Topic: The True Decentralized Exchange (Read 389 times)

Exactly. Exchanges which enforce KYC/AML rules on their customers are NOT decentralized as they claim to be. Consider CryptoBridge which claimed to be a decentralized exchange based on the Bitshares blockchain. It did not last for long after it started requiring users to verify their IDs. Even the so-called Binance DEX is centralized by design. Most exchanges use the term "decentralized" as a buzz word for attracting as much people as they can into their platform. But at the end of the day, they're bound to the risk of a single point of failure.

Which is why, I rest assured that Block DX is the only true decentralized exchange in existence. Aside from that, atomic swaps will bring more censorship-resistance to the crypto space. As long as there are developers working on truly decentralized solutions for the exchange of one crypto to another, it'll be impossible for governments to take down the system in its entirety (if they decide to do this in the future). Other blockchain projects should follow Block DX's model by creating other decentralized exchanges based off Block DX's source code. Otherwise, centralizing forces will dominate the industry until crypto becomes dependent entirely of governments' (and central banks) needs.

Nonetheless, time will tell us if decentralized exchanges will be able to topple centralized ones within the crypto/Blockchain industry. Considering the way crypto is heading to (centralization), it looks like DEXs will be the minority in the Blockchain space for a very long time. Just my opinion

Their Litewallet will make it way easier to perform trades, as you wont need to hold the fully synced wallet online to perform trades. While Blocknet may not be the most user friendly (for now), it IS the MOST decentralized of all of them out there, with the vast majority of the DEX's being centralized (enforcing KYC on their users etc).

The litewallet is still being worked on as far as I know, but should be out very soon. 

I guess that people don't care about centralization as long as they're able to exchange their crypto in a seamless manner. Most of the time, convenience goes on top of security. But if hacks or theft continue to rise within centralized exchanges, you could expect people to look for other alternatives to trade their crypto safely. The main issue about decentralized exchanges is user-friendliness. Most (if not all) decentralized exchanges are difficult to use by the non-tech savvy user. If developers would make the process of exchanging crypto much easier in a DEX, then I believe adoption will increase like never before.

Block DX is a better alternative to existent centralized and decentralized exchanges alike. By eliminating the need to rely on centralized infrastructure, it's possible to trade crypto in a truly censorship-resistant way. I'm glad to know that liquidity for this DEX is increasing since its shows that people are beginning to adopt it for their own benefit. With increased liquidity, anyone can easily exchange from one crypto to another.

Until now, I stand correctly that Block DX is the only truly decentralized exchange in crypto land. Even decentralized exchanges built on top of the ETH blockchain have resorted to centralization in order to increase the speed of order matching/fulfillment. A good example of this is IDEX which is a hybrid exchange (semi-decentralized) instead of a truly decentralized one like Block DX is. So far, developers within the Blockchain industry haven't been quite interested in making alternatives to Block DX that would serve as truly decentralized exchanges for people to enjoy. But if governments become too oppressive against crypto and Blockchain tech in the future, you could developers to build more exchanges that are truly decentralized for the benefit of all. Just my opinion

I agree with everything you said. Centralized exchanges defeat the initial purpose of cryptocurrency and I don't understand how most users are ok with it. I know it is hard to fight but regulation only brings more regulation and we start to lose all the control. We need alternatives to these exchanges and fortunately people are becoming aware of BlockDX. It is easy to setup if you are willing to spend some time reading the instructions and it is up to each one of us to start to use it and bring more liquidity to the exchange. It had a recent trade of over 12 BTC which is incredible. Let's go! https://blockdx.com/

We all know that IDEX was NOT a truly decentralized exchange. The team even said that it was a hybrid exchange above all else. When there's some level of centralization into an exchange, you face the risk of censorship and fraud. A truly decentralized exchange like Block DX would not depend on centralized infrastructure whatsoever. Everything should be distanced itself from the middleman in every way possible. The IDEX exchange has failed in this regard, by making use of KYC and stealing people's money in every way. With a truly decentralized exchange like "Block DX", this would've never happened (no need for ID verification, and no risk of a central operator running away with your funds).

We have to admit that most exchanges out there which claim to be "decentralized" are not that way. They only use the term "decentralized" for their own benefit. Consider Binance's decentralized exchange (Binance DEX) which is marketed to people as censorship-resistant, when in fact, it is not. We all know that Binance runs the Binance Chain itself, making the exchange centralized in every way. A truly decentralized exchange has a permission-less system (anyone can run a node) in order to work as intended. So far, Block DX is the only truly decentralized exchange in the world that achieves censorship-resistance. Other Blockchain developers should fork Blocknet's "Block DX" project in order to make truly decentralized exchanges of their own to benefit the crypto/Blockchain space. As long as people don't care about using a truly decentralized exchange, we won't see the need for devs to create similar projects to Block DX. Just my thoughts

Note that IDEX has done an exit scam now. It is the problem with these decentralized exchanges. They can scam the users when they want and now people have nowhere to turn to for claiming their money and reporting a scam. Consider a centralized exchange this problem would be to some extent reportable by local authorities.

Even though I stress on the fact that people should not store coins on exchanges, there will be people trading and end up as the unlucky ones who have deposited before the site is taken down by the owners.

KYC did not stop them from scamming. Pretty sure to assume that the KYC data was sold away for now.

Well I haven't used the exchange you highlighted here so just presuming this isn't some ad attempt but a genuine contribution from you as always therefore I just have to agree to all you have said. I hate recommending any ethereum based so called decentralized exchange since just like you I always believed they aren't as decentralized as they present themselves. The like of IDEX that was leading the industry immediately implemented the KYC feature the moment they had some confrontation from the government. Same thing can be said about other so called decentralized exchange that funds were stolen from or restricted certain geographical region.

The Binance decentralized blockchain isn't that decentralized per se for them to claim they run a truely decentralized exchange. I have always said, the current decentralized exchange we have today are lacking something which could just be what have just highlighted in your post, truely we're not yet there that just my thought. Maybe when we do have a decentralized exchange that can switch between blockchain to trade our respective coins and not be hosted on a centralized hosting server then we might just be a step closer to perfection.

The fact that block DX is not easy to use like centralized exchanges makes it a bad choice for new crypto adopters, confusion when using dex exchanges is the most annoying part about them, i will wait for a new dex exchange that can really function just like a centralized exchange.

IDEX also has this KYC verification thing when withdrawing/trading larger amounts. I don't know how many users they lost for implementing that but I assume it's a lot.


Yeah, many of us here don't get it.

I believe that any DEX which requires KYC verification is not as it claims to be. Remember CryptoBridge exchange? This claimed to be a decentralized exchange only to require ID verification thereafter. Its business model failed to a point where now the exchange is closing its doors to everyone. This tells us that a decentralized exchange will work best without the need to rely on centralized technologies or infrastructure. So far, only Block DX is the true decentralized exchange with every aspect of it being independent from a single point of failure. Other decentralized exchanges should copy Block DX's model in order to fulfill crypto's vision of decentralized finance.

Until then, we'll continue to experience so called "decentralized exchanges" that are more hype than anything else. As long as people don't care about decentralization, we'll continue to see a lack of interest within mainstream developers in making a truly decentralized exchange like Block DX. This is what we truly need in order to maintain the decentralization of the whole crypto ecosystem. Unfortunately, big corporations and businesses saw a huge opportunity in making money with Blockchain technology, greatly undermining its true potential. If people continue to use centralized services more than decentralized ones, then I'm afraid that decentralized exchanges will continue to suffer from low liquidity for a long time.

Nonetheless, it's hoped that decentralized exchanges will improve over time as their underlying blockchain networks become scalable (like Ethereum). Once smart-contract based decentralized exchanges gain greater performance than ever, they might challenge traditionally centralized exchanges as we know it. In the end, it's all about censorship-resistance instead of user-friendliness or high performance. An exchange that's capable of achieving this, will be considered truly decentralized. Just my thoughts

Then you should be careful, KYC is a dangerous stuff especially the cex that you done KYC isnt not much trusted. Some prefer dex cause there is no hassle in process like this but the problem is the volume, only few such as forkdelta, binance dex, even mcafee dex are competing with fork now. So BinanceDEX is the most preferably one in terms of volume.

Block dex is quite new to me because I have not used it. I will look out for it as well, that's if they will have enough liquidity. One of the most popular DEXs I know to have remained stable for a while is fork delta but they all still have the problem of poor liquidity. The user interface, I can manage but the trade volume is terrible

I personally don't have a special interest on any decentralized exchanges and I can't comment which is good or true. I'm a fan of a centralized exchange. Though in your post there's a lot of good points and the decision is yours to think it's a true decentralized exchange.

There is no escape from Centralization, like you said “ even those servers the exchange that operates in are centralized “, it's a face. Some people think that decentralization is ultimate which is not.
I personally have no problem with centralization as long as I keep controlling my own funds with the lowest Fees possible. Decentralization is limited no matter how you try, sooner or later you'll operate over a centralized server, computer,, super computer, whatever... no escape from that unfortunately.

I think problem has in decentralised exchange besides doesn't work well. We can't share private key where our more valuable token still exists. Now new problem is KYC, Top decentralized is idex exchange. If KYC is mandatory than what is the means of decentralized and privacy.

The biggest problem is that decentralized Exchange does not work well. Now the solution. Bitcoin requires decentralized Exchange. People are tired of constantly distributing their credentials. Because we both want security and we distribute our credentials.

i really like u boy , we on new era of money , and why it must be centralized ? of course for greedy, companies companies born every year to blockchain industry.
more exchanges come , more altcoins come , with a holy moly idea , but they are nothing.
like a sathosi say : Decentralized = better and Governments stand no chance against P2P .

But at least there are already many developers out there who strive to form a decentralized exchange that actually performs as desired by crypto-world. Satoshi's idea was totally rejected by most governments, because thanks to the blockchain their business fields were threatened, one of their strategies was to ask KYC for a crypto, and as if for security's sake, even though it was no different from a local bank. actually I prefer DEX, but I'm a little confused because few people are interested. :/

With all the advantages of centralized platforms for trading cryptocurrencies: transaction speed, deposit and withdrawal of funds, user support, decentralized exchanges surpass them in the reliability and safety of transferring funds from account to exchange account.

Not all decentralized exchanges have been able to integrate BTC pair. Some that have it, only do that with very few number of altcoins. In fact, they are few in number. If decentralized exchanges are able to do tar, although wrapped, we might have more influx of users and the resultant increase in volume, daily usage and liquidity