In the Future All Crypto Exchanges Will Become Decentralized - Justin Sun

[zasad@]

https://news.bitcoin.com/in-the-future-all-crypto-exchanges-will-become-decentralized-justin-sun-founder-of-tron-and-advisor-to-htx/
"The conversation then moved to the ongoing debate between decentralized and centralized exchanges, emphasizing the crucial role of transparency and decentralization in cryptocurrency platforms. Justin further illuminated the concept of democratic governance for cryptocurrency exchanges. The episode concluded with a discussion on the emergence of new governance platforms, with HTX DAO serving as a prime example."

Do you believe this?
The most likely thing we will see is the use of cryptocurrency on decentralized exchanges.

https://www.coindesk.com/tech/2024/01/24/solana-delivers-token-extensions-to-attract-enterprise-blockchain-builders/
"There are five extensions that developers can mix and match, according to briefing materials reviewed by CoinDesk.
Transfer hooks: Any time a token is transferred a "transfer hook" will invoke a program that checks whether that transfer is permissible, and revoke the transfer if it's not."

[Fiatless]

https://news.bitcoin.com/in-the-future-all-crypto-exchanges-will-become-decentralized-justin-sun-founder-of-tron-and-advisor-to-htx/
"The conversation then moved to the ongoing debate between decentralized and centralized exchanges, emphasizing the crucial role of transparency and decentralization in cryptocurrency platforms. Justin further illuminated the concept of democratic governance for cryptocurrency exchanges. The episode concluded with a discussion on the emergence of new governance platforms, with HTX DAO serving as a prime example."

Do you believe this?
The most likely thing we will see is the use of cryptocurrency on decentralized exchanges.

https://www.coindesk.com/tech/2024/01/24/solana-delivers-token-extensions-to-attract-enterprise-blockchain-builders/
"There are five extensions that developers can mix and match, according to briefing materials reviewed by CoinDesk.
Transfer hooks: Any time a token is transferred a "transfer hook" will invoke a program that checks whether that transfer is permissible, and revoke the transfer if it's not."

I have an opposite prediction of the view of Justin Sun. I think the government will soon begin to clamp down on decentralized platforms to enable them to gain control over the crypto industry. They intend to achieve control by enacting strict regulatory laws that might force these exchanges to give out the details of their users.

The Financial Crimes Enforcement Network (FinCEN) in the US  is an example of such a move. This law mandates decentralized exchanges to report details of any transaction that is deemed suspicious. This law will make DEXs go through the same money laundering and anti-terrorism regulations that CEXs undergo. Any decentralized platforms that refuse to abide by these laws might be banned from operating in such countries.

[DooMAD]

I've been saying something similar for a while now.  Custodians are generally recognised as a weak link in the chain.  Trust is often a finite resource.  Sooner or later it generally all turns to hacks, thefts, fractional reserves, seizures and exit scams.  Protocols are just better in such regards.  That's the direction we should ideally be moving in.

[rat03gopoh]

The Financial Crimes Enforcement Network (FinCEN) in the US  is an example of such a move.

That applies to DEXs specifically that qualify as "money transmitters", this is the key word.

“The developer of a Dapp is not a money transmitter for the act of creating the application, even if the purpose of the Dapp is to issue a Convertible Virtual Currency (CVC) or otherwise facilitate financial activities denominated in CVC. However, if the developer of the Dapp uses or deploys it to engage in money transmission, then the developer will qualify as a money transmitter under the BSA.”

The problem is, there are some exchanges out there that claim to be "DEX" but have CEX capabilities such as confiscating users' money.

[hugeblack]

https://news.bitcoin.com/in-the-future-all-crypto-exchanges-will-become-decentralized-justin-sun-founder-of-tron-and-advisor-to-htx/
"The conversation then moved to the ongoing debate between decentralized and centralized exchanges, emphasizing the crucial role of transparency and decentralization in cryptocurrency platforms. Justin further illuminated the concept of democratic governance for cryptocurrency exchanges. The episode concluded with a discussion on the emergence of new governance platforms, with HTX DAO serving as a prime example."

HTX, which has been hacked several times, is not CEX. I think the word DEX has become attractive because it means that your money is safe and cannot be hacked. Therefore, many platforms claim that they are decentralized, but in reality they are centralized or have a point of failure, and therefore most of the platforms that operate now are centralized in some way or another. Another even that claims otherwise.

It is true that this will happen in the future, but it is related to whether there will be DEXs that automatically exchange between different cryptocurrencies? If this does not happen, we will have models closer to Bisq, but with higher liquidity.

[zasad@]

https://news.bitcoin.com/in-the-future-all-crypto-exchanges-will-become-decentralized-justin-sun-founder-of-tron-and-advisor-to-htx/
"The conversation then moved to the ongoing debate between decentralized and centralized exchanges, emphasizing the crucial role of transparency and decentralization in cryptocurrency platforms. Justin further illuminated the concept of democratic governance for cryptocurrency exchanges. The episode concluded with a discussion on the emergence of new governance platforms, with HTX DAO serving as a prime example."

HTX, which has been hacked several times, is not CEX. I think the word DEX has become attractive because it means that your money is safe and cannot be hacked. Therefore, many platforms claim that they are decentralized, but in reality they are centralized or have a point of failure, and therefore most of the platforms that operate now are centralized in some way or another. Another even that claims otherwise.

It is true that this will happen in the future, but it is related to whether there will be DEXs that automatically exchange between different cryptocurrencies? If this does not happen, we will have models closer to Bisq, but with higher liquidity.

I don't see a problem with decentralization if the smart contract has a kill switch and a limit on quick withdrawals. All smart contracts use a liquidity store, and if there is a hack or error in the smart contract, then investors will watch as the hacker withdraws their money to their wallet.
This issue needs to be understood in more detail, depending on who you are: a user who is more secure or an investor who adds liquidity to the pool or storage.

[Poker Player]

https://news.bitcoin.com/in-the-future-all-crypto-exchanges-will-become-decentralized-justin-sun-founder-of-tron-and-advisor-to-htx/

The link doesn't work for me. It says page not found.

Do you believe this?

What I think is that he smokes some really good shit and that's why he says those things.

I have an opposite prediction of the view of Justin Sun. I think the government will soon begin to clamp down on decentralized platforms to enable them to gain control over the crypto industry. They intend to achieve control by enacting strict regulatory laws that might force these exchanges to give out the details of their users.

It is no longer a matter of precision, it is that if we look at what is happening now, and what has happened the last few years we have that a lot of people buy and sell Bitcoin on CEX, apart from leaving their holdings there or in custodial wallets. In addition, the legislations in place are aiming to control more and more Bitcoin transactions.

The Financial Crimes Enforcement Network (FinCEN) in the US  is an example of such a move. This law mandates decentralized exchanges to report details of any transaction that is deemed suspicious. This law will make DEXs go through the same money laundering and anti-terrorism regulations that CEXs undergo. Any decentralized platforms that refuse to abide by these laws might be banned from operating in such countries.

Well, that's it. We are heading towards a future with less privacy and less freedom, not the other way around.

[Myleschetty]

Due to what we're currently experiencing and seeing how privacy is taking away little by little from the cryptocurrency space anyone that believes in Justin Sun's statement about all crypto exchanges being decentralized is naive about what the Bitcoin spot ETF will create in the future market of crypto.
Maybe Justin was tipsy when he made the statement.

[hugeblack]

I don't see a problem with decentralization if the smart contract has a kill switch and a limit on quick withdrawals. All smart contracts use a liquidity store, and if there is a hack or error in the smart contract, then investors will watch as the hacker withdraws their money to their wallet.
This issue needs to be understood in more detail, depending on who you are: a user who is more secure or an investor who adds liquidity to the pool or storage.

I have no problem with decentralized services, but what happens is that most services use the word decentralized to promote their centralized services, and their concept of decentralization is nothing more than that either they do not ask for identity verification, or you link your wallet while giving them full permissions. In both cases, there is a point of failure, which is centralization.

[zasad@]

I don't see a problem with decentralization if the smart contract has a kill switch and a limit on quick withdrawals. All smart contracts use a liquidity store, and if there is a hack or error in the smart contract, then investors will watch as the hacker withdraws their money to their wallet.
This issue needs to be understood in more detail, depending on who you are: a user who is more secure or an investor who adds liquidity to the pool or storage.

I have no problem with decentralized services, but what happens is that most services use the word decentralized to promote their centralized services, and their concept of decentralization is nothing more than that either they do not ask for identity verification, or you link your wallet while giving them full permissions. In both cases, there is a point of failure, which is centralization.

To speak in more detail, on such decentralized exchangers as Uniswap, Pancake and similar swaps are performed in one smart contract and you give permission only for the number of tokens or coins that you want to exchange. You have risks if suddenly in one of the directions the number of tokens sharply decreases as a result of a hacker attack, but you have protection where you set the slippage percentage. In this case, I lost a little gas on the commission, and the smart contract was not executed. If you exchange small amounts, you reduce the risks. And you need to read the latest project news.

[electronicash]

https://news.bitcoin.com/in-the-future-all-crypto-exchanges-will-become-decentralized-justin-sun-founder-of-tron-and-advisor-to-htx/
"The conversation then moved to the ongoing debate between decentralized and centralized exchanges, emphasizing the crucial role of transparency and decentralization in cryptocurrency platforms. Justin further illuminated the concept of democratic governance for cryptocurrency exchanges. The episode concluded with a discussion on the emergence of new governance platforms, with HTX DAO serving as a prime example."

Do you believe this?
The most likely thing we will see is the use of cryptocurrency on decentralized exchanges.

https://www.coindesk.com/tech/2024/01/24/solana-delivers-token-extensions-to-attract-enterprise-blockchain-builders/
"There are five extensions that developers can mix and match, according to briefing materials reviewed by CoinDesk.
Transfer hooks: Any time a token is transferred a "transfer hook" will invoke a program that checks whether that transfer is permissible, and revoke the transfer if it's not."

I have an opposite prediction of the view of Justin Sun. I think the government will soon begin to clamp down on decentralized platforms to enable them to gain control over the crypto industry. They intend to achieve control by enacting strict regulatory laws that might force these exchanges to give out the details of their users.

The Financial Crimes Enforcement Network (FinCEN) in the US  is an example of such a move. This law mandates decentralized exchanges to report details of any transaction that is deemed suspicious. This law will make DEXs go through the same money laundering and anti-terrorism regulations that CEXs undergo. Any decentralized platforms that refuse to abide by these laws might be banned from operating in such countries.

they already did and some ether dex was shut down. the government had also tried eradicating mixers so there is no way that after years of what the government is doing, they will just give up and allow everything to be decentralized. i have the feeling they will double down instead.

justin himself had a platform that isn't decentralized, i think he should initiate the decentralization himself on the TRON before preaching decentralization.

[zasad@]

they already did and some ether dex was shut down. the government had also tried eradicating mixers so there is no way that after years of what the government is doing, they will just give up and allow everything to be decentralized. i have the feeling they will double down instead.

justin himself had a platform that isn't decentralized, i think he should initiate the decentralization himself on the TRON before preaching decentralization.

Any ecosystem that uses the POS algorithm will be centralized at certain points. The USDT smart contract has the ability to freeze tokens in all ecosystems, so these are not problems of the TRON cosystem. The Ethereum ecosystem may soon have 1 million validators, but as we see, even in this case, this ecosystem is not becoming more decentralized.

[yhiaali3]

I knew from the beginning that this would happen, because governments, especially the United States government,  considers itself the policeman of the world and cannot accept anything decentralized outside its control, have the influence and means that enable them to transform any decentralized service into a centralized service.

Transfer hooks: Any time a token is transferred a "transfer hook" will invoke a program that checks whether that transfer is permissible, and revoke the transfer if it's not."

So how will the "transfer hook" check whether this move is allowed or not? If the exchanges are truly decentralized and do not require KYC and do not keep any information about the user, how will the "transfer hook" be able to know whether the transfer is allowed or not?