decentralized trading platform

[nishotas]

An idea came to my mind,

As we all know bitcoin is a decentralized digital currency, created to pay for things online and is not controlled by government institutions, and cannot be counterfeited which is perfect.

A lot of person are interested in becoming rich with it, which make us talk about trading. Trading is a big part of crypto currency and for me trading now is THE biggest topic related to crypto currencies, the subject I want to talk about is trading platforms ( like binance ).

Trading platforms is in paper a good idea, it makes it easy for anyone to buy any coin they want, with a user friendly interface and an easy use.
The problem with it is the kyc ( know your customer ), which is a law that force trading platform to add a document verification when you register with a new account ( basically they will know who you are to be able to register and trade crypto ) .

SO, for me it is a problem, because crypto currency is a concept based on decentralized system, so when these platforms have document verification, that the government have access to it when needed, they will be able to trace you back if one day you do something that does not make them happy.

And with trading platforms being the biggest topic related to crypto currencies ( for me at least ), it kills this point of view making it decentralized, and to add to this we can clearly see binance holding 200k bitcoins in a single wallet, and there is multiple other example of this.

what I want to say is that a trading platform is not a bad idea, but I want to know if decentralized trading platform would ever be possible, with no boss or CEO that controls it, it will be a place where you would be able to trade crypto with no one controlling it, so no kyc, no tracing back.

for me decentralized crypto currency is a genius idea, but for now we need a decentralized trading platform, because for me trading platforms helped A LOT to popularize crypto currencies and making it easy to buy.

Let me know what you think about all of this.

[logfiles]

I think the only real decentralized exchange I know is Bisq (you can check it out). There are other pretenders that many not involve trading between fiat and cryptocurrencies, such as blockdx.net, Basicswap which is still in beta phase

You might want to check out Kycnot.me (https://kycnot.me/?t=exchange)

The Biggest problem with decentralized exchange is very low liquidity, low trading volumes and sometimes  traders end up incurring very high on chain fees.

[FinneysTrueVision]

You can trade Bitcoin for fiat on Bisq and there are a multitude of decentralized exchanges for crypto to crypto trading. The only problem with crytpo to fiat DEXs is that there is not enough liquidity for them to ever replace centralized exchanges. You can work around it by using stablecoins on Uniswap and similar DEXs, although this might not be entirely ideal.

[Potato Chips]

I've tried bisq before but my place was a ghost town, sadly. There is def a learning curve to get used to the the exchange which is one of the reasons why it can be difficult to onboard more people. I think for the average folks, even downloading a software could be a setback for them.

On the other hand, I find no-kyc and non-custodial though sits on a website platforms a good middle ground approach in terms of security + convenience but a few popular ones have received regulatory pressure and shut down e.g. localcryptos.

[mk4]

We've had non-custodial exchanges without the need for KYC for a good while now (dYdX, Hyperliquid, Uniswap, Jupiter, etc).

But a "decentralized" or non-custodial exchange having no CEO or developer team though? While it sounds good in theory it's technically not a good idea. How will the platform go forward and improve without a team or CEO? A decentralized exchange having no team is only viable probably for a P2P exchange, but still generally an exchange without a team will easily be beaten by an exchange with a team.

[goldkingcoiner]

You can trade Bitcoin for fiat on Bisq and there are a multitude of decentralized exchanges for crypto to crypto trading. The only problem with crytpo to fiat DEXs is that there is not enough liquidity for them to ever replace centralized exchanges. You can work around it by using stablecoins on Uniswap and similar DEXs, although this might not be entirely ideal.

That is going to change rapidly, with all the regulations and nonsense restrictions being placed on centralized exchanges.... People will have no other choice. Liquidity will go up.

[uchegod-21]

We've had non-custodial exchanges without the need for KYC for a good while now (dYdX, Hyperliquid, Uniswap, Jupiter, etc).

But a "decentralized" or non-custodial exchange having no CEO or developer team though? While it sounds good in theory it's technically not a good idea. How will the platform go forward and improve without a team or CEO? A decentralized exchange having no team is only viable probably for a P2P exchange, but still generally an exchange without a team will easily be beaten by an exchange with a team.

Any decentralized platform without a readily available developers interested in the project is a time bomb. No matter how decentralized the platform is, there should be some committed team members who can be retained with incentives to keep contributing to the community. We have non kyc platforms, but the expectation of these platforms competing with CEXs cannot be met. This is because CEXs are always more user friendly and have much more liquidity, fast decision making and the rest of them.
If what OP described is available in the magnitude he described it, that will definitely be the target of the government.

[Davidvictorson]

This is because CEXs are always more user friendly and have much more liquidity, fast decision making and the rest of them.
If what OP described is available in the magnitude he described it, that will definitely be the target of the government.

Many of the crypto treaders I know of do not mind trading on centralized exchanges. The few that have indicated interest in the discussion of decentralized exchanges are those who have been in the crypto ecosystem for 3 years or more and have read and understood what it is yet even when they have set you sets in decentralized exchanges like Bisq, they still spend most of their one centralized exchanges like Binance, Kucoin, Bybit and the rest of them. And yes because they are user friendly, have a high trading volume and other perks than their decentralized counterpart. They do not care about the submitting their KYC and whatever the government would do in the future with the document. The goal in their mind is to make money from trading cryptocurrency.

[pooya87]

You are confusing decentralization with privacy a little here.
If a centralized exchange is asking for KYC and it is invading your privacy, it has nothing to do with decentralization. The idea for decentralization itself was never primarily privacy. The idea is to not have a centralized authority that has control over your money and can dictate how you use it or for your payments to go through that authority first. It still is not about privacy otherwise bitcoin's blockchain wouldn't have been this transparent.

what I want to say is that a trading platform is not a bad idea, but I want to know if decentralized trading platform would ever be possible, with no boss or CEO that controls it, it will be a place where you would be able to trade crypto with no one controlling it, so no kyc, no tracing back.

There is a difference between not having a centralized authority and not having a team. What we want is a decentralized platform that doesn't control how people (peers) connect to each other and trade. They just write code. Just like what's happening with Bitcoin itself. There is a developers team but Bitcoin is still decentralized.

Bisq comes close but it is not 100% yet.

[Catenaccio]

There is a difference between not having a centralized authority and not having a team. What we want is a decentralized platform that doesn't control how people (peers) connect to each other and trade. They just write code. Just like what's happening with Bitcoin itself. There is a developers team but Bitcoin is still decentralized.

The founder identity is important too because since 2009, actual identity of Satoshi Nakamoto is not known.

Bitcoin has one more important thing to make it decentralized. There is no code gun to halt Bitcoin blockchain by anyone, not like altcoins with smart contracts.

Bitcoin has big developer community and we can donate them if we recognize their works and feel comfortable with donation.
https://bitcoindevlist.com/

[Sebas.tian]

Yes, cryptocurrency is a decentralized currency that is not involve third party in the process of trading, government has no power to control the increase and decrease of the cryptocurrency in the market. There are many decentralized trading platform which you have the right to choose the one you like to trade your coins, and they have rules and conditions that guide the platform which you most follow when using the platform to trade your coins. If you have never use binance exchange to trade your coins, I will encourage you to try binance platform and you will enjoy their services, because they make their procedure more easy for their users not to make mistakes when using the platform to trade their coins.

[fuguebtc]

This is because CEXs are always more user friendly and have much more liquidity, fast decision making and the rest of them.
If what OP described is available in the magnitude he described it, that will definitely be the target of the government.

Many of the crypto treaders I know of do not mind trading on centralized exchanges. The few that have indicated interest in the discussion of decentralized exchanges are those who have been in the crypto ecosystem for 3 years or more and have read and understood what it is yet even when they have set you sets in decentralized exchanges like Bisq, they still spend most of their one centralized exchanges like Binance, Kucoin, Bybit and the rest of them. And yes because they are user friendly, have a high trading volume and other perks than their decentralized counterpart. They do not care about the submitting their KYC and whatever the government would do in the future with the document. The goal in their mind is to make money from trading cryptocurrency.

Not just your friends, even on this forum although people like to talk about decentralization but if people are honest with each other, I believe most people are also using centralized exchanges more than decentralized exchanges. This is understandable because many people also need privacy, but between privacy and making money, most will choose to make money first. You must agree with me that money is the most important these days so we should not blame anyone because they have their reasons.

To be honest, I personally am also using centralized exchanges instead of decentralized exchanges because apart from the disadvantage that we need KYC, it is clear that CEX is superior in every aspect compared to DEX.

[yhiaali3]

In my opinion, there is no completely decentralized exchange. The exchange must be created by a company or people who are in charge of it and work to develop it and ensure that it always works well. Therefore, there is no exchange that operates on its own in a decentralized manner.

Even those that claim to be decentralized are owned by a company, in addition to the many problems such as low liquidity and the small number of listed coins, and even most of them impose KYC restrictions.

So I think the only way to exchange coins decentralized is P2P.

[hd49728]

SO, for me it is a problem, because crypto currency is a concept based on decentralized system

Cryptocurrencies mostly are not created by developers with original concept for decentralization, you need to know this big fact.

Bitcoin is created by Satoshi Nakamoto, with intention to be decentralized, but cryptocurrencies (alternative cryptocurrencies) are not.

so when these platforms have document verification, that the government have access to it when needed, they will be able to trace you back if one day you do something that does not make them happy.

You can choose to do Peer to Peer trade or use platforms like DEX, without KYC that is risky and useless.

Why KYC is extremely dangerous – and useless
To those who do not care about their privacy. Why?

But Decentralized Exchanges themselves even are not decentralized in their founder identity. If their founders are arrested by governments, all user data base on their DEX will be retrieved by government.

https://kycnot.me/

[retreat]

A decentralized exchange is achievable and we already have several examples such as Bisq, etc. However, a decentralized exchange platform without a CEO and team managing it is quite impossible, because an online platform cannot run completely on its own, it requires a team to make it run, develop and patch security which could potentially disrupt user transactions. So with what you mean, it is quite difficult to realize.

[hd49728]

A decentralized exchange is achievable and we already have several examples such as Bisq, etc. However, a decentralized exchange platform without a CEO and team managing it is quite impossible, because an online platform cannot run completely on its own, it requires a team to make it run, develop and patch security which could potentially disrupt user transactions. So with what you mean, it is quite difficult to realize.

It is possible. Problems can be solved by decentralized developer team and the barrier that prevent massive people to use DEX is lack of trading volume. By that, they will have to spend more time to find offers that match their trading need and they will more likely struggle to trade more times to cash out what they want to sell or want to buy.

This is biggest barrier for adoption growth of truly decentralized exchanges but I hope that with more regulations from governments on KYC, AML and their lawsuits against Centralized exchanges, there will be more developments for DEX and higher demands to use DEX.

[Huppercase]

Yes, cryptocurrency is a decentralized currency that is not involve third party in the process of trading, government has no power to control the increase and decrease of the cryptocurrency in the market. There are many decentralized trading platform which you have the right to choose the one you like to trade your coins, and they have rules and conditions that guide the platform which you most follow when using the platform to trade your coins. If you have never use binance exchange to trade your coins, I will encourage you to try binance platform and you will enjoy their services, because they make their procedure more easy for their users not to make mistakes when using the platform to trade their coins.

You said decentralized are all cryptocurrency but there is a term and conditions that comes with trading them, where is now the decentralization you are taking about? Been decentralized means freedom to do how you want and you like it to be without anyone telling you how to do it, everything you do is under your reservation and approval and nobody can deny you such freedom. This is what decentralization means and not the other way round that condition must be given.

Some coins will say they are decentralized but they are not decentralized as they say. Some coins supply are been concentrated on team or some group of people and yet they called such coin to be decentralized. They are not, they are just using that expression to make people belive they are decentralized but in reality, they are not because even the government can direct them what to do and they have no choice but to obey, Bitcoin is exemption of this.

[dansus021]

decentralized trading platform is genius and I agree with you have said earlier, for me dex or decentralized trading is part of the crypto itself. Without dex crypro Just dont feel crypto in my opinion.

If i had choice or if there a market that can be fully running like cex and can deposit and withdraw easy like cex i would definitely going to use it.