The thing I like about Decentralised exchange is that one still have complete authority over the account. Even in the advent of hacks, users can still withdraw their funds but centralized exchanges your fund is gone for ever.
Topic: why there is so much fuss about decentralized exchanges - page 5. (Read 660 times)
There were a lot of exchanges hacked in the last year or so: Coincheck, Coinrail, Cryptopia, Bithumb (several times), Zaif, MapleChange, and two weeks ago, an exchange called 'DragonEx' was also hacked.
So there's clearly a demand for DEX in the crypto market, and not only because funds keep getting stolen, but also because most of the DEX don't require KYC which is a big turn off to a lot of people. Sure, some DEX haven't been able to avoid hacks, but the ratio of DEX getting hacked is smaller compared to centralized exchanges.
So there's clearly a demand for DEX in the crypto market, and not only because funds keep getting stolen, but also because most of the DEX don't require KYC which is a big turn off to a lot of people. Sure, some DEX haven't been able to avoid hacks, but the ratio of DEX getting hacked is smaller compared to centralized exchanges.
DEX's often don't have, but need: ease of use, liquidity, speed
They also benefit from other features but the most important feature is to keep custody of your own assets until they are exchanged
They also benefit from other features but the most important feature is to keep custody of your own assets until they are exchanged
Recently I came across an article about the future of decentralized exchanges and how they are going to transform the centralized exchanges. One thing that clearly mentioned is that decentralized exchanges are secure and impossible (kind of) to hack as no central entity is running/controlling them. However, I heard about the security breach of Bancor and waves DEX. So what's the point of decentralized exchanges if they are still being hacked 
It is depends, if much of the hash power are controlled by a single or a group of entity, they can still penetrate the blockchain and the transactions that the blockchain has, I've just heard about some issues before and I can't recall it right now, but this sounds to be an inside job what do you think?
Hacking exchanges is a plague to the space, there is always the possibility of some vulnerablity in the code. The main push for decentralized exchanges which I think is very important is the fact that your anonymity is preserved as there are no KYC ,registrations or any of such as we do have with centralized exchanges.
because in we have more cases of centralized exchanges being hacked than we have number of years that the market existed! basically every couple of months there is a new exchange that gets hacked or scams people and nearly ever week they scam one user at least.
decentralized exchanges can solve this because there is no longer anybody in control of your coins but you so the only risks of losing your coins is the risks of you not being careful not the risk of the centralized place scamming you.
and that is a very important thing in a market!
decentralized exchanges can solve this because there is no longer anybody in control of your coins but you so the only risks of losing your coins is the risks of you not being careful not the risk of the centralized place scamming you.
and that is a very important thing in a market!
Because there are only a few trader that trading on decentralized exchange and most of decentralized exchange don't have a big volume trade. If you look at the dex exchange like forkdelta, idex, etherdelta, the volume trade is really low and mostly from bounty tokens.
In two types of exchange system, users are charged. The only withdrawal while the fee is low on the central exchanges.
All the hype being created about Decentralized Exchanges is because of how swift and easy it is to use and make transactions over there. Well in terms of security i think DEXs are quite safer than centralized exchanges. Compare the number of centralized exchanges that have been hacked to DEXs and you would realized the number of Centralized ones far out weighs that of the DEXs.
Anyway we still need DEXs that are absolutely secured and i think SwiftDex.ai is one of the promising decentralized exchanges to look at.
Anyway we still need DEXs that are absolutely secured and i think SwiftDex.ai is one of the promising decentralized exchanges to look at.
I think that those decentralized exchanges that exist now - are just safety in words and not in practice.
Well, I think phishing is very relevant there. Because many rarely use such sites. There is still a problem where people often make mistakes. Food coins for a penny. Let's say he got used to the classic exchange. Showed the price for 1 unit) and sold all his coins for 0.0004 so this exchange is not for everyone. I would say its main task is to allow the investor to purchase tokens from hunters before release.
I think that those decentralized exchanges that exist now - are just safety in words and not in practice.
The fuss is that no one wants to shine their income. That's all. This is especially true of hunters, because we also need to pay tax. And using decentralized exchange, we can be calm.
Well, you can't just make blanket statements like that about all decentralized exchanges, there are still huge differences between them.
I've recently started trading on Saturn, which offers a very nice experience overall.
I don't have to create an account & can instantly buy/sell coins via their saturn wallet, which is a fork of Metamask.
No KYC or need to give away your personal information, that's a big plus for me.
I've recently started trading on Saturn, which offers a very nice experience overall.
I don't have to create an account & can instantly buy/sell coins via their saturn wallet, which is a fork of Metamask.
No KYC or need to give away your personal information, that's a big plus for me.
That's my point as well. Ethereum's Vitalik, Binance CZ and many other influencers are embracing the decentralized exchanges but we are also hearing the news of security breaches.
Exchanges, may it be DEX or CEX are not safe from security breaches. Based on statistics, there were more hacking on the centralized exchanges and the recent one is Cryptopia which myself is a victim since i have not recovered my funds though not that big but still it's frustrating. My view on DEX is that we control our account which for me is important since that is our very own money and should not be trusted to companies that run centralized exchanges. CEX though they emphasize more on their security but still they are the ones controlling the funds of people.We've heard a lot of hack attempts about CEXs. But I don't remember much about DEXs. I think Bancor and Cryptopia are not nice options to be evaluated in this process.
Decentralized exchanges are not perfect, but neither are they wide open to abuse like a centralized exchange is.
Many so called "hacks" on exchanges are in fact exit scams.
A DEX will not cure this right away, but it will help .. a lot .. especially if used carefully. There will be DEX hacks, there will be DEX scams .. but the chances are greater of an honest experience
There are issues, there are partial solutions.
One of the self defeating characteristics of a DEX is revenue. A centralized exhange can fund tech, marketing, hype, partnerships - all the things decentralization usually offer when you get economies of scale. This will happen one day with a DEX and if it manages its revenue streams well they may take off.
Meanwhile you will get "centralized DEX" jumping in to muddy the water (say Binance DEX) as they see the writing is on the cards unless they can confuse the market place
Many so called "hacks" on exchanges are in fact exit scams.
A DEX will not cure this right away, but it will help .. a lot .. especially if used carefully. There will be DEX hacks, there will be DEX scams .. but the chances are greater of an honest experience
There are issues, there are partial solutions.
One of the self defeating characteristics of a DEX is revenue. A centralized exhange can fund tech, marketing, hype, partnerships - all the things decentralization usually offer when you get economies of scale. This will happen one day with a DEX and if it manages its revenue streams well they may take off.
Meanwhile you will get "centralized DEX" jumping in to muddy the water (say Binance DEX) as they see the writing is on the cards unless they can confuse the market place
The fuss about decentralized exchanges is that they provide a more secure platform for users to trade without fear of security breach, or that is what is expected from decentralized exchanges, blockchain technology is the advocate of decentralization and as such exchanges are expected provide the decentralized platform where everyone is in total control of their personal information, because too many reports on exchange hacking has increase the need for a complete decentralized exchanges for proper security.
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However, I heard about the security breach of Bancor and waves DEX. So what's the point of decentralized exchanges if they are still being hacked
I can tell you for a fact, we haven't gotten an exchange that's totally decentralized, all those exchange are just semi-centralized ones hiding in the name of decentralized exchange. When something is decentralized is meaan you have control over all information and no 3rd party is involved now how are these scamming getting access to private keys if no third party storing them? We're not yet there when we talk about totally decentralized exchange, so for now when accessing any of them use a different wallet (details) or wallet extension to avoid leak of your private keys.
There can never be bullet-proof software as complex as a DEX, but if it's open-source and extensively tested, then it should become pretty fail-safe. Trustworthiness will always be on a continuum. The key for a successful DEX is not just security but also scalability and useability.
Decentralized exchange, most of them have a great transparency, but lacks of security. Centralized exchange, it can be manipulated but it has very high security.
That's my point as well. Ethereum's Vitalik, Binance CZ and many other influencers are embracing the decentralized exchanges but we are also hearing the news of security breaches.
Exchanges, may it be DEX or CEX are not safe from security breaches. Based on statistics, there were more hacking on the centralized exchanges and the recent one is Cryptopia which myself is a victim since i have not recovered my funds though not that big but still it's frustrating. My view on DEX is that we control our account which for me is important since that is our very own money and should not be trusted to companies that run centralized exchanges. CEX though they emphasize more on their security but still they are the ones controlling the funds of people. Jump to: