If 2017 leaves us with any lessons, it is a matter of security. The frequency of hacking the exchanges over the past year - along with millions of dollars lost - has sent the community a clear message: it needs to change its entire trading activity. And the answer to the cryptocurrency exchange revolution from the Decentralized Exchange (DEX).
1. What is a Decentralized Exchange A decentralized exchange is an exchange market that does not rely on a third party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or crypto currency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed.
2. Compare centralized exchange and decentralized exchange | CENTRALIZED EXCHANGE | | DECENTRALIZED EXCHANGE |
| Exchange Controls Funds | | User Controls Funds |
| NOT Anonymous | | Anonymous |
| Hack & Server Downtime * | | No Hack & Server Downtime |
* Bitstamp, Bitfinex, Youbit, Bithumb or nealy as Binance are all centralized exchanges has been hacked!
How about your opinion?
