Decentralize

[DdmrDdmr]

It turns out that DEX has it’s own kind of trendy appeal to it, and not everything under that name is really decentralized, having therefore to be careful when we use a DEX believing that we are really in control of our funds.

Binance DEX for example sounds appealing, but under the hood, as I understand it, we are in control of private keys that are not what we may think they really are:
Can Binance Chain, DEX Outmanuever Regulators & Ethereum?):

<…> However, when reading through the FAQ, we’ve flagged a few items:
1.   Binance has announced that you can trade Bitcoin and Ethereum via a pegged BEP2 token
2.   Projects have systemic risks such as composability and centralization when trusting Binance Chain as its only platform.
3.   Atomic swaps, which is required for true non-custodial trades, are not going to be implemented initially and only promised in the future
In order for a trader to trade Bitcoin on its DEX, they would have to first deposit a native Bitcoin and in return, they would receive BTC-B (a BEP2 token pegged to BTC).
<…>
Counterparty Risks of Pegged Tokens
Trading assets like Bitcoin on Binance Chain require a third-party, initially Binance itself, to hold the asset and issue pegged assets like BTC.B that can be traded on its DEX. This introduces a counterparty risk that is no different than using a centralized exchange. While the pegged asset (BTC.B) remains in the trader’s custody until a trade is executed, the original asset (BTC) is held by Binance or a third party. There is no guarantee that the pegged asset can be swapped back to the original asset other than the trader’s confidence in the brand.
<…>

That is to say, when we have BTCs on Binance DEX, what we’ve really got is a token called BTC-B, and not BTC. Holding private keys to a sweetened BTC type token is not a real deal, and you’re depending on Binance not getting screwed at some point just the same.

What’s more, they’ve recently announce that they will be geo-blocking IPs from 28 countries from July the first onwards (see Binance DEX to geo-block U.S. customers and 28 other countries starting in July).

When you add it all up, you’ve really got to ask yourself just how much DEX is really behind some of the market DEXes. 

[1715636355]

1715636355

[1715636355]

1715636355

[1715636355]

1715636355

[1715636355]

1715636355

[1715636355]

1715636355

[1715636355]

1715636355

[serjent05]

Why we need to prefer decentralized exchange and decentralized products?

Decentralization refers to freedom because it says that you can hear various opinions. Centralization says the opposite, only one opinion will be heard. Therefore, everything is a matter of freedom.

Aside from that, the anonymity that comes to it gives us security.  It enable us to trade without people knowing behind who is trading.  This is a great feature if we are trading large sum of currency.  It serves as a wall of defence to those who have ill intention towards huge trader in the industry.

[Nolimitz84]

Why we need to prefer decentralized exchange and decentralized products?

Do not forget that decentralized exchanges in addition to the advantages also have a number of disadvantages.On the account of decentralized platforms, I can only say positive feedback.Decentralization kills monopolies and monopolists who have taken power into their own hands.Through decentralization, the world will become more harmonious.

[Shenzou]

Decentralization does not only signify freedom ,but decentralization offers more security, because if you think of it is that centralized networks and centralized exchanges they are vulnerable for cyber attacks because the money flows to the same place, where decentralized networks they are based on money being distributed all over the place, so hackers find hard time to hack decentralized networks, an example of that are the couple of exchanges that got hit really hard because they were centralized.  

[Altero]

Why we need to prefer decentralized exchange and decentralized products?

Do not forget that decentralized exchanges in addition to the advantages also have a number of disadvantages.On the account of decentralized platforms, I can only say positive feedback.Decentralization kills monopolies and monopolists who have taken power into their own hands.Through decentralization, the world will become more harmonious.

Even we have that decentralization but still market manipulations arise. It is a big question why manipulation exist knowing the fact that nobody controlled the market. It maybe we are just screwed up by someone and they are still capable to play the market even we are in decentralized form of exchange.
But anyway, that the reality in crypto and you're right, we can't escaped such possibilities where it turns into something we called it market monopoly.
  

[Bitum]

Because decentralization is simply independent when dealing with real decentralization. Today, one can observe many psevdo decentralization, which in the end is controlled by a group / organization

[leonair]

Why we need to prefer decentralized exchange and decentralized products?

Decentralization refers to freedom because it says that you can hear various opinions. Centralization says the opposite, only one opinion will be heard. Therefore, everything is a matter of freedom.

Of course, the opposite of  decentralization is centralization  

Centralization is not bad at all aspect and it's not solely for freedom, too much freedom is not healthy though because anyone can abuse it anytime. Centralize platforms are functioning well because there are people who controls and dedicate to maintain it. Decentralize platform most of the time are opensource and its developers depend on donation so I think people who wants decentralize platforms just want to work with their things in their own ways and not really to pay cheaper fees.

[pooya87]

~
When you add it all up, you’ve really got to ask yourself just how much DEX is really behind some of the market DEXes. 

it is the same as centralized altcoins. XRP, ETH, BCH, BSV, .... can call themselves "decentralized cryptocurrency" as much as they like but in the end they are centralized and no facts can change. Binance can also call its new platform "Decentralized" EXchange as much as they like but it is still centralized. they are just abusing the term and misleading which i personally consider to be a dishonest move and won't trust  a business that lies to its users like this!

[squatter]

~
When you add it all up, you’ve really got to ask yourself just how much DEX is really behind some of the market DEXes. 

it is the same as centralized altcoins. XRP, ETH, BCH, BSV, .... can call themselves "decentralized cryptocurrency" as much as they like but in the end they are centralized and no facts can change.

Binance DEX is much worse. For instance, Ethereum DEX transactions (on IDEX or EtherDelta) are secured by proof-of-work and traders truly control their own private keys.

On Binance DEX, Binance literally runs all the validators. There is no decentralized consensus as with proof-of-work mining. Binance also holds custody of all the assets -- every asset trading on the DEX is just a token issued by Binance. Traders don't hold private keys to real coins, just fake paper assets. This is no different than a regular centralized exchange. It's a gimmick.

Sure, Ethereum's development process and DAO fork three years ago may lead one to call it "centralized" -- especially compared to Bitcoin -- but these are truly apples and oranges. Plus, Ethereum obviously can't even hard fork to recover the >500K frozen Parity/Polkadot ether, so I'm not too concerned about a repeat of the DAO fork. Those days are probably over. 

[Pumared]

Why we need to prefer decentralized exchange and decentralized products?

Decentralization refers to freedom because it says that you can hear various opinions. Centralization says the opposite, only one opinion will be heard. Therefore, everything is a matter of freedom.

Of course, the opposite of  decentralization is centralization  

Centralization is not bad at all aspect and it's not solely for freedom, too much freedom is not healthy though because anyone can abuse it anytime. Centralize platforms are functioning well because there are people who controls and dedicate to maintain it. Decentralize platform most of the time are opensource and its developers depend on donation so I think people who wants decentralize platforms just want to work with their things in their own ways and not really to pay cheaper fees.

While not believing that much liberty influences something, you are right about decentralization. But see that we have more decentralized tools than a more robust decentralization model. Therefore, we can not compare the two media, centralized and decentralized.