When you put it that way, it is true that though we see the whole banking system as centralised, in terms of working principles and reporting, they are decentralised, which makes it difficult for individuals to understand all the laws governing these systems.
Decentralised systems are obviously more secure but my concern is the centralised part of the system. Like Bittrex, which is a centralised exchange for cryptos. If someone is able to prevent access to the system, all people using their services are down as well.
100% security is surely not possible and if governments start adding laws which can make that security even weaker then in some way we will be doomed for the future...
100% agree with you.
Bitshares comes to mind as an example and solution of a decentralized exchange relative and in comparison to Bittrex being centralized.
it is indeed a point of security in preventing the opportunity for abuse at the expense of others. That being said - i think we can have hybrid sort of models. In my opinion DPoS - delegated proof of stake is a hybrid model.
The beauty of DPoS is cooperation is incentivized in a way which promotes effective system functioning and network security.
steem and bitshares blockchains are practical examples
arguably - the issue with bitshares exchange thus far is it's volume - liquidity - coin availability - individual I think at this point - it's not well enough understood and is kind of a 'what comes first question - the chicken or the egg?"it is so ingrained into our thinking based on the nature of all our predominate systems of exchange to have a centralized model of government - it's like we humans almost don't know how to function as a decentralized trading platform exchange yet effectively.
shapeshift and blocktrades are interesting models - perhaps a decentralized exchange could function best like that but with the users collecting the fees...actually as i talk this out - this is the point in functionality for bitshares is that each person has a membership account and that you collect a piece of the fees....maybe not quite 100% aligned...i don't yet got full knowing of all function-ability of bitshares - i'm still fine tuning - but i really do think it's the kind of examples needed for the best benefit of all users of crypto exchanges.
I second the point where people don't know how to function as a decentralized trading platform.
They expect someone, like a government, to put out the laws and rules for them and then they will start something.
Fully decentralized systems are probably difficult to achieve but a hybrid model has all the bright future in front of it. People just need to understand and assess their risks properly.
ARK - is a coin that could play an interesting role in the future as it bridges blockchains together - making for ways of decentralize exchange. i think we are going to see a lot more ways of decentralize exchanging popping up - which is great!