help users recover their wallets in case of lost private keys, ensuring a more user-friendly and secure experience.

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You make some valid points, and it's essential to address the concerns you raised about Uniswap and other so-called decentralized exchanges. While some DEXs might implement certain centralized features, it's important to differentiate between the DEX protocol itself and the user interface provided by the developers.

Uniswap collecting user data: It's true that Uniswap collects certain data from users. However, this data collection pertains to the user interface developed and maintained by Uniswap Labs, not the underlying smart contracts. Users can still interact with the Uniswap protocol using alternative interfaces or directly with the smart contracts, which do not involve data collection.

Uniswap Labs restricting access to tokens: Similar to the data collection issue, the restrictions on certain tokens are imposed by Uniswap Labs on their user interface, not on the protocol level. Users can still access these tokens using alternative interfaces or by directly interacting with the smart contracts.

Wallets banned by Uniswap Labs: Again, this pertains to the Uniswap Labs interface and not the underlying smart contracts. While it may appear centralized, it's essential to remember that the protocol itself remains decentralized, and users can interact with it through other means.

IDEX asking for KYC: In the case of IDEX, their implementation of KYC does indeed go against the principles of decentralization. It's crucial to differentiate between truly decentralized exchanges and those that adopt centralized elements.

In conclusion, while there are concerns with some aspects of DEXs like Uniswap, it's important to distinguish between the protocol level and the user interface provided by the developers. Decentralization exists at the protocol level, and users have the option to interact with the protocol through alternative means that do not involve data collection, access restrictions, or banned wallets. The crypto community must remain vigilant and continue to scrutinize the practices of DEXs and other platforms to ensure the highest level of decentralization and transparency.

Transparent Exchanges（TEX) which aim to strike a balance between decentralization, security, and user experience. While complete decentralization is a desirable goal, it's important to recognize that achieving it might come at the cost of user experience in certain cases.

TEX focuses on ensuring transparency and security while offering a user-friendly interface for traders. This means that while some aspects of TEX might be centralized, the overall goal is to provide users with the best possible trading experience that upholds the fundamental principles of the cryptocurrency space.

In summary, TEX seeks to find a sweet spot between decentralization, security, and user experience, ensuring that users can enjoy a transparent, safe, and convenient trading environment in the rapidly evolving cryptocurrency landscape.

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I appreciate your input on this topic. ERC-4337, also known as the Social Recovery Wallet, does share some similarities with multi-signature wallet solutions, but it offers a more user-friendly approach. In a multi-signature setup, users need to manage multiple private keys and coordinate with multiple parties to sign transactions. While this does provide a level of security, it can be cumbersome and less convenient for users.

ERC-4337, on the other hand, allows users to designate a set of "guardians" who can help recover access to their wallet in case they lose their private key. These guardians can be friends, family members, or trusted third parties. The user sets a threshold number of guardians that need to approve the recovery process. This way, the user doesn't need to manage multiple private keys, making the process more user-friendly.

As for smart contracts and bridges, I understand your concerns about their reputation. However, it's essential to note that not all smart contracts and bridges are inherently risky. As the technology evolves, new solutions are being developed to address these concerns and enhance the overall security and privacy of the blockchain ecosystem. TEX aims to leverage the best practices and the latest advancements in technology to provide a secure and transparent trading experience for users.

The ERC-4337 social recovery wallet is a security solution proposed by many cryptography experts, including Ethereum co-founder Vitalik Buterin. This solution aims to provide users with a more user-friendly wallet recovery experience while maintaining a high level of security.

Maybe you can to further research the ERC-4337 social recovery wallet and related security solutions to understand the potential of these technologies in enhancing user experience and security.

[moderator's note: consecutive posts merged]

Your idea will be more convincing to us if you are talking about a deposit to a multi-signature wallet address. You choose the trusted parties so that you have the option that these parties be:

• 2-of-3
• 3-of-5
• 3-of-7
• 5-of-7
• 4-of-9
• 5-of-9

More or less thus giving a dynamic to the user, the only problem is ensuring how securely those private keys will be generated without a third party sharing them.

As for the idea of smart contracts and with all the bad reputation of bridges, I advise you to stay away from them, although I do not see how the privacy of users will be enhanced through them.

Oh, really?

Alright, let's see
1. Uniswap Says It Now Collects Certain Data From Users
2. Uniswap Labs restricts access to certain tokens through its interface, citing 'evolving regulatory landscape'
3. Wallets Banned by Uniswap Labs for Alleged Crimes
4. I remember IDEX asking for KYC from users at one point. Another so-called decentralized exchange using smart contracts deployed on Ethereum

Decentralized much?

There is still a point I don't fully understand, if you say that:
If TEX works like decentralized exchanges what is the need then ERC-4337 social retrieval method, as long as everything is decentralized then you don't need to use your private key on the exchange, hence the need for a way to recover it.

Can this point be clarified, when using TEX do we need to use the private key of the wallet or not?

Regarding your concern about the ERC-4337 social recovery method and the trustworthiness of friends you choose as "guardians," I'd like to point out that this method is currently a popular and secure way to recover private keys in the cryptocurrency space. To better understand how to select "guardians" for your multi-signature and social recovery wallets, I recommend reading Vitalik Buterin's latest article: "How to Choose Guardians for Multisig and Social Recovery Wallets?"

The ERC-4337 social recovery method is just one aspect of security within the concept of "Transparent Exchanges" (TEX). To learn more about TEX, please refer to the "What is TEX?" section of the article. In short, TEX provides a user experience similar to centralized exchanges while maintaining the transparency and security of decentralized exchanges in terms of fund storage, transaction data, private key safety, and KYC verification.

To address your questions about how trading is done and where the funds are stored, as well as KYC concerns, both trading and fund storage in TEX are conducted in a decentralized manner, similar to decentralized exchanges. Funds from liquidity providers are stored in smart contracts, while traders' funds are held in their own wallets. Just like decentralized exchanges, TEX does not require KYC verification.

no one knows what that means, because it was invented by the OP and the team behind his tsp.exchange


This confuses me a little, whether we include a third person/friends/contact whatever in the entire process of private key protection or not? how bad is this solution, now I should worry about the health of a chosen "trusted contact" because my access to my money may depend on him.
it is still not clear to me why you called this method transparent and what exactly is transparent compared to other centralized or decentralized.

in the articles you shared, I still don't see the revolutionary way of working explained. "Simplified login and registration" and? How trading is done, and where the funds are stored?
can you simply explain what exactly the difference and advantage of your TEX compared to existing solutions?

you are promising no KYC. how you will comply with EU regulations (for example) where KYC is required?

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note: OP, when you reply to someone, you don't need to open a separate post for each reply, put everything in one post.

Yep, my news from the coindesk.Thanks for your remind,i have post the source of coindesk.

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TEX is a new type of trading platform that incorporates a series of innovations in technology and product design to achieve transparency and security similar to decentralized exchanges while maintaining a trading experience comparable to centralized exchanges.

DEXs provide the best transparency and security, yet they lack in user experience. Conversely, CEXs excel in user experience but fall short in transparency and security. TEXs aim to strike an optimal balance between these two aspects, offering both transparency and security alongside an enjoyable user experience.

Maybe you can read this article which explain the the difference between TEX/CEX/DEX?
What is TEX? How is it different from CEX and DEX?
https://medium.com/@Tsp_Exchange/what-is-tex-how-is-it-different-from-cex-and-dex-dfef89ac952c

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I agree with your perspective that many so-called decentralized exchanges (DEXs) in the cryptocurrency industry have not fully achieved decentralization, like PancakeSwap on the Binance Smart Chain (BSC). However, there are still truly decentralized exchanges, such as Uniswap. To identify genuine DEXs, we need to consider the following factors:

The underlying blockchain on which they are deployed should be decentralized. BSC, for instance, is not truly decentralized, so DApps built on it cannot be considered fully decentralized either. In contrast, Ethereum and several prominent Layer-2 chains offer a more decentralized infrastructure. Therefore, when choosing DEXs or Transparent Exchanges (TEXs), opt for those deployed on Ethereum or major Layer-2 chains, keeping in mind that Ethereum has higher gas costs, while Layer-2 chains offer lower gas fees.

Another essential factor is whether the exchange's code is entirely open-source and has been audited by professional auditing firms and technical experts. This helps ensure the integrity and security of the platform.

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I understand your concerns, and I had similar doubts before. However, after further consultation, it seems that TEXs have addressed these issues in terms of KYC and wallet custody. TEXs offer transparency in both areas: they do not force users to undergo KYC verification and use self-custody wallets. They have adopted the latest ERC-4337 social recovery method for private keys, giving users the choice to:

Not add any friends to recover your private key, similar to current decentralized wallets. You must securely store your private key, as no one can help you recover it if lost.
Use account recovery (ERC-4337) by selecting trusted contacts during account creation, who participate in the recovery process when needed. This enhances asset security while avoiding risks associated with centralized storage of private keys in traditional centralized exchanges.
Both options provide transparent and secure asset management.

Regarding your point about the transparency of transaction data and activities through smart contracts not being essential, I respectfully disagree. Many issues arise in centralized exchanges and institutions due to a lack of transparency, leading to misappropriation of funds. Users are more concerned about centralized exchanges secretly using their assets for other purposes, such as covering contract liquidations or failed investments in other projects. These actions inevitably lead to severe consequences. Achieving true transparency in the process prevents such incidents from occurring and ensures a better outcome for all parties involved.

What is TEX? How is it different from CEX and DEX?
https://medium.com/@Tsp_Exchange/what-is-tex-how-is-it-different-from-cex-and-dex-dfef89ac952c

[moderator's note: consecutive posts merged]

Be careful, though, not just with your money but also your personal data. Most of those less known exchanges tend to shut down or exit very frequently.

Tell him. I wonder why most newbies have failed to understand what a decentralized exchange is supposed to be. Running on a smart contract does not mean that an exchange is decentralized.

Make sure you report the post, or else the mods won't know.

Frankly, I don't know what TEXs are or how they work?

So far I have used both CEXs and DEXs, although I wish we could get rid of the need for CEXs but so far there is no good alternative.
DEXs until now are not a good alternative to centralized exchanges, for many reasons including the lack of sufficient liquidity as well as the lack of a large number of coins being listed.

I trade on the central exchanges and when I finish trading I transfer the profits to my wallet, so I only risk what I can lose.

Plagiarism detected.

Copied:

Original:

Original:

Are there many true DEXs? Most claim to be decentralized but they are centralized at one point or another.
I do not have knowledge about Transparency Exchanges, but any new term that appears is to deceive new users, given that when people search for alternatives, they will urge to try any new alternative.

For the real decentralized platforms to continue, we need to increase liquidity and thus use while waiting for a longer period, and therefore it is suitable for those who want to transfer on a weekly basis and not for daily trading.

Withdraw your money from the central platforms until this crisis ends.

Coinbase is still offering staking to its customers and rewarding them despite they received warning from SEC on their staking rewarding system. Coinbase played tricky role here I think. They have changed their terms and conditions and added that reward will be given by respective protocol, not by coinbase. So, all the procedures are same if I'm not mistaken. I have read this news few days ago. Don't know if anything has been changed since then.

I can not gree more, those exchanges like are smart contract exchanges are a bit centralized. They have a coin, the coin has a blockchain that th tokens are built on. You can not exchange more than the main coin and its tokens. Just like BNB and BUSD, they are very centralized and owned by Binance, their decentralized exchange is not completely decentralized.

I hope OP can post about what he means as transparent exchanges, but likely it is just also a centralized exchange just like you said. Exchanges would fall either under decentralized, and if not fall under decentralized, it is a centralized exchange.

Op just tried to vary CEX with another term called "Transparancy Exchange", but couldn't get rid of what people are most concerned about from it like KYC, 3rd party-custody wallet, etc. "Transparency" (in my sense it's loading trade logs) in this case is actually not an unneeded feature in normal trading, in fact I don't know anyone who needs this.

edit: OP talked about this
https://www.tsp.exchange

Problem with majorify of those "decentralized exchanges" is that they are not really decentralized. Good example of that is Pancakeswap that is based on highly centrazlied BSC so how decentrazlied it can be in the end? In the same time, truly decentralized Bisq has only ~$100k daily volume so it makes it very costly to buy/sell any bigger amount of bitcoin.


I don't see that happening in foreseeable future as people prefer convenience and sense of (false) security over everything else.


I am using centralized exchanges from time to time but I am not keeping anythin there for more than a couple of days, fully knowing that every time I send my money there it might be the last time I see it.

That is true, but no staking on Kraken again, the issue has been solved.

The present issue now is Coinbase issue with United States SEC, but I think Coinbase also is not offering staking service anymore to its customers.

The main issue for now is CFTC that sued Binance for not fully complying to United States laws. Also is Binance letting people in China that forbids trading of cryptocurrencies to make use of their platform for such services, but we do not know yet how true this is.

AS for me, there are many exchanges. I use four exchanges and I have registered on more than eight exchanges before. I still successfully use centralized exchanges. But never leave your coins on exchanges.

I will read about TEXs, but how are they working? Can you give a brief explanation of the exchanges?

I use Dex, I also use Cex. For derivative trading, I prefer Cex, but Dex for buying coins somethings. I still also use Cex to buy coins too.