Prone to hacking: Should all exchanges be decentralized?

[crypto360]

Recently we saw bithumb getting hacked, following the predecessors case. Sholud all exchanges be decentralised to aboid hacking?

[1714799723]

1714799723

[bill gator]

Decentralization is one of the main foundational principals of Bitcoin. It would seem imperative that any company, project or specifically exchange that plans to survive long-term would need to adopt a decentralized game-plan. I can't see any way around decentralization and being able to provide equally as much security. There is a reason why Bitcoin has survived so many large "hacks"; they were against individuals, exchanges and addresses being centralized in one way or another. If Bitcoin were centralized, a single hack would have killed it years ago, any exchange needs to acknowledge and adapt to this idea.

They get touchy about being able to control, manipulate, move and invest your funds as has been done traditionally in the financial sector. It's a power-play that is falling out of style.

[SUDARMONO]

Yes it should be so, and all exchanges are very good if decentralized, and that will make a more positive impact for the future.

[kofibee12]

It must be so, if all centralized exchangers are getting hacked each day then decentralized exchanges will be appropriate for traderstraders. Nevertheless dex is not outright free from hacking

[paul00]

I think yes it should decentralized but, who will decentralize it and manage it because sure the fee will rise for the pay on another maintenance on the security and will anyone of the owner will trust someone to access their admin exchange since there are alot money involve in there.

[mk4]

Should all exchanges be decentralized? Nope. We still need exchanges that can accept and give out fiat. Though using decentralized exchanges is definitely recommended. I would always suggest using EtherDelta(even though the UI/UX is a nightmare). Good thing a few new decentralized exchanges are being developed right now, along with Binance's decentralized exchange.

[dbshck]

Recently we saw bithumb getting hacked, following the predecessors case. Sholud all exchanges be decentralised to aboid hacking?

Not all, but we should see more decentralized exchange and its development. The currently available decentralized exchanges are far inferior to the centralized one: the volume is low, can't trade between two different blockchains, and the most frustrating one is the latency issue. Even in a slow-moving market, it takes several minutes for an order to go through and gets executed. Not to mention that there's still a way to "hack" the supposedly hack-proof exchange by phishing, DNS hijacking, etc. like what happened to EtherDelta last year.

Hopefully, there'll be many improvements, especially in operation and user experience side, in decentralized exchange in the coming years as many projects are working on the field.

[pooya87]

you can still lose your money whilst using a decentralized exchange. because even when you are not leaving your money with a third party when you use these exchanges you are still having your funds in a hot wallet and you are connected to the internet so you can get hacked. and there has been some cases of bugs and exploits in these platforms which is normal with any program that has led to losses.

i say decentralized exchanges aren't the solution for protecting against hacks. hacks do happen, we need to increase the security.

although the problem most exchange hack cases in the past has been the fact that there weren't any hacks. the exchange lied to scam its users.

[drachman]

Recently we saw bithumb getting hacked, following the predecessors case. Sholud all exchanges be decentralised to aboid hacking?

It is going to be impossible for every single exchange to become decentralized besides I do not see a great interest from centralized exchanges, they like the way things are, besides even if there are decentralized exchanges I do not see a single one that amazes me so it is not like the competition is too strong at the moment, just make sure to not leave your coins longer than necessary in the exchanges and your bitcoin and altcoins are going to be safe.