Centralized vs Decentralized vs Hybrid Exchanges

[Vertex_ICO]

Almost every cryptocurrency user is attached to one crypto exchange or another. Exchanges represent a key sector of the crypto ecosystem. This is mainly because they represent the most available channel of transacting or extracting value from the industry. There are different kinds of cryptocurrency exchanges, depending on how they operate. This post is about making comparisons among the three categories of exchanges that we have today in the industry. That is: Centralized vs Decentralized vs Hybrid Exchanges.

https://www.youtube.com/watch?v=La3nMp1I_ec

Centralized Exchanges
This is the most popular type of exchange that exists in the cryptocurrency industry. Over 99% of crypto transactions today occur on centralized exchanges. Examples of this kind of exchange includes Binance, Bitterex, Coinbase and Poloniex.

The characteristics of centralized exchanges are listed as follows:
- High liquidity and trade volumes
- Quick transactions
- Supports multiple users at the same time
- Transactions are controlled by exchange operators
- User funds are deposited into exchange accounts before trading can occur
- Order execution is the responsibility of the exchange
- Users do not have access to private keys
- Prone to attacks from hackers and thieves
- Serves both as a trading platform and as a crypto storage platform

Decentralized Exchanges
The concept of decentralization simply revolves around the elimination of intermediaries. It provides for direct interaction between parties that are involved in a transaction. This makes the process relatively transparent and is also supposed to be cheaper in terms of the cost of processing.
Although there are exchanges today that aim to be decentralized, in the actual sense of it, even these ones possess some element of centralization. There is hardly any infrastructure in the industry today that provides for an absolutely decentralized exchange. Even those that operate a peer-to-peer system are hosted on centralized servers.

For the decentralized servers that we have in the industry today, the following features are common:
- Independent of intermediaries
- No central pool of funds
- Unbeatable by hackers
- Relatively low volume and liquidity
- Speed of transaction depends on participants
- Does not serve as a storage platform for users

Hybrid Exchanges

The above features of both centralized and decentralized exchanges provide for both individual strengths and weaknesses. Therefore, rather than focusing on the centralized vs decentralized vs hybrid exchanges comparisons, this system chooses a combining model. Incidentally, these strengths and weaknesses of centralized and decentralized exchanges occur in alternating and supplementary areas. Attempting to harness the strengths of both systems in a complementary arrangement is what has given rise to hybrid exchanges.

This category of exchange explores the liquidity, accessibility and speed of centralized exchange, with the security of the decentralized exchange. This is the kind of solution that Vertex.Market ( https://vertex.market ) is offering its customers. A combination that satisfies every class of traders within the cryptocurrency marketplace, especially large institutional investors who want to be cautious in their dealings.

Hybrid exchanges focus on minimizing risk and maximizing opportunities within the ecosystem. On Vertex.Market, a peer-to-peer platform, volume and liquidity are exceptional. There are no off-market periods where trades stay pending. Rather trades are executed instantly between buyer and seller, with tokens sent directly to the buyer’s personal wallet once the seller confirms receipt of the funds. At the same time, you do not have to leave your funds on the exchange. They remain with you, in a system that demystifies the centralized vs decentralized vs hybrid exchanges comparison.

https://medium.com/@official_83664/centralized-vs-decentralized-vs-hybrid-exchanges-8bc3759e6280

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[shinratensei_]

I just curious about what's your opinion about how vertex can deal with the regulation? As far as i know, even DEX becomes CEX right now which must comply with the regulation that has already created by the government.
Im feeling doubt to see that is there a chance for your hybrid exchange to be full compliance with the regulation?

[Marckolind]

Decentralized exchanges will grow over time, there is no doubt about it.

The current DEX solutions on the market doesn't really work that well. First of all, you need to sync up with the DEX, second you need to make an account on most of them (Which is not decentralized at all?), and 3rd, the transaction times is SLOW due to atomic swaps.

One of the most promising DEX solutions currently in the making is Stakenet's Lightning DEX - Which is a DEX powered by 2000+ masternodes, who's gonna host the chains on the network. This means you will never have to sync with the network. By utilizing Lightning, you'll be able to trade instantenously, and with next to no fees.
On Bitcoin however, there is really no incentive to run a lightning node, since the returns from fees are so small, but with masternodes already paid in block rewards from the network, the lightning channels is only an added "bonus" to the whole network in terms of profits.

Do your own research, but I'm sure decentralized exchanges will grow over time. Look at the recent news where a lot of privacy coins have been delisted from centralized exchanges. Privacy coins will flourish well on DEX's, I'm sure.

[serjent05]

Do your own research, but I'm sure decentralized exchanges will grow over time. Look at the recent news where a lot of privacy coins have been delisted from centralized exchanges. Privacy coins will flourish well on DEX's, I'm sure.

Decentralized exchange truelly sounds attracting but in reality it isn't really that decentralized since all trade are still operating on a platform where a certain individual or company owns it.  This is a fact that there is nothing absolute.  Regarding privacy coins being delisted on centralized exchange, well I guess they are just complying to government AML and if ever this privacy coins migrated on these DEX'es, it is just a matter of time before regulatory board comes after them and shut them down.

[gensol]

Most decentralized exchange isn't decentralized as its made people to understand. Idex currently is asking her users ti register on their exchange ti be able to use it. Until Dex is fully decentralized, its not functioning yet. Hybrid exchange if developed is good.

[Jadzzz]

The main problem of decentralized exchanges in the dilemma: in any case, someone must serve the exchange, if someone serves it, then such a exchange can hardly be called decentralized. You need to research, now there are some interesting DEX's.

[Marckolind]

Do your own research, but I'm sure decentralized exchanges will grow over time. Look at the recent news where a lot of privacy coins have been delisted from centralized exchanges. Privacy coins will flourish well on DEX's, I'm sure.

Decentralized exchange truelly sounds attracting but in reality it isn't really that decentralized since all trade are still operating on a platform where a certain individual or company owns it.  This is a fact that there is nothing absolute.  Regarding privacy coins being delisted on centralized exchange, well I guess they are just complying to government AML and if ever this privacy coins migrated on these DEX'es, it is just a matter of time before regulatory board comes after them and shut them down.

Stakenet's DEX isn't owned by anyone but the network of masternodes running it. Once the DEX is LIVE, even if the devs was FORCED to take down the DEX, they wouldn't be able to do so, as it's NOT controlled by them. Coins will be added to the DEX by voting, if the majority of the node owners reject the proposal, it simply wont be allowed to get traded on the DEX.

It's true that there is a LOT of "fake" DEX's out there, but Stakenet is NOT one of them As I said in my last post, please do your own research buddy.

Most decentralized exchange isn't decentralized as its made people to understand. Idex currently is asking her users ti register on their exchange ti be able to use it. Until Dex is fully decentralized, its not functioning yet. Hybrid exchange if developed is good.

"IDEX" Is NOT a TRUE DEX, Nor is the Binance DEX.

The main problem of decentralized exchanges in the dilemma: in any case, someone must serve the exchange, if someone serves it, then such a exchange can hardly be called decentralized. You need to research, now there are some interesting DEX's.

The Stakenet DEX will be controlled and run by masternodes, no one else.

[Mahanton]

I just curious about what's your opinion about how vertex can deal with the regulation? As far as i know, even DEX becomes CEX right now which must comply with the regulation that has already created by the government.
Im feeling doubt to see that is there a chance for your hybrid exchange to be full compliance with the regulation?

True story and this is what mostly do happen recently or even on the past where DEX ones being hitted up by some government issues which they do end up to comply
with the law.Im not aware with those Hybrid exchangers yet im only aware with DEX and CEX.If we do talk about hybrid then it do works on both sides which is pretty impossible or come to think off to be a possible one without any facing legal issues as well. Centralize exchangers might be hated by anybody but on the current situation of the market we have seen  that people do still make use of these centralized exchangers compared to DEX ones.We can eventually see the difference or the support with our own very eyes in terms of liquidity.

[Marckolind]

I just curious about what's your opinion about how vertex can deal with the regulation? As far as i know, even DEX becomes CEX right now which must comply with the regulation that has already created by the government.
Im feeling doubt to see that is there a chance for your hybrid exchange to be full compliance with the regulation?

True story and this is what mostly do happen recently or even on the past where DEX ones being hitted up by some government issues which they do end up to comply
with the law.Im not aware with those Hybrid exchangers yet im only aware with DEX and CEX.If we do talk about hybrid then it do works on both sides which is pretty impossible or come to think off to be a possible one without any facing legal issues as well. Centralize exchangers might be hated by anybody but on the current situation of the market we have seen  that people do still make use of these centralized exchangers compared to DEX ones.We can eventually see the difference or the support with our own very eyes in terms of liquidity.

Again, it's worth mentioning that once the Stakenet DEX is up and running, nobody will be able to take it down, not even the government. This is because it's gonna run on 2000+ masternodes, with servers located all over the world, it's the same principle, as if you'd want to shut down the internet. Good luck with that