Akagum (OP)
Copper Member
Jr. Member
Offline
Activity: 168
Merit: 1
SIGMA by HYDRA X
|
Although I have been in this Cryptocurrency space for quite sometime now but I cannot tell without mincing words the difference between decentralized and centralized Exchanges. Can anyone help out please. What's the difference between the Decentralized and centralized Exchanges ? Thanks
|
|
|
|
Pursuer
Legendary
Offline
Activity: 1638
Merit: 1163
Where is my ring of blades...
|
you could use google to search for these basic things to find better answers and faster.
in short the difference is in how they operate. a centralized exchange has a centralized authority that you give your money to and they offer you a platform that you can trade on while only having an account with IOUs and when you want to withdraw they have to allow you to convert those IOUs into real money (real bitcoin for example). a decentralized exchange however doesn't have that centralized authority, you remain in control of your private keys and your money and participate in a peer to peer platform where you directly trade with other people like yourself. the befit of this is that since there is no "accounts" then there is nothing to hack or basically no centralized point of failure.
|
Only Bitcoin
|
|
|
|
oceantiger
Jr. Member
Offline
Activity: 308
Merit: 8
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 13, 2019, 08:59:59 AM |
|
As the name implies the centralized exchange has a centralized authority who manage and operate the account on your behalf. They make payout and receive investment while decentralized (DEX) is under the control of nobody but through the blockchain technology and it is author mode.
|
|
|
|
HODL2090
Member
![*](https://bitcointalk.org/Themes/custom1/images/star.gif)
Offline
Activity: 210
Merit: 29
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 13, 2019, 09:25:34 AM |
|
In simple terms, they both act as intermediaries. In centralized exchanges, funds being transferred pass through the exchange. You send to them and they send to the receiver, this involves confirmation of transactions, which is sometimes done manually.
But in decentralized exchanges, there is a direct link frim sender to receiver. No confirmation of transactions required, nor do you need to open an account. You can always log in with metamask.
|
|
|
|
Tamilson
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 13, 2019, 10:36:08 AM |
|
Well I think everyone had mentioned the thing you should know. So now if you're thinking which is better to use, decentralized or centralized?
A lot of pros and cons when using these two. But personally, I'm torn with these as when you want a full security you'll go to centralized but with the privacy you definitely wanting to use dex. Hope one day these two features won't contradict to each other, rather to be use in an exchange site.
|
Happy Coding Life ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
|
|
|
evanescence
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 13, 2019, 08:49:30 PM |
|
Although I have been in this Cryptocurrency space for quite sometime now but I cannot tell without mincing words the difference between decentralized and centralized Exchanges. Can anyone help out please. What's the difference between the Decentralized and centralized Exchanges ? Thanks
Decentralized -> no central authority, typically runs on a blockchain so it's not just a server that a government can shut down (although they can shut down the actual website). Most exchanges that claim to be decentralized are really centralized except they're running on a blockchain (etherdelta, idex)
|
|
|
|
DavidHall4all
Newbie
Offline
Activity: 3
Merit: 0
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 13, 2019, 08:57:00 PM |
|
only matters is, if you hold your keys. binance dex fulfill my needs
|
|
|
|
squatter
Legendary
Offline
Activity: 1666
Merit: 1196
STOP SNITCHIN'
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 13, 2019, 09:40:18 PM |
|
There's really no such thing as a "decentralized" exchange yet. The best we have are centralized exchanges that don't hold custody of your coins. This keeps you safe from a hack of an exchange's wallets, but there are still other considerations to make.
"Decentralized" exchanges still all use a centralized server infrastructure and the DNS. That's why they're being targeted by the US government and we're seeing them start to implement mandatory KYC on their customers. Using the DNS can also allow attackers to hijack the site registry and phish customer private keys.
|
|
|
|
kkgfhj123
Jr. Member
Offline
Activity: 56
Merit: 4
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 10:51:57 AM |
|
There's really no such thing as a "decentralized" exchange yet. The best we have are centralized exchanges that don't hold custody of your coins. This keeps you safe from a hack of an exchange's wallets, but there are still other considerations to make.
"Decentralized" exchanges still all use a centralized server infrastructure and the DNS. That's why they're being targeted by the US government and we're seeing them start to implement mandatory KYC on their customers. Using the DNS can also allow attackers to hijack the site registry and phish customer private keys.
But going through KYC is also too risky. As per recent news KYC documents were sold https://www.ccn.com/hacked-customer-data-from-world-leading-cryptocurrency-exchanges-for-sale-on-the-dark-webI would say it is safer to use exchanges like Changelly and CoinSwitch where is no KYC and they are non custodial too.
|
|
|
|
cizatext
Member
![*](https://bitcointalk.org/Themes/custom1/images/star.gif)
Offline
Activity: 952
Merit: 41
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 11:08:45 AM |
|
Well they both perform the same functions the centralized and the decentralized exchanges but have different procedure while the centralized exchange requires legal process and have lay down rules such as the KYC process and the rest and it control by an institutions of government to provide security for investors and visitors. Decentralized exchanges on the other hand are those who are anonimus and have no central control.
|
|
|
|
Kemarit
Legendary
Offline
Activity: 3206
Merit: 1384
Fully Regulated Crypto Casino
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 11:28:21 AM |
|
|
|
|
|
denzkilim
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 11:40:29 AM |
|
There's really no such thing as a "decentralized" exchange yet. The best we have are centralized exchanges that don't hold custody of your coins. This keeps you safe from a hack of an exchange's wallets, but there are still other considerations to make.
"Decentralized" exchanges still all use a centralized server infrastructure and the DNS. That's why they're being targeted by the US government and we're seeing them start to implement mandatory KYC on their customers. Using the DNS can also allow attackers to hijack the site registry and phish customer private keys.
But going through KYC is also too risky. As per recent news KYC documents were sold https://www.ccn.com/hacked-customer-data-from-world-leading-cryptocurrency-exchanges-for-sale-on-the-dark-webI would say it is safer to use exchanges like Changelly and CoinSwitch where is no KYC and they are non custodial too. I also read some articles and news about that KYC "Know Your Customer" system is being used by ill-minded people and they make lots of money with those pieces of information that they get from people. I also agree that use exchanges that don't require KYC but these days most of the exchanges require people KYC especially when they are transferring a huge amount of Crypto Currency.
|
|
|
|
LeGaulois
Copper Member
Legendary
Offline
Activity: 2940
Merit: 4101
Top Crypto Casino
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 01:57:08 PM |
|
Well I think everyone had mentioned the thing you should know. So now if you're thinking which is better to use, decentralized or centralized?
A lot of pros and cons when using these two. But personally, I'm torn with these as when you want a full security you'll go to centralized but with the privacy you definitely wanting to use dex. Hope one day these two features won't contradict to each other, rather to be use in an exchange site.
Security you say? Excuse me, but how many centralized exchanges have been hacked over the years? We hear about hacked exchanges every semester. Privacy? Most of the people don't care about it, they have no problem to give their ID to any site. The BTC ideology in which the privacy matters is gone some years ago.
|
|
|
|
Naida_BR
Member
![*](https://bitcointalk.org/Themes/custom1/images/star.gif)
Offline
Activity: 980
Merit: 62
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 02:34:22 PM |
|
I am not comfortable with sending my personal data even if the exchange is centralized or decentralized. I don't know how this rule of thumb works and what do you mean by this example... Decentralized exchanges do not ask for personal data.
|
|
|
|
Wildwest
Sr. Member
![*](https://bitcointalk.org/Themes/custom1/images/star.gif) ![*](https://bitcointalk.org/Themes/custom1/images/star.gif) ![*](https://bitcointalk.org/Themes/custom1/images/star.gif)
Offline
Activity: 1627
Merit: 320
PredX - AI-Powered Prediction Market
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 03:42:27 PM |
|
Centralized means that this type of exchange has a center that manages and operates your account. while decentralization is an exchange under the control of anyone except you. Maybe like that
|
|
|
|
@prashant
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 05:28:22 PM |
|
Basic difference is speed and popularity.centeralized exchanges are high popular because of it's speed and currently there is no fully functionality for decentralized exchange,there some good Dex out there but their features are not comparable to centralised one.generally in Dex you control your wallet whereas in centralized they control it.as hacking attempt are increasing we can see rise in popularity of Dex in the future.
|
|
|
|
baghdatis1990
Member
![*](https://bitcointalk.org/Themes/custom1/images/star.gif)
Offline
Activity: 504
Merit: 14
Miracle Tele
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 08:06:41 PM |
|
As the name calls it, centralized exchanges provide us with centralized authority, so the funds transferred must be approved and confirmed. The decentralized system, which is mostly in the crypto market, offers clients more transparent transactions. In the case of the decentralized system, no transaction confirmation is required, and connection can be done by metamask.
|
|
|
|
finaleshot2016
Legendary
Offline
Activity: 1722
Merit: 1007
Degen in the Space
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 10:55:42 PM |
|
I am not comfortable with sending my personal data even if the exchange is centralized or decentralized. I don't know how this rule of thumb works and what do you mean by this example... Decentralized exchanges do not ask for personal data. I really don't trust DEX after etherdelta have been compromised. They're just listing some low key scam projects to their DEX (definitely money involved) and that's the worst thing i've seen here. There are no volumes in some DEX, so your tokens will might go in the air and disperse. Also, KYC for bounty hunters sounds shady, if the ico project was made in the US, I can accept the fact they need some information to the users/participants of the said project but if it's made in the other countries then requiring a KYC, oh man. I already receive a lot of profit from different campaigns that doesn't requires KYC, they're really doing it for the community. I really prefer Centralized exchange and it's very acceptable to do KYC in there to maximize the usage of the platform like maximum withdrawals and lesser transaction fees. I can give you my top exchange that will keep safe your identity and has a lot of volume; Kucoin and Binance.
|
|
|
|
Eildosa
Member
![*](https://bitcointalk.org/Themes/custom1/images/star.gif)
Offline
Activity: 572
Merit: 10
|
![](https://bitcointalk.org/Themes/custom1/images/post/xx.gif) |
February 14, 2019, 11:04:37 PM |
|
You have already been given a lot of information about these exchanges, but it will be difficult to say which one is better. Someone like centralized exchange, and someone on the contrary. You should study them and try them yourself. Then you will choose for yourself a convenient exchange.
|
|
|
|
|