Will centralization keep its dominance on the crypto industry forever?

[Abiky]

It's been a decade since crypto's inception, yet the whole industry is still dominated by big players in the same. Most services are centralized, which often serve as the gateway between the real world and the digital one. People get into Bitcoin and other cryptocurrencies through centralized exchanges these days. While decentralized solutions still exist, they're not comparable as their centralized counterparts in terms of performance and user experience.

Given that it's still 2019 and centralized exchanges are controlling crypto trades worldwide, it seems likely that the trend will continue for many years to come. Unless decentralized services improve over time, the entire crypto industry will be centralized as we know it. I'd say that 90% of the crypto industry is centralized, while the rest is decentralized. If people don't care about decentralization at all, then this will be the norm forever.

Which is why, I'm starting to wonder if centralization will keep its dominance on the crypto industry forever? What are your thoughts?

[adjed]

I don't think centralisation would have this hold on the Cryptocurrency trading industry forever ,for every victim of a Cryptocurrency exchange hack, trusting a centralised exchange again would be a very hard thing to do and little by little, people who has been victims of this are rising steadily, sometimes even scam exit by shady centralised exchanges, it would get to a stage where something phenomenal might happen and all Cryptocurrency traders would say enough is enough and they would rather move to a decentralised exchange where they could control their own funds and ensure it's safety by themselves, although I don't pray for bad things to happen to any major exchange because of the people it would affect, I would also advice people to take a close look at decentralised exchanges because it:s the future.

[Ucy]

In my opinion, centralized exchanges/platforms should exist but shouldn't be promoted too much or above decentralized platforms for the sake of decentralization and security of cryptocurrency. The crypto communities should be promoting the decentralized platforms. The outside world could choose to promote what they want.

I think any cryptocurrency that has most of its value on centralized platforms shouldn't be seen as very decentralized.. Most of tradings should be happening peer-to-peer or via decentralized platforms. The point is to keep things censorship resistant, immutable, secure, trustless etc. Centralized usage of cryptos shouldn't be more than 40%...the less the better.

[electronicash]

many projects are being developed for decentralization, one day a developer will shout eureka for all of us who dreamed about it.

In my opinion, centralized exchanges/platforms should exist but shouldn't be promoted too much or above decentralized platforms for the sake of decentralization and security of cryptocurrency. The crypto communities should be promoting the decentralized platforms. The outside world could choose to promote what they want.

I think any cryptocurrency that has most of its value on centralized platforms shouldn't be seen as very decentralized.. Most of tradings should be happening peer-to-peer or via decentralized platforms. The point is to keep things censorship resistant, immutable, secure, trustless etc. Centralized usage of cryptos shouldn't be more than 40%...the less the better.

if eventually the decentralize platform will have a volume it needs to be make all wanna go there then it will be patronized more than the ones with riskier centralize platform. once the solution comes we shall see a massive migration there. blocknet seem to be promising a real decentralization than the ones we knew today.

[Marckolind]

Of course not. It's really no coincidence that we see THIS many new "DEX's" popping up every week. It's in high demand, and the amount of posts here with "decentralization" in either the topic title, or the thread itself is increasing, from what I can tell.

The only true DEX on the market right now is, Blocknet. There's a lot of fake DEX's out there, who isn't truly decentralized like: Binance, Waves, IDEX, Bisq, and I can name plenty more. 

It's true that a few big players seem to control the market today, but I'm sure that we'll eventually see DEX's looking exactly like CEX's, making it easy and convenient for everyone to trade.

Blocknet is pretty awesome, since you can run your own node, and profit off of the DEX fee's involved, which could provide a substantial income over time, as these DEX's gets used more and more.
I'm sure more projects will come alive, offering similar solutions eventually.

[CjMapope]

It's been a decade since crypto's inception, yet the whole industry is still dominated by big players in the same. Most services are centralized, which often serve as the gateway between the real world and the digital one. People get into Bitcoin and other cryptocurrencies through centralized exchanges these days. While decentralized solutions still exist, they're not comparable as their centralized counterparts in terms of performance and user experience.

Given that it's still 2019 and centralized exchanges are controlling crypto trades worldwide, it seems likely that the trend will continue for many years to come. Unless decentralized services improve over time, the entire crypto industry will be centralized as we know it. I'd say that 90% of the crypto industry is centralized, while the rest is decentralized. If people don't care about decentralization at all, then this will be the norm forever.

Which is why, I'm starting to wonder if centralization will keep its dominance on the crypto industry forever? What are your thoughts?

i fear it will only get worse, as more and more big players get involved.  Sadly crypto was always really susceptible to whales, but its gotten bad last 2 years imo
Sometimes i think its necessary for security, Coinbase is a pretty decent and considered secure "digital bank" , but you still dont control your keys there
i think a few projects ARE working on more decentralized options, 2020 should be really interesting for sure! SOMETHING needs to happen, hacks are getting worse year by year

[Bttzed03]

It's been a decade since crypto's inception,

If you change that to "It's ONLY been a decade", the perception will change. The industry is still young compared to others and a lot of things could happen in the next decade. Ethereum's DEFI ecosystem for instance keeps on growing https://twitter.com/CryptoDiffer/status/1206977840916422656

If people don't care about decentralization at all, then this will be the norm forever.

It's funny that we complain about volume on DEXs while we only wait & watch for volume to increase.
It's also funny how we talk a lot about security, privacy, and anonymity but a UI/UX would prevent us from using DEX.
Seriously, we have to change that mindset.
Many people here are just bandwagoners. We don't really care about all these decentralization stuff, we just care about money.

[Aabcde]

Nothing lasts forever, all have their respective times. Now maybe centralized exchange still plays an important role for crypto exchange. But it could be 10 years in the future there is a different concept and it removes centralized exchange. But for now centralized exchange is very popular because of the ease of using it and of course there are many events such as airdrops, trading competitions, and many more which are the main attraction. The downside is that CEX is always hacked. Maybe later, if there is a concept that can break this, I think it will become a preferred and popular exchange.

[DaMut]

Of course not. It's really no coincidence that we see THIS many new "DEX's" popping up every week. It's in high demand, and the amount of posts here with "decentralization" in either the topic title, or the thread itself is increasing, from what I can tell.

The only true DEX on the market right now is, Blocknet. There's a lot of fake DEX's out there, who isn't truly decentralized like: Binance, Waves, IDEX, Bisq, and I can name plenty more. 

It's true that a few big players seem to control the market today, but I'm sure that we'll eventually see DEX's looking exactly like CEX's, making it easy and convenient for everyone to trade.

Blocknet is pretty awesome, since you can run your own node, and profit off of the DEX fee's involved, which could provide a substantial income over time, as these DEX's gets used more and more.
I'm sure more projects will come alive, offering similar solutions eventually.

you might be right about the dex but we are not only talking about the exchange but other aspects or services, the majority of them are centralized.
centralization has been around us for years, people like to do it because they have power and authority. I do not see when will we are going to see full decentralization. centralization dominance is not only in crypto industry but in everything.

[zhekinsp]

It's been a decade since crypto's inception, yet the whole industry is still dominated by big players in the same. Most services are centralized, which often serve as the gateway between the real world and the digital one. People get into Bitcoin and other cryptocurrencies through centralized exchanges these days. While decentralized solutions still exist, they're not comparable as their centralized counterparts in terms of performance and user experience.

Given that it's still 2019 and centralized exchanges are controlling crypto trades worldwide, it seems likely that the trend will continue for many years to come. Unless decentralized services improve over time, the entire crypto industry will be centralized as we know it. I'd say that 90% of the crypto industry is centralized, while the rest is decentralized. If people don't care about decentralization at all, then this will be the norm forever.

Which is why, I'm starting to wonder if centralization will keep its dominance on the crypto industry forever? What are your thoughts?

Centralized exchanges got enough funds to promote themselves to reach more people but as crypto investor and enthusiast we have to promote decentralized services to get complete decentralization of using cryptos.It may take time atleast a decade for full adoption of decentralized services until that we have to keep the things clear for any new investors.

[andika2018]

Centralized coins may remain and survive, but I think investors who understand cryptocurrency will definitely have decentralized coins. Centralized coins are easier to manipulate prices while decentralized coins are more difficult to manipulate and I think that investors will gradually realize this

[GucciBoy]

Centralized coins may remain and survive, but I think investors who understand cryptocurrency will definitely have decentralized coins. Centralized coins are easier to manipulate prices while decentralized coins are more difficult to manipulate and I think that investors will gradually realize this

Well, ERC20 tokens is centralized, and therefor way more volatile - Since they are 100% premined.

The good old projects such as Blocknet, is a good example of a decentralized project, STILL wanting to remain decentralized. Their DEX speaks for itself: https://blockdx.com/

More over, their Xrouter, which can handle billions of requests per day, will be able to solve the oracle problem as well. You can pull any blockchain data from the networks service nodes and use them however you want.

Decentralization is a beautiful thing. 

[tenakha]

It's been a decade since crypto's inception, yet the whole industry is still dominated by big players in the same. Most services are centralized, which often serve as the gateway between the real world and the digital one. People get into Bitcoin and other cryptocurrencies through centralized exchanges these days. While decentralized solutions still exist, they're not comparable as their centralized counterparts in terms of performance and user experience.

Given that it's still 2019 and centralized exchanges are controlling crypto trades worldwide, it seems likely that the trend will continue for many years to come. Unless decentralized services improve over time, the entire crypto industry will be centralized as we know it. I'd say that 90% of the crypto industry is centralized, while the rest is decentralized. If people don't care about decentralization at all, then this will be the norm forever.

Unless we use cryptocurrency as it should be, decentralization will only be an unnecessary word written in WP. Trading is not a bad thing, we all do it, but today's crypto has no title other than the "trading whore". We all forgot the crypto itself as chasing centralized money, as long as we are so, as those who carers, expectations about the future decreases.

Which is why, I'm starting to wonder if centralization will keep its dominance on the crypto industry forever? What are your thoughts?

To counteract this, the values have to be zero. Then there will be noone who hopes to gain from the crypto and those who want to keep it on the centralized exchanges. Only those who really evaluate cryptocurrency.

Note: Do not get me wrong, I have no intention of scolding anyone, I also say these words to myself along with everyone.

[vintages]

It is simply because almost a good amount of exchange owners are into cryptocurrency and setting up exchange because of the money in it and the fear of the government.
Many of them don't care if they want to uphold the true aim of cryptocurrency becoming decentralized. You don't blame them though, you should blame the patronizers. Most traders don't care about decentralisation, they just want to earn money through crypto trading.

[metalglowd]

In my opinion, centralized exchanges/platforms should exist but shouldn't be promoted too much or above decentralized platforms for the sake of decentralization and security of cryptocurrency. The crypto communities should be promoting the decentralized platforms. The outside world could choose to promote what they want.

I think any cryptocurrency that has most of its value on centralized platforms shouldn't be seen as very decentralized.. Most of tradings should be happening peer-to-peer or via decentralized platforms. The point is to keep things censorship resistant, immutable, secure, trustless etc. Centralized usage of cryptos shouldn't be more than 40%...the less the better.

But the hardest part is promoting decentralized exchange itself, somehow even though it has been promoted as it should, decentralized enthusiasts are not as much centralized exchange, either because of the volume, interface or features available on the decentralized exchange. Then decentralized exchange also tends not to make good developments.
They just make it looks stagnan from its looks

[Capt00]

It can't deny that because of greediness some people would like to control the market and that so they created their own exchanger which they can control. Traders aren't so particular into exchanges the most important they look is to make money, especially for bounty hunters. And we can see that decentralize market exchange have its growth because they have any supporters already.

[Abiky]

In my opinion, centralized exchanges/platforms should exist but shouldn't be promoted too much or above decentralized platforms for the sake of decentralization and security of cryptocurrency. The crypto communities should be promoting the decentralized platforms. The outside world could choose to promote what they want.

I think any cryptocurrency that has most of its value on centralized platforms shouldn't be seen as very decentralized.. Most of tradings should be happening peer-to-peer or via decentralized platforms. The point is to keep things censorship resistant, immutable, secure, trustless etc. Centralized usage of cryptos shouldn't be more than 40%...the less the better.

Exactly. Unfortunately, people are into crypto for the money above all else. They don't care about maintaining crypto and Blockchain technology free from the hands of powerful corporations and oppressive governments. Considering that human greed is unavoidable, centralization will always exist no matter what. It's important that the crypto ecosystem would focus itself more on decentralization than anything else. Decentralized services like DEXs, non-custodial mixers, atomic swaps, and even non-custodial wallets should be promoted more to reduce the chance of centralization dominating the entire industry as we know it. Of course, centralized exchanges provide better liquidity and user experience than decentralized ones. But the ecosystem needs to make the switch to decentralized alternatives once they improve in terms of user experience and scalability. Still, decentralized exchanges are a new concept that aren't as popular as centralized exchanges these days. The number of centralized services, greatly outperforms those in the decentralized world.

As long as Bitmain dominates the mining industry, while Binance dominates crypto trades, the whole ecosystem will remain centralized for years to come. We've seen many exchanges claim to be decentralized, while theoretically they're not. Truly decentralized services wouldn't rely on middlemen whatsoever or certain technologies that bring a single point of failure (like hosting the DEX on a website that can be easily shut down by governments). Only the Block DX exchange is truly decentralized as everything is done at the software level. It relies on the Blockchain for everything, making it censorship-resistant. We need more projects like this one, in order to fulfill Satoshi's vision of decentralized finance. Until then, we'll be subject to manipulation by greedy corporations and oppressive governments looking to take down our financial freedom. Just my opinion