(Yes or NO) The 2020s belong to DEXs

[nightflightcourt]

I was also surprised how quickly this decentralized exchange became popular and received huge daily trading volumes. First of all, the fact is that anyone can become a liquidity provider and earn money from it. The second factor in the growth of popularity was the use of this exchange by various protocols.
Unfortunately, only tokens of the ERC 20 format can be exchanged on Uniswap, but I have heard that developers are working on the possibility of exchanging coins of various blockchains.

Stakenet DEX has been working on exactly that. BTC/ETH swaps are working in its test groups. They use layer 2 (Lightning for BTC, Raiden for ETH) and bridging protocols to bypass the high on-chain fees and allow for almost instant tx as opposed to the slow on-chain transfer speeds you get from BTC and more recently ETH.

I know that several development teams are working on such swaps. At the moment, the main problem is the security of such exchanges.
If such a system would work successfully, then these exchanges will be much more popular than Uniswap.

Lightning Network atomic swaps are very stable now! The success rate for swaps between BTC/LTC/XSN pairs on Stakenet DEX is near-perfect. It took 2 years for it to get there.
For reference, doing LN swaps in October 2018 took a lot of setup, time, and know-how. Even for an expert, it took 30 minutes to demonstrate:
https://www.youtube.com/watch?v=vOjuSurGkLQ
LN swaps a year later, were much more straightforward. Swaps worked well, but setting up channels and exchanging funds was still involved:
https://www.youtube.com/watch?v=yLq7xIjf_hc
Here it is more recently swapping LN BTC (bought with XMR and sent from XMR.to LN) into LTC with one deposit.
https://www.youtube.com/watch?v=J8FraG0Hb2A

Layer 2 is great because the channels rely on the inherent security of the underlying blockchain. Combine that with non-custodial wallets that no 3rd party can freeze and the crypto world has a powerful weapon at its disposal. 

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[KimmyF]

Ethereum is the most popular blockchain in the cryptocurrency, so others could be out of topics. For trading I will always perfectly prefer to use centralized exchange but the legit one. Now whatever ERC-20 tokens you use in decentralized exchange, will cost you more than centralized exchange. Now I don't use Ethereum for any transaction without hold.

[r32godzilla]

In 2017 we couldn´t imagine that decentralized exchanges will ever overcome centralized exchanges in a daily trading volume. But thanks to UniSwap, it happened. Nowadays there are many UniSwap alternatives and new ones are created every day. I believe that in the future all people will move to DEXs, due to higher security, lower fees, and no KYC process.

[Cryptoangel01]

I won't argue this a whole lot have happened in a small space of time. It's interesting to see. I'm suspecting there will be even more.

[nightflightcourt]

In 2017 we couldn´t imagine that decentralized exchanges will ever overcome centralized exchanges in a daily trading volume. But thanks to UniSwap, it happened. Nowadays there are many UniSwap alternatives and new ones are created every day. I believe that in the future all people will move to DEXs, due to higher security, lower fees, and no KYC process.

Agreed. I'd like to add that CEXs were more laid back as a whole in 2017. There are indeed many Uniswap clones. All the ones I know of take a cue from Uniswap and run on ETH's network when, tbh, that's the Achilles heel of Uniswap in the first place.

I won't argue this a whole lot have happened in a small space of time. It's interesting to see. I'm suspecting there will be even more.

Yes. It has all progressed very quickly.

[wack slacker]

DEXs are the trend this year. Uni Swap is no longer a phenomenon. There are more DEXs and more trading volume.
Look at UNI, all CEXs have listed it, not yet a quick project has been so listed by all CEXs.


ảnh từ Glassnode

The red line is the amount of ETH on the smart contracts

The green line is the amount of ETH on centralized exchanges

[Alohadanc3]

I don't think that. I know many Dex are now in popular side. But in my opinion it's a hype. In late  2018 or early 2019 we started to see a Dex hype too. Many big exchanges or groups started to announced or delivered their own Dex. But most of them are not working now or have very less volume than good cex. And then people started to use cex more. At this moment also people are using cex more. But dexs also have good growth. But it's hard to say that it will be forever. I also like to use Dex but there are many problems like low volume and liquidity,hard to use, sometime slow. Thats it.

[nightflightcourt]

I don't think that. I know many Dex are now in popular side. But in my opinion it's a hype. In late  2018 or early 2019 we started to see a Dex hype too. Many big exchanges or groups started to announced or delivered their own Dex. But most of them are not working now or have very less volume than good cex. And then people started to use cex more. At this moment also people are using cex more. But dexs also have good growth. But it's hard to say that it will be forever. I also like to use Dex but there are many problems like low volume and liquidity,hard to use, sometime slow. Thats it.

You're right. There was a much tinier DEX bubble through 2019, usually it was in reaction to big CEXs implementing KYC or freezing funds.
People have hyped numerous DEXs and coins as the proper solution to the trustless exchange of assets between two remote parties and, while they've gotten closer to proper form, none of the solutions backed by major players in the industry have been sufficient for the job in the way that Stakenet DEX is (swapping on L2 between multiple chains as opposed to just intra-ETH/ERC20 solutions).

[3meek]

In 2017 we couldn´t imagine that decentralized exchanges will ever overcome centralized exchanges in a daily trading volume. But thanks to UniSwap, it happened. Nowadays there are many UniSwap alternatives and new ones are created every day. I believe that in the future all people will move to DEXs, due to higher security, lower fees, and no KYC process.

I'm sure that Uniswap is just a hype, especially since they couldn't come up with anything new (maybe just a little bit )...
Komodo made swaps much earlier... Bankor made similar Uniswaps erc20 swaps a long time ago...

[Sy]

So far I think YES 2020 belongs to the decentralized exchanges. Ever since DeFi projects started booming we are seeing more and more transactions are flowing through DEXs we can say thanks to UNISWAP for that.

[Fivestar4everMVP]

I personally prefer DEX over CEX , but i must say that there's still a long way to go before DEX finally overtakes CEX cause of some problems which DEX needs to fight and one of them liquidity, though Uniswap is really doing great but we cant say the same about other DEX's , another another thing is most DEX's only support erc20 tokens and no way to trade assets from other chains, one can easily exchange their erc20 tokens to eth or other tokens, but lets say for example, when one wants to exchange erc20 for ripple , one have to run to CEX to get that done cus CEX is the place where ripple is listed. So i think this is one of the big challenges DEX have to battle right now.

[Nick J.]

I doubt that 2020 DEX will be able to beat CEX, because based on the data I saw on the coinmarketcap site.
CEX still has a higher volume than DEX, also the number of coins listed on CEX is still more. So CEX is still more
popular and is still widely used by traders, DEX still has a long way to go in order to beat CEX.

You are clearly missing the point.
There are MANY ways Dex`s are already beating CEX`s.
A Dex like Stakenet Dex does not require KYC and will not do so regardless of the amount you move around. Thats ONE way of beating a CEX.
Next one is being NONE CUSTODIAL. Stakenet Dex for instance does not hold your keys. A CEX does and not your keys not your coins. Second way of BEATING the CEX`s.
Stakenet Dex runs on Layer 2. This means you can send BTC, LTC, XSN and soon ALL Tokens on ETH around instantly without confirmation times and NO huge fees.
Thats ONE MORE ways Dex`s are ALREADY beating CEX´S.

You see??
There is MUCH more to it then what you describe.
Adding tons of shitcoins is the easy part.
Liquidity will come over time once the market gets tired of all the CEX exit scams, high fees and surveilance and AML/KYC rules.

[2bfree]

I hope DEX-es win because I lost tokens on 3 centralized platforms already. I hate dealing with them changing rules as they see fit and also 2 shut down and stole the money one in New Zeleand. It sucks I hope they are gone soon!

[Nick J.]

I hope DEX-es win because I lost tokens on 3 centralized platforms already. I hate dealing with them changing rules as they see fit and also 2 shut down and stole the money one in New Zeleand. It sucks I hope they are gone soon!

Yes i lost coins on Cryptopia too.
But it looks like we will get them back this time. A RARE case when it comes to losing coins on a CEX.
So Dex`s is def the way forward and most people will learn it the easy or the hard way. But they WILL learn.

[Roidz]

I hope DEX-es win because I lost tokens on 3 centralized platforms already. I hate dealing with them changing rules as they see fit and also 2 shut down and stole the money one in New Zeleand. It sucks I hope they are gone soon!

Yes i lost coins on Cryptopia too.
But it looks like we will get them back this time. A RARE case when it comes to losing coins on a CEX.
So Dex`s is def the way forward and most people will learn it the easy or the hard way. But they WILL learn.

I hope what you hope will happen, but in my opinion it will not happen in 2020, because we can see how many deficiencies are also shared by some dex exchange platforms and I think dex will not be better than current cex. This, of course, dex and cex also have their own advantages and disadvantages, but we can choose which one is the best for us, whether dex or cex at the moment.

[Ziskinberg]

We will be soon in the last quarter of the year, I think there's not much time to make some magic for the DEX, so it's safe to assume that 2020 does not belong to the DEX, if Binance DEX were able to make some hype then it could have affected other DEX, but it didn't happen, not even in a short period.

[3meek]

By the way, it is possible that after the last serious hacking of Kucoin you will get bad advertising for DEX , because on Uniswap sold the stolen... And if we consider the situation, the liquidity providers on the exchange can be attributed to accomplices, because their addresses were involved with the addresses of hackers...

[bigcash2011]

Obviously dexes are the future but at the moment amm based instant swap dexes are dominating everything while traditional dexes like forkdelta and idex are struggling as well. So looks like this trend will grow especially because of the money making aspect of these dexes.

[Crypto_lion]

I think the kucoin hack is only going to accelerate the movement towards DEXs. The only issue I see now is the high transaction fee and the user interface which can be made simple for novice users.

[Plinteng]

as an example,Binance is a centralized exchange and they've built the confidence from the people and the incident that happened of them with hacking, they've refunded those who are affected but not every exchange can do this.
Many centralized exchanges has a good volume that's why many are staying on their side and as for the other DEX, many of them too doesn't have a good volume so that's why traders are wanting to get into those centralized exchanges with volume which their coins are listed.