Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: DearMary on March 01, 2023, 04:29:34 AM
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Proving their supremacy when it comes to investor security and prioritizing investor interests is where decentralized finance has the ability to shine.
For most retail crypto investors, centralized digital marketplaces like Binance, Coinbase, Kraken, and many more have been the preferred gateway to the world of cryptocurrency trading. However, as leaked customer data like the recent Gemini case and misappropriated funds like the FTX debacle continue to plague the space, crypto investors have been looking into alternatives. According to a Delphi Digital analysis following the FTX crash, DEX tokens saw a 24% uptick, and CEX tokens saw a 2% decline.
The lack of transparency in how CEX operations are run has become a major driver for this trend shift. What’s more, a lot of platforms claim complete decentralization when in fact, there’s a centralized element to them. But do DEXs have what it takes to take over the crypto exchange space?
Are DEXs better than CEXs?
The centralized control over customer funds that companies running CEXs have combined with a lack of transparency of what goes on behind the scenes at these businesses is the most concerning aspect of centralized trading at the moment. This centralization, unfortunately, allows for the misappropriation of customer funds to happen, as was the case with FTX.
The surge of automated market makers (AMMs) was led by Uniswap, showing the crypto world the potential of DEXs. Order book DEXs such as dYdX that use zk-rollups to implement order books off-chain introduced an alternative solution to replace centralized exchanges. The uprise in DEXs is just the beginning.
While offering users more convenience when transferring or swapping tokens, centralized exchange wallets are decidedly less secure than non-custodial storage solutions. DEXs offer their users flexibility when it comes to storing their crypto tokens and do not rely on their user’s crypto holdings to generate revenue or indulge in secondary transactions.
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Proving their supremacy when it comes to investor security and prioritizing investor interests is where decentralized finance has the ability to shine.
For most retail crypto investors, centralized digital marketplaces like Binance, Coinbase, Kraken, and many more have been the preferred gateway to the world of cryptocurrency trading. However, as leaked customer data like the recent Gemini case and misappropriated funds like the FTX debacle continue to plague the space, crypto investors have been looking into alternatives. According to a Delphi Digital analysis following the FTX crash, DEX tokens saw a 24% uptick, and CEX tokens saw a 2% decline.
The lack of transparency in how CEX operations are run has become a major driver for this trend shift. What’s more, a lot of platforms claim complete decentralization when in fact, there’s a centralized element to them. But do DEXs have what it takes to take over the crypto exchange space?
Are DEXs better than CEXs?
The centralized control over customer funds that companies running CEXs have combined with a lack of transparency of what goes on behind the scenes at these businesses is the most concerning aspect of centralized trading at the moment. This centralization, unfortunately, allows for the misappropriation of customer funds to happen, as was the case with FTX.
The surge of automated market makers (AMMs) was led by Uniswap, showing the crypto world the potential of DEXs. Order book DEXs such as dYdX that use zk-rollups to implement order books off-chain introduced an alternative solution to replace centralized exchanges. The uprise in DEXs is just the beginning.
While offering users more convenience when transferring or swapping tokens, centralized exchange wallets are decidedly less secure than non-custodial storage solutions. DEXs offer their users flexibility when it comes to storing their crypto tokens and do not rely on their user’s crypto holdings to generate revenue or indulge in secondary transactions.
Plagiarized from https://cointelegraph.com/news/fully-on-chain-order-book-dexs-as-the-future-of-defi
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Cryptops uses an on-chain order book to provide full blockchain verification of all transactions while also providing a censorship resistant DEX.
With Cryptops there is no need to use web browser plugins in order to "connect" to a hybrid off-chain order book to place orders and make trades. This web browser plugin method has a history of using IP blocking to restrict users access to the coins and tokens in their wallet.