Bitcoin Forum

I finally decided to create a discussion regarding the future of digital exchanges and I really need your help so I would love to hear your thoughts about it.

Do you think that the decentralised exchanges are going to survive or will be swamped by the non-decentralised exchanges? What's going to be the future of trading? Also, what's the meaning of decentralised exchange? Are they really fully decentralised?

It would be nice to make a list of the good one in order to help other people making a choice.

I think that question should be asked regarding centralized exchange instead.

We've got atomic swaps coming, that should eliminate any third party service, no withdrawal fees, no significant trading fees, and people will remain in full control over their private keys. Who wouldn't use that?

As for the current decentralized exchanges, I think there is a lack of liquidity, good UI/UX etc. but I'm pretty sure they'll improve with time. I'm very optimistic about the DEX that Binance is currently developing, you can find a demo on YouTube, it looks very good.

So, not only they'll survive but they will thrive as well, centralized exchanges will become obsolete, the only ones that will survive probably would be the ones that deal with fiat.

I like the idea of DEXs and have been using them for quite some time, but yes, a lot of the time liquidity is a problem and they are very slow to develop trustworthiness. People just aren't comfortable with them as of yet.

One major problem with DEXs I still see: what happens if the website goes down? I imagine there's a way to ply your funds held in smart contracts out of there without the use of the website, but it sure would be inconvenient, and if you can't, then what? You're just SOL?

What worries me most with regards to decentralized exchanges, is the precedent that the case against EtherDelta has set.
Would anyone be willing to start a decentralized exchange in the future, when the US government can just come along and give out fines for running an unregistered securities exchange?

https://www.ccn.com/will-etherdelta-charges-lead-to-the-demise-of-decentralized-crypto-exchanges/

Just a disclaimer, I'm not a fan of all of CCN's reporting, but this particular article does raise some fair concerns.

I think they will! Espesially when centralized exchanges will be regulated by government - look at Binance exchange and situation with users from Belarus.
I hope clever guys from Belarus will make usefull decentralized exchange soon.

jep

decentralised exchanges are much better then centralised ones

They will survive as long there is demand. And currently not so much demand, hence the low volumes DEX have.
With all the regulations coming in different countries, and maybe the situation of some countries we can suppose the demand will increase in the future, then we ill have different groups of people.:

The one that will use the DEX, I doubt any decentralized exchange will become as big as Binance or let's say Bitfinex/Bitstamp. I think instead we will have many small DEX, with each a different type of community/targeted audience
)DEX: Decentralized Exchanges List (https://bitcointalk.org/index.php?topic=4724064.msg42685352#msg42685352))

Another group will make use of atomic swap:
As another user mentioned, it will be easier for people seeking to avoid the use of a 3rd party. Not many will use atomic swap, I think those who are usually called a geek or a purist.

And we can think another group that will use privacy coins + DEX. For whatever reason they have.


Traders won't be interested to use  DEX no matter how fancy it is. These people are pro traders managing large funds, it's their job/business, they usually live in a hyper-regulated industry in their own country. Don't even dream about seeing an institution investing via a DEX

Was supposed to say the same thing about Etherdelta incident which most people believe that decentralized exchangers would really be immune
with these kind of cases but this situation proves us wrong and as you said this is a worrying thing which government do really able to bypass if they wanted.
Imposing or implying laws anytime they like so i wont be surprised if there would be next target on so-called Decentralized exchangers but one things for
sure they might be fewer in numbers but dex would still exist.

They will not survive if they keep running the saw way they are now. Most of them have a pathetic user interface and they don't put a single penny into marketing. Whereas centralized exchanges are all over the media and shit. You know, people tend to fall for the one's that are more known to them. To be honest, most of these noobs don't even know what a decentralize exchange is.

It's not gonna change anything.

Decentralized exchanges will survive, but I don't think the volume will ever grow too much. If it will, that DEX will just be placed on the blacklist of governments and action will most likely be taken against it... EtherDelta is one example (I'm not sure if it had a high volume or anything, but there already is a history of DEXes having problems so I won't be surprised if I hear about another one).

They're nice and cool, but unless you exchange between privacy coins, you can still be tracked. Considering the volumes though... I don't think they're a barrier for the govs.

I think the main reason they will never become trending is because of the time you have to wait (I'm talking about exchanges like Bisq that are p2p) until your transaction is complete. Day traders will never agree with this and will prefer verifying their identity to continue trading the way they like.

There's also a considerable amount of people not trusting the decentralized exchanges due to the UI and first-time setup, like Patatas said. I was kinda concerned when setting up Bisq and trust me, the first transaction was pretty intense as I feared the loss of my funds. :)