Decentralized exchanges

[KEDAR]

What do you think of those? Will they change the game in the future and most people will use decentralized exchanges (like Kyber Network, 0x Project) and dump Bittrex, Poloniex etc?
What are advantages and potential disadvantages / challenges?

And side-question to this topic: are atomic swaps part of those new-level exchanges? Or is it something more?

[OmegaStarScream]

Definitely. Sooner or later, people will start using decentralized exchanges/atomic swaps when it comes to life. I see no disadvantages and the benefits are endless. There is no need to confirm your identity or register, you don't need to trust the person you're trading with, network can't be hacked (unlike an exchange), the transaction either succeed or don't (If not, you get instantly refunded) and no confirmation time. The projects you mentioned work on ERC20 tokens I believe, for bitcoin, we will need to first have LN enabled but we will get there.

[DaMut]

It's a good but not really good because if we can not find out a way to make it faster,
i am afraid the network will be crowded and you need to wait a bit more than before just to send it/withdraw it.
decentralized exchanger,if i remember it correctly one of those should be Etherdelta.com,
and right now we're only seeing ERC20 or token on it,

Advantage : it's totally anonymous because all we need to do is buy and sell,
it's like a buyer buy it directly to the seller,and what is sell price/buy price that you type on it.
it will be the final price even though there're a lot of orders more than that.

Disadvantage : the network itself is the disadvantage,because the more it's used by people,
the longer it will be and sometimes your transaction will be declined by the network.

it's whole new level,
because we're directly buy it or sell it.

[theguy217]

They really capture my attention and I like that no one has control over your funds but it's just you and some free traders.
Etherdelta is a great example for decentralized exchanges.

You can literally trade any token you want there even it hasn't been listed yet by using the contract address. It's incredible and I wish to see something similar applied to other altcoins.

[dothebeats]

Disadvantage : the network itself is the disadvantage,because the more it's used by people,
the longer it will be and sometimes your transaction will be declined by the network.

Why would the network become a problem if by then, off-chain transactions would be available to accomodate to the growing number of transactions and fees? Decentralized exchanges are a cool thing to have since it wouldn't require extensive identity verification plus there are less risks of the exchange being hacked, given that the exchange themselves does not hold any of the coins being traded. It's a great concept though not being focused at since most countries impose KYC regulations.

[pugman]

What do you think of those? Will they change the game in the future and most people will use decentralized exchanges (like Kyber Network, 0x Project) and dump Bittrex, Poloniex etc?
What are advantages and potential disadvantages / challenges?

And side-question to this topic: are atomic swaps part of those new-level exchanges? Or is it something more?

Well for example, ether Delta is a decentralized exchange and the thing with that is it lists coins whichever they want whenever they want without taking permission of anyone, and they do it for free I believe which is a good(so the promoters of the coin dont have to pay them anything) and bad thing(scam coins also might get listed which may give fake trust to people to buy it). I prefer a peer to peer exchange any day than that of a decentralized one, cause I don't have much experience with it.

[xFiber]

Eventually centralized exchanges will take over. The reasoning behind this being the fact that centralized exchanges are the only weakness that crypto has right now. As we've seen in early September, China was able to shut down some exchanges and have a mediocre influence on the price. When decentralized exchanges get more common this problem will be gone.

[nexus2k14]

My experience with Decentralized Echnage like EtherDelta is mixed.
Pros:
- easy and fast access to new Token distributions  that has been recently in ICO
- once you know how tu use is not that difficult, user friendly on 50%
- more secure that central exhanges for sure
- no veryfication proces makes listing new coins easier
Cons :
- ETH network will need to get upgraded to chandle all transaction with acceptable speed
- exchange response time is sometimes so slow it can take 2 minutes  to refresh
- not user friendly

I belive one day Kyber Networkd or similar project will be on same lever with Poloniex and Bittrex.

[idahosk]

How you guys see Waves decentralized exchange?

[alyssa85]

They're a good idea - but the problem is that not many people use them, and hence they have low liquidity. The main reason people use Poloniex and Bittrex is because of the high liquidity.

[Ilegendph]

Eventually centralized exchanges will take over. The reasoning behind this being the fact that centralized exchanges are the only weakness that crypto has right now. As we've seen in early September, China was able to shut down some exchanges and have a mediocre influence on the price. When decentralized exchanges get more common this problem will be gone.

That is right! Decentralized transactions are anonymous and cannot be controlled by the government. If decentralization would be common to banking and trading services, I think it would not be fair to all, I mean rich people might get richer because of this and those who want to start might have hard time to gain profit.

[13abyknight]

I particularly had a great experience using a decentralized exchange which provides an open source view of all the exchanges going on. Sooner or later, these will come into prominence over centralized exchanges which are known to randomly lock/ban accounts with high trading numbers and this will be predominantly solved by using decentralized exchanges. There are no disadvantages that I can think but if the site's source is top notch, it will definitely begin dominating over the rest of the exchanges.

[HeRetiK]

They're a good idea - but the problem is that not many people use them, and hence they have low liquidity. The main reason people use Poloniex and Bittrex is because of the high liquidity.

I guess the current lack of liquidity is mostly due to (1) decentralized exchanges being fairly new and not as well known as their centralized counterparts and (2) limited available trading pairs.

(1) will improve over time, however I don't see decentralized exchanges going far until (2) is effectively solved as well. But maybe I'm missing something?