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November 27, 2017, 07:41:43 PM |
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Cryptocurrencies may be decentralized. Right now exchanges are mostly centralized and users must trust exchanges but cryptocurrencies need to move from wallets to exchanges and then return to wallets again. The move can bring hacks and other problems to the fore during the transfers.
For instance, Poloniex lost 12 percent when its removal codes were abused by a hacker. Generally speaking, problems with cryptocurrencies regularly take place and an alternative would be decentralized exchanges.
Centralized exchanges require various regulations that are unwieldy and build barriers for many consumers,
Decentralized exchanges do not focus on areas of potential dysfunction. Additionally, users keep currencies in their own wallets and do not have to transfer then to exchanges.
Also such exchanges use blockchain for all trades, which is a more secure way of trading cryptocurrencies. Right now decentralized exchanges are not very numerous. However, investors in many cases have had enough of centralized ones which can stop withdrawals at any time.
Centralized exchanges may not go away, but they may become far less popular. Decentralized exchanges, with their trustless approaches and lack of cybercurrency movement, may be seen as more and more favorable and easier to operate.
Here are some such exchanges: HireMatch, a decentralized employee recruitment platform; MiniApps built around a decentralized group of template developers and others; Crowdholding, a decentralized platform putting together entrepreneurs and the crowd.
They are coming on as centralized exchanges are manipulated and even shut down by regulators.
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