Bitcoin Forum

As of late I've seen a lot on talk regarding Coinbase's $2 billion revenue on trading fees alone. I believe I stumpled upon this through Reddit a few days ago, not sure.

Makes you wonder how much DEX's could make long term if you decide to participate in running one through a masternode?
I looked into Blocknet the other day, and realized that if it ever gathers just 1% of Coinbase's trading volume, you could potentially make a living from running a masternode that collects DEX fee's whenever people trade.

Reason why most people don't care about DEX's today, is that they are inconvenient to use, but as I said, long term, they will improve, hopefully making more people use them.

Thoughts?  :)

There's a TON of DEX's out there. Only the strongest ones survives. Same saying as only the strongest Altcoins survives basically.

I watched this video by John Mcafee yesterday, and he makes some interesting points on DEX use cases, even if you dislike him, he has some interesting views on the world, and I truly believe that his predictions is pretty accurate. His $2 million dollar BTC price by 2020 is a joke though..

https://www.youtube.com/watch?v=yhJXIOEbvKY

Even if that 1% sounds like achievable and tiny number, it represent a life changing amounts of money to any exchange, and it's going to require a huge amount of work because there are tons of exchanges, decentralized as well. Fighting over that 1% needs whole another level of exchange. Now i am not saying it won't happen, just that coinbase has started in 2012, that's like 2 generations in crypto time experience. It's pretty hard to get new people that are familiarized with custodial holdings to convince that they have to take a responsibility for their wallets from now on and change to dex.

i think this would be absolutely epic man, to have the nodes running a true dex get the dust from fees  :D
I fear the spam of microtransactions to each node would prob be the major hurdle, i see many projects get stopped at that exact problem
This reminds me of BTT, getting paid for seeding torrents, in the future we should see more of these services, its like Uber for crypto, putting money back in people hands that handle the actual heavy lifting

I agree, though I will also add that a lack of liquidity and trading volume on most DEXes compared to traditional, more centralized exchanges is also part of the problem why most people don't choose to use decentralized exchanges. More and more places starting to require KYC as a result of more pressure from governments to tighten down on crypto is probably also going to make some people look towards decentralized exchanges as a viable option as well, and rewarding those who help keep the entire thing running smoothly is a great idea for all users as well, though I imagine rewards for running a node like this probably won't be as high as expected as more and more people try to get a piece of the pie.

While that is completely true, and I agree that Coinbase is one of the major players, you gotta understand that crypto ISN'T "mainstream" like stocks and bonds just yet. Which means that there is MUCH more room growth, and reaching that 1% might actually not be that impossible, IF you look at the bigger picture here. ;)

I also think that in long term DEXs will be recognized. It's still on the process and many traders are comfortable with the centralized exchanges and you can't blame them if they want to be in that exchange.

Once a volume of a DEX starts to go up, it will be followed and traders will come to see on how convenient it is to trade there.

I really like decentralized exchanges and I hope that they will become popular in 2020. However, many people do not use decentralized exchanges due to trading volume.

If decentralized exchange platforms are somewhat polished and contain volumes similar to that of centralized ones, this is possible to take profits from as a masternode. But if we're stuck with the same old system of using centralized platforms and are still okay with KYC compliance and regulations encroaching our supposed-to-be free space, then DEXes will never prosper and would never see their prime. It's just so hard to transition from a perfectly-working system to a rather wild-west kind of thing that's why lots of people are still into fiat, bank notes and whatnot, same with CEX and DEX.

The problem is that DEXs probably never reach such high trading volumes like centralized exchanges. There is already DEX that offers you to participate on exchange´s profits - eFin DEX. They had huge marketing, good looking website, working exchange. But the low volumes makes eFin token pretty worthless. I know that also IDEX has its own token - Aurora, but there you earn profit by staking this coin around 20% per year, I think.

The number of people going to use DEX will increase exponentially especially to the ones who don't ask KYC. Mind you there are DEX who asks KYC. Blocknet looks very promising for a DEX, its very different among the DEX and I firmly believe this is one that might just stand against time even when regulators are going to target all these dex and I mean who will they question if all those who installed their DEX took part of it like seeding a torrent file.

Yeah sure. Moreover, if you consider the fact, that there are not so many decentralised exchanges that can provide a good trading volume and Forkdelta is suffering from the lack of money, it seems like a good DEX is needed for crypto world.

Dex seem to be a bit confusing if you are a first timer and already familiar with cex interface and the ready to use platform, but if people take their time to examine how dex works then things will be pretty easy, I think with all the ongoing shenanigans surrounding some cex I think we would start seeing a much rather quick transition from cex to dex sooner.

Dex is not inconvenient to use. Why do you say this?
A node won't gather anywhere near 1% there are thousands of them so you need to look at it realistically.
You can make a living doing anything. I would not count on just this for a living. A nice extra boost on the side for retirement might be good.

They would have made so much money if they have the support of the end users, but how many dexes do you see now that is working according to the other centralized exchanges, Coinbase revenue is even a small one compared to what binance Is earning, I have forgotten about the amount but I would have quoted it already, but I know that it was really too much, which was even quoted per day.

Most dexes that we have are really struggling to meet up with the volume that is needed to really make the exchange to really function well. I think that before any dex exchange can really do greatly now, it will be towards next year. There are lots of dexes now being built and I know that within the next few years, attention will be shifted from these centralized exchanges to dexes.

the problem is that these DEXes that we see today aren't really "decentralized exchanges" in my opinion.

a decentralized exchange in its true form must not contain any kind of middle man whatsoever which means there is absolutely  NO FEES  involved when using a "true DEX". the exchange will only be between two parties through a secure channel using cryptography, hashed locktime smart contracts similar to what bitcoin has and the only fee is the transaction (aka network) fees.
with introduction of Atomic Swap technology which majority of altcoins (since they are copies of bitcoin) have this becomes an even bigger reality.

as a result i don't think there is going to be that much "fees" to earn from DEXes in the future as the current design will become obsolete eventually too. just like the centralized "altcoin" exchanges (not those that have fiat involved) will become obsolete too.

This low trading volume phenomenon that happens across dex exchanges kind of baffle me. It is a uniqe exchange indeed compared to the traditional ones but I cant think of the reason why dex seems unappealing for the norm. I know it is because the inconvenience that come at cost for the security and the decentralization but I dont find it becomes that inconvenient to the point people need to point it out as disadvantage it is just few extra steps and doesnt require KYC. If only it has trading volume all the problem will be solved by the development considering that the market is not just “gimmick”

I really think that all DEXs out there should just go ahead and combine their orderbooks together. That would help.

That will be great but it needs another party to do the integration of all DEX in to one single exchange. It's really a good idea to combine DEX order so that order book will become thick.
I think some project already doing this kind of Idea but not just DEX but other centralized exchange. I forgot the name but it's a wallet app with built in exchange on it.
They integrate all orders of different exchange to there own exchange and charge only there token for the transaction fee.

I'm guessing when we get a wider adoption of crypto, and it goes mainstream, that these DEX's will truly take off.

Even though we've had BTC for a decade now, it's still the early days of crypto from a technological standpoint. I think it's safe to say that once people realize they can escape paying taxing on their holdings by utilizing DEX's that more and more people will lean towards them, and actually use them!
You don't need to "cash out" if you can buy whatever you need with your crypto anyway. :D

Blocknet, as mentioned by the OP, actually is 100% decentralized. It's a 4th gen DEX, check the pic below ;)

https://i.imgur.com/zVIsxDi.png

honestly, it is not just the trading volume that I consider in choosing an exchange. I am also not certain to connect my wallet directly to the dex exchange, though I have the private key, the regulation, and convenience that a centralized exchange is what I want to consider. Most of the time, the volume in DEX is determined by traders, and it might not be the reason why people don't want to trade in DEX since the volume can be achieve if the crpyto do really is performing well in the market. It is the regulation that centralized exchange provides, despite of wallet security or also known as "not your keys, not your coins".

True! A friend of mine has traded on DEX's for a few months already, and otherwise used exchanges with no KYC. He's a very "private" person, told me NOT to tell anyone of our friends that he even owns any crypto.
There's a LOT of people who straight up AVOID exchanges with KYC, because they want to remain private. Makes sense, it's the reason BTC was created in the first place. It's nobodys business what you trade and hold.

Guess what? KYC/AML is coming to every exchange, be it a CEX or a DEX.

No it's not. What makes you even think that? A real DEX is not owned by anyone. Based on your logic, everyone of us would have to undergo KYC every time we access the internet, which isn't true at all. Use a prepaid phone, and jump on an open Wifi connection, and you're pretty much anonymous.

I think you need to do some research here buddy, as decentralized trading works just like when you download torrents. These transactions happens between users, and no one else.

Several DEX are owned by people just like Mcaffees and Ivanov, there is a possibility that they may ask KYC if government asks them to. The one DEX that might not really be compromised by government is blocknet since you can install the exchange itself. The problem with blocknet is that there isn't much coins listed to it, they don't even have ETH there.

It goes to show how huge crypto is becoming.. These exchanges keep raking on serious profits in fees and charges. No wonder a lot of prospective project developers are going into exchange developments. Truth is, this will get even bigger with more crypto adoption and recognition.

I ask you, how much DEX are getting huge volumes these days? compared with the centralized exchange site and DEX is charing a little fee caused by anytime you must pay to the blockchain and not with the developer of the dex. The majority of developers are going for centralized exchange site

Correct me if I am wrong but I was thinking about this. Aren't Dex fees very similar to a casinoes house edge? If you keep waging your balance eventually you will lose it all. If you kee trading your crypto back and forth you will eventually pay it through fees to wouldn't you? If you get 0.2% on each trade eventually you will end up with very little. If you trade back and forth for the same things just for argument's sake so this will all work.
Now think about the capital and how much that gets moved around. Now the exchange gets a fee on every single one of those movements even if the movement is the exact same crypto moving again. So, in theory, you could move the crypto back and forth until there is nothing left and you have paid it all-in fees. Can you imagine how much money these people are constantly making with all that movement? It must be nice to just sit back and watch your income rolling in like that.

To be honest, I prefer DEX to CEX. But the problem is with promotion. At CEX more promotions are done just to give free crypto so people are swayed by it. They always make hype one after another endlessly and this is done by all CEX. So there is no best choice for someone other than following them.
I think if DEX did the same thing it would definitely be very competitive with CEX. Moreover, many people are lazy to reveal their identities just to sell their crypto assets.

Some people love DEX because they are more simple than other markets. Because some people do not want to give up their identity when trading or commonly referred to as KYC.
Choose Dex to replace it including I was very good though DEX is still not crowded with markets like Binance, IDEX includes the lively DEX used by people to trade.

A DEX is not owned by ANYONE. Jesus christ, does nobody here even understand what a REAL DEX is? A real DEX is DECENTRALIZED - Meaning NO one controls it. Sure you can "start/launch" it, but once you've done that, it's no longer in YOUR control. Any "DEX" claiming otherwise, is not a real DEX. Simple as that.

This means, that while the devs are asked to pull down their DEX nodes by the governments because it's "illegal", it doesn't make the DEX dissapear. It's the same as when they shut down ThePirateBay. Did torrents and file sharing die? NO!!!!

Not trying to offend anyone here, but it frustrates me that nobody seems to understand the bigger picture here!


What is your point? That's like arguing back in 2010, that BTC was useless, because it didn't have an exchange? Or claiming that Facebook would never succeed, because we had Myspace.. The crypto world is forever changing, and if you invest based on what's happening RIGHT NOW, contra what you believe will be BIG someday, you wont profit as much.

This is the same logic as saying: "Naah, Why would I buy BNB coins for $0.1. This exchange has NO VOLUME" Yet we've seen the price rise to $20+ since these guys listened to the crypto community.
Let me ask you a different question, WHY did Binance launch their OWN "DEX" ? Answer me that. ;)

Opening a DEX is one thing, getting people to use it is another thing, same applies with Centralised exchanges, many has come and gone and some didn't even last long at all because of lack of users, you cannot make money from trading fees where there are no trades, it's not easy to run an exchange, these day opening it seems to be the easiest part, growing it organically is now the complicated part.

Many are called but few are chosen, it might look glorious from the outside but when you take the time to calculate the DEXs that has launched and failed or are just dormant, you would know that it's not easy at all, one of the major challenges is users, the market conditions are making new traders quit and the old traders are set in their ways, having already found the exchange that they think is right for them, so they wouldn't leave it to come trade in a new DEX.

Coinbase is not a decentralised Exchange and shouldn't be used as an example, what you should use as an example is Idex which is the decentralised exchange with the highest number of users but we know how long that exchange has been around, launching an exchange now is not the best if decisions especially in this market conditions when even established exchanges are shutting down because of bankruptcy, DEXs are really struggling to keep up since more and more traders prefer to trade in CEX.

I am new to this concept my best investmentv in this kind is biss.com iost voting for pools whet I am having some good amount of iost token getting decent return . Another concept I knew was revenue sharing from kucoin and coss . Kcs was good for. But this concept completely new for me . I have to go through some tutorial need to learn . I am also looking for some partial income out of it.

CEX exchanges like ecxx are normally better because they have more liquidity but DEXs are better for people who want more privacy and security.

Wrong. IDEX is NOT a real DEX, since it's CENTRALIZED. You can't run a DEX, and at the same time enforce KYC. A real DEX cannot be shut down, is not owned by any companies, and doesn't require KYC, or submission of any personal details.

Unbelievable that SO many people have no clue what a real DEX looks like. The Binance "DEX" is not a true DEX either btw.

Thank you.. Finally someone who actually understands it. When trying to explain how a real DEX works, I typically try to compare it with downloading of torrents from ThePirateBay, which works in a similar way. ThePirateBay doesn't own the torrents, they simply link to them, which is the the same as a DEX is doing, linking peers together so they can trade with each other.

IDEX is NOT a DEX.

Good god, it's easy to fool people these days. You think a DEX can enforce KYC on it's users? Really? That's like asking the users of "ThePirateBay" to submit their passport ID before downloading. Come on now…

There's only a few real DEX's out there, and the Waves DEX, just moved to a hybrid solution, meaning it's no longer a real DEX, I'm guessing they want more "control" over their users, which is impossible on a DEX.

Please do some research on this topic to better understand how a DEX works.

I always wondered why all the DEXs we see are so inconvenient and not user-friendly at all... Is this task is too difficult for devs? To create a good DEX with nice interface? Paradox :)

There is a problem that DEXs do not have enough trading volume, without trading volume, you don´t have enough profit and without that you will not attract investors and price will collapse.