See What DEX Really Means

[Coin_trader]

While we are talking about DEXs, I have a question here:
What IF:

- A DEX literally gets hacked somehow with all our privkeys too getting leaked to hackers and they move all the funds (that's what the least they can do)

Theoretically speaking. DEX shouldn't be hackable as per the general of it but in previous years DEX really got hack just like what happened to Ether delta that the hacker retrieve the data of customers by accessing the site DNS records and some trick on the domain. I believe that the ideal DEX will not gonna exist in reality. All DEX should be forced to be regulated or else will be force closed because we have SEC.

Source for DEX hacking: https://news.bitcoin.com/one-week-etherdelta-hack-funds-still-stolen/

Does your answer suggests that there can't be a perfect decentralized crypto system?
Are you also saying that in the coming days, the government will regulate bitcoin and close it down if there is refusal?

Sort of. The principle of decentralization of crypto is completely opposite on the SEC regulation and do you think that someone can bend the law just o align on there own principle? Many decentralized project are forced to comply on SEC and some are forced closed. Even IDEX which is a fomuos DEX are obligated to do KYC.

[o_e_l_e_o]

Does your answer suggests that there can't be a perfect decentralized crypto system?

Depends how "perfect" you are talking about. As gentlemand says above, Bisq is probably the closest at the moment to a truly decentralized exchange. However, it still has a website. That website is obviously being paid for, managed, and updated by someone. Although the code is open source and anyone can contribute to it, there are a core group of people who are managing the GitHub and merging pull requests. None of this is particularly dissimilar to bitcoin itself. Is it possible to be more decentralized?

Are you also saying that in the coming days, the government will regulate bitcoin and close it down if there is refusal?

A real DEX cannot be shut down by a government, in the same way a government cannot shut down bitcoin. They can ban it, make it illegal, seize the websites, etc., but none of that stops users continuing to run the software and communicate with each other. If a government is able to shut down a DEX, then it was never a DEX to begin with.

[famososMuertos]

In practice be careful when you are given a private key, it may not be really be the coins that I deposit
as mentioned here*, that is, a BEP2.
(*)https://bitcointalk.org/index.php?topic=5151605.msg51379913#msg51379913

Do we need decentralized exchanges? yes, the vast majority.

Your own DEX "V.01 SN" start with a group of friends or family. Remember family or friends can still scam you, it's a shame but Trust is never 100%. So, you're not going to ask them for their statements, but you can see their wallets and find out if they have funds to exchange.

Ahh! but it happens that a new relative, a cousin, arrives and wants to exchange, the trust process
it drops to practically zero, so for these cases, a working user is assigned, under custody or arbitrator, until the "arbitrator" does not receive the money from one of the parties and confirms that both users agree, then send the money where it belongs.

Finally, for me; "See What DEX Really  Means"
So in this group everyone is responsible for their public and private keys, consequently your funds are your sole responsibility.
It is not necessary to ask for any document, because the trust problems are solved, It is literally based on trust, it is worth the reduncia in this case.

That is what I understand as DEX, when I get some "code" that represents a good start that will later become a business, that approaches a situation, I put myself in your hands but never 100% trusted by me.

[FeiYun2112]

The first DEX is Bitshares DEX and its native coin BTS. Anybody can issue their own coins at Bitshares DEX and issuers are able to decide to call back their own coins.

[Wenbing]

~~~
Wouldn't you be running the same kind of risk by using a CEX? We've seen CEX hackings happen far more often than DEX hackings, even.

This statement doesn't look factual. I mean what are the numbers or statistics that support that CEX hacking is more than DEX hacking because in this case we can't conclude like that...