Topic: What are the benefits of decentralized exchange platforms? (Read 403 times)
As far as I understand decentralised exchanges can't be hacked. One person could be but not the entire exchange. It also gives more freedom, perhaps voting rights to which coins will be added. It also supports the premise of bitcoin. Also all the fees profits can be shared instead of going to one central exchange. Sure the decentralised exchanges don't have volume yet but that's why it's good to get in now while it's still early.
It is good and more benefits in the decentralized because an admin or the pumper of the price can't even know were is the trader this is the only 1 of the reason why it is better to be decentralized government can't tax you they don't even know where is the exact location of you maybe sometimes but in almost they can't find you as well as your place.
The most perceived benefit is the presence of a much better sense of security and comfort. Centralization will help us to organize a system only. But when there is damage to one system then all system will stop. This is what I might be very afraid of. There are advantages as well as weaknesses in every point of view.
In my opinion we are already into decentralized exchange when we are dealing with other forum members by connecting them through PMs. Similarly we can go for exchanges with our friends and friends of their friends if we are need in decentralized exchanges all the times. Practically I'm not aware of how a decentralized marketplace will be working without any commonly following regulations. Honestly I'm curious to get into experience those still I am comfortable with centralized exchanges and P2P exchanges through this forum. 
The most perceived benefit is the presence of a much better sense of security and comfort. Centralization will help us to organize a system only. But when there is damage to one system then all system will stop. This is what I might be very afraid of. There are advantages as well as weaknesses in every point of view.
Decentralized exchanges don't follow regulamentations, so everyone can use it. I heared about centralized exchanges which forbid users from some countries, it doesn't happen to decentralized ones, as they don't need to follow these rules.
It guarantees more anonymity to its users, don't asking for personal informations. I don't know if the decentralized exchanges are acting this way, but if they are really decentralized, they could do it, no?
It guarantees more anonymity to its users, don't asking for personal informations. I don't know if the decentralized exchanges are acting this way, but if they are really decentralized, they could do it, no?
Are they new? I guess people still want centralised exchange. I see that because the number of traders on centralised exchanges are very huge in volume. Look at Poloniex. They are the most popular exchange for altcoin. Even though they are centralized. Maybe they feel more safe because they think the security is tough than decentralised exchange. Also, there's a lot of exchanges all over the which scams a lot of people. Maybe they are just taking precautions although decentralized exchange has a lot of advantage.
If you got scam by the traders or people who came for trade then you can use the escrows to have safest trade. These escrows will hold the payment and bitcoin for the both parties. If the exchanges site been centralized what would be advantages according to you? I do not think anything will change because of that. Don't consider this information, do trade with the decentralized exchange as well but trade it safely.
Are they new? I guess people still want centralised exchange. I see that because the number of traders on centralised exchanges are very huge in volume. Look at Poloniex. They are the most popular exchange for altcoin. Even though they are centralized. Maybe they feel more safe because they think the security is tough than decentralised exchange. Also, there's a lot of exchanges all over the which scams a lot of people. Maybe they are just taking precautions although decentralized exchange has a lot of advantage.
It's a slowly developing system. It's something which is made far more practical due to blockchain technology, but I would personally still give it a couple more years before I start throwing all my coins in their direction.
The low liquidity is just a side effect of the fact that they're new. I'm sure that'll change with time and with suspicious outages from Poloniex.
The low liquidity is just a side effect of the fact that they're new. I'm sure that'll change with time and with suspicious outages from Poloniex.
All cryptocurrency users know the shortcomings of the current centralized exchange model (CEM). Everyone knows about hacks of exchanges, and news of a fresh hack comes along fairly often. Nearly every trader I know has lost some BTC or alt-coins at least once.
Does it have to be that way?
There have been some attempts to improve the system. Exchanges upgrade security, or a decentralized exchange comes along, promising change. This is good. But many of these new projects then suffer their own problems. The news around users of some exchanges not being able to withdraw or deposit funds is pretty common these days too.
When we talk about these decentralized exchange platforms like EtherDelta and BitShare, we see they have made some improvements and are great. But they have two new problems.
First, they don’t have enough users and therefore they lack trade volume and hence liquidity. Go to any one of them and try to buy 10 BTC and see what happens.
Second, some of these platforms use a model that means “one settlement per trade” This is not ideal for a trader making many trades, or volume players.
So, the decentralized model is good, but it still has some room for improvement.
Does it have to be that way?
There have been some attempts to improve the system. Exchanges upgrade security, or a decentralized exchange comes along, promising change. This is good. But many of these new projects then suffer their own problems. The news around users of some exchanges not being able to withdraw or deposit funds is pretty common these days too.
When we talk about these decentralized exchange platforms like EtherDelta and BitShare, we see they have made some improvements and are great. But they have two new problems.
First, they don’t have enough users and therefore they lack trade volume and hence liquidity. Go to any one of them and try to buy 10 BTC and see what happens.
Second, some of these platforms use a model that means “one settlement per trade” This is not ideal for a trader making many trades, or volume players.
So, the decentralized model is good, but it still has some room for improvement.
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